Golden Matrix Group (GMGI) AI Stock Analysis

• Market Cap: $266.10M
• Dividend Yield: N/A
• Average Volume (3M): 190.90K
• Price to Earnings (P/E): 494.7
• Beta (1Y): 0.23
• Revenue Growth: 147.89%
• EPS Growth: 96.56%
• Country: US
• Employees: 1,200
• Sector: Communication Services
• Sector Strength: 86
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.02
• Shares Outstanding: 138,591,610
• 10 Day Avg. Volume: 225,987
• 30 Day Avg. Volume: 190,898
• PEG Ratio: 2.67
• Price to Book (P/B): 2.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -117.54
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 0.98
• Enterprise Value/Gross Profit: 5.19
• Enterprise Value/Ebitda: 39.85
• 1Y Price Target: $4.00
• Price Target Upside: 111.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 56 Neutral
• Price Target: ―

The overall score reflects Golden Matrix Group's strong revenue growth and stable financial base, countered by profitability issues and weak technical indicators. The negative earnings and lack of dividend yield further impact the valuation score. Recent stock price declines post-earnings call suggest a cautious outlook.

Positive Factors

Financial Performance

The company has strengthened its balance sheet by significantly reducing debt and converting some payables into equity, which is expected to sustain current operations without needing additional capital.

Market Expansion

Golden Matrix Group is strategically expanding into new markets, such as Brazil, and making strategic acquisitions that enhance growth and provide synergies.

Revenue Growth

Golden Matrix Group reported strong 4Q24 results with revenue significantly increasing by 81% year over year, showcasing strong demand and successful integration efforts.

Negative Factors

Capital Market Activity

GMGI is expected to remain active in the capital markets to maintain financial flexibility and capitalize on potential M&A opportunities, which may impact the stock price if not managed effectively.

Regulatory Approvals

The company is pending licensing in Ontario and NJ, which could delay its expansion plans into these key markets.

Golden Matrix Group Business Overview & Revenue Model

Company Description

Golden Matrix Group, Inc. provides enterprise software-as-a-service solutions for online casino and sports betting operators. The company develops and owns online gaming intellectual property; and builds gaming platforms for customers located primarily in the Asia Pacific region and Europe. Its platform facilitates gaming customers in operating online casinos, sportsbooks, lottery, and live games; and provides customers with access to a portfolio of licensed gaming content, which are provided by gaming content providers. The company also provides services and resells third party gaming content to licensed online gaming distributors. Its platform is accessed through desktop and mobile applications. The company was formerly known as Source Gold Corp. and changed its name to Golden Matrix Group, Inc. in April 2016. Golden Matrix Group, Inc. was incorporated in 2008 and is based in Las Vegas, Nevada.

How the Company Makes Money

Golden Matrix Group makes money primarily through licensing its gaming platforms and content to online gaming operators. The company generates revenue by providing subscription-based services and charging fees for the use of its robust gaming systems, which include features such as user management, gaming content integration, and marketing tools. GMGI also earns from the distribution of its proprietary and third-party gaming content, which includes a variety of casino games, to its clients. Additionally, strategic partnerships with other gaming and technology companies enhance its revenue streams by expanding its reach and offering a more diverse range of products and services to its customers.

Golden Matrix Group Financial Statement Overview

Summary

Golden Matrix Group demonstrates strong revenue growth and a stable balance sheet with low leverage, which is promising for long-term sustainability. However, the negative net income and challenges in profitability are significant concerns.

Income Statement

Golden Matrix Group has shown significant revenue growth over the years, with a substantial increase from 2019 to 2023. However, the net profit margin is negative for the recent period, indicating profitability challenges. The gross profit margin remains positive, suggesting efficient production but issues in managing other expenses.

Balance Sheet

The company maintains a strong equity base with a low debt-to-equity ratio, indicating financial stability and lower leverage risk. The equity ratio is high, showcasing a solid proportion of equity financing relative to total assets. However, the small amount of debt could limit financial flexibility.

Cash Flow

Operating cash flow remains positive, and the free cash flow is consistently growing, indicating good cash generation capability. However, the free cash flow growth rate has slowed recently, and the operating cash flow to net income ratio suggests challenges in converting revenue into cash.

Breakdown
TTM	Dec 2023	Dec 2022	Mar 2021	Dec 2019	Sep 2018
Income Statement		Total Revenue
104.03M	44.17M	36.03M	5.22M	2.88M	915.80K
	Gross Profit
50.69M	9.87M	9.16M	3.22M	2.86M	843.80K
	EBIT
613.47K	-526.25K	192.49K	399.32K	1.81M	-990.95K
	EBITDA
4.44M	―	609.12K	400.94K	2.20M	-883.65K
	Net Income Common Stockholders
-2.50M	-1.17M	44.03K	398.08K	1.77M	-1.32M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.31M	17.10M	14.95M	11.71M	1.73M	446.58K
	Total Assets
3.38M	35.58M	32.57M	13.81M	3.01M	819.87K
	Total Debt
966.75K	59.09K	154.86K	99.00	1.36M	546.94K
	Net Debt
-1.34M	-17.04M	-14.79M	-11.71M	-367.53K	100.36K
	Total Liabilities
1.64M	4.48M	2.77M	552.61K	1.97M	2.16M
	Stockholders Equity
1.74M	31.10M	26.80M	13.26M	1.03M	-1.34M
Cash Flow		Free Cash Flow
-1.60M	2.14M	2.61M	1.88M	1.45M	302.72K
	Operating Cash Flow
7.20M	2.21M	2.77M	1.88M	1.45M	302.72K
	Investing Cash Flow
-16.11M	-95.96K	-4.41M	192.00	0.00	0.00
	Financing Cash Flow
21.13M	-32.32K	32.00K	7.97M	-167.42K	118.70K

Golden Matrix Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.89
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GMGI, the sentiment is Neutral. The current price of 1.89 is above the 20-day moving average (MA) of 1.69, above the 50-day MA of 1.85, and below the 200-day MA of 2.13, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 57.40 is Neutral, neither overbought nor oversold. The STOCH value of 85.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GMGI.

Golden Matrix Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GRVY	78 Outperform	$438.13M	7.90	14.97%	―	-33.83%	-38.30%
GDEV	70 Outperform	$387.26M	10.29		―	-5.57%	―
MYPS	62 Neutral	$183.87M	―	-11.64%	―	-11.11%	-90.96%
Sector *	61 Neutral	$14.60B	5.88	-4.32%	3.68%	2.75%	-30.55%
GMGI	56 Neutral	$266.10M	494.74	-2.17%	―	147.89%	96.56%
NCTY		$122.89M	3.07	-22.85%	―	―	―
SKLZ	51 Neutral	$112.38M	―	-21.26%	―	-29.26%	57.78%

Golden Matrix Group Corporate Events

Golden Matrix Group Announces CFO Transition and Severance Deal

Golden Matrix Group, Inc. and Omar Jimenez have mutually agreed to part ways, with Jimenez stepping down as Chief Financial and Compliance Officer. He will receive a severance package of $50,000 plus expense reimbursements. Following his departure, Weiting ‘Cathy’ Feng, the company’s COO and director, will take over the CFO role. Feng’s appointment comes with no undisclosed arrangements beyond her existing employment agreement with the company.