FingerMotion (FNGR) AI Stock Analysis

• Market Cap: $106.28M
• Dividend Yield: N/A
• Average Volume (3M): 271.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.55
• Revenue Growth: -16.91%
• EPS Growth: 4.83%
• Country: US
• Employees: 64
• Sector: Communication Services
• Sector Strength: 85
• Industry: Telecommunications Services
• EPS (TTM): -0.10
• Shares Outstanding: 57,141,186
• 10 Day Avg. Volume: 316,845
• 30 Day Avg. Volume: 271,005
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.66
• Price to Cash Flow (P/CF): -13.20
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 28.57
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

FingerMotion's overall stock score reflects significant challenges in financial performance, with negative profitability and cash flow issues weighing heavily on the score. However, the recent corporate event of securing key contracts suggests potential for future growth and expansion. The technical analysis indicates a neutral position, while valuation concerns persist due to negative earnings. Overall, the company's strategic moves in securing contracts could offset some financial challenges if successfully executed.

FingerMotion Business Overview & Revenue Model

Company Description

FingerMotion, Inc., a mobile data specialist company, provides mobile payment and recharge platform solutions in China. The company offers telecommunication providers' products and services, including data plans, subscription plans, mobile phones, and loyalty points redemption services; bulk short message service and multimedia messaging services; and RCS platform, a proprietary business messaging platform that enables businesses and brands to communicate and service their customers on the 5G infrastructure. It also operates Sapientus, a proprietary big data insights platform that deliver data-driven for businesses in the insurance, healthcare, and solutions and insights financial services industries. FingerMotion, Inc. is headquartered in New York, New York.

How the Company Makes Money

FingerMotion generates revenue through a variety of channels, including mobile data services, mobile payment and recharge solutions, and data analytics services. Its mobile data services segment involves partnerships with major telecommunications companies to provide prepaid and subscription-based mobile data plans. Additionally, FingerMotion offers mobile payment solutions that facilitate seamless transactions for consumers. A significant portion of its revenue is derived from data analytics services, where the company provides predictive insights and data-driven solutions to insurance companies and other enterprises. These services help clients optimize their operations and enhance customer experiences, thereby driving demand for FingerMotion's offerings.

FingerMotion Financial Statement Overview

Summary

FingerMotion faces significant financial challenges, including negative profit margins and liquidity issues. Despite a stable equity ratio, the negative cash flows and low revenue growth reflect operational inefficiencies, necessitating strategic adjustments.

Income Statement

FingerMotion's income statement shows a negative net profit margin and declining revenue trends. The TTM report indicates a net income loss, and revenue growth rate is negative compared to the previous annual report, signaling financial challenges. The gross profit margin is low, and negative EBIT and EBITDA margins highlight operational inefficiencies.

Balance Sheet

The balance sheet reflects moderate risk with a low debt-to-equity ratio, suggesting manageable leverage. However, the return on equity is negative, indicating inefficiency in generating profits from shareholders' investments. Despite this, the equity ratio is relatively stable, indicating that a good portion of the company's assets is financed by equity.

Cash Flow

Cash flow analysis reveals significant challenges with negative operating and free cash flows, indicating liquidity issues. The free cash flow growth rate is also negative, and the operating cash flow to net income ratio is unfavorable, suggesting difficulties in converting revenue into cash.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
35.79M	34.05M	22.93M	16.68M	9.13M
	Gross Profit
3.86M	2.32M	2.81M	1.65M	965.76K
	EBIT
-3.82M	-6.67M	-4.87M	-4.18M	-3.07M
	EBITDA
-3.62M	-6.79M	-4.71M	-4.08M	-2.97M
	Net Income Common Stockholders
-3.76M	-7.54M	-5.02M	-4.76M	-3.13M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.52M	9.24M	461.93K	850.72K	102.92K
	Total Assets
18.81M	17.55M	10.37M	7.34M	5.88M
	Total Debt
4.80K	3.39M	5.07K	1.71M	1.07M
	Net Debt
-1.51M	-5.85M	-456.86K	856.00K	969.75K
	Total Liabilities
6.75M	4.57M	5.28M	5.23M	6.17M
	Stockholders Equity
12.10M	12.96M	5.08M	2.11M	-298.62K
Cash Flow		Free Cash Flow
-8.20M	-8.69M	-5.87M	-4.51M	-3.11M
	Operating Cash Flow
-8.20M	-8.61M	-5.85M	-4.27M	-3.09M
	Investing Cash Flow
-376.00	-74.82K	-26.07K	-238.49K	-17.24K
	Financing Cash Flow
-295.33K	17.34M	5.41M	5.17M	1.83M

FingerMotion Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FNGR, the sentiment is Positive. The current price of 1.86 is above the 20-day moving average (MA) of 1.42, above the 50-day MA of 1.37, and above the 200-day MA of 1.74, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 70.21 is Negative, neither overbought nor oversold. The STOCH value of 88.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FNGR.

FingerMotion Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RDCM	68 Neutral	$173.12M	25.15	7.82%	―	18.23%	81.31%
UCL	67 Neutral	$40.63M	8.86	24.20%	―	7.08%	59.40%
SIFY	65 Neutral	$314.89M	―	0.20%	―	9.62%	―
Sector *	59 Neutral	$13.69B	6.83	-3.38%	3.82%	2.32%	-34.61%
FNGR	54 Neutral	$106.28M	―	-48.67%	―	-16.91%	4.83%
ATNI	51 Neutral	$267.82M	―	-5.13%	5.55%	-4.35%	-78.64%
KORE	46 Neutral	$40.82M	―	174.77%	―	7.00%	31.92%

FingerMotion Corporate Events

FingerMotion Secures Key Contracts for Emergency Response

On January 23, 2025, FingerMotion announced it had secured contracts to equip emergency response vehicles with its Advanced Mobile Integrated Command and Communication Platform, following a competitive tender process. These contracts, won by its subsidiary JiuGe Technology, strengthen FingerMotion’s position as a leader in emergency response solutions, showcasing the trust and reliability placed in their innovations by agencies. The platform, co-developed with SAIC Maxus, includes advanced communication technologies to ensure seamless operations for first responders even in challenging environments, highlighting the company’s strategic market expansion plans.

FingerMotion Reports Q3 Revenue Growth Amid Losses

On January 15, 2025, FingerMotion announced its financial results for Q3 of fiscal year 2025, ending November 30, 2024. The company reported a significant revenue increase of 39% to $8.53 million, largely due to the growth in its Telecommunications Products and Services division. Despite the revenue growth, the company faced a quarterly loss of $1.66 million, although this was a slight improvement from the previous year. The CEO highlighted the company’s readiness to capitalize on growth opportunities and drive sustained value for shareholders, supported by recent successful financing.