Starbreeze AB (STU:2ST) Financial Strength: 4 (As of Mar. 2026) — 33% Above Median

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Director of Data and Quant Analytics at GuruFocus
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STU:2ST Starbreeze AB STU:2ST
30 GF Score
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! 4 Warning Signs
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What is Starbreeze AB Financial Strength?

Starbreeze AB STU:2ST +53.85% 30 Financial Strength is 4 as of Mar. 2026, which is 33% above its 10-year median of 3.00. GuruFocus rates STU:2ST with a GF Score™ of 30/100. The stock has 4 warning signs investors should review.

Starbreeze AB has the Financial Strength Rank of 4.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Starbreeze AB did not have earnings to cover the interest expense. Starbreeze AB's debt to revenue ratio for the quarter that ended in Mar. 2026 was 0.36. As of today, Starbreeze AB's Altman Z-Score is -16.10.


Starbreeze AB  (STU:2ST) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Starbreeze AB has the Financial Strength Rank of 4.


Starbreeze AB Financial Strength Related Terms


STU:2ST vs NTES, EA, TTWO: Financial Strength Comparison

For the Electronic Gaming & Multimedia subindustry, Starbreeze AB's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Starbreeze AB Financial Strength vs Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Starbreeze AB's Financial Strength distribution charts can be found below:

* The bar in red indicates where Starbreeze AB's Financial Strength falls into.


STU:2ST
30GF Score
Starbreeze AB STU:2ST
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
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Starbreeze AB Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Starbreeze AB's Interest Expense for the months ended in Mar. 2026 was €-0.04 Mil. Its Operating Income for the months ended in Mar. 2026 was €-5.31 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2026 was €2.16 Mil.

Starbreeze AB's Interest Coverage for the quarter that ended in Mar. 2026 is

Starbreeze AB did not have earnings to cover the interest expense.

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Starbreeze AB's Debt to Revenue Ratio for the quarter that ended in Mar. 2026 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2026 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1.346 + 2.164) / 9.86
=0.36

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Starbreeze AB has a Z-score of -16.10, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of -16.1 is in distress zone. This implies bankruptcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 4 mean?
Starbreeze AB (STU:2ST) has a Financial Strength of 4 as of Mar. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Starbreeze AB and its competitors. This is 33% above median its historical median of 3.00. Over the past decade, Starbreeze AB's Financial Strength has ranged from 1.00 to 9.00.
Is Starbreeze AB's Financial Strength too high?
Starbreeze AB's current Financial Strength of 4 is 33% above median its 10-year median of 3.00. Over the past 10 years, this metric has ranged from a low of 1.00 to a high of 9.00. Overall, Starbreeze AB has a GF Score™ of 30/100, reflecting its overall financial health beyond just this single metric.
How does Starbreeze AB's Financial Strength compare to NTES and EA?
Starbreeze AB's Financial Strength of 4 can be compared against companies in the Interactive Media industry. Historically, Starbreeze AB's own Financial Strength has ranged from 1.00 to 9.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for an Interactive Media company?
A good Financial Strength depends on the Interactive Media industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Starbreeze AB and its competitors. Starbreeze AB's current Financial Strength is 4, which is 33% above median its own 10-year median of 3.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Starbreeze AB stock overvalued right now?
Starbreeze AB (STU:2ST) has a current Financial Strength of 4. The current Financial Strength is 4, which is 33% above median its 10-year median of 3.00. Starbreeze AB's overall GF Score™ is 30/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Starbreeze AB (STU:2ST), the current Financial Strength is 4 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Starbreeze AB Business Description

Address Birger Jarlsgatan 61, Box 7731, Stockholm, SWE, 10395
Starbreeze AB is a creator, publisher, and distributor of entertainment products. It mainly develops and publishes games for the Console, PC, and Mobile gaming markets. Its reportable segments are; game development, game sales, third-party publishing, and licensing. The Game Sales segment consists of games developed in-house by Starbreeze. The revenue also consists of sales revenue and royalties from the rights to PAYDAY.
30GF Score

Get the complete analysis for STU:2ST

Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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