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Stock Analysis & ValuationPullup Entertainment S.A. (ALPUL.PA)

Professional Stock Screener
Previous Close
13.80
Sector Valuation Confidence Level
Low
Valuation methodValue, Upside, %
Artificial intelligence (AI)80.77485
Intrinsic value (DCF)21116.87152921
Graham-Dodd Method22.0760
Graham Formula280.971936

Strategic Investment Analysis

Company Overview

Pullup Entertainment SA is a leading French video game developer and publisher specializing in multi-platform gaming experiences. Headquartered in Paris, the company creates and distributes games for consoles (PlayStation, Xbox, Nintendo Switch), PC, and mobile devices (iOS, Android). Founded in 1995, Pullup Entertainment operates in the dynamic Electronic Gaming & Multimedia sector, leveraging both physical and digital distribution channels, including direct downloads and subscription services like Xbox Game Pass. With a market cap of €161 million, the company focuses on delivering engaging content across diverse gaming ecosystems. Despite recent net losses, its €188 million revenue and €46 million operating cash flow demonstrate ongoing commercial activity in the competitive global gaming market. Pullup's presence in the technology-driven gaming industry positions it at the intersection of entertainment and interactive media, a sector experiencing sustained growth driven by digital adoption and expanding global gaming audiences.

Investment Summary

Pullup Entertainment presents a mixed investment profile. The company operates in the high-growth gaming industry but reported a net loss of €19.9 million and negative EPS of -€3.22 for FY2024. While its €188 million revenue indicates market traction, significant capital expenditures (-€82.3 million) and substantial debt (€156 million) raise financial stability concerns. The positive operating cash flow (€46.1 million) suggests core operations generate cash, but the beta of 0.633 indicates lower volatility than the market. Investors may be attracted to Pullup's multi-platform distribution strategy and presence in console/PC/mobile gaming segments, but should carefully monitor debt levels and profitability improvements. The lack of dividends reflects reinvestment priorities. The stock may appeal to growth-oriented investors bullish on European gaming sector recovery.

Competitive Analysis

Pullup Entertainment competes in the fragmented global gaming market against both AAA publishers and indie studios. Its competitive position hinges on mid-tier publishing capabilities across multiple platforms, avoiding direct competition with blockbuster franchises while maintaining broader reach than niche developers. The company's French/European base provides cultural differentiation in game development and access to regional talent, though it lacks the scale of US/Asian giants. Pullup's multi-platform approach (console/PC/mobile) diversifies revenue streams but requires sustained R&D across incompatible ecosystems. The capital-intensive nature of game development—evidenced by high capex—creates barriers to entry but also strains finances against larger competitors with deeper war chests. While digital distribution reduces reliance on retail partners, discoverability challenges persist in crowded marketplaces. The company's €155 million debt load may limit strategic flexibility compared to cash-rich peers. Pullup's opportunity lies in cultivating owned IP with recurring revenue potential (DLC, subscriptions), though its current portfolio lacks evident breakout hits. Success depends on balancing creative risks with financial discipline in an industry where hit-driven economics favor scale players.

Major Competitors

  • Ubisoft Entertainment SA (UBI.PA): Ubisoft is France's gaming leader (€2.3B FY23 revenue) with major franchises like Assassin's Creed. Its strengths include AAA production capabilities and global studios, but suffers from bloated development costs and delayed releases. Compared to Pullup, Ubisoft has superior scale but faces greater pressure to deliver billion-dollar hits.
  • Electronic Arts Inc. (EA): EA dominates sports (FIFA, Madden) and live-service games with $7.4B revenue. Its strengths are recurrent revenue models and licensed IP, but struggles with microtransaction controversies. EA's resources dwarf Pullup's, competing for similar mid-core audiences but with far greater marketing muscle.
  • Focus Entertainment (TEFOF): Another French mid-sized publisher (€195M FY23 revenue) specializing in AA titles like A Plague Tale. Similar to Pullup in scale and multi-platform focus, but with stronger recent critical hits. Focus' tighter portfolio may allow better resource allocation versus Pullup's broader approach.
  • Nintendo Co., Ltd. (NTDOY): The Switch platform leader ($12B revenue) competes indirectly through first-party exclusives. Nintendo's strengths are unmatched IP (Mario, Zelda) and hardware integration, but lacks multi-platform presence. Pullup's cross-platform games complement rather than challenge Nintendo's walled garden.
  • Take-Two Interactive Software, Inc. (TTWO): Owner of Rockstar (GTA) and 2K Sports ($5.3B revenue). Strengths include genre-defining franchises and online ecosystems, but relies heavily on few properties. Take-Two operates at a different scale than Pullup, though both pursue multi-platform strategies.
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