Guru Online (Holdings) Limited (8121) AI Stock Analysis

• Market Cap: HK$17.01M
• Dividend Yield: N/A
• Average Volume (3M): 40.10K
• Price to Earnings (P/E): 9.9
• Beta (1Y): -0.45
• Revenue Growth: 7.14%
• EPS Growth: 1266.40%
• Country: HK
• Employees: 83
• Sector: Communication Services
• Sector Strength: 83
• Industry: Advertising Agencies
• EPS (TTM): -0.17
• Shares Outstanding: 25,008,000
• 10 Day Avg. Volume: 10,190
• 30 Day Avg. Volume: 40,101
• PEG Ratio: >-0.01
• Price to Book (P/B): 33.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.46K
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 60 Neutral
• Price Target: ―

Guru Online (Holdings) Limited's stock score is driven primarily by its financial recovery, with positive margins and strong cash flow management. However, the declining revenue trend and weak technical indicators weigh heavily on the overall score. The stock appears undervalued based on its P/E ratio, but the lack of dividend yield and oversold technical indicators highlight potential risks.

Guru Online (Holdings) Limited Business Overview & Revenue Model

Company Description

Guru Online (Holdings) Limited (8121) is a digital marketing company that operates primarily in Hong Kong and provides comprehensive online marketing solutions. The company specializes in digital advertising, social media engagement, and other internet-related marketing services. Guru Online aims to help businesses enhance their online presence and strengthen their digital marketing strategies through innovative and tailored solutions.

How the Company Makes Money

Guru Online (Holdings) Limited makes money by offering a range of digital marketing services that cater to businesses looking to establish or improve their online presence. The company's revenue streams include fees for digital advertising services, social media management, search engine optimization, and other specialized online marketing solutions. They work with a variety of clients across different industries, providing customized strategies that align with the clients' marketing goals. Significant partnerships with major digital platforms and technology providers may also play a role in enhancing their service offerings, thereby contributing to the company's earnings.

Guru Online (Holdings) Limited Financial Statement Overview

Summary

Guru Online (Holdings) Limited shows signs of financial recovery with improved profit margins and cash flow management. The balance sheet reflects a strong equity base and low leverage, limiting financial risk. While profitability metrics have turned positive, revenue decline remains a challenge that could hinder long-term growth.

Income Statement

The company's gross profit margin has improved slightly, reaching 22.4% for the latest period. The net profit margin also turned positive at 2.7%, indicating a recovery from previous losses. EBIT and EBITDA margins have improved significantly, showing better operational efficiency. However, revenue has been declining over the years, with a negative growth rate of -3.0% this year, which is a concern for future profitability.

Balance Sheet

The company has maintained a low debt-to-equity ratio of 0.12, which suggests a conservative capital structure. The equity ratio is stable at 37.7%, reflecting a solid equity base. Return on equity turned positive at 12.3%, marking a significant improvement in profitability. Despite these strengths, total assets have slightly decreased over the years, which could limit future growth opportunities.

Cash Flow

Operating cash flow has improved significantly, turning positive this year, and free cash flow has shown remarkable growth, indicating better cash management. The free cash flow to net income ratio is healthy, suggesting that the company efficiently converts profits into cash. However, the operating cash flow to net income ratio is below 2, indicating some room for improvement in operational cash generation relative to profits.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	116.13M	119.78M	155.78M	141.39M	153.40M
Gross Profit	26.02M	25.49M	33.72M	43.35M	52.78M
EBITDA	5.66M	187.00K	7.70M	-7.56M	-16.82M
Net Income	3.17M	-5.90M	-31.00K	-16.25M	-26.21M
Balance Sheet
Total Assets	68.03M	61.20M	64.47M	93.82M	94.65M
Cash, Cash Equivalents and Short-Term Investments	23.24M	18.49M	12.24M	38.86M	25.64M
Total Debt	3.06M	493.00K	5.39M	8.62M	1.22M
Total Liabilities	42.36M	41.18M	41.18M	68.98M	51.88M
Stockholders Equity	25.67M	20.02M	23.29M	24.84M	42.77M
Cash Flow
Free Cash Flow	3.96M	460.00K	-25.36M	-3.50M	17.07M
Operating Cash Flow	4.82M	658.00K	-24.73M	-3.16M	18.17M
Investing Cash Flow	-3.23M	5.38M	8.64M	8.45M	4.62M
Financing Cash Flow	924.00K	-117.00K	-5.36M	2.86M	-6.66M

Guru Online (Holdings) Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.68
• 50DMA: Positive
• 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 HK:8121, the sentiment is Negative. The current price of 0.68 is below the 20-day moving average (MA) of 0.71, above the 50-day MA of 0.67, and below the 200-day MA of 0.79, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 42.40 is Neutral, neither overbought nor oversold. The STOCH value of 12.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8121.

Guru Online (Holdings) Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8121	60 Neutral	HK$17.01M	9.88	-3.24%	―	7.14%	1266.40%
Sector *	55 Neutral	HK$64.39B	-1.86	-1.90%	7.19%	-4.17%	-13.99%
8083	51 Neutral	$3.12B	―	-16.87%	―	-2.35%	-837.50%
8163	50 Neutral	HK$89.95M	―		―	―	―
8120	45 Neutral	HK$65.05M	―	-58.38%	―	-14.40%	25.64%
8007	45 Neutral	HK$68.38M	―		―	45.33%	-119.44%