Gigamedia (GIGM) AI Stock Analysis

• Market Cap: $17.96M
• Dividend Yield: N/A
• Average Volume (3M): 12.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.16
• Revenue Growth: -4.03%
• EPS Growth: 84.99%
• Country: US
• Employees: 87
• Sector: Communication Services
• Sector Strength: 96
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.08
• Shares Outstanding: 11,052,235
• 10 Day Avg. Volume: 20,346
• 30 Day Avg. Volume: 12,179
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: -0.87
• Enterprise Value/Revenue: -5.03
• Enterprise Value/Gross Profit: -9.81
• Enterprise Value/Ebitda: 4.42
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: ―

Gigamedia's stock score reflects a robust balance sheet but is weighed down by declining revenues and persistent losses. While technical indicators suggest some stability, the negative valuation and lack of positive earnings call guidance hinder the overall appeal.

Gigamedia Business Overview & Revenue Model

Company Description

GigaMedia Limited, together with its subsidiaries, provides digital entertainment services in Taiwan and Hong Kong. The company operates FunTown, a digital entertainment portal that offers mobile and browser-based casual games through branded platform. It offers MahJong, a traditional Chinese tile-based game; casual card and table games; online card games; and chance-based games, including bingo, lotto, horse racing, Sic-Bo, slots, and various casual games. It also provides role-playing and sports games, such as Tales Runner, a multi-player online obstacle running game; Yume 100, a story-based game that targets female players; Akaseka, a female-oriented game; and Shinobi Master New Link, a male-oriented game. GigaMedia Limited was founded in 1998 and is headquartered in Taipei, Taiwan.

How the Company Makes Money

GigaMedia generates revenue primarily through the monetization of its online games via microtransactions, subscription fees, and advertising. The company's revenue model is supported by in-game purchases where players buy virtual goods or enhancements to improve their gaming experience. Subscription fees from premium game services also contribute significantly to its earnings. Additionally, GigaMedia collaborates with third-party developers and leverages strategic partnerships to expand its game offerings and reach, thus enhancing its revenue potential through shared profits and licensing agreements.

Gigamedia Financial Statement Overview

Summary

Gigamedia exhibits a strong balance sheet with low leverage, but struggles with declining revenues and persistent losses affecting profitability. Cash flow remains negative, reflecting operational inefficiencies and insufficient cash generation.

Income Statement

Gigamedia has experienced declining revenues, with a significant drop of 23.2% from $5,585,340 in 2022 to $4,292,000 in 2023. Gross profit margins decreased slightly to 56.98% in 2023. Net profit margins are negative, indicating ongoing losses, with a net loss of $3,399,000 in 2023. The company continues to report negative EBIT and EBITDA margins, demonstrating operational challenges.

Balance Sheet

The balance sheet remains strong with a high equity ratio of 93.61% in 2023, showcasing financial stability and low leverage. The debt-to-equity ratio is minimal at 0.01, indicating low financial risk. However, the return on equity is negative due to consistent net losses, indicating inefficiencies in generating returns on shareholder investments.

Cash Flow

Operating cash flow improved but remains negative at -$1,193,000 in 2023. Free cash flow slightly improved but is still negative, indicating the company is not generating sufficient cash to cover its operating expenses and capital expenditures. The operating cash flow to net income ratio is below 1, showing cash flow inadequacy relative to net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.10M	2.97M	4.29M	5.59M	5.49M	6.88M
Gross Profit	1.59M	1.48M	2.45M	3.25M	2.91M	3.92M
EBITDA	-3.53M	-3.64M	-3.10M	-2.99M	-3.95M	-2.14M
Net Income	-2.09M	-2.31M	-3.40M	-3.06M	-2.93M	-473.69K
Balance Sheet
Total Assets	41.85M	42.77M	46.50M	52.14M	55.52M	57.02M
Cash, Cash Equivalents and Short-Term Investments	31.09M	35.09M	38.47M	46.93M	41.45M	45.70M
Total Debt	0.00	84.00K	495.00K	893.00K	1.45M	3.00K
Total Liabilities	2.06M	2.02M	2.96M	3.53M	4.67M	2.93M
Stockholders Equity	39.79M	40.34M	43.54M	48.61M	50.85M	54.10M
Cash Flow
Free Cash Flow	0.00	-2.38M	-1.25M	-2.11M	-4.23M	-2.11M
Operating Cash Flow	0.00	-2.33M	-1.19M	-2.08M	-4.13M	-2.08M
Investing Cash Flow	0.00	-1.11M	837.00K	-10.04M	-17.00K	-10.04M
Financing Cash Flow	0.00	0.00	0.00	0.00	0.00	0.00

Gigamedia Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GIGM, the sentiment is Positive. The current price of 1.62 is above the 20-day moving average (MA) of 1.53, above the 50-day MA of 1.49, and above the 200-day MA of 1.52, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 59.35 is Neutral, neither overbought nor oversold. The STOCH value of 65.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GIGM.

Gigamedia Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$46.60B	4.15	-11.40%	4.15%	1.85%	-42.71%
GIGM	54 Neutral	$17.96M	―	-1.51%	―	-4.03%	84.99%
GDC	―	$70.71M	―	-121.97%	―	―	―
MSGM	48 Neutral	$17.16M	630.91	31.90%	―	-2.69%	-114.02%
TRUG	39 Underperform	$4.61M	―	32.18%	―	―	―
BHAT	37 Underperform	$12.68M	―	-26.18%	―	-74.59%	86.00%
GMHS	―	$102.85M	6.00	4.14%	―	―	―