Gigamedia (GIGM) AI Stock Analysis

• Market Cap: $17.13M
• Dividend Yield: N/A
• Average Volume (3M): 7.99K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.22
• Revenue Growth: 10.15%
• EPS Growth: 67.65%
• Country: US
• Employees: 87
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.09
• Shares Outstanding: 11,052,235
• 10 Day Avg. Volume: 8,603
• 30 Day Avg. Volume: 7,990
• PEG Ratio: 0.23
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 5.77
• P/FCF Ratio: -7.19
• Enterprise Value/Market Cap: -0.66
• Enterprise Value/Revenue: -3.46
• Enterprise Value/Gross Profit: -6.60
• Enterprise Value/Ebitda: 3.34
• 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: 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 (GIGM) is a diversified provider of digital entertainment services, primarily based in Taiwan. The company is engaged in the development, publishing, and distribution of online games and other digital entertainment content. GigaMedia's portfolio includes a range of casual and social games, targeting various demographics through its proprietary platforms and partnerships with other developers.

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	3.25M	2.97M	4.29M	5.59M	5.49M	6.88M
Gross Profit	1.71M	1.48M	2.45M	3.25M	2.91M	3.92M
EBITDA	-3.37M	-3.64M	-3.10M	-2.99M	-3.95M	-2.14M
Net Income	-616.00K	-2.30M	-3.40M	-2.75M	-3.42M	-1.29M
Balance Sheet
Total Assets	41.70M	42.36M	46.50M	52.14M	55.52M	57.02M
Cash, Cash Equivalents and Short-Term Investments	30.87M	34.78M	38.47M	46.93M	41.45M	45.70M
Total Debt	286.00K	500.00K	970.00K	893.00K	1.45M	3.00K
Total Liabilities	2.28M	2.02M	2.96M	3.53M	4.67M	2.93M
Stockholders Equity	39.42M	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: Negative
• Last Price: 1.65
• 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 GIGM, the sentiment is Negative. The current price of 1.65 is above the 20-day moving average (MA) of 1.61, below the 50-day MA of 1.67, and above the 200-day MA of 1.55, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 36.01 is Neutral, neither overbought nor oversold. The STOCH value of 11.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GIGM.

Gigamedia Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
MSGM	57 Neutral	$13.81M	-48.38	44.93%	―	11.38%	-94.39%
GIGM	54 Neutral	$17.13M	―	-3.14%	―	10.15%	67.65%
TRUG	38 Underperform	$2.41M	-0.10	―	―	―	―
BHAT	37 Underperform	$10.72M	-0.09	―	―	-74.59%	86.00%