Entrepreneur Universe Bright Group (EUBGD) AI Stock Analysis

• Market Cap: $869.30M
• Dividend Yield: N/A
• Average Volume (3M): 101.54K
• Price to Earnings (P/E): 335.0
• Beta (1Y): 0.20
• Revenue Growth: -24.55%
• EPS Growth: -45.45%
• Country: US
• Employees: 20
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): <0.01
• Shares Outstanding: 170,118,150
• 10 Day Avg. Volume: 18,337
• 30 Day Avg. Volume: 101,543
• PEG Ratio: -11.70
• Price to Book (P/B): 63.73
• Price to Sales (P/S): 101.61
• P/FCF Ratio: 393.87
• Enterprise Value/Market Cap: 0.09
• Enterprise Value/Revenue: 17.59
• Enterprise Value/Gross Profit: 20.48
• Enterprise Value/Ebitda: 41.70
• 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: 56 Neutral
• Price Target: $0.10 ▼(-5.45% Downside)
• Action: Reiterated Date: 01/24/26
• Date: Action: Reiterated 01/24/26

The score is supported by strong profitability and a low-risk balance sheet, but is held back by a very high P/E valuation, a clear downtrend in the technicals, and a notable recent quarterly revenue and earnings decline.

Positive Factors

Conservative Balance Sheet

Extremely low leverage and rising equity provide durable financial flexibility, reducing default and refinancing risk. This strengthens the firm's ability to fund strategic initiatives, absorb client revenue cycles, and invest in digital advisory capabilities without needing external capital.

High Profitability Margins

Sustained high gross and net margins reflect pricing power and an efficient consulting model, creating a structural cushion for profitability. These margins support reinvestment and shareholder returns over time, even if revenue growth moderates, enabling strategic initiatives to be funded internally.

Strategic Shift to Digital Advisory

A deliberate push into digital advisory represents a structural business shift toward more scalable, higher‑margin, and potentially recurring revenue streams. Over months this can broaden client addressable market, diversify revenue sources, and reduce dependence on face-to-face consulting cycles.

Negative Factors

Sharp Recent Revenue Decline

A large YoY revenue and earnings drop signals durable demand weakness or client budget sensitivity. Such a material decline can erode scale economics, pressure utilization and pricing, and require extended recovery time, leaving margins and cash flow vulnerable over multiple quarters.

Volatile Cash Generation

Inconsistent operating cash flow and prior negative cash-year show cash conversion risk despite recent positive FCF. This volatility complicates multi‑period planning, raises the chance of funding needs during downturns, and weakens the predictability of internal financing for growth.

Limited Scale and Client Concentration Risk

A very small employee base implies limited operational scale and higher client concentration risk. In consulting, this heightens sensitivity to individual client budget cuts and makes revenue rebound slower, constraining the firm's ability to diversify engagements and sustain long‑term growth.

Entrepreneur Universe Bright Group Business Overview & Revenue Model

Company Description

Entrepreneur Universe Bright Group, through its subsidiaries, provides digital marketing consultation services in Hong Kong and China. It offers consulting, sourcing, and marketing services; digital training related services; and key opinion leaders (KOL) training coordination and KOL training services. The company was formerly known as REE International, Inc. and changed its name to Entrepreneur Universe Bright Group in April 2020. The company was incorporated in 1999 and is headquartered in Xi'an, China.

How the Company Makes Money

EUBG generates revenue through a multifaceted approach, leveraging its diversified portfolio. The company earns income from venture capital investments by taking equity stakes in promising startups and exiting these investments through public offerings or acquisitions. In the real estate sector, EUBG develops and manages commercial and residential properties, generating rental income and profits from property sales. Additionally, the financial services arm of EUBG offers fintech solutions, including digital payment systems and financial advisory services, which provide transactional fees and subscription-based revenue. Strategic partnerships with other industry leaders and continued investment in innovative technologies are significant factors contributing to EUBG's earnings.

Entrepreneur Universe Bright Group Financial Statement Overview

Summary

Strong profitability and a very conservative balance sheet (minimal leverage) support fundamentals, but recent revenue contraction and weaker/volatile operating cash flow reduce the score.

Income Statement

Profitability remains strong for a consulting business, with TTM (Trailing-Twelve-Months) gross margin (~86%) and net margin (~28%) still healthy, and operating profitability also solid. However, the growth profile has weakened: revenue is down in the most recent periods (TTM revenue growth -9.3% and 2024 slightly negative), and margins are well below the exceptionally strong 2020–2023 peak levels, indicating some normalization and/or pricing and volume pressure.

Balance Sheet

The balance sheet is conservatively financed with very low leverage (TTM debt-to-equity ~0.01), providing significant financial flexibility. Equity has also grown versus 2024, and returns on equity are still healthy (TTM ~16%), though below the very strong 2020–2023 levels, suggesting profitability has cooled while the company maintains a strong capital base.

Cash Flow

Cash generation is positive in TTM (Trailing-Twelve-Months), with free cash flow essentially matching reported earnings, indicating good earnings quality. The main concern is volatility: operating cash flow is down sharply versus 2023 and the company had a negative cash flow year in 2022, so cash conversion is not consistently strong across cycles even though the latest period is stable.

Breakdown	TTM	Mar 2025	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.40M	5.27M	6.24M	3.51M	5.64M	9.19M
Gross Profit	3.78M	4.59M	5.76M	2.84M	3.81M	8.53M
EBITDA	1.86M	2.68M	4.00M	1.26M	2.01M	7.43M
Net Income	1.64M	1.49M	2.28M	404.62K	1.09M	4.97M
Balance Sheet
Total Assets	10.29M	9.39M	10.16M	7.77M	8.20M	7.73M
Cash, Cash Equivalents and Short-Term Investments	9.56M	8.49M	9.32M	7.19M	7.65M	3.87M
Total Debt	82.86K	117.53K	27.65K	251.01K	146.70K	158.93K
Total Liabilities	794.70K	977.35K	1.03M	889.40K	1.44M	2.15M
Stockholders Equity	9.50M	8.41M	9.13M	6.88M	6.76M	5.57M
Cash Flow
Free Cash Flow	745.22K	1.36M	2.32M	-148.60K	451.66K	6.12M
Operating Cash Flow	745.26K	1.36M	2.33M	-138.89K	451.66K	6.48M
Investing Cash Flow	-39.00	0.00	-1.84K	-9.70K	3.29M	-3.41M
Financing Cash Flow	0.00	-2.21M	-164.44K	-3.49K	-7.57K	170.20K

Entrepreneur Universe Bright Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EUBGD, the sentiment is Negative. The current price of 0.11 is below the 20-day moving average (MA) of 0.83, below the 50-day MA of 1.10, and below the 200-day MA of 2.35, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 35.35 is Neutral, neither overbought nor oversold. The STOCH value of 15.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EUBGD.

Entrepreneur Universe Bright Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SBC	73 Outperform	$400.05M	9.82	19.13%	―	236.18%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
EUBGD	56 Neutral	$869.30M	335.00	11.86%	―	-24.55%	-45.45%
FC	51 Neutral	$157.46M	-115.35	-2.08%	―	-7.02%	-86.27%
RGP	47 Neutral	$119.60M	-0.92	-61.44%	6.74%	-10.83%	-1669.11%
FORR	42 Neutral	$104.90M	-0.88	-43.39%	―	-8.73%	-1168.15%
AERT	41 Neutral	$14.36M	-4.77	―	―	-3.87%	-104.63%

Entrepreneur Universe Bright Group Corporate Events

Entrepreneur Universe Bright Group Reports Q3 2025 Revenue Decline

Entrepreneur Universe Bright Group reported a significant decline in its financial performance for the third quarter of 2025, with revenue decreasing by 27% and net income dropping by 44% compared to the same period in 2024. Despite the revenue decline attributed to temporary softness in client budgets, the company maintained a strong cash position and total assets increased slightly. EUBG remains focused on expanding its digital advisory services and maintaining compliance with regulatory frameworks to deliver long-term value to shareholders.