AtlasClear Holdings (ATCH) AI Stock Analysis

• Market Cap: $3.38M
• Dividend Yield: N/A
• Average Volume (3M): 7.50M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.39
• Revenue Growth: N/A
• EPS Growth: -8852.46%
• Country: US
• Employees: 51
• Sector: Financial
• Sector Strength: 84
• Industry: Software - Infrastructure
• EPS (TTM): -625.50
• Shares Outstanding: 6,244,125
• 10 Day Avg. Volume: 478,701
• 30 Day Avg. Volume: 7,499,066
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.46
• Price to Cash Flow (P/CF): 0.50
• P/FCF Ratio: 0.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

AtlasClear Holdings receives a low overall stock score due to its financial instability and negative earnings, as reflected in the poor financial performance score. Technical analysis further indicates a bearish trend with the stock trading well below key moving averages and approaching oversold conditions. The valuation is unattractive with a negative P/E ratio and no dividend yield. These factors paint a challenging picture for potential investors.

AtlasClear Holdings Business Overview & Revenue Model

Company Description

AtlasClear Holdings, Inc. focuses on operating as a technology enabled financial services firm. It creates a platform for trading, clearing, settlement, and banking of financial products with a focus on the small and middle market financial services firms. The company is based in Tampa, Florida.

How the Company Makes Money

AtlasClear Holdings makes money through a multi-faceted revenue model that includes management fees from investment portfolios, advisory fees from financial consulting services, and technology licensing fees from its proprietary financial technology solutions. Key revenue streams also involve performance-based incentives tied to investment outcomes and strategic partnerships with other financial institutions to expand its product offerings. The company's earnings are bolstered by its broad client base and its ability to leverage technology to provide scalable and efficient financial solutions.

AtlasClear Holdings Financial Statement Overview

Summary

AtlasClear Holdings is under financial distress, with significant operating losses and a negative equity position. Despite a strong gross profit margin, the company's inability to control operational costs and generate positive cash flow poses serious concerns. The balance sheet shows solvency issues with negative equity, while cash flow statements highlight inefficiencies in cash management. Improvements in operational efficiency and revenue growth are critical for financial recovery.

Income Statement

AtlasClear Holdings shows significant volatility in revenue and profitability. The TTM (Trailing-Twelve-Months) period saw a revenue of $9.55M but experienced heavy losses with a net income of -$109.88M. The gross profit margin is 64.42%, indicating efficiency in managing production costs. However, negative EBIT and EBITDA margins reflect substantial operating losses, raising concerns about operational efficiency. The lack of revenue growth compared to prior periods suggests challenges in expanding the business.

Balance Sheet

The company's financial stability is weak, with a negative stockholders' equity of -$23.2M indicating insolvency risks. The debt-to-equity ratio cannot be calculated due to negative equity, which is a red flag. The equity ratio is also negative, highlighting the company's reliance on liabilities. Despite a reasonable cash position of $6.88M, the high total liabilities overshadow it.

Cash Flow

AtlasClear Holdings exhibits a challenging cash flow situation with negative operating cash flow of -$11.04M in the TTM period. The negative free cash flow of -$11.34M further indicates difficulties in generating cash organically. The free cash flow to net income ratio is not favorable due to substantial net losses, suggesting poor cash conversion efficiency.

Breakdown
TTM	Dec 2023	Jun 2023	Jun 2022	Dec 2020
Income Statement		Total Revenue
9.55M	0.00	9.09M	13.31M	0.00
	Gross Profit
6.16M	0.00	1.53M	3.60M	0.00
	EBIT
-16.28M	-2.74M	-3.02M	-3.40M	-21.68K
	EBITDA
-104.14M	1.52M	3.28M	0.00	0.00
	Net Income Common Stockholders
-109.88M	794.95K	11.05M	-5.70M	-21.68K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
27.56M	619.55K	129.56K	63.18K	21.87K
	Total Assets
76.37M	55.48M	204.21M	201.71M	200.62K
	Total Debt
23.87M	480.00K	480.00K	943.64K	130.10K
	Net Debt
-3.69M	-139.55K	350.44K	880.46K	108.23K
	Total Liabilities
80.43M	12.37M	5.80M	14.35M	181.04K
	Stockholders Equity
-4.06M	43.11M	198.41M	187.36M	19.58K
Cash Flow		Free Cash Flow
-10.69M	-1.82M	-1.08M	-1.09M	-25.31K
	Operating Cash Flow
-10.45M	-1.82M	-1.08M	-1.07M	-25.31K
	Investing Cash Flow
79.67M	152.34M	351.47K	-201.25M	0.00
	Financing Cash Flow
-41.38M	-150.03M	799.17K	202.36M	47.18K

AtlasClear Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATCH, the sentiment is Negative. The current price of 0.55 is below the 20-day moving average (MA) of 1.00, below the 50-day MA of 2.52, and below the 200-day MA of 15.28, indicating a bearish trend. The MACD of -0.66 indicates Negative momentum. The RSI at 29.34 is Positive, neither overbought nor oversold. The STOCH value of 11.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATCH.

AtlasClear Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IBKR	74 Outperform	$73.14B	24.99	19.20%	0.58%	19.54%	22.23%
SCHW	72 Outperform	$144.81B	26.00	13.30%	1.36%	1.87%	17.63%
AMTD	71 Outperform	$1.07B	―	11.11%	―	―	―
RJF	69 Neutral	$26.70B	12.72	19.07%	1.42%	13.79%	28.57%
MS	67 Neutral	$186.67B	14.57	13.16%	3.36%	7.16%	53.77%
Sector *	63 Neutral	$14.39B	9.81	8.95%	4.37%	16.38%	-11.64%
ATCH	33 Underperform	$3.38M	―	470.97%	―	―	-8852.46%

AtlasClear Holdings Corporate Events

AtlasClear Holdings Modifies Quorum for Stockholder Meetings

AtlasClear Holdings has amended its Bylaws to reduce the quorum requirement for stockholder meetings from a majority to 33.3% of the voting power. This change aims to minimize the risk and cost associated with meeting adjournments due to insufficient quorum, thereby reducing potential business disruptions and management distractions.