Brand Engagement Network (BNAI) AI Stock Analysis

• Market Cap: $14.44M
• Dividend Yield: N/A
• Average Volume (3M): 13.33M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.96
• Revenue Growth: N/A
• EPS Growth: -20.33%
• Country: US
• Employees: 39
• Sector: Financial
• Sector Strength: 75
• Industry: Software - Infrastructure
• EPS (TTM): -0.09
• Shares Outstanding: 42,989,400
• 10 Day Avg. Volume: 7,603,542
• 30 Day Avg. Volume: 13,330,546
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: <0.01
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: -0.02
• Enterprise Value/Ebitda: >-0.01
• 1Y Price Target: $2.00
• Price Target Upside: 589.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 35 Underperform
• Price Target: ―

The overall stock score for BNAI reflects significant financial challenges, including persistent losses and high leverage. While technical indicators show some neutral trends, the lack of profitability and negative valuation metrics highlight substantial risks. Strategic improvements in financial and operational aspects are crucial for future growth.

Positive Factors

Financial flexibility

BNAI has a $50M standby equity purchase agreement with Yorkville Advisors for financial flexibility.

Growth expectations

Multiple pilot programs and pending acquisition support robust growth expectations for BNAI.

Negative Factors

Stock price dilution

The price target was lowered to $4 due to dilution.

Brand Engagement Network Business Overview & Revenue Model

Company Description

Brand Engagement Network, Inc. engages in the provision of conversational artificial intelligence assistants with the purpose of transforming engagement and analytics for businesses through security-focused, multimodal communication and human-like artificial intelligence assistants. The firm is also involved in delivering highly personalized, multi-modal artificial intelligence engagement with a focus on industries where there is a massive workforce gap and an opportunity to transform how consumers engage with networks, providers, and brands. The company is headquartered in Jackson, WY.

How the Company Makes Money

BNAI generates revenue by offering a range of services and solutions that cater to businesses seeking to improve their brand engagement strategies. The company earns money through service fees for consulting on marketing strategies, subscription fees for access to their digital platforms, and revenue-sharing agreements based on performance metrics. Key revenue streams include licensing fees for proprietary technology, custom content creation services, and strategic partnerships with other marketing agencies and tech firms. Additionally, BNAI may engage in joint ventures or collaborations with brands to expand their reach and enhance service offerings, further contributing to their income.

Brand Engagement Network Financial Statement Overview

Summary

Brand Engagement Network is struggling financially, with significant operational losses and cash flow issues. While there are some improvements in equity, the company's high debt levels and negative margins present substantial risks. The need for strategic improvements and cost management is critical for future stability.

Income Statement

The company has shown inconsistent revenue growth, with a significant increase in revenue from 2022 to 2024, but it remains unprofitable, with persistent net losses. Margins are negative, reflecting operational inefficiencies and high costs relative to revenue.

Balance Sheet

The company's balance sheet shows high leverage, with a debt-to-equity ratio of 0.82 for 2024, indicating reliance on debt. Negative equity in 2022 suggests past financial distress. Although equity improved in 2024, total assets have decreased over recent years, highlighting potential risks to stability.

Cash Flow

Operating and free cash flows are negative, indicating cash burn and reliance on external financing for liquidity. The operating cash flow to net income ratio is negative, showing poor cash conversion from profits, and free cash flow has not shown consistent growth.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement		Total Revenue
99.79K	35.21K	15.64K	7.41K
	Gross Profit
99.79K	0.00	15.64K	7.41K
	EBIT
-36.47M	-11.68M	-1.22M	-820.00K
	EBITDA
-30.78M	-11.04M	-1.15M	-820.00K
	Net Income Common Stockholders
-33.72M	-11.73M	-676.00K	-820.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
149.27K	40.17K	2.01K	861.47K
	Total Assets
18.15M	22.10M	626.11K	735.00K
	Total Debt
3.30M	0.00	0.00	0.00
	Net Debt
3.16M	-40.17K	-2.01K	-861.47K
	Total Liabilities
15.51M	8.78M	666.22K	290.26K
	Stockholders Equity
2.64M	13.32M	-40.11K	444.74K
Cash Flow		Free Cash Flow
-14.32M	-5.94M	-85.41K	-170.59K
	Operating Cash Flow
-14.04M	-5.05M	-85.41K	-170.59K
	Investing Cash Flow
-281.39K	-1.14M	-2.58K	89.00
	Financing Cash Flow
12.79M	7.88M	90.00K	170.50K

Brand Engagement Network Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BNAI, the sentiment is Negative. The current price of 0.29 is below the 20-day moving average (MA) of 0.37, below the 50-day MA of 0.34, and below the 200-day MA of 0.63, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 41.85 is Neutral, neither overbought nor oversold. The STOCH value of 5.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BNAI.

Brand Engagement Network Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$12.73B	9.77	7.84%	78.17%	12.05%	-7.99%
BLIN	52 Neutral	$18.23M	―	-19.92%	―	1.30%	75.93%
APCX	48 Neutral	$9.98M	―	-220.48%	―	-25.38%	67.34%
DTSS	45 Neutral	$15.61M	―	-501.24%	―	141.65%	60.23%
RVYL	41 Neutral	$5.78M	―	-309.32%	―	-23.82%	56.13%
BNAI	35 Underperform	$14.44M	―	-254.58%	―	―	-20.33%
FAAS		$38.03M	―		―	―	―

Brand Engagement Network Corporate Events

Brand Engagement Network Faces Legal Challenges and AI Expansion

On January 17, 2025, Brand Engagement Network Inc. announced the termination of its Exclusive Reseller Agreement with AFG Companies, Inc., citing issues with AFG’s failure to provide necessary operational-ready data platforms and a concealed ransomware attack. This led to BEN filing a lawsuit against AFG and its CEO for fraudulent misrepresentation and breach of contract. Despite these challenges, BEN is moving forward with its automotive initiatives, including the rollout of its Automotive AI Agent aimed at improving dealership operations across over 13,000 dealerships. The company also continues to expand its AI healthcare solutions, emphasizing data security and regulatory compliance.