Borqs Technologies (BRQSF) AI Stock Analysis

• Market Cap: $5.21M
• Dividend Yield: N/A
• Average Volume (3M): 26.39K
• Price to Earnings (P/E): 0.3
• Beta (1Y): 0.40
• Revenue Growth: -13.52%
• EPS Growth: N/A
• Country: US
• Employees: 305
• Sector: Technology
• Sector Strength: 85
• Industry: Information Technology Services
• EPS (TTM): 0.54
• Shares Outstanding: 28,970,078
• 10 Day Avg. Volume: 24,543
• 30 Day Avg. Volume: 26,388
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: -0.12
• Enterprise Value/Revenue: -0.02
• Enterprise Value/Gross Profit: -0.07
• Enterprise Value/Ebitda: 0.14
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 43 Neutral
• Price Target: $0.00 ▼(-100.00% Downside)

Borqs Technologies' overall stock score is primarily impacted by its significant financial challenges, including declining revenues, negative equity, and weak cash flow performance. The technical analysis provides a neutral outlook, with mixed signals from various indicators. The valuation suggests potential undervaluation, but this is overshadowed by the company's financial instability. The absence of earnings call data and corporate events means these factors do not influence the score.

Borqs Technologies Business Overview & Revenue Model

Company Description

Borqs Technologies, Inc. provides Android-based smart connected devices and cloud service solutions in the United States, India, China, and internationally. It offers commercial grade Android platform software and service solutions to address vertical market segment needs through the targeted BorqsWare software platform solutions. The company's BorqsWare software platform consists of BorqsWare Client software that has been used in Android phones, tablets, watches, and various Internet-of-things devices; and BorqsWare Server software platform, which includes back-end server software that allows customers to develop their own mobile end-to-end services for their devices. The company serves mobile chipset manufacturers, mobile device original equipment manufacturers, and mobile operators, as well as product solutions of mobile connected devices for enterprise and consumer applications. The company was founded in 2007 and is headquartered in Kwun Tong, Hong Kong.

How the Company Makes Money

Borqs Technologies generates revenue primarily through the sale of its IoT solutions and services, which include software licensing, device management, and cloud services. The company's revenue model is based on a combination of one-time fees from hardware sales and recurring revenue from software subscriptions and service contracts. Key revenue streams also include partnerships with manufacturers and telecom operators, where Borqs provides customized solutions that integrate its technology into their products. Additionally, Borqs may benefit from strategic collaborations and joint ventures that expand its market reach and enhance its service offerings, contributing to its overall earnings.

Borqs Technologies Financial Statement Overview

Summary

Borqs Technologies is facing significant financial challenges. The income statement reflects declining revenues and profitability issues, with a concerning drop in revenue and negative EBIT. The balance sheet shows negative equity, raising concerns about financial solvency. Cash flow statements highlight ongoing liquidity issues despite minor recent improvements.

Income Statement

Borqs Technologies has shown a concerning decline in revenue from $52.54M in 2022 to $27.71M in 2024, indicating a negative growth trend. The gross profit margin improved slightly in 2024 but remains low at approximately 20.87%. Despite a positive net income of $16.70M in 2024, this is largely due to non-operating activities, as the EBIT remains negative. The company struggles with profitability, evidenced by negative EBIT and EBITDA margins.

Balance Sheet

The balance sheet of Borqs Technologies reveals significant financial instability. The company has a negative stockholders' equity of $-3.41M in 2024, indicating that liabilities exceed assets. The debt-to-equity ratio is not meaningful due to negative equity, and the company has a high debt burden. The equity ratio is negative, which poses a risk to financial health and stability.

Cash Flow

Borqs Technologies exhibits weak cash flow performance with negative operating cash flow and free cash flow in 2024. However, there is an improvement from 2023, as free cash flow increased from $-7.04M to $-2.88M. The operating cash flow to net income ratio is negative, suggesting that the reported net income is not supported by cash flow from operations, indicating potential sustainability issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	33.83M	27.71M	32.05M	52.54M	29.56M	26.75M
Gross Profit	8.57M	5.79M	8.09M	11.12M	2.61M	1.60M
EBITDA	-4.37M	19.98M	-25.30M	-15.29M	-41.02M	-26.31M
Net Income	17.36M	16.70M	-26.47M	-34.03M	-55.87M	-35.50M
Balance Sheet
Total Assets	24.27M	25.41M	21.43M	30.14M	53.25M	29.35M
Cash, Cash Equivalents and Short-Term Investments	6.07M	5.85M	4.54M	12.74M	6.12M	3.04M
Total Debt	3.39M	596.00K	5.41M	2.27M	13.39M	17.30M
Total Liabilities	29.55M	29.01M	35.86M	41.30M	70.54M	91.59M
Stockholders Equity	-4.47M	-3.40M	-13.62M	-10.79M	-23.25M	-62.13M
Cash Flow
Free Cash Flow	0.00	-2.88M	-7.04M	-6.24M	-29.52M	-8.27M
Operating Cash Flow	0.00	-2.77M	-6.79M	-5.52M	-28.74M	-8.06M
Investing Cash Flow	0.00	9.89M	-5.01M	-3.37M	-998.00K	3.96M
Financing Cash Flow	0.00	-4.05M	1.84M	14.90M	34.27M	-1.35M

Borqs Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRQSF, the sentiment is Positive. The current price of 0.18 is above the 20-day moving average (MA) of 0.16, above the 50-day MA of 0.16, and below the 200-day MA of 0.20, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 54.23 is Neutral, neither overbought nor oversold. The STOCH value of 55.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BRQSF.

Borqs Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DTST	63 Neutral	$33.04M	180.23	-1.42%	―	0.53%	-233.01%
Sector *	61 Neutral	$35.48B	7.63	-10.11%	1.88%	8.73%	-9.23%
BTCM	45 Neutral	$44.83M	―	-114.24%	―	―	―
TDTH	45 Neutral	$51.55M	―		―	―	―
BRQSF	43 Neutral	$5.21M	0.30	136.99%	―	-13.52%	―
JFU	―	$29.26M	4.21	1.41%	―	―	―
CYCU	45 Neutral	$10.29M	33.15	-208.80%	―	―	-133.65%