Fullnet Communications (FULO) AI Stock Analysis

• Market Cap: $7.44M
• Dividend Yield: 4.37%
• Average Volume (3M): 4.07K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.36
• Revenue Growth: 13.61%
• EPS Growth: 38.16%
• Country: US
• Employees: 15
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.02
• Shares Outstanding: 19,623,917
• 10 Day Avg. Volume: 3,065
• 30 Day Avg. Volume: 4,068
• PEG Ratio: -4.72
• Price to Book (P/B): 4.01
• Price to Sales (P/S): 1.19
• P/FCF Ratio: 8.06
• Enterprise Value/Market Cap: 0.35
• Enterprise Value/Revenue: 0.54
• Enterprise Value/Gross Profit: 0.74
• Enterprise Value/Ebitda: 2.60
• 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: 79 Outperform
• Price Target: ―

Fullnet Communications demonstrates strong financial performance with solid profitability and conservative financial management, making it well-positioned for growth. The valuation is appealing, driven by a reasonable P/E ratio and high dividend yield. While technical indicators suggest mixed momentum, there are no significant overbought conditions. Overall, the company is in a strong position, though investors should monitor market trends and potential equity declines.

Positive Factors

Revenue Growth

Consistent revenue growth highlights Fullnet's ability to expand its market presence and adapt to increasing demand for communication services.

Profitability

High profitability margins indicate effective cost management and operational efficiency, supporting sustainable long-term financial health.

Financial Stability

Conservative leverage ensures financial stability and flexibility, enabling Fullnet to invest in growth opportunities without excessive risk.

Negative Factors

Equity Decline

A decline in equity might signal potential challenges in maintaining shareholder value, which could impact investor confidence over time.

Free Cash Flow Decline

A decline in free cash flow could limit Fullnet's ability to reinvest in business operations and pursue strategic initiatives, affecting future growth.

Small Workforce

A small workforce may limit the company's capacity to scale operations and manage increased demand, potentially impacting service delivery and growth.

Fullnet Communications Business Overview & Revenue Model

Company Description

FullNet Communications, Inc., through its subsidiaries, provides integrated communications services to individuals, businesses, organizations, educational institutions, and governmental agencies in the United States. It offers mass notification services using text messages and automated telephone calls; carrier-neutral equipment colocation services; Internet access, and web hosting and related services; customized live help desk outsourcing services; and voice and data solutions. The company was formerly known as CEN-COM of Oklahoma, Inc. and changed its name to FullNet Communications, Inc. in December 1995. FullNet Communications, Inc. was incorporated in 1995 and is based in Oklahoma City, Oklahoma.

How the Company Makes Money

Fullnet Communications generates revenue through multiple streams, primarily from providing internet services, voice communication solutions, and managed IT services. The company charges subscription fees to residential and business customers for internet connectivity, which constitutes a significant portion of its income. Additionally, Fullnet offers voice services, including VoIP and traditional telephony, contributing to its revenue. Managed IT services, such as network management and technical support, also add to the company's earnings. Strategic partnerships with technology providers and infrastructure companies enhance Fullnet's service offerings and market reach, thereby supporting its revenue growth.

Fullnet Communications Financial Statement Overview

Summary

Fullnet Communications exhibits strong financial health with robust profitability, conservative leverage, and efficient cash management. The company's consistent revenue growth and solid profit margins underscore its operational strength. While there are minor declines in equity and free cash flow, overall financial stability remains sound, positioning the company well for future growth.

Income Statement

Fullnet Communications demonstrates strong profitability with a consistently high gross profit margin over the years, currently at 73.7%. The net profit margin is solid at 12%, reflecting effective cost management. Revenue growth rate from 2023 to 2024 is 9.34%, indicating positive growth momentum. EBIT and EBITDA margins are also healthy, suggesting operational efficiency.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 39.8%, indicating solid financial stability. The debt-to-equity ratio is low at 0.32, reflecting conservative leverage practices. Return on equity is robust at 40.5%, showcasing effective utilization of equity to generate profits. However, there's a slight decline in stockholders' equity, which needs monitoring.

Cash Flow

Fullnet has a stable cash flow with a free cash flow growth rate of -2.18% from 2023 to 2024, suggesting minimal fluctuation. The operating cash flow to net income ratio is 1.25, highlighting strong cash generation relative to earnings. Free cash flow to net income ratio stands at 1.23, indicating effective cash management despite a minor decline in free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.78M	4.58M	4.19M	4.27M	4.14M	3.50M
Gross Profit	3.51M	3.38M	3.12M	3.36M	3.39M	3.00M
EBITDA	999.99K	772.18K	676.43K	845.89K	1.18M	739.10K
Net Income	657.31K	549.20K	532.14K	672.24K	892.98K	1.07M
Balance Sheet
Total Assets	3.68M	3.41M	3.40M	3.18M	3.23M	2.40M
Cash, Cash Equivalents and Short-Term Investments	3.11M	2.86M	3.13M	2.75M	2.66M	1.41M
Total Debt	416.51K	434.14K	145.45K	279.09K	401.87K	514.68K
Total Liabilities	2.20M	2.05M	1.78M	1.77M	1.87M	1.90M
Stockholders Equity	1.48M	1.36M	1.62M	1.40M	1.35M	502.26K
Cash Flow
Free Cash Flow	896.01K	675.20K	690.29K	724.85K	1.41M	973.91K
Operating Cash Flow	911.78K	684.98K	690.29K	774.36K	1.42M	988.10K
Investing Cash Flow	-15.77K	-9.79K	0.00	-49.52K	-5.85K	-14.19K
Financing Cash Flow	-390.48K	-946.57K	-313.51K	-626.41K	-166.01K	-178.00K

Fullnet Communications Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FULO, the sentiment is Negative. The current price of 0.38 is below the 20-day moving average (MA) of 0.38, below the 50-day MA of 0.38, and above the 200-day MA of 0.35, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.79 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FULO.

Fullnet Communications Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FULO	79 Outperform	$7.44M	13.35	―	4.37%	13.61%	38.16%
UCL	69 Neutral	$72.95M	10.23	29.12%	―	-2.61%	85.42%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
KORE	55 Neutral	$77.70M	-1.18	―	―	0.06%	55.55%
FNGR	51 Neutral	$91.21M	-15.43	-42.52%	―	15.09%	13.28%
IQST	48 Neutral	$13.42M	-1.11	-79.86%	―	43.19%	-63.65%
YDKG	25 Underperform	$5.06M	>-0.01	-113.86%	―	2482.80%	-169.59%