Dalrada Financial (DFCO) AI Stock Analysis

• Market Cap: $9.61M
• Dividend Yield: N/A
• Average Volume (3M): 34.99K
• Price to Earnings (P/E): ―
• Beta (1Y): 4.19
• Revenue Growth: -19.19%
• EPS Growth: 10.81%
• Country: US
• Employees: 56
• Sector: Industrials
• Sector Strength: 76
• Industry: Consulting Services
• EPS (TTM): -0.25
• Shares Outstanding: 120,157,110
• 10 Day Avg. Volume: 59,444
• 30 Day Avg. Volume: 34,995
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.12
• Enterprise Value/Revenue: 1.71
• Enterprise Value/Gross Profit: 19.64
• Enterprise Value/Ebitda: -1.24
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: ―

Dalrada Financial's overall performance is hindered by significant financial challenges, including negative earnings and high leverage. While there are some positive short-term technical indicators, the overbought conditions suggest potential volatility. The valuation remains unattractive, primarily due to negative profitability metrics.

Dalrada Financial Business Overview & Revenue Model

Company Description

Dalrada Financial Corporation (DFCO) is a diverse company operating across various sectors, including healthcare, clean energy, and technology. The company focuses on providing innovative solutions and services that aim to improve efficiency and sustainability. Dalrada's core products and services span health diagnostics, eco-friendly energy systems, and advanced technology platforms, catering to a broad range of industries and needs.

How the Company Makes Money

Dalrada Financial Corporation generates revenue through a diversified model that includes sales of healthcare products and services, clean energy solutions, and technology systems. The healthcare segment provides diagnostic testing and health-related services, contributing a significant portion of the company's earnings. The clean energy division focuses on selling eco-friendly energy solutions and systems, which is an expanding area due to increasing demand for sustainable practices. Additionally, Dalrada's technology platforms offer innovative solutions that facilitate business operations and efficiency for clients across various industries. Strategic partnerships and a focus on emerging markets further bolster Dalrada's revenue streams and growth potential.

Dalrada Financial Financial Statement Overview

Summary

Dalrada Financial faces significant financial challenges, characterized by declining revenues, persistent losses, high debt levels, and poor cash flow generation. The negative profitability and cash flow metrics indicate operational inefficiencies and cost management issues, while the high leverage poses a risk to financial stability.

Income Statement

Dalrada Financial's revenue has experienced significant volatility, with a notable decrease in the most recent year compared to the previous year. The company has consistently reported negative EBIT and net income, resulting in poor profit margins. The gross profit margin decreased from 30.5% in 2023 to 23.1% in 2024, and the net profit margin worsened from -68.2% to -91.4% during the same period. These metrics indicate challenges in managing costs and achieving profitability.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio due to significant debt levels and relatively low or negative equity in recent years. The debt-to-equity ratio was approximately 1.30 in 2024. Further, the equity ratio is low at 30.9%, reflecting a reliance on debt financing. The company's negative equity in prior years raises concerns about financial stability and leverage risks.

Cash Flow

Dalrada Financial has struggled with negative operating and free cash flows, indicating difficulties in generating cash from operations. The free cash flow growth rate was negative, with free cash flow worsening from -$5.77 million in 2023 to -$8.36 million in 2024. The operating cash flow to net income ratio is unfavorable, highlighting challenges in converting earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.50M	25.18M	29.74M	19.27M	3.41M	1.18M
Gross Profit	1.53M	5.81M	9.06M	10.51M	934.72K	552.24K
EBITDA	-24.15M	-21.15M	-17.37M	-9.88M	783.99K	-1.39M
Net Income	-27.62M	-23.01M	-20.29M	-14.10M	91.43K	-2.48M
Balance Sheet
Total Assets	21.75M	27.60M	25.17M	22.42M	4.70M	2.78M
Cash, Cash Equivalents and Short-Term Investments	98.84K	501.93K	812.81K	772.06K	110.28K	75.17K
Total Debt	12.24M	11.12M	8.43M	24.21M	13.97M	6.14M
Total Liabilities	33.73M	19.17M	20.92M	37.38M	18.11M	17.92M
Stockholders Equity	-11.83M	8.53M	4.11M	-15.43M	-13.37M	-15.19M
Cash Flow
Free Cash Flow	-9.25M	-8.36M	-5.78M	-11.23M	-5.94M	-2.59M
Operating Cash Flow	-9.13M	-7.93M	-4.61M	-10.35M	-5.58M	-2.39M
Investing Cash Flow	-759.67K	-552.66K	-1.06M	-574.04K	-385.83K	12.91K
Financing Cash Flow	8.69M	8.12M	5.72M	11.67M	5.96M	2.46M

Dalrada Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DFCO, the sentiment is Positive. The current price of 0.08 is above the 20-day moving average (MA) of 0.07, above the 50-day MA of 0.04, and above the 200-day MA of 0.05, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 58.10 is Neutral, neither overbought nor oversold. The STOCH value of 40.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DFCO.

Dalrada Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$10.71B	16.03	7.42%	2.02%	2.57%	-16.39%
BLGO	53 Neutral	$58.15M	―	-52.83%	―	-16.42%	-34.38%
DFCO	46 Neutral	$9.61M	―	-269.70%	―	-19.19%	10.81%
AITX	45 Neutral	$20.13M	―	40.95%	―	124.88%	42.31%
REED	42 Neutral	$51.11M	―	71.20%	―	-19.95%	64.37%