Clps (CLPS) AI Stock Analysis

• Market Cap: $28.95M
• Dividend Yield: N/A
• Average Volume (3M): 11.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.43
• Revenue Growth: 5.81%
• EPS Growth: 55.03%
• Country: US
• Employees: 3,642
• Sector: Technology
• Sector Strength: 45
• Industry: Information Technology Services
• EPS (TTM): -0.05
• Shares Outstanding: 27,840,670
• 10 Day Avg. Volume: 13,251
• 30 Day Avg. Volume: 11,727
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.24
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

The overall score of 46 reflects significant financial and technical challenges faced by Clps. The company's financial performance is hindered by declining revenues, negative profit margins, and constrained cash flow management. Technical indicators suggest a bearish trend with weak momentum. Valuation metrics are unfavorable due to a negative P/E ratio and lack of a dividend yield. These factors overshadow any potential positives, pointing to a need for substantial improvements in financial health and market perception.

Clps Business Overview & Revenue Model

Company Description

CLPS Incorporation provides information technology, consulting, and solutions to institutions operating in banking, insurance, and financial sectors in the People's Republic of China and internationally. It offers IT consulting services in credit card business areas, such as credit card application, account setup, authorization and activation, settlement, collection, promotion, point system, anti-fraud, statement, reporting, and risk management. The company also provides banking services, including business analysis, system design, development, testing, system maintenance, and operation support; and services in loans, deposit, general ledger, wealth management, debit card, anti-money-laundering, statement and reporting, and risk management, as well as architecture consulting services for banking systems, and online and mobile banking. In addition, it offers solutions in the field of wealth management; e-commerce solutions in online platforms, cross-border e-commerce, logistics, and back-end technology, such as big data analysis and intelligent decision-making among others; and driving, automatic control, and other AI-driven technology solutions for the automotive industry. Further, the company provides IT consulting services to its clients in the banking, wealth management, e-commerce, and automotive industries, among others; and software project development, maintenance, and testing services. Additionally, it offers CLPS Virtual Banking platform, a training platform for IT talents; recruitment and headhunting, as well as fee-for-service training services; and sells product and third-party software. The company was founded in 2005 and is headquartered in Kwun Tong, Hong Kong.

How the Company Makes Money

CLPS generates revenue through a variety of IT and consulting services offered mainly to the financial sector, including banks and insurance companies. The company's revenue streams include fees for IT consulting services, system integration projects, application development, and maintenance contracts. Key factors contributing to its earnings include long-term service agreements with financial institutions, as well as strategic partnerships and collaborations with other technology firms to enhance service offerings and expand market reach. The company's ability to adapt to technological advancements and regulatory changes in the financial industry also plays a critical role in sustaining and growing its revenue.

Clps Financial Statement Overview

Summary

Clps faces several financial challenges, including declining revenues and profitability, as evidenced by negative profit margins. Despite maintaining a conservative debt profile, the company's return metrics are underwhelming, indicating inefficiencies in generating shareholder value. Cash flow management also appears constrained, emphasizing the need for strategic improvements in operational efficiency and cash generation capabilities.

Income Statement

The company's revenue has shown volatility with a decrease in the most recent year by 5.02%. The gross profit margin has decreased to 23.07% from 22.93%, reflecting slightly improved cost management. However, the net profit margin turned negative at -1.63%, indicating profitability challenges. Both EBIT and EBITDA margins have also suffered, with EBIT margin at -1.78% and EBITDA margin at -0.90%, signaling operational inefficiencies.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.42, indicating a conservative leverage position. The return on equity has turned negative at -3.73%, reflecting poor profitability against the equity base. The equity ratio stands at 56.80%, showing a solid equity position relative to total assets.

Cash Flow

The operating cash flow to net income ratio of -3.83 indicates a discrepancy between cash generation and accounting profit, while the free cash flow to net income ratio of -2.92 points to challenges in generating free cash flow. Free cash flow has decreased by 25.91% compared to the previous year, highlighting constraints in cash flow management.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
153.82M	142.81M	150.36M	152.02M	126.06M	89.42M
	Gross Profit
36.35M	32.95M	34.48M	40.99M	40.17M	31.12M
	EBIT
-1.46M	-2.54M	76.39K	7.41M	8.38M	3.21M
	EBITDA
-194.50K	-1.29M	3.68M	8.32M	9.05M	3.80M
	Net Income Common Stockholders
-1.23M	-2.33M	192.53K	4.46M	6.82M	2.94M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.66M	31.22M	22.21M	18.40M	28.90M	13.29M
	Total Assets
17.85M	110.03M	95.32M	101.88M	82.73M	45.35M
	Total Debt
753.12K	26.23M	11.37M	14.47M	7.55M	2.18M
	Net Debt
-3.91M	-2.88M	-10.84M	-3.92M	-17.19M	-10.47M
	Total Liabilities
10.99M	46.11M	29.81M	34.08M	25.00M	16.73M
	Stockholders Equity
6.38M	62.51M	64.58M	66.55M	56.69M	27.35M
Cash Flow		Free Cash Flow
0.00	6.81M	9.19M	-17.55M	-3.68M	5.76M
	Operating Cash Flow
0.00	8.93M	9.71M	3.20M	-2.61M	5.93M
	Investing Cash Flow
0.00	-12.25M	-306.05K	-16.29M	-5.62M	173.23K
	Financing Cash Flow
0.00	10.19M	-4.32M	7.47M	19.34M	125.36K

Clps Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLPS, the sentiment is Negative. The current price of 1.01 is below the 20-day moving average (MA) of 1.06, below the 50-day MA of 1.16, and below the 200-day MA of 1.11, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 46.57 is Neutral, neither overbought nor oversold. The STOCH value of 39.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CLPS.

Clps Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
USIO	65 Neutral	$42.16M	13.15	19.32%	―	-0.37%	―
DTST	65 Neutral	$26.96M	53.00	2.53%	―	1.65%	31.84%
Sector *	59 Neutral	$10.59B	10.09	-6.37%	3.05%	7.44%	-10.67%
WYY	51 Neutral	$27.66M	―	-13.69%	―	34.47%	54.37%
CLPS	46 Neutral	$28.95M	―	-1.97%	―	5.81%	55.03%
TDTH	38 Underperform	$14.72M	―		―	―	―