Education
About Us
Working with TipRanks
Follow Us
Beneficient (BENF)
NASDAQ:BENF
Top Page
Beneficient
(NASDAQ:BENF)
31Underperform
Beneficient (BENF) vs. S&P 500 (SPY)
Market Cap
$2.48M
Dividend YieldN/A
Average Volume (3M)720.23K
Price to Earnings (P/E)―
Beta (1Y)0.66
Revenue Growth78.84%
EPS Growth97.65%
CountryUS
Employees80
SectorFinancial
Sector Strength79
IndustryAsset Management
Share Statistics
EPS (TTM)-19.62
Shares Outstanding8,432,698
10 Day Avg. Volume87,011
30 Day Avg. Volume720,232
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
Price to Cash Flow (P/CF)-0.10
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Beneficient Business Overview & Revenue Model
Company DescriptionBeneficient, a technology-enabled financial service company, provides liquidity solutions to participants in the alternative asset industry. It operates AltAccess platform, which provides liquidity, custody, and investment analytics solutions, including AltLiquidity, an online tool that helps to find liquidity solutions for its alternative assets on a cybersecure platform; AltQuote, a quote tool for alternative assets; AltAccess, a secure platform for end-to-end alternative asset transactions; AltCustody to digitize and track its alternative assets; AltData, an investment analytics for its alternative asset data in one place; and AltTrading, a trading solution. The company serves mid-to-high net worth individual investors, small-to-midsize institutional investors, family offices, and fund general partners. The company is based in Dallas, Texas.
How the Company Makes MoneyBeneficient makes money by facilitating liquidity transactions for owners of alternative assets. The company charges fees for its services, which may include transaction fees, management fees, or advisory fees, depending on the nature of the transaction and the specific services provided. Beneficient's revenue model is supported by partnerships with financial institutions and investors seeking to optimize their portfolios by monetizing illiquid assets. The company may also earn income from structuring and managing bespoke liquidity solutions tailored to the needs of its clients.
Beneficient Financial Statement Overview
Summary
Beneficient's financial performance is concerning, with negative net income, EBIT, and stockholders' equity, indicating operational losses and potential solvency issues. The cash flow challenges further exacerbate the liquidity concerns, necessitating strategic restructuring.Income Statement
Beneficient's income statement shows significant challenges, with negative net income and EBIT across the periods, indicating operational losses. The TTM data shows a net profit margin of -336.99%, reflecting severe profitability issues. Despite a positive EBITDA margin of 14.38% in the TTM, the overall financial trajectory is concerning, with volatile revenue and negative growth rates.15
Very Negative
Balance Sheet
The balance sheet reveals a negative stockholders' equity in the TTM period, suggesting potential solvency issues. The debt-to-equity ratio cannot be calculated due to negative equity, highlighting financial instability. The equity ratio is also negative, reflecting a worrisome financial position with high liabilities compared to assets.20
Very Negative
Cash Flow
Cash flow statements indicate negative operating and free cash flows across periods, suggesting liquidity challenges. The TTM period's operating cash flow to net income ratio is not meaningful due to negative figures, and free cash flow growth is negative, showing a lack of cash generation capability.25
Negative
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Dec 2020 | Dec 2019 | Dec 2018 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 16.25M | 5.83M | -105.40M | 101.98M | 60.29M | 79.47M | Gross Profit |
| 3.41M | -89.30M | -150.93M | 81.20M | 60.29M | 75.80M | EBIT |
| -65.22M | -2.74B | -253.17M | -47.41M | -135.38M | 41.44M | EBITDA |
| 23.38M | -2.74B | -234.09M | -13.81M | -135.05M | 41.68M | Net Income Common Stockholders |
| -547.80M | -2.66B | -130.98M | -58.04M | -334.04M | -5.01M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 7.98M | 7.98M | 8.73M | 12.49M | 17.55M | 3.54M | Total Assets |
| 368.50M | 368.50M | 2.91B | 2.82B | 2.68B | 2.08B | Total Debt |
| 120.50M | 2.20M | 52.13M | 180.08M | 321.80M | 378.12M | Net Debt |
| 112.53M | -5.78M | 43.40M | 167.59M | 304.25M | 374.58M | Total Liabilities |
| 309.57M | 3.00K | 1.02B | 282.84M | 441.08M | 690.86M | Stockholders Equity |
| -234.35M | 368.50M | 1.93B | 2.53B | 563.97M | 320.46M |
| Cash Flow | Free Cash Flow | ||||
| -51.86M | -59.98M | -97.19M | -57.23M | -54.17M | 17.44M | Operating Cash Flow |
| -50.12M | -58.22M | -95.12M | -54.01M | -51.19M | 17.81M | Investing Cash Flow |
| 29.48M | 44.06M | 63.02M | -5.98M | 70.44M | 141.54M | Financing Cash Flow |
| 23.02M | 12.59M | -34.46M | 43.86M | -5.24M | -156.36M |
Beneficient Technical Analysis
Negative
0.27
Price Trends
0.38
Negative
0.56
Negative
1.29
Negative
Market Momentum
-0.03
Negative
32.98
Neutral
33.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BENF, the sentiment is Negative. The current price of 0.27 is below the 20-day moving average (MA) of 0.31, below the 50-day MA of 0.38, and below the 200-day MA of 1.29, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 32.98 is Neutral, neither overbought nor oversold. The STOCH value of 33.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BENF.
Beneficient Risk Analysis
Beneficient disclosed 134 risk factors in its most recent earnings report. Beneficient 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 0 New Risks
Beneficient Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $71.43B | 17.47 | 28.29% | 1.46% | -20.40% | -13.30% | |
74 Outperform | $154.99B | 35.12 | 34.07% | 3.03% | 21.25% | 97.42% | |
69 Neutral | $91.82B | 31.15 | 13.23% | 0.68% | 42.19% | -18.20% | |
67 Neutral | $12.73B | 12.71 | 18.90% | 3.97% | 62.87% | ― | |
67 Neutral | $44.55B | 68.20 | 15.93% | 2.77% | 6.12% | -15.84% | |
63 Neutral | $12.75B | 9.36 | 8.64% | 84.32% | 13.82% | -3.89% | |
31 Underperform | $2.48M | ― | -538.85% | ― | 78.84% | 97.65% |
* Financial Sector Average
Performance Comparison
BENF
Beneficient
0.27
-3.65
-93.11%
APO
Apollo Global Management
126.78
20.63
19.43%
KKR
KKR & Co
103.37
11.28
12.25%
BX
Blackstone Group
130.39
15.05
13.05%
CG
Carlyle Group
35.84
-6.92
-16.18%
ARES
Ares Management
141.24
15.06
11.94%
Beneficient Earnings Call Summary
Earnings Call Date: Feb 13, 2025 | % Change Since: -57.81% | Next Earnings Date: Jul 15, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a balanced sentiment with notable strategic advancements and positive earnings, offset by challenges in interest income and reduced distributions.Highlights
Profitable Progress with Significant Earnings
Beneficient reported $10.30 of basic earnings per share and $0.12 of fully diluted earnings per common share for the nine months ended December 31, 2024. This marks three successive quarters of positive GAAP earnings.
Strategic Acquisitions and Appointments
Beneficient announced the proposed acquisition of Mercantile Bank International Corp., which aims to expand custody and clearing services. Additionally, the company appointed Karen Wendel to the Board of Directors, bringing expertise in digital asset markets and cybersecurity.
Improved Financial Position and Capital Structure
The company increased permanent equity by $35 million and improved from a deficit of $148.3 million to a positive $14.3 million as of December 31, 2024.
Lowlights
Decline in Interest Income and Operating Loss
Ben Liquidity recognized a 5.7% decrease in interest income compared to the previous quarter, primarily due to a higher percentage of loans being placed on nonaccrual status. Additionally, the segment reported an operating loss of $2.9 million.
Reduced Distributions and Revenue
Distributions from alternative assets and other securities held in custody totaled $19.3 million for the nine months ended December 31, 2024, compared to $38.4 million in the prior year. Custody revenues were down 14.7% year-over-year.
Company Guidance
During the third quarter fiscal 2025 earnings call for Beneficient, the company provided several key financial metrics and strategic updates. Beneficient reported basic earnings per share of $10.30 and $0.12 of fully diluted earnings per share for the fiscal year-to-date, ending December 31, 2024. The call highlighted a positive revenue of $4.4 million for the third quarter and $23.0 million year-to-date, marking a significant turnaround from the negative $10.2 million and negative $55.7 million in the prior year. Operating expenses declined by 38% excluding certain noncash impairments, and permanent equity shifted from a deficit to a $14.3 million positive value. The company announced plans to acquire Mercantile Bank International Corp. and enhance shareholder value through revisions in liquidation priority. Additionally, Beneficient's liquidity and custody segments showed stable performance with a fair value increase in investments to $334.3 million, supported by a net loan portfolio of $260.6 million.Beneficient Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Beneficient Secures $9.6M in Primary Capital Transaction
Positive
Apr 7, 2025
On April 4, 2025, Beneficient closed a $9.6 million primary capital transaction with Pulse Pioneer Fund, LP, marking its first GP Primary transaction of the fiscal year. This transaction, involving the issuance of Series B-6 Resettable Convertible Preferred Stock, is expected to enhance the collateral for Beneficient’s ExAlt loan portfolio by approximately $9.6 million. The company believes this move will drive shareholder value and support its strategic vision and growth objectives, as it continues to address the significant demand for primary commitments in the alternative asset market.
Legal ProceedingsBusiness Operations and Strategy
Beneficient Settles GWG Litigation with Binding Agreement
Neutral
Mar 10, 2025
On March 10, 2025, Beneficient announced a binding agreement to settle all claims in the GWG Litigation, which involved lawsuits in federal and bankruptcy courts in Texas against the company and its directors. The settlement, pending court approval, resolves claims without admission of fault and will be funded by insurance. This move aims to eliminate litigation costs and allow the company to focus on its business strategy, although other related claims remain outstanding.
Regulatory Filings and Compliance
Beneficient Prepares for Sequire Investor Summit 2025
Neutral
Jan 22, 2025
Beneficient has prepared an investor presentation for its upcoming appearance at the Sequire Investor Summit on January 22, 2025. The presentation contains summary information aligned with the company’s filings with the Securities and Exchange Commission, and will be used to provide context during public announcements. Beneficient does not commit to updating the presentation publicly unless deemed necessary by management.
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.