Captivision Inc (CAPT) AI Stock Analysis

• Market Cap: $24.63M
• Dividend Yield: N/A
• Average Volume (3M): 144.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 98
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial - Specialties
• EPS (TTM): N/A
• Shares Outstanding: 32,369,510
• 10 Day Avg. Volume: 129,794
• 30 Day Avg. Volume: 144,641
• PEG Ratio: >-0.01
• Price to Book (P/B): -1.56
• Price to Sales (P/S): 4.69
• P/FCF Ratio: -6.42
• Enterprise Value/Market Cap: 3.98
• Enterprise Value/Revenue: 5.64
• Enterprise Value/Gross Profit: 22.66
• Enterprise Value/Ebitda: -4.70
• 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: 30 Underperform
• Price Target: ―

Captivision Inc is currently facing significant financial and technical challenges. The declining revenues and profitability, high leverage, and liquidity constraints present serious risks. Technical analysis shows a bearish trend with weak momentum, and the absence of key valuation metrics further complicates the investment case. The lack of earnings call insights adds to the uncertainty, resulting in a low overall stock score.

Positive Factors

Strategic Partnerships

Strategic partnerships enhance Captivision's market reach and product offerings, allowing for co-development of customized solutions, which can drive long-term revenue growth and competitive positioning.

Diverse Revenue Streams

A diversified revenue model reduces dependency on a single income source, providing stability and resilience against market fluctuations, supporting long-term financial health.

Innovative Product Offerings

Captivision's focus on innovative AR/VR products positions it well within growing tech sectors, potentially enhancing user engagement and expanding market share over time.

Negative Factors

Declining Revenue

A significant decline in revenue indicates challenges in market demand or competitive pressures, potentially impacting long-term growth prospects and financial stability.

High Leverage

High leverage and negative equity pose solvency risks, limiting financial flexibility and increasing vulnerability to economic downturns, which could hinder long-term sustainability.

Negative Cash Flow

Persistent negative cash flow indicates inefficiencies in operations and reliance on external financing, which may not be sustainable, threatening long-term liquidity and operational viability.

Captivision Inc Business Overview & Revenue Model

Company Description

Captivision Inc. manufactures, installs, and sells LED display glasses in South Korea, North America, the Asia–Pacific region, Europe, the Middle East, and Africa. The company G-Glass, an integrated ICT product that characteristics of transparent glass. Captivision Inc. was founded in 2011 and is based in Nailsworth, the United Kingdom.

How the Company Makes Money

Captivision Inc generates revenue primarily through the sale of its AR/VR hardware and software products. The company offers its headsets and related equipment to both individual consumers and enterprises, often bundling these with proprietary software applications and content. Additionally, Captivision licenses its technology and software to third-party developers and partners, creating a steady stream of royalty and licensing fees. The company also forms strategic partnerships with key players in various industries to co-develop customized AR/VR solutions, which contribute to its service-based revenue. Captivision's earnings are further supported by ongoing maintenance and support contracts with its enterprise clients.

Captivision Inc Financial Statement Overview

Summary

Captivision Inc is facing significant financial challenges across all dimensions. The company is struggling with declining revenues and profitability, high leverage, and negative equity. Persistent cash flow issues further exacerbate these challenges, indicating potential liquidity constraints. The combination of negative growth, profitability, and solvency metrics highlights an urgent need for strategic financial restructuring to stabilize the company's operations.

Income Statement

Captivision Inc has shown a significant decline in revenue from $20.19 million in 2022 to $14.64 million in 2023, indicating a negative revenue growth trajectory. The company also faces severe profitability issues, with net profit and EBIT margins deeply negative, reflecting substantial losses. This is compounded by falling gross profit margins, suggesting challenges in managing production costs or sales pricing.

Balance Sheet

The balance sheet reflects a precarious financial position for Captivision Inc, marked by negative stockholders' equity and a high debt burden, leading to an undefined debt-to-equity ratio. This indicates solvency risks, as liabilities far exceed assets. The negative equity ratio further underscores the lack of financial stability, posing a significant risk to the company's sustainability.

Cash Flow

The cash flow statement reveals a troubling scenario with consistently negative free cash flow, signaling cash outflows that exceed cash inflows, which can impact the company's liquidity. The operating cash flow to net income ratio is unfavorable, indicating inefficiencies in converting revenue into cash. Despite positive financing cash flow, reliance on external financing is high, which might not be sustainable long-term.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	17.39M	14.64M	20.19M	9.41M
Gross Profit	4.33M	2.04M	6.28M	-1.12M
EBITDA	-20.86M	-11.02M	-5.54M	-32.09M
Net Income	-84.69M	-74.73M	-5.89M	-60.12M
Balance Sheet
Total Assets	26.33M	21.52M	36.62M	50.26M
Cash, Cash Equivalents and Short-Term Investments	667.29K	476.71K	196.63K	239.34K
Total Debt	24.16M	22.14M	18.74M	29.55M
Total Liabilities	80.62M	67.90M	33.91M	62.52M
Stockholders Equity	-51.47M	-44.00M	2.78M	-12.27M
Cash Flow
Free Cash Flow	-8.79M	-10.67M	-5.50M	-5.17M
Operating Cash Flow	-8.75M	-10.48M	-5.50M	-4.99M
Investing Cash Flow	730.09K	297.91K	-1.10M	5.20M
Financing Cash Flow	8.62M	10.51M	6.60M	-125.11K

Captivision Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.58
• 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 CAPT, the sentiment is Negative. The current price of 0.58 is below the 20-day moving average (MA) of 0.75, below the 50-day MA of 0.78, and below the 200-day MA of 0.89, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 36.24 is Neutral, neither overbought nor oversold. The STOCH value of 10.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CAPT.

Captivision Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ASRV	64 Neutral	$51.05M	10.09	4.54%	3.90%	6.89%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
AIFU	50 Neutral	$68.23M	-0.40	-1.31%	―	―	―
CAPT	30 Underperform	$24.63M	―	169.82%	―	―	―