Clps (CLPS) AI Stock Analysis

• Market Cap: $25.61M
• Dividend Yield: N/A
• Average Volume (3M): 10.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.25
• Revenue Growth: 5.81%
• EPS Growth: 55.03%
• Country: US
• Employees: 3,642
• Sector: Technology
• Sector Strength: 87
• Industry: Information Technology Services
• EPS (TTM): -0.01
• Shares Outstanding: 27,840,670
• 10 Day Avg. Volume: 7,351
• 30 Day Avg. Volume: 10,031
• PEG Ratio: -1.48
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.97
• Enterprise Value/Market Cap: 0.64
• Enterprise Value/Revenue: 0.03
• Enterprise Value/Gross Profit: 0.45
• Enterprise Value/Ebitda: 4.37
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 50 Neutral
• Price Target: $1.00 ▲(8.70%Upside)

The overall stock score of 50 reflects significant financial challenges, including declining revenues and negative profit margins, combined with unfavorable valuation metrics. Although technical analysis suggests some potential for stabilization, the lack of profitability and absence of earnings call or corporate events data limit the stock's attractiveness.

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 Inc. generates revenue primarily through its IT consulting and services offerings. The company earns money by providing custom software development, IT consulting, system integration, and application testing services to financial institutions. Revenue streams include fees for project-based work, where clients pay for the development of specific IT solutions, and ongoing service contracts that cover maintenance and support. CLPS also benefits from strategic partnerships with technology providers, which enhance its service offerings and expand its market reach. Additionally, CLPS occasionally engages in training services, contributing to its income by offering specialized training programs for IT professionals in the financial sector.

Clps Financial Statement Overview

Summary

Clps faces financial challenges with declining revenues and profitability, negative profit margins, and poor return metrics. Despite a conservative debt position, cash flow management issues highlight the need for strategic improvements.

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
EBITDA	-194.50K	-1.29M	3.68M	8.32M	9.05M	3.80M
Net Income	-1.23M	-2.33M	192.53K	4.46M	6.82M	2.94M
Balance Sheet
Total Assets	119.42M	110.03M	95.32M	101.88M	82.73M	45.35M
Cash, Cash Equivalents and Short-Term Investments	37.27M	31.22M	22.21M	18.40M	28.90M	13.29M
Total Debt	31.65M	26.23M	11.37M	14.47M	7.55M	2.18M
Total Liabilities	56.76M	46.11M	29.81M	34.08M	25.00M	16.73M
Stockholders Equity	60.69M	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: 0.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 0.92 is below the 20-day moving average (MA) of 0.96, below the 50-day MA of 0.97, and below the 200-day MA of 1.14, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 43.35 is Neutral, neither overbought nor oversold. The STOCH value of 35.47 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	72 Outperform	$43.10M	13.33	19.38%	―	3.07%	―
Sector *	63 Neutral	$34.07B	6.13	-11.73%	1.80%	5.33%	-18.31%
CYCU	57 Neutral	$11.32M	33.15	-144.50%	―	―	-416.57%
DTST	56 Neutral	$25.56M	138.76	0.90%	―	-4.17%	-72.98%
CLPS	50 Neutral	$25.61M	―	-1.97%	―	5.81%	55.03%
WYY	49 Neutral	$33.35M	―	-14.76%	―	24.03%	49.96%
TDTH	41 Neutral	$19.00M	―		―	―	―