UBISOFT ENTERTAINMENT (UBI.PA) Stock Fundamental Analysis

Europe • Euronext Paris • EPA:UBI • FR0000054470

4.371 EUR

-0.34 (-7.14%)

Last: Jan 30, 2026, 07:00 PM

Fundamental Rating

Overall UBI gets a fundamental rating of 4 out of 10. We evaluated UBI against 46 industry peers in the Entertainment industry. UBI has an average financial health and profitability rating. UBI has a valuation in line with the averages, but it does not seem to be growing.

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1. Profitability

1.1 Basic Checks

UBI had negative earnings in the past year.
UBI had a positive operating cash flow in the past year.
In multiple years UBI reported negative net income over the last 5 years.
Each year in the past 5 years UBI had a positive operating cash flow.

1.2 Ratios

Looking at the Return On Assets, with a value of -1.71%, UBI is in line with its industry, outperforming 52.17% of the companies in the same industry.
UBI's Return On Equity of -4.71% is in line compared to the rest of the industry. UBI outperforms 56.52% of its industry peers.
UBI's Return On Invested Capital of 2.04% is fine compared to the rest of the industry. UBI outperforms 60.87% of its industry peers.

		Industry Rank	Sector Rank
ROA	-1.71%
ROE	-4.71%
ROIC	2.04%

ROA(3y)-3.63%

ROA(5y)-1.44%

ROE(3y)-11.29%

ROE(5y)-4.65%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

With a decent Operating Margin value of 5.87%, UBI is doing good in the industry, outperforming 67.39% of the companies in the same industry.
The Gross Margin of UBI (89.78%) is better than 82.61% of its industry peers.
UBI's Gross Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	5.87%
PM (TTM)	N/A
GM	89.78%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y0.76%

GM growth 5Y1.21%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

UBI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
UBI has more shares outstanding than it did 1 year ago.
The number of shares outstanding for UBI has been increased compared to 5 years ago.
UBI has a better debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of 0.97, we must say that UBI is in the distress zone and has some risk of bankruptcy.
UBI's Altman-Z score of 0.97 is in line compared to the rest of the industry. UBI outperforms 50.00% of its industry peers.
UBI has a debt to FCF ratio of 2.65. This is a good value and a sign of high solvency as UBI would need 2.65 years to pay back of all of its debts.
UBI has a Debt to FCF ratio of 2.65. This is in the better half of the industry: UBI outperforms 65.22% of its industry peers.
UBI has a Debt/Equity ratio of 1.11. This is a high value indicating a heavy dependency on external financing.
UBI has a Debt to Equity ratio (1.11) which is in line with its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	1.11
Debt/FCF	2.65
Altman-Z	0.97

ROIC/WACC0.37

WACC5.53%

2.3 Liquidity

UBI has a Current Ratio of 1.18. This is a normal value and indicates that UBI is financially healthy and should not expect problems in meeting its short term obligations.
UBI has a better Current ratio (1.18) than 71.74% of its industry peers.
UBI has a Quick Ratio of 1.17. This is a normal value and indicates that UBI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.17, UBI is in the better half of the industry, outperforming 71.74% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.18
Quick Ratio	1.17

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The earnings per share for UBI have decreased strongly by -131.28% in the last year.
The Revenue for UBI has decreased by -11.78% in the past year. This is quite bad
The Revenue has been growing slightly by 3.56% on average over the past years.

EPS 1Y (TTM)-131.28%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%36.68%

Revenue 1Y (TTM)-11.78%

Revenue growth 3Y-3.68%

Revenue growth 5Y3.56%

Sales Q2Q%2.41%

3.2 Future

UBI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.97% yearly.
UBI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.55% yearly.

EPS Next Y2.85%

EPS Next 2Y77.82%

EPS Next 3Y56.72%

EPS Next 5Y29.97%

Revenue Next Year-4.24%

Revenue Next 2Y3.67%

Revenue Next 3Y4.45%

Revenue Next 5Y3.55%

3.3 Evolution

The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

UBI reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 6.72, the valuation of UBI can be described as very cheap.
Based on the Price/Forward Earnings ratio, UBI is valued cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, UBI is valued rather cheaply.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	6.72

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, UBI is valued cheaper than 91.30% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, UBI is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	0.75
EV/EBITDA	3.43

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates UBI does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as UBI's earnings are expected to grow with 56.72% in the coming years.