AtlasClear Holdings (ATCH) AI Stock Analysis

• Market Cap: $50.14M
• Dividend Yield: N/A
• Average Volume (3M): 83.85M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.73
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 51
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -625.50
• Shares Outstanding: 126,819,145
• 10 Day Avg. Volume: 95,463,220
• 30 Day Avg. Volume: 83,846,872
• PEG Ratio: <0.01
• Price to Book (P/B): >-0.01
• Price to Sales (P/S): 0.00529
• P/FCF Ratio: 0.07
• Enterprise Value/Market Cap: -0.12
• Enterprise Value/Revenue: -0.58
• Enterprise Value/Gross Profit: -0.72
• Enterprise Value/Ebitda: -0.42
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 34 Underperform
• Price Target: ―

AtlasClear Holdings faces substantial financial challenges, with significant operating losses and a negative equity position. These issues are compounded by weak technical indicators and an unattractive valuation, resulting in a low overall score. The company's recovery depends heavily on improving operational efficiencies and addressing solvency concerns.

AtlasClear Holdings Business Overview & Revenue Model

Company Description

AtlasClear Holdings (ATCH) is a diversified financial services company operating primarily in the sectors of investment management, financial advisory, and technology-driven financial solutions. The company offers a range of products and services aimed at both individual and institutional clients, focusing on delivering innovative and customized financial strategies that enhance client wealth and efficiency.

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.86M	10.86B	0.00	9.09M	13.31M	0.00
Gross Profit	8.64M	0.00	5.40M	6.70M	11.78M	0.00
EBITDA	14.79M	-4.92B	1.52M	3.28M	-3.40M	0.00
Net Income	5.75M	5.75B	794.95K	11.05M	-5.70M	-5.42K
Balance Sheet
Total Assets	60.89M	60.89B	55.48M	204.21M	201.71M	200.62K
Cash, Cash Equivalents and Short-Term Investments	7.53M	7.53B	619.55K	129.56K	63.18K	21.87K
Total Debt	14.03M	1.00B	480.00K	480.00K	943.64K	130.10K
Total Liabilities	67.69M	67.69B	12.37M	209.22M	14.35M	181.04K
Stockholders Equity	-6.80M	-6.80B	43.11M	198.41M	9.85M	19.58K
Cash Flow
Free Cash Flow	757.03K	822.03M	-1.82M	-1.08M	-1.09M	-25.31K
Operating Cash Flow	822.03K	822.03M	-1.82M	-1.08M	-1.07M	-25.31K
Investing Cash Flow	-145.00K	0.00	152.34M	351.47K	-201.25M	0.00
Financing Cash Flow	1.62M	0.00	-150.03M	799.17K	202.36M	47.18K

AtlasClear Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATCH, the sentiment is Positive. The current price of 0.36 is below the 20-day moving average (MA) of 0.67, below the 50-day MA of 0.39, and below the 200-day MA of 1.71, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 49.78 is Neutral, neither overbought nor oversold. The STOCH value of 11.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ATCH.

AtlasClear Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CETX	52 Neutral	$4.15M	<0.01	-1102.76%	―	16.50%	―
TAOP	43 Neutral	$2.76M	0.44	-46.76%	―	-15.10%	-177.14%
RVYL	40 Underperform	$12.02M	―	-2201.06%	―	-33.86%	74.09%
HUBC	35 Underperform	$5.39M	―	163.42%	―	-30.70%	82.02%
ATCH	34 Underperform	$50.14M	―	470.97%	―	―	―

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.