Clubhouse Media Group (CMGR) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: N/A
• Average Volume (3M): N/A
• Price to Earnings (P/E): ―
• Beta (1Y): N/A
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 3
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 0.00
• Shares Outstanding: N/A
• 10 Day Avg. Volume: N/A
• 30 Day Avg. Volume: N/A
• PEG Ratio: <0.01
• Price to Book (P/B): -0.22
• Price to Sales (P/S): 1.11
• P/FCF Ratio: -2.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 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: 34 Underperform
• Price Target: ―

Clubhouse Media Group's overall stock score reflects significant financial challenges, including a drastic decline in revenue and a negative equity position. The lack of technical analysis data and valuation challenges further contribute to the low score. The absence of guidance or sentiment from the earnings call provides no additional positive factors, resulting in a low overall assessment of the stock.

Positive Factors

Business Model

The company's business model leverages the growing trend of influencer marketing, connecting brands with diverse audiences through social media, which is a durable and expanding sector in digital advertising.

Cost Management

Improvement in gross profit margin indicates some success in cost management, which could help stabilize financial performance if revenue trends improve.

Talent Management

By managing talent, CMGR diversifies its revenue streams and strengthens its position in the influencer ecosystem, potentially enhancing long-term revenue stability.

Negative Factors

Revenue Decline

A 76% revenue decline indicates significant challenges in maintaining market share and demand, threatening the company's ability to sustain operations long-term.

Negative Equity

Negative equity suggests financial distress, limiting access to capital and increasing the risk of insolvency, which could affect long-term viability.

Cash Flow Issues

Persistent negative cash flow highlights difficulties in generating sufficient cash from operations, raising concerns about the company's ability to fund its activities and growth.

Clubhouse Media Group Business Overview & Revenue Model

Company Description

Clubhouse Media Group, Inc. operates professionally run content houses that provides management, production, and deal-making services to influencers worldwide. The company is involved in the talent management of social media influencers; content-creation studio, social media marketing, technology development, and brand incubation; provision of predictive analytics for content creation brand deals; and paid promotion. It also offers talent management and brand partnership deals to external influencers. The company was formerly known as Tongji Healthcare Group, Inc. to Clubhouse Media Group, Inc. in January 2021. Clubhouse Media Group, Inc. was incorporated in 2006 and is headquartered in Las Vegas, Nevada.

How the Company Makes Money

Clubhouse Media Group primarily makes money through brand partnerships and influencer marketing campaigns. The company collaborates with social media influencers to create engaging content that promotes products and services for various brands. Revenue is generated through fees charged for orchestrating these campaigns, which can include content creation, strategy development, and execution. Additionally, CMGR may earn income from talent management services by taking a percentage of the earnings generated by the influencers they represent, as well as from other media and content production-related ventures.

Clubhouse Media Group Financial Statement Overview

Summary

Clubhouse Media Group faces severe financial challenges, with substantial revenue declines, negative profitability, and high leverage. The negative equity position and persistent cash flow issues highlight the company's precarious financial health. While there have been minor improvements in certain cost metrics, these are overshadowed by the overall financial instability and risk of insolvency.

Income Statement

The company has experienced a significant decline in total revenue, dropping from $6.28 million in 2022 to $1.50 million in 2023. This represents a drastic revenue contraction of approximately 76%. Gross profit and net income have also decreased sharply, with negative net profit margins indicating ongoing losses. However, the gross profit margin slightly improved from previous years, suggesting some cost management improvements, albeit insufficient to offset the revenue decline.

Balance Sheet

The balance sheet reveals a concerning financial position, with negative stockholders' equity indicating insolvency risk. The debt-to-equity ratio is not meaningful due to negative equity, and total liabilities significantly exceed total assets, highlighting high leverage and financial instability. The declining trend in total assets further exacerbates the weak financial standing.

Cash Flow

The company has managed to improve operating cash flow slightly from the previous year, but it remains negative, indicating ongoing cash burn. Free cash flow is also negative, with a significant decline from the prior year. The cash flow to net income ratios are not favorable, reflecting challenges in converting earnings into cash.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	1.16B	1.50M	6.28M	4.25M	1.01M	0.00
Gross Profit	624.36M	523.67K	1.29M	782.90K	430.55K	0.00
EBITDA	-728.96K	-960.67K	-1.63M	-14.12M	-2.34M	0.00
Net Income	-596.83M	-2.37M	-7.53M	-22.25M	-2.58M	-74.76K
Balance Sheet
Total Assets	590.31K	801.96K	1.24M	1.52M	534.99K	0.00
Cash, Cash Equivalents and Short-Term Investments	89.42K	125.21K	57.71K	299.52K	37.77K	0.00
Total Debt	4.16M	4.16M	4.50M	7.15M	2.18M	0.00
Total Liabilities	10.01M	7.99M	8.92M	10.67M	2.87M	46.24K
Stockholders Equity	-9.73M	-7.51M	-8.06M	-9.15M	-2.33M	-46.24K
Cash Flow
Free Cash Flow	-318.62K	-581.14K	-2.32M	-8.40M	-2.05M	-30.49K
Operating Cash Flow	-562.36K	-581.14K	-1.93M	-7.97M	-1.97M	-30.49K
Investing Cash Flow	-43.10K	-80.76K	-389.99K	-424.76K	-319.74K	0.00
Financing Cash Flow	452.00K	729.39K	2.08M	8.66M	2.33M	30.49K

Clubhouse Media Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
DLPN	53 Neutral	$20.00M	-3.03	-55.09%	―	3.86%	81.68%
RDI	44 Neutral	$46.40M	―	―	―	7.11%	69.85%
CMGR	34 Underperform	―	―	―	―	―	―
VSME	31 Underperform	$25.55M	-6.87	-194.72%	―	-11.51%	74.52%