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AMTD IDEA Group (AMTD)
NYSE:AMTD
US Market

AMTD IDEA Group (AMTD) AI Stock Analysis

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AMTD IDEA Group

(NYSE:AMTD)

Rating:64Neutral
Price Target:
AMTD IDEA Group's stock is evaluated at a score of 64, reflecting a mixed outlook. The strong balance sheet and low valuation suggest potential, but are offset by declining revenue and weak cash flows. Technical indicators point to a possible bearish trend, warranting a cautious approach. Investors should monitor revenue and cash flow improvements closely.

AMTD IDEA Group (AMTD) vs. SPDR S&P 500 ETF (SPY)

AMTD IDEA Group Business Overview & Revenue Model

Company DescriptionAMTD 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 MoneyAMTD 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 and a robust balance sheet with low leverage and high equity provide stability. However, a significant revenue decline and weakened cash flow generation pose potential risks. Continued focus on revenue growth and cash flow management will be crucial for sustaining long-term financial health.
Income Statement
65
Positive
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
78
Positive
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
70
Positive
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
28.02M54.07M122.72M22.42M177.64M141.51M
Gross Profit
28.02M24.45M157.25M21.51M177.47M141.25M
EBIT
1.05M26.04M91.83M17.33M154.76M114.16M
EBITDA
-11.38M75.49M102.06M155.74M172.90M131.91M
Net Income Common Stockholders
82.68M51.04M142.99M18.23M157.22M146.92M
Balance SheetCash, Cash Equivalents and Short-Term Investments
781.54M87.86M120.23M138.16M67.49M58.56M
Total Assets
5.05B2.07B1.49B1.06B857.67M1.36B
Total Debt
343.25M283.49M96.55M457.24K16.13M14.99M
Net Debt
-425.61M220.62M-23.69M-137.70M-51.37M-43.56M
Total Liabilities
4.10B369.89M193.02M58.25M115.17M103.47M
Stockholders Equity
952.01M1.59B1.29B969.74M740.50M1.25B
Cash FlowFree Cash Flow
19.95M5.15M39.91M26.80M55.76M257.19M
Operating Cash Flow
19.99M5.16M39.98M26.80M55.76M257.21M
Investing Cash Flow
-133.48M-45.34M-266.97M-73.88M-46.00M-461.96M
Financing Cash Flow
104.67M-17.34M209.35M117.52M-854.11K164.39M

AMTD IDEA Group Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.98
Price Trends
50DMA
1.03
Negative
100DMA
1.05
Negative
200DMA
1.17
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
38.75
Neutral
STOCH
50.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMTD, the sentiment is Negative. The current price of 0.98 is below the 20-day moving average (MA) of 1.01, below the 50-day MA of 1.03, and below the 200-day MA of 1.17, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 38.75 is Neutral, neither overbought nor oversold. The STOCH value of 50.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AMTD.

AMTD IDEA Group Risk Analysis

AMTD IDEA Group disclosed 66 risk factors in its most recent earnings report. AMTD IDEA Group reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
Our financial information prepared under U.S. GAAP may not be comparable to our financial information prepared under IFRS. Q4, 2023
2.
We may have exposure to greater than anticipated tax liabilities. Q4, 2023
3.
We face significant competition in all aspects of our business. Q4, 2023

AMTD IDEA Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
PXPX
73
Outperform
$1.31B75.985.24%1.20%18.92%
WTWT
73
Outperform
$1.39B28.1510.77%1.26%20.66%-47.25%
73
Outperform
$1.22B10.4813.66%4.90%0.63%1.46%
68
Neutral
$1.09B14.628.52%10.76%4.85%-37.38%
65
Neutral
$1.17B10.958.11%12.07%-3.55%-20.43%
64
Neutral
$1.12B1.4211.11%
64
Neutral
$12.66B9.797.67%17015.07%12.23%-6.06%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AMTD
AMTD IDEA Group
0.98
-0.71
-42.01%
PX
P10 Holdings
11.19
3.17
39.53%
CSWC
Capital Southwest
20.59
-2.16
-9.49%
NMFC
New Mountain Finance
10.55
-0.63
-5.64%
VRTS
Virtus Investment Partners
169.10
-50.74
-23.08%
WT
WisdomTree
9.48
-0.20
-2.07%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.