One-glance verdict
Undervalued
$2.48 our estimate vs market $1.82
Wall Street consensus: $17.50 (605.9% higher than our fair-value estimate)
27% below our estimate, below the bear case
Fundamentals snapshot
Snail, Inc.
SNAL · NCM · Communication Services · Electronic Gaming & Multimedia
Current price
$1.82
52-week range
$1.70 - $10.80
Market cap
$16.30M
Balance sheet
Healthy
-23.83x Concerning
Net cash $420.07K. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
3 Risks
2 rewards · 3 risks
- Reward Revenue grew 5.8% last year.
- Reward Free cash flow was positive in 1/10 years.
- Risk Net debt grew 15.7% over 3 years.
- Risk Insider ownership is only 4.9% (peer median: 20.5%).
What this company does
Snail, Inc.
Snail, Inc. creates and sells video games and related digital content for consoles, computers, and phones. Most of its money comes from selling these games and in-game purchases, which are important because it shows how popular their games are with players. The company's success relies on making games people want to buy and play.
How the company got here
Snail, Inc. was founded in 2009 and has grown into a global developer and publisher of interactive digital entertainment. The company started in China and has since expanded its operations, including a U.S. headquarters in Culver City, California. Snail, Inc. has a history of developing and publishing various game genres, including massively multiplayer online (MMO) games, real-time strategy (RTS) games, and casual games. A significant part of its success has been driven by its flagship franchise, ARK: Survival Evolved, which has achieved substantial sales and player engagement across PC and console platforms. The company has also been involved in exploring new technologies and digital experiences, aiming to innovate within the gaming landscape.
What it actually does
Snail, Inc. creates and distributes video games for a variety of platforms, including game consoles, personal computers (PCs), mobile phones, and tablets. They develop their own games and also publish games created by other developers. The company's offerings include the games themselves, as well as related content and support services for players. Their business model focuses on engaging players with high-quality entertainment experiences across different gaming genres and platforms.
Snail Games
Snail Games is the primary development and publishing arm of Snail, Inc., responsible for creating and bringing a wide range of interactive digital entertainment to consumers worldwide. This segment focuses on developing premium games for various platforms like consoles, PCs, and mobile devices. A key highlight of Snail Games is its successful ARK franchise, which has seen millions of installs and significant player engagement. They also work on new titles, such as the airship building RPG 'Echoes of Elysium,' and collaborate on content like the 'ARK x Teenage Mutant Ninja Turtles' cosmetic pack to keep players engaged with their existing games.
Wandering Wizard
Wandering Wizard is Snail, Inc.'s indie publishing branch, dedicated to supporting and promoting independent game developers from around the globe. This segment actively seeks out unique projects that showcase creativity and offer fresh perspectives in the gaming world. Wandering Wizard provides a platform for these smaller studios, helping them bring their innovative games to a wider audience. Recent examples include 'Rebel Engine,' a fast-paced shooter developed in collaboration with an Argentinian studio, and 'Above the Snow,' which received an award for Best Polish Game.
Interactive Films
Interactive Films is a division of Snail, Inc. that focuses on vertical drama and storytelling, primarily for mobile devices. This segment produces short-form content through its platform called Salty TV, offering episodic stories directly to consumers. To further engage audiences and create additional revenue streams, Interactive Films also adapts these short stories into interactive, first-person games. This approach allows them to entertain users through both passive viewing and active gameplay experiences.
What management is betting on now
Snail, Inc.'s management is focused on several key strategies to drive future growth and innovation. They are investing in expanding their intellectual property (IP) across different media formats and technology platforms, leveraging their expertise in game development and online multiplayer games. A significant area of focus is the continued development and community engagement within their core ARK ecosystem, including collaborations and new content. Additionally, Snail is exploring emerging technologies like Artificial Intelligence (AI) to create more immersive game worlds with interactive non-player characters (NPCs) and is investigating the potential of decentralized tools to support player economies and creator compensation. The company is also committed to nurturing indie developers through its Wandering Wizard branch and expanding its reach in interactive storytelling with its Interactive Films division.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q3
$6.55M
FY2025 Q4
$-5.31M
Revenue
$19.68M
Net income
$-3.04M
Diluted EPS
—
Operating cash flow
$-3.35M
Free cash flow
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Sources
Revenue
$27.29M
Net income
$2.13M
Diluted EPS
—
Operating cash flow
$10.21M
Free cash flow
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Sources
Revenue
$25.11M
Net income
$-862.15K
Diluted EPS
—
Operating cash flow
$-5.30M
Free cash flow
$-5.31M
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Sources
Revenue
$13.82M
Net income
$-7.86M
Diluted EPS
—
Operating cash flow
$6.56M
Free cash flow
$6.55M
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Sources
Revenue
$22.19M
Net income
$-16.56M
Diluted EPS
-0.44
Operating cash flow
$-3.18M
Free cash flow
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Sources
Revenue
$20.11M
Net income
$-1.95M
Diluted EPS
-0.06
Operating cash flow
$764.55K
Free cash flow
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Sources
Revenue
$26.21M
Net income
$1.12M
Diluted EPS
0.03
Operating cash flow
$-3.60M
Free cash flow
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Sources
Revenue
$22.53M
Net income
$235.15K
Diluted EPS
0.01
Operating cash flow
$-4.95M
Free cash flow
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Sources
Is it cheap or expensive?
Fair value $2.48 vs current price $1.82
Wall Street consensus is the average analyst price target: $17.50 (605.9% higher than our fair-value estimate).
Our most-likely fair value is $2.48 a share — about 36.2% above today's price of $1.82, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $420,071 - more cash than debt. Interest coverage -23.8x.
Net debt
$-420.07K
Interest coverage
-23.83x
Snail, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
SNAL
BASELINE
Snail, Inc.
Total debt $12.87M Interest coverage -23.83x This is the baseline the peer rows are being compared against.
Total debt $5.45M Interest coverage -10.62x Neither company has much profit cushion over interest right now.
Total debt $1.43M Interest coverage 172.94x This peer still has a real interest-payment cushion, while SNAL does not.
Total debt $2.58M Interest coverage 2.53x This peer still has a real interest-payment cushion, while SNAL does not.
Total debt $18.82M Interest coverage -17.92x Neither company has much profit cushion over interest right now.
Total debt $1.25M Interest coverage 2.34x This peer still has a real interest-payment cushion, while SNAL does not.
What you should know
The case for and against SNAL
2 Rewards
3 Risks
Rewards
-
Revenue grew 5.8% last year.
-
Free cash flow was positive in 1/10 years.
Risks
-
Net debt grew 15.7% over 3 years.
-
Insider ownership is only 4.9% (peer median: 20.5%).
-
Operating margin compressed from -2.2% to -13.1% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
13.00x
P/B
-1.40x
P/S
0.19x
EV/EBITDA
-1.10x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
33.7%
Operating margin
-13.1%
Net margin
-11.2%
ROE
—
ROA
-11.6%
Health
Liquidity and balance-sheet strength
Debt / equity
—
Current ratio
0.55x
Quick ratio
0.40x
Total debt
$12.87M
Total cash
$13.29M
Growth
How the business has been compounding
Revenue TTM
$85.90M
Revenue 5Y CAGR
2.9%
EPS TTM
-1.26
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$8.12M
Free CF TTM
$-6.40M
FCF margin
-7.5%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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