Epsium Enterprise Limited (EPSM) AI Stock Analysis

• Market Cap: $17.67M
• Dividend Yield: N/A
• Average Volume (3M): 2.52M
• Price to Earnings (P/E): ―
• Beta (1Y): -1.01
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 13
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Wineries & Distilleries
• EPS (TTM): N/A
• Shares Outstanding: 13,438,034
• 10 Day Avg. Volume: 7,141,518
• 30 Day Avg. Volume: 2,521,225
• PEG Ratio: -2.51
• Price to Book (P/B): 7.87
• Price to Sales (P/S): 5.10
• P/FCF Ratio: -43.27
• Enterprise Value/Market Cap: 3.62
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 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: 43 Neutral
• Price Target: $2.00 ▼(-26.74% Downside)
• Action: Reiterated Date: 01/31/26
• Date: Action: Reiterated 01/31/26

The score is primarily weighed down by deteriorating financial performance (sharp revenue decline, margin compression, and negative operating/free cash flow). Technicals add further risk with the stock trading below major moving averages and a negative MACD, though oversold RSI/Stoch slightly temper the downside. Valuation impact is neutral due to missing P/E and dividend yield data.

Positive Factors

Low leverage / strong equity base

Minimal leverage provides durable financial flexibility: with debt-to-equity at 0.02 and a healthy equity ratio, the company can fund restructuring, invest in product development, or weather revenue volatility without heavy interest burdens, preserving long-term solvency and strategic optionality.

Recurring revenue streams

Subscription and maintenance contracts create predictable, recurring cash inflows that support steady revenue base and customer retention. Over 2-6 months, recurring revenue cushions cycle effects, enables forward planning, and improves lifetime value economics versus one-off project work.

Partnerships with cloud providers

Partnerships with cloud and technology providers strengthen go-to-market capabilities and product integration, lowering customer acquisition friction. Such alliances enable faster product deployment, access to partner channels, and long-term scalability of cloud-based service offerings.

Negative Factors

Severe revenue decline

A sharp 57% revenue drop signals structural demand or execution issues that undermine growth prospects. Persisting declines compress scale benefits, make fixed costs harder to cover, and limit resources for R&D and sales, elevating the risk that competitive position and client relationships erode further.

Margin compression

Material margin erosion reduces earnings power and free cash flow potential. Falling gross and net margins indicate pricing pressure, higher costs, or product mix shifts that, if persistent, weaken reinvestment capacity and make sustainable profitability more difficult without structural cost or pricing improvements.

Negative cash generation

Consistently negative operating and free cash flows with steep FCF deterioration signal weak cash conversion and potential liquidity strain. Over months, this limits ability to fund working capital, invest in product development, or support sales growth without external financing, despite low leverage.

Epsium Enterprise Limited Business Overview & Revenue Model

Company Description

Epsium Enterprise Limited engages in the import trading and wholesale of alcoholic beverages in China, France, Chile, Australia, the United States, and Scotland. It primarily offers wines and spirits. The company's brands include Moutai, Xijiu, Wuliangye, Remy Martin Cognac, Macallan, Cointreau, Piper Heidsieck Champagne, and Red & White Wines, as well as French Fine Wines, such as Petrus, Lafite, Latour, Mouton, Margaux, and Lynch Bages. It distributes its products through chain supermarkets, stores, clubs, restaurants, food courts, bars, hotels, and gaming companies. The company was formerly known as Shengtao Investment Development Limited and changed its name to Epsium Enterprise Limited in 2021. Epsium Enterprise Limited was incorporated in 2020 and is based in Macau, China.

How the Company Makes Money

Epsium Enterprise Limited generates revenue through multiple streams, primarily by offering subscription-based software services, one-time project fees for custom software development, and consulting services in digital transformation. The company has established key partnerships with cloud service providers and technology firms, enabling it to deliver integrated solutions that enhance its service offerings. Additionally, EPSM capitalizes on recurring revenue from maintenance and support contracts with existing clients, which provides a steady cash flow. The company's focus on innovative technology solutions and its ability to adapt to market demands contribute significantly to its earnings.

Epsium Enterprise Limited Financial Statement Overview

Summary

Weak operating results and cash generation drive the score down: revenue fell 57.12% most recently, margins compressed materially (gross margin 12.82% vs. 18.98%; net margin 2.20% vs. 12.59%), and both operating and free cash flow are negative with sharply negative free cash flow growth (-179.30%). The balance sheet is a partial offset with very low leverage (debt-to-equity 0.02) and a healthy equity ratio, but ROE declined to 3.39% from 47.19%.

Income Statement

Epsium Enterprise Limited has experienced significant volatility in its revenue growth, with a notable decline of 57.12% in the most recent year. The gross profit margin has decreased from 18.98% to 12.82%, indicating pressure on profitability. Net profit margin has also declined to 2.20% from 12.59% in the previous year. The EBIT and EBITDA margins have similarly contracted, reflecting challenges in maintaining operational efficiency.

Balance Sheet

The company maintains a strong equity position with a low debt-to-equity ratio of 0.02, indicating minimal leverage. However, the return on equity has decreased significantly to 3.39% from 47.19% in the previous year, suggesting reduced profitability on shareholders' investments. The equity ratio remains healthy, reflecting a stable financial structure.

Cash Flow

Epsium Enterprise Limited faces challenges in cash flow management, with a negative operating cash flow and free cash flow. The free cash flow growth rate is significantly negative at -179.30%, and the operating cash flow to net income ratio is also negative, indicating inefficiencies in converting income to cash. The free cash flow to net income ratio is slightly above 1, suggesting some ability to generate cash relative to net income.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.52M	29.20M	11.17M	18.20M	19.76M
Gross Profit	1.60M	5.54M	1.92M	2.02M	1.84M
EBITDA	424.77K	4.33M	1.40M	1.37M	1.11M
Net Income	274.86K	3.67M	1.12M	1.04M	941.99K
Balance Sheet
Total Assets	10.63M	10.75M	6.94M	6.03M	7.60M
Cash, Cash Equivalents and Short-Term Investments	193.83K	1.32M	525.56K	272.01K	364.53K
Total Debt	165.70K	367.58K	290.88K	427.46K	610.56K
Total Liabilities	2.42M	2.88M	2.80M	3.09M	5.58M
Stockholders Equity	8.11M	7.79M	4.10M	2.92M	2.00M
Cash Flow
Free Cash Flow	-1.48M	1.86M	1.39M	987.91K	-133.51K
Operating Cash Flow	-1.39M	1.86M	1.40M	988.83K	-112.94K
Investing Cash Flow	-127.97K	-770.00	-11.72K	-916.00	-20.57K
Financing Cash Flow	352.85K	-1.07M	-1.13M	-1.08M	417.05K

Epsium Enterprise Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PEP	70 Outperform	$231.98B	28.28	42.86%	3.91%	0.48%	-22.61%
BUD	68 Neutral	$160.98B	23.42	8.29%	1.83%	-2.06%	21.03%
STZ	67 Neutral	$27.37B	24.89	14.29%	2.92%	-5.57%	119.49%
MDLZ	63 Neutral	$78.94B	32.61	9.29%	3.53%	4.13%	-5.19%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
MGPI	46 Neutral	$405.90M	-3.81	-13.72%	2.00%	-21.53%	-113.89%
EPSM	43 Neutral	$17.67M	―	―	―	―	―

Epsium Enterprise Limited Corporate Events

Epsium Enterprise Limited Reports Financial Results for June 2025

Epsium Enterprise Limited has released its unaudited condensed consolidated financial statements for the six months ending June 30, 2025. The financial results indicate a decrease in revenue and net income compared to previous years, with a net loss of $699,106 for the period. This financial performance may impact the company’s market positioning and stakeholder confidence, as it reflects challenges in maintaining profitability and revenue growth.