Fractal Gaming Group AB (publ) (FRACTL.ST) fair value

ACCE thesis

Fractal Gaming Group makes gaming hardware and peripherals under its own brands, sold largely through retail and online channels in the Nordics and Europe. Revenue fell 65.3% over the latest period, and operating margin of -41.9% shows the cost base has not yet been reset to match, so the business is shrinking and loss-making at once. The 37.5% gross margin suggests the product mix still earns a reasonable spread per unit, which means the problem is volume and overhead rather than pricing alone. The stock trades on a forward P/E of 7.5 despite a negative ROE of -5.9%, so the market is either pricing in a sharp earnings recovery or doubting the forecasts, and that gap is the question worth testing. This is a turnaround screen at 394M SEK market cap with no index membership; it merits a deeper look only if the cost reset and inventory position can be verified from the filings.