AMTD IDEA Group (AMTD) AI Stock Analysis

• Market Cap: $1.13B
• Dividend Yield: N/A
• Average Volume (3M): 36.15K
• Price to Earnings (P/E): 1.5
• Beta (1Y): 0.63
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 214
• Sector: Financial
• Sector Strength: 73
• Industry: Asset Management
• EPS (TTM): 0.09
• Shares Outstanding: 40,460,957
• 10 Day Avg. Volume: 23,420
• 30 Day Avg. Volume: 36,151
• PEG Ratio: >-0.01
• Price to Book (P/B): <0.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.51
• Enterprise Value/Market Cap: 0.20
• Enterprise Value/Revenue: 0.59
• Enterprise Value/Gross Profit: 9.34
• Enterprise Value/Ebitda: 1.09
• 1Y Price Target: $1.00
• Price Target Upside: -5.66% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: $1.00 ▼(-5.66%Downside)

AMTD's stock score reflects a balance of strong valuation and financial stability against challenges in revenue growth and cash flow. The low P/E ratio indicates potential for capital gains, while the mixed technical signals and declining revenue suggest caution. Strong profitability and a solid balance sheet provide a buffer against operational challenges.

AMTD IDEA Group Business Overview & Revenue Model

Company Description

AMTD IDEA Group, an investment holding company, engages in investment banking activities in Hong Kong, Mainland China, the United States, and internationally. The company operates through three segments: Investment Banking, Asset Management, and Strategic Investment. It offers a range of investment banking services, including equity underwriting, debt underwriting, securities brokerage, institutional sales and distribution, and research, as well as advisory services on credit rating, financing, and mergers and acquisitions transactions. The company also provides professional investment management and advisory services primarily to corporate and other institutional clients. In addition, it makes long-term strategic investments focusing on Asia's financial and new economy sectors. The company was formerly known as AMTD International Inc. AMTD IDEA Group was incorporated in 2019 and is based in Central, Hong Kong. AMTD IDEA Group operates as a subsidiary of AMTD Group Company Limited.

How the Company Makes Money

AMTD IDEA Group generates revenue through multiple streams. Its investment banking division earns fees from advisory services for mergers and acquisitions, underwriting services for equity and debt offerings, and other corporate finance activities. The asset management arm collects management and performance fees from managing investment funds and portfolios for clients. Additionally, the company has expanded into digital financial services, where it derives income from digital banking solutions and fintech partnerships. Strategic investments in various sectors also contribute to income through dividends and capital gains. Key partnerships with leading financial institutions and technology companies enhance its service capabilities and market reach, further driving revenue growth.

AMTD IDEA Group Financial Statement Overview

Summary

AMTD IDEA Group displays a mixed financial performance. Strong profitability margins are offset by a significant revenue decline and weakened cash flow generation. The balance sheet remains robust with low leverage and high equity, providing some stability. Revenue growth and cash flow management are key areas for improvement.

Income Statement

The company's income statement shows a significant drop in revenue in the most recent year, falling from $122.7 million to $54.1 million, indicating a negative revenue growth rate. Despite a lower revenue base, the company achieved a strong gross profit margin of 45.2% and an impressive net profit margin of 94.4%, suggesting effective cost management and operational efficiency. However, the declining revenue trend poses a potential risk to future profitability.

Balance Sheet

AMTD IDEA Group maintains a solid balance sheet with low leverage, evidenced by a debt-to-equity ratio of 0.18. The company's equity ratio is strong at 76.9%, indicating substantial financial stability and a strong equity base. Return on equity is robust at 32.1%, suggesting effective use of shareholders' funds. However, the decrease in cash and cash equivalents over the years could affect liquidity.

Cash Flow

The cash flow statement reflects a challenging year with operating cash flow dropping significantly to $5.16 million. The free cash flow growth rate is negative, denoting a decrease in cash generation capability. However, the company maintains a free cash flow to net income ratio of 0.10, indicating some ability to convert profits into cash. The cash flow situation requires monitoring to ensure future operational flexibility.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	54.07M	122.72M	22.42M	177.64M	141.51M
Gross Profit	24.45M	157.25M	21.51M	177.47M	141.25M
EBITDA	75.49M	102.06M	155.74M	172.90M	131.91M
Net Income	51.04M	142.99M	18.23M	157.22M	146.92M
Balance Sheet
Total Assets	2.07B	1.49B	1.06B	857.67M	1.36B
Cash, Cash Equivalents and Short-Term Investments	87.86M	120.23M	138.16M	67.49M	58.56M
Total Debt	283.49M	96.55M	457.24K	16.13M	14.99M
Total Liabilities	369.89M	193.02M	58.25M	115.17M	103.47M
Stockholders Equity	1.59B	1.29B	969.74M	740.50M	1.25B
Cash Flow
Free Cash Flow	5.15M	39.91M	26.80M	55.76M	257.19M
Operating Cash Flow	5.16M	39.98M	26.80M	55.76M	257.21M
Investing Cash Flow	-45.34M	-266.97M	-73.88M	-46.00M	-461.96M
Financing Cash Flow	-17.34M	209.35M	117.52M	-854.11K	164.39M

AMTD IDEA Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMTD, the sentiment is Neutral. The current price of 1.06 is above the 20-day moving average (MA) of 1.03, above the 50-day MA of 1.02, and below the 200-day MA of 1.11, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 51.11 is Neutral, neither overbought nor oversold. The STOCH value of 37.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AMTD.

AMTD IDEA Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CSWC	76 Outperform	$1.27B	15.84	8.52%	11.76%	13.86%	-29.53%
VRTS	73 Outperform	$1.48B	10.40	16.46%	4.38%	0.66%	36.96%
AMTD	70 Outperform	$1.13B	1.49	11.11%	―	―	―
PX	70 Outperform	$1.36B	78.84	5.24%	1.16%	18.92%	―
WT	70 Outperform	$2.02B	40.35	10.77%	0.88%	20.66%	-47.25%
Sector *	68 Neutral	$17.10B	11.19	9.70%	3.58%	11.11%	-4.55%
NMFC	65 Neutral	$1.15B	10.74	8.11%	12.37%	-3.55%	-20.43%