Deep Value: cash covers about 97% of the stock price

This company holds roughly $37M in cash and investments — about 97% of its entire stock-market value, based on its latest quarterly filing. You're paying very little for the actual business. Sometimes that's a genuine bargain or a takeover target, sometimes it's cheap for a reason. Not a buy signal on its own — always ask why it's this cheap.

Devolver Digital

DEVO.L

Electronic Gaming & Multimedia · Technology

Price

8.25 GBp

+0.50 (+6.45%)

Market Cap

£40.1M

Exchange

London Stock Exchange

Winston Score

Winston is worried

Below-average fundamentals — multiple weak pillars.

Data as of Aug 23, 2026 · filings through Dec 31, 2025

How the score breaks down

Quality

Weak

Growth

Mixed

Cash Flow

Mixed

Stability

Data not available

Valuation

Data not available

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Share count rising — dilution

+16.2% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 408.4M (2021) → 474.5M (2025)

Winston Score History

The full picture

Devolver Digital is an independent video game publisher based in Austin, Texas. It finds small, creative game studios around the world and helps them release their games on platforms like PC (Steam), PlayStation, Xbox, and Nintendo Switch. The company is known for publishing quirky, offbeat titles such as Hotline Miami, Cult of the Lamb, and Fall Guys (which it later sold to Epic Games).

Devolver makes money by funding game development and then taking a share of sales revenue when those games are sold to players. It operates globally but is a small player in the gaming industry, with a market cap of around $100 million. Its edge comes from a loyal fanbase that trusts its taste in unconventional games, but the business is risky because game sales are unpredictable — one flop can hurt the whole company. With thin margins and a negative operating margin, Devolver's main challenge is consistently finding and publishing games that sell well enough to turn a profit.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+30.5% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

-181.1% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (15%)

Research and development spending

Insider Activity

63.6%ownership

↑ Rising

Insiders increasing their stake — aligned with shareholders

Cash Position

Cash flow positive

$37M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Devolver Digital grew revenue 31% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

30.3%

Modest — 30.3% gross margin

Profit after running costs

Operating Margin

1.3%

Thin — 1.3% operating margin

Return on the money invested

ROCE

-2.1%

Weak — -2.1% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales growth

Sales YoY

+5.4%

Slow sales growth (+5.4% YoY)

Profit growth

EPS YoY

N/A

Data not available

How steady the profit is

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash

Cash Conversion

N/A

—

Data not available

Spare cash per sale

FCF Margin

27.4%

Converts sales into free cash efficiently (27.4%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns

Debt / Equity

N/A

Data not available

Covers its interest

Interest Cover

N/A

Data not available

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Valuation

Price vs profit

P/E Ratio (TTM)

N/M

—

Negative earnings — P/E not meaningful

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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