| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 27.30 | 22938 |
| Intrinsic value (DCF) | 45.99 | 38710 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Atari SA (0KUV.L) is a globally recognized interactive entertainment and licensing company headquartered in Paris, France. With a storied history dating back to 1972, Atari owns and manages a portfolio of approximately 200 iconic games and franchises, including Asteroids, Centipede, Missile Command, Pong, and RollerCoaster Tycoon. The company operates across multiple platforms, offering video games, monetization through various channels, multimedia production, and licensing activities. Atari has also ventured into blockchain technology with Atari Blockchain, developing NFTs and the Atari Token ecosystem. Additionally, the company markets the Atari VCS, a retro-inspired videogame computer system. Atari SA, formerly known as Infogrames Entertainment SA, rebranded in 2009 to leverage its legendary gaming heritage. Operating in the competitive Media & Entertainment sector under the broader Technology industry, Atari continues to capitalize on its strong brand recognition and intellectual property portfolio.
Atari SA presents a high-risk, high-reward investment opportunity. The company benefits from strong brand recognition and a valuable IP portfolio, but its financials reveal significant challenges, including a net loss of €13.5 million and negative operating cash flow of €4.3 million in the latest fiscal year. The company's foray into blockchain and NFTs could offer growth potential, but these sectors are highly speculative. With a negative beta of -0.032, Atari's stock may exhibit low correlation with broader market movements, which could appeal to certain investors. However, the lack of dividends and substantial total debt of €46.1 million raise concerns about financial stability. Investors should weigh Atari's iconic brand and growth initiatives against its financial struggles and the competitive gaming landscape.
Atari SA operates in a highly competitive and rapidly evolving industry dominated by larger players with significantly greater resources. The company's primary competitive advantage lies in its iconic brand and extensive library of classic games, which continue to resonate with nostalgic gamers. Atari's strategy of leveraging its IP through licensing, re-releases, and new platforms (including blockchain) allows it to monetize its legacy content in innovative ways. However, Atari lacks the development scale and resources of major gaming publishers, limiting its ability to compete in the AAA game market. The Atari VCS positions the company in the niche retro gaming hardware market, competing with products like Nintendo's Classic Edition consoles. Atari's blockchain initiatives face competition from specialized crypto gaming platforms. The company's small size (€68.4 million market cap) makes it vulnerable to industry consolidation. Atari's challenge is to balance monetization of its classic IP with development of new revenue streams while managing financial constraints.