ConnectM Technology Solutions (CNTM) AI Stock Analysis

• Market Cap: $7.85M
• Dividend Yield: N/A
• Average Volume (3M): 817.56K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.71
• Revenue Growth: N/A
• EPS Growth: -85.24%
• Country: US
• Employees: 158
• Sector: Financial
• Sector Strength: 74
• Industry: Software - Application
• EPS (TTM): -1.97
• Shares Outstanding: 35,505,016
• 10 Day Avg. Volume: 387,321
• 30 Day Avg. Volume: 817,558
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -164.24
• Enterprise Value/Market Cap: 16.69
• Enterprise Value/Revenue: 2.92
• Enterprise Value/Gross Profit: 69.95
• Enterprise Value/Ebitda: -6.04
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 28 Underperform
• Price Target: ―

ConnectM Technology Solutions faces severe financial difficulties, with no revenue and ongoing losses. Technical indicators offer some short-term optimism, but long-term trends remain negative. Valuation metrics highlight unprofitability, and a potential Nasdaq delisting poses a significant risk. Overall, the stock is currently a high-risk investment with a low score of 28.

ConnectM Technology Solutions Business Overview & Revenue Model

Company Description

ConnectM Technology Solutions, Inc., a technology company, focuses on advancing the electrification economy by integrating electrified energy assets with its AI-driven technology solutions platform. It provides residential and light commercial buildings, and all-electric original equipment manufacturers with a platform to accelerate the transition to solar and all-electric heating, cooling, and transportation. The company was incorporated in 2021 and is headquartered in Marlborough, Massachusetts.

How the Company Makes Money

ConnectM Technology Solutions makes money through a combination of product sales, subscription services, and consulting. The company generates revenue by selling its IoT devices and connectivity solutions to businesses in need of advanced data analytics and monitoring capabilities. Additionally, CNTM offers subscription-based access to its software platforms and analytics tools, which provide ongoing insights and operational enhancements for its clients. Consulting services are another key revenue stream, where CNTM leverages its industry expertise to assist organizations in optimizing their IoT deployments and achieving business goals. Partnerships with technology providers and industry leaders further bolster its revenue by expanding its market reach and enhancing its service offerings.

ConnectM Technology Solutions Financial Statement Overview

Summary

ConnectM Technology Solutions is facing significant financial challenges, with no revenue in the recent period and ongoing losses impacting both profitability and cash flow. While the company maintains a low level of debt, its financial stability is undermined by negative returns and cash outflows. Strategic initiatives to bolster revenue and improve operational efficiencies will be crucial for future financial health.

Income Statement

The company is facing significant challenges with negative revenue growth and profitability. Total revenue dropped to zero in the most recent year, and the net profit margin is severely negative, indicating operational inefficiencies. Both EBIT and EBITDA margins are negative, suggesting ongoing losses. The company needs to address these issues to improve its financial health.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio, indicating limited leverage, which is a positive aspect. However, the return on equity is negative due to consistent losses. While the equity ratio is decent, indicating some financial stability, the company must improve profitability to enhance shareholder value.

Cash Flow

Cash flow analysis reveals negative operating cash flow, which is a concern for liquidity. Free cash flow is also negative, reflecting ongoing cash outflows. The operating cash flow to net income ratio is not favorable, indicating inefficiencies in converting net income to cash. The company needs to focus on improving cash generation.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021
Income Statement		Total Revenue
6.07M	0.00	15.44M	4.34M
	Gross Profit
1.87M	0.00	4.04M	892.49K
	EBIT
-4.31M	-2.98M	-2.10M	-19.89K
	EBITDA
-12.62M	-14.03M	-3.52M	-3.20M
	Net Income Common Stockholders
-17.89M	-14.94M	-3.76M	-19.89K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.88M	5.95K	5.94K	5.06K
	Total Assets
13.75M	78.78M	94.22M	334.66K
	Total Debt
22.42M	3.68M	166.96K	80.00K
	Net Debt
20.54M	3.67M	161.02K	74.94K
	Total Liabilities
40.77M	28.97M	8.51M	329.55K
	Stockholders Equity
-28.34M	49.81M	85.71M	5.11K
Cash Flow		Free Cash Flow
-4.45M	-2.45M	-797.18K	-296.19K
	Operating Cash Flow
-4.26M	-2.45M	-633.30K	-10.53K
	Investing Cash Flow
20.94M	20.06M	-92.92M	-416.27K
	Financing Cash Flow
-16.51M	-17.61M	93.55M	15.59K

ConnectM Technology Solutions Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.22
• 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 CNTM, the sentiment is Negative. The current price of 0.22 is below the 20-day moving average (MA) of 0.23, below the 50-day MA of 0.40, and below the 200-day MA of 0.81, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 40.18 is Neutral, neither overbought nor oversold. The STOCH value of 22.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CNTM.

ConnectM Technology Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTWK	68 Neutral	$33.49M	136.84	0.75%	―	9.18%	―
Sector *	64 Neutral	$12.77B	9.78	7.84%	78.83%	12.06%	-7.99%
CXAI	51 Neutral	$19.65M	―	-86.92%	―	-9.33%	74.24%
HKIT	48 Neutral	$39.55M	32.63	-2.82%	―	-36.35%	-153.77%
MTC	41 Neutral	$23.55M	―	40.01%	―	―	―
AIXI	38 Underperform	$24.60M	―	544.07%	―	6.89%	6.39%
CNTM	28 Underperform	$7.85M	―	-108.59%	―	―	-85.24%

ConnectM Technology Solutions Corporate Events

ConnectM Faces Nasdaq Compliance Challenge Over Report Delay

ConnectM Technology Solutions received a notice from Nasdaq for not filing its Quarterly Report for September 2024, leading to non-compliance with Nasdaq’s listing rules. While this does not immediately affect their Nasdaq listing, failure to regain compliance by February 2025 could result in delisting. ConnectM has until February 4, 2025, to submit a compliance plan, and if accepted, it may gain an extension until May 2025. If the plan is rejected, the company can appeal. This notice was announced in compliance with Nasdaq’s requirement for disclosure of such notifications.