Beneficient (BENF) AI Stock Analysis

• Market Cap: $6.66M
• Dividend Yield: N/A
• Average Volume (3M): 23.74M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.15
• Revenue Growth: -33.98%
• EPS Growth: 94.83%
• Country: US
• Employees: 80
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): -0.37
• Shares Outstanding: 9,464,248
• 10 Day Avg. Volume: 1,028,732
• 30 Day Avg. Volume: 23,735,752
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.07
• Price to Sales (P/S): 2.73
• P/FCF Ratio: -0.26
• Enterprise Value/Market Cap: 59.07
• Enterprise Value/Revenue: -11.30
• Enterprise Value/Gross Profit: -6.59
• Enterprise Value/Ebitda: -0.38
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 34 Underperform
• Price Target: ―

Beneficient's overall stock score reflects significant financial distress, with operational losses and solvency issues being the most critical factors. While there are positive developments in earnings and corporate events, they are overshadowed by weak technical indicators and an unfavorable valuation.

Positive Factors

Revenue Growth

Strong revenue growth indicates increasing demand for Beneficient's liquidity solutions, supporting long-term business expansion and market presence.

Strategic Acquisitions

The acquisition aims to expand custody and clearing services, enhancing Beneficient's service offerings and competitive positioning in the asset management industry.

Improved Equity Position

An improved equity position strengthens Beneficient's balance sheet, providing a more stable financial foundation for future growth and strategic initiatives.

Negative Factors

Negative Cash Flows

Persistent negative cash flows highlight liquidity challenges, potentially limiting Beneficient's ability to invest in growth opportunities and meet financial obligations.

Solvency Issues

Solvency issues due to negative equity and high liabilities pose risks to Beneficient's financial stability, affecting its long-term operational viability.

Nasdaq Delisting Notice

The potential delisting from Nasdaq could reduce investor confidence and access to capital markets, impacting Beneficient's ability to raise funds and grow.

Beneficient Business Overview & Revenue Model

Company Description

Beneficient, 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 Money

Beneficient 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 poor due to negative net income, negative stockholders' equity, and negative cash flows, indicating significant operational losses, solvency issues, and liquidity challenges.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	-34.80M	-98.91M	-105.40M	47.91M	101.98M	60.29M
Gross Profit	-59.69M	-164.04M	-150.93M	-612.00K	81.20M	60.29M
EBITDA	-1.05B	-2.64B	-234.09M	-41.67M	-13.81M	-135.05M
Net Income	-547.80M	-2.10B	-130.98M	-95.02M	-58.04M	-334.04M
Balance Sheet
Total Assets	368.79M	368.50M	368.50M	2.91B	3.14B	2.82B
Cash, Cash Equivalents and Short-Term Investments	4.48M	7.91M	7.91M	8.73M	70.59M	12.49M
Total Debt	124.05M	130.25M	130.25M	151.44M	171.59M	256.34M
Total Liabilities	256.45M	309.57M	309.57M	231.79M	241.43M	282.84M
Stockholders Equity	-165.30M	-234.35M	-234.35M	1.59B	1.44B	621.50M
Cash Flow
Free Cash Flow	-51.86M	-59.98M	-97.19M	-61.21M	-57.23M	-54.17M
Operating Cash Flow	-50.12M	-58.22M	-95.12M	-57.00M	-54.01M	-51.19M
Investing Cash Flow	29.48M	44.06M	63.02M	44.59M	-5.98M	70.44M
Financing Cash Flow	23.02M	12.59M	-34.46M	14.86M	43.86M	-5.24M

Beneficient Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.58
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BENF, the sentiment is Positive. The current price of 0.58 is above the 20-day moving average (MA) of 0.56, below the 50-day MA of 0.60, and above the 200-day MA of 0.41, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 50.38 is Neutral, neither overbought nor oversold. The STOCH value of 48.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BENF.

Beneficient Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BCG	56 Neutral	$24.57M	-13.17	5.87%	―	-37.08%	―
MLCI	56 Neutral	$6.71M	-7.80	-25.88%	1.07%	66.65%	-1497.99%
ATON	48 Neutral	$11.94M	―	―	―	―	―
CWD	42 Neutral	$13.49M	-0.15	-1438.14%	―	-62.09%	-99.89%
BENF	34 Underperform	$6.66M	-0.07	―	―	-33.98%	94.83%
BTTC	34 Underperform	$4.24M	-1.08	-82.72%	―	-100.00%	54.46%

Beneficient Corporate Events

Beneficient Completes Major Capital Transaction April 2025

On April 21, 2025, Beneficient completed a primary capital transaction involving a limited partner interest in an investment fund valued at $233,333. The transaction involved the issuance of Series B-7 Resettable Convertible Preferred Stock, convertible into Class A Common Stock, enhancing the collateral for Beneficient’s ExAlt loan portfolio. This marks Beneficient’s second GP Primary transaction of the fiscal year, reflecting its strategic focus on liquidity and primary capital solutions. The transaction is expected to increase the company’s tangible book value and aligns with its growth objectives, aiming to meet the substantial demand for primary commitments in the alternative asset market.

Spark’s Take on BENF Stock

According to Spark, TipRanks’ AI Analyst, BENF is a Underperform.

Beneficient’s overall stock score is low, primarily due to weak financial performance characterized by operational losses, solvency issues, and negative cash flow trends. Despite some positive developments in earnings and corporate events, the technical indicators and valuation remain unfavorable.

To see Spark’s full report on BENF stock, click here.

Beneficient Secures $9.6M in Primary Capital Transaction

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.

Beneficient Settles GWG Litigation with Binding Agreement

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.