ConnectM Technology Solutions (CNTM) AI Stock Analysis

• Market Cap: $20.24M
• Dividend Yield: N/A
• Average Volume (3M): 249.86K
• Price to Earnings (P/E): ―
• Beta (1Y): 27.36
• Revenue Growth: 419.60%
• EPS Growth: 75.23%
• Country: US
• Employees: 158
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -1.97
• Shares Outstanding: 99,973,785
• 10 Day Avg. Volume: 366,185
• 30 Day Avg. Volume: 249,862
• PEG Ratio: 0.10
• Price to Book (P/B): -0.92
• Price to Sales (P/S): 0.00102
• P/FCF Ratio: -3.74
• Enterprise Value/Market Cap: 2.31
• Enterprise Value/Revenue: 1.48
• Enterprise Value/Gross Profit: 5.49
• Enterprise Value/Ebitda: -3.28
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -0.22
• Revenue Forecast (FY): $49.96M

• Rating: 48 Neutral
• Price Target: $0.33 ▼(-20.24% Downside)

The overall stock score of 48 reflects significant financial challenges, including negative equity and cash flow issues, which are major concerns. While there is some positive momentum in the stock's technical indicators, the high volatility and lack of profitability weigh heavily on the score. The valuation is also unattractive due to the negative P/E ratio and absence of dividends.

Positive Factors

Revenue Growth

Sustained revenue growth indicates increasing demand for ConnectM's software solutions and IT services, enhancing its market position.

Strategic Partnerships

Partnerships expand service offerings and open new revenue streams, strengthening ConnectM's competitive advantage in the tech sector.

Capital Markets Strategy

A potential uplisting could improve liquidity and access to capital, supporting ConnectM's growth and financial stability.

Negative Factors

Negative Equity

Negative equity reflects financial instability, posing risks to creditors and limiting ConnectM's ability to invest in growth opportunities.

Profitability Challenges

Ongoing profitability issues could hinder ConnectM's ability to reinvest in the business and sustain long-term growth.

Cash Flow Concerns

Negative operating cash flow suggests financial strain, potentially impacting ConnectM's ability to fund operations and strategic initiatives.

ConnectM Technology Solutions Business Overview & Revenue Model

Company Description

ConnectM Technology Solutions (CNTM) is a cutting-edge technology company specializing in providing innovative software solutions and IT services across various sectors, including healthcare, finance, and education. With a focus on leveraging advanced technologies such as artificial intelligence, cloud computing, and data analytics, CNTM aims to enhance operational efficiency and drive digital transformation for its clients. The company's core offerings include custom software development, system integration, and managed IT services tailored to meet the unique needs of each industry.

How the Company Makes Money

CNTM generates revenue primarily through a diversified model that includes project-based contracts, subscription services, and ongoing maintenance agreements. Key revenue streams consist of custom software development projects, where clients pay for tailored solutions, and recurring revenue from managed services that provide ongoing support and updates. Additionally, CNTM has established strategic partnerships with cloud service providers and technology vendors, which not only enhances its service offerings but also opens up new revenue opportunities through joint ventures and co-marketing initiatives. The company's commitment to delivering high-quality solutions and fostering long-term client relationships also contributes to its financial success.

ConnectM Technology Solutions Financial Statement Overview

Summary

ConnectM Technology Solutions is experiencing revenue growth, but significant challenges remain in achieving profitability and financial stability. The negative equity and ongoing cash flow issues highlight the need for strategic improvements. The company must focus on enhancing profitability and strengthening its balance sheet to ensure long-term viability.

Income Statement

ConnectM Technology Solutions shows a positive revenue growth rate of 9.1% TTM, indicating some momentum in sales. However, the company is struggling with profitability, as evidenced by negative net profit, EBIT, and EBITDA margins. The gross profit margin is relatively stable at 26.99%, but overall, the company is not yet profitable, which is a significant concern.

Balance Sheet

The balance sheet reveals a precarious financial position with negative stockholders' equity and a high debt-to-equity ratio of -0.63 TTM. The return on equity is positive due to negative equity, which is misleading. The equity ratio is negative, indicating financial instability and potential risk for creditors and investors.

Cash Flow

Cash flow analysis shows improvement in free cash flow growth at 21.8% TTM, but operating cash flow remains negative, indicating ongoing cash burn. The free cash flow to net income ratio is slightly above 1, suggesting some efficiency in converting income to cash, but overall cash flow remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	31.56M	22.65M	19.97M	15.44M	4.34M
Gross Profit	8.52M	5.95M	5.04M	4.04M	892.49K
EBITDA	-14.27M	-18.75M	-6.70M	-3.12M	-3.20M
Net Income	-17.22M	-22.57M	-9.15M	-3.54M	-3.44M
Balance Sheet
Total Assets	22.09M	12.76M	78.78M	94.22M	334.66K
Cash, Cash Equivalents and Short-Term Investments	2.21M	2.41M	5.95K	5.94K	5.06K
Total Debt	7.38M	17.31M	3.68M	166.96K	80.00K
Total Liabilities	33.84M	36.54M	28.97M	8.51M	329.55K
Stockholders Equity	-11.75M	-25.10M	49.81M	85.71M	5.11K
Cash Flow
Free Cash Flow	-9.59M	-6.17M	-2.45M	-1.80M	-3.76M
Operating Cash Flow	-9.40M	-5.96M	-2.45M	-1.63M	-3.47M
Investing Cash Flow	-449.74K	-107.67K	20.06M	-1.29M	-416.27K
Financing Cash Flow	10.27M	7.29M	-17.61M	3.45M	1.48M

ConnectM Technology Solutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.41
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNTM, the sentiment is Positive. The current price of 0.41 is above the 20-day moving average (MA) of 0.26, above the 50-day MA of 0.26, and below the 200-day MA of 0.44, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 71.85 is Negative, neither overbought nor oversold. The STOCH value of 80.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CNTM.

ConnectM Technology Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CNTM	48 Neutral	$20.24M	―	―	―	419.60%	75.23%
IPM	47 Neutral	$17.83M	-5.53	―	―	―	―
CXAI	45 Neutral	$11.46M	―	-80.59%	―	-27.47%	83.06%
NXPL	41 Neutral	$20.51M	-1.72	-37.97%	―	-14.03%	52.39%

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.