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Global Mofy Metaverse Ltd. (GMM)
:GMM
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Global Mofy Metaverse Ltd. (GMM) AI Stock Analysis

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GMM

Global Mofy Metaverse Ltd.

(NASDAQ:GMM)

Rating:63Neutral
Price Target:
$3.00
▲(11.94%Upside)
Global Mofy Metaverse Ltd. demonstrates strong financial performance with robust revenue growth and profitability. However, the technical indicators suggest bearish market momentum, and the extremely low P/E ratio raises concerns about future growth sustainability. The absence of dividend yield further impacts the overall attractiveness of the stock.

Global Mofy Metaverse Ltd. (GMM) vs. SPDR S&P 500 ETF (SPY)

Global Mofy Metaverse Ltd. Business Overview & Revenue Model

Company DescriptionGlobal Mofy Metaverse Limited, through its subsidiaries, provides virtual content production, digital marketing, and digital assets development services for the metaverse industry in the People's Republic of China. It offers services for visual effect design, content development, production, and integration based on customers specific needs. The company also provides advertisement production and promotion services to customers with integrated digital marketing services, including content planning, technical, content production assistance, and omni-channel online placement services. In addition, it grants use right of digital assets to customers on specific needs across various applications, such as movies, TV series, AR/VR, animation, advertising, and gaming. Global The company was incorporated in 2021 and is based in Beijing, the People's Republic of China.
How the Company Makes MoneyGlobal Mofy Metaverse Ltd. generates revenue through a diverse range of streams within the metaverse ecosystem. The company earns money by selling virtual real estate and digital assets to individuals and businesses looking to establish a presence in the metaverse. Additionally, GMM offers subscription-based access to its virtual environments, enabling users to engage with exclusive content and experiences. The company also collaborates with brands and enterprises to design and implement custom virtual solutions, creating a significant revenue stream through strategic partnerships and consultancy services. Furthermore, GMM monetizes its platforms by incorporating advertising and sponsorship opportunities within its virtual spaces, allowing brands to reach a targeted audience in an immersive setting.

Global Mofy Metaverse Ltd. Financial Statement Overview

Summary
Global Mofy Metaverse Ltd. shows strong revenue growth and profitability with robust margins and increasing equity. However, cash flow management requires attention due to negative free cash flow from high capital expenditures.
Income Statement
85
Very Positive
Global Mofy Metaverse Ltd. demonstrates strong revenue growth and profitability. The revenue growth rate has been impressive, particularly from 2023 to 2024, showing a significant increase. The gross profit margin and net profit margin are healthy, indicating efficient cost management and profitability. The EBIT and EBITDA margins are robust, further reflecting operational efficiency and profitability. However, the slight decline in EBIT from 2022 to 2023 is a minor concern, though the overall trajectory remains positive.
Balance Sheet
78
Positive
The balance sheet of Global Mofy Metaverse Ltd. shows a solid equity position with a healthy equity ratio, indicating strong financial stability. The debt-to-equity ratio is relatively low, suggesting prudent financial leverage. The return on equity is strong, demonstrating effective utilization of shareholder funds to generate profits. The increase in stockholders' equity over the years highlights strong financial growth. However, the company should monitor its rising liabilities to maintain its solid financial standing.
Cash Flow
68
Positive
Cash flow analysis reveals steady improvement in operating cash flow, indicating enhanced cash generation from core operations. However, free cash flow remains negative due to significant capital expenditures, which could impact liquidity if not managed properly. The operating cash flow to net income ratio is positive, reflecting good conversion of income into cash. The free cash flow to net income ratio is negative, highlighting potential challenges in cash management despite profitability.
BreakdownSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue41.36M26.89M17.19M14.27M5.04M
Gross Profit20.80M14.53M4.12M3.28M1.11M
EBITDA18.90M8.83M-10.64K1.47M-423.04K
Net Income12.14M6.55M-267.22K1.42M-541.26K
Balance Sheet
Total Assets59.19M27.12M8.53M9.04M2.90M
Cash, Cash Equivalents and Short-Term Investments8.07M11.22M1.14M1.09M8.76K
Total Debt6.00M3.31M1.87M2.66M870.12K
Total Liabilities13.69M6.30M4.78M6.82M2.93M
Stockholders Equity45.65M20.96M3.89M2.36M122.97K
Cash Flow
Free Cash Flow-18.46M-1.39M-1.17M-1.52M-1.11M
Operating Cash Flow18.11M5.78M-1.14M-1.47M-1.10M
Investing Cash Flow-34.70M-7.73M-166.18K-81.19K-301.38K
Financing Cash Flow16.92M11.64M1.47M2.62M1.06M

Global Mofy Metaverse Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.68
Price Trends
50DMA
2.77
Negative
100DMA
2.91
Negative
200DMA
3.76
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
46.30
Neutral
STOCH
15.81
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GMM, the sentiment is Negative. The current price of 2.68 is below the 20-day moving average (MA) of 2.74, below the 50-day MA of 2.77, and below the 200-day MA of 3.76, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.30 is Neutral, neither overbought nor oversold. The STOCH value of 15.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GMM.

Global Mofy Metaverse Ltd. Risk Analysis

Global Mofy Metaverse Ltd. disclosed 74 risk factors in its most recent earnings report. Global Mofy Metaverse Ltd. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
The dual class structure of our Class A Ordinary Shares and Class B Ordinary Shares has the effect of concentrating voting control with our CEO and Chairman of the Board and his affiliates. Q3, 2024
2.
The market price of our Class A Ordinary Shares has recently declined significantly, and our Class A Ordinary Shares could be delisted from Nasdaq or trading could be suspended. Q3, 2024
3.
In the event that our Class A Ordinary Shares are delisted from Nasdaq, U.S. broker-dealers may be discouraged from effecting transactions in our Class A Ordinary Shares because they may be considered penny stocks and thus be subject to the penny stock rules. Q3, 2024

Global Mofy Metaverse Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
$47.89M14.8119.38%3.07%
63
Neutral
$61.91M0.4236.45%53.82%68.04%
63
Neutral
$33.41M181.400.90%-4.17%-72.98%
63
Neutral
$34.78B5.17-11.38%1.67%5.54%-17.15%
51
Neutral
$62.14M-161.18%63.08%96.46%
45
Neutral
$45.95M-114.24%
$67.05M-500.27%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GMM
Global Mofy Metaverse Ltd.
2.68
-10.97
-80.37%
BTCM
BIT Mining
2.88
0.02
0.70%
USIO
Usio
1.80
0.22
13.92%
DVLT
Datavault AI
0.69
-1.55
-69.20%
DTST
Data Storage
4.68
-0.42
-8.24%
VEEA
Veea
1.64
-8.81
-84.31%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 24, 2025