Hitek Global (HKIT) AI Stock Analysis

• Market Cap: $25.96M
• Dividend Yield: N/A
• Average Volume (3M): 14.23K
• Price to Earnings (P/E): 32.4
• Beta (1Y): 1.86
• Revenue Growth: -47.08%
• EPS Growth: -59.18%
• Country: US
• Employees: 30
• Sector: Technology
• Sector Strength: 65
• Industry: Software - Application
• EPS (TTM): 0.04
• Shares Outstanding: 21,107,365
• 10 Day Avg. Volume: 15,890
• 30 Day Avg. Volume: 14,235
• PEG Ratio: -1.05
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 29.36
• 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

Hitek Global's overall stock score reflects considerable financial challenges, marked by declining revenues, profitability pressures, and negative cash flows. While the technical analysis shows mixed signals, the relatively high P/E ratio suggests potential overvaluation. The stock faces substantial hurdles in improving its financial health and operational performance.

Hitek Global Business Overview & Revenue Model

Company Description

Hitek Global (HKIT) is a technology-driven company specializing in providing innovative IT solutions and services. Operating primarily within the information technology sector, Hitek Global offers a range of products and services including software development, IT consulting, and enterprise solutions tailored to meet the needs of diverse industries.

How the Company Makes Money

Hitek Global generates revenue through a combination of software licensing, consulting fees, and service contracts. The company earns money by developing custom software solutions for clients, offering IT consulting services to optimize business processes, and providing ongoing technical support and maintenance. Additionally, Hitek Global may engage in strategic partnerships with other technology firms to enhance its service offerings and expand its market reach, contributing to its overall revenue growth.

Hitek Global Financial Statement Overview

Summary

Hitek Global exhibits a mixed financial performance. The income statement shows moderate profitability with a gross profit margin of 42.1%, but revenue declined by 29.0% from 2022 to 2023. The balance sheet is strong, with an equity ratio of 80.0% and a low debt-to-equity ratio of 0.09. However, cash flow is an issue, with negative free cash flow and a negative operating cash flow to net income ratio, indicating cash management challenges.

Income Statement

Hitek Global demonstrates moderate profitability with a fluctuating revenue trend. The company exhibits a gross profit margin of 42.1% for 2023, indicating good cost control. However, a significant revenue decline of 29.0% from 2022 to 2023 is concerning. Net profit margin improved to 22.9% in 2023, but the declining revenue trend poses a risk.

Balance Sheet

The balance sheet reflects strong financial stability, with a healthy equity ratio of 80.0% in 2023, showing low reliance on debt. The debt-to-equity ratio is manageable at 0.09, and return on equity stands at 3.7%, which is lower than expected but supports a stable financial position.

Cash Flow

Cash flow analysis reveals challenges, with negative free cash flow in 2023 and a concerning free cash flow growth rate. The operating cash flow to net income ratio is negative, highlighting potential cash management issues. The company needs to enhance cash generation to support operations.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
3.45M	4.56M	6.43M	6.46M	5.80M	6.93M
	Gross Profit
1.26M	1.92M	3.54M	3.88M	3.17M	3.75M
	EBIT
-778.49K	101.06K	1.63M	2.10M	1.75M	2.19M
	EBITDA
193.87K	1.96M	1.65M	2.46M	2.13M	2.57M
	Net Income Common Stockholders
547.33K	1.05M	1.42M	1.67M	1.69M	2.02M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.94M	18.15M	5.49M	7.29M	4.69M	2.74M
	Total Assets
0.00	35.43M	21.21M	17.14M	14.41M	11.49M
	Total Debt
0.00	2.61M	2.68M	0.00	0.00	0.00
	Net Debt
1.94M	-6.70M	1.48M	-2.09M	-1.86M	-776.22K
	Total Liabilities
0.00	7.09M	7.68M	4.01M	3.24M	2.53M
	Stockholders Equity
2.35M	28.34M	13.53M	13.13M	11.17M	8.96M
Cash Flow		Free Cash Flow
410.66K	-587.72K	-1.79M	-240.16K	1.50M	43.27K
	Operating Cash Flow
466.49K	-61.91K	3.82M	-214.57K	1.93M	43.27K
	Investing Cash Flow
-6.98M	-6.95M	-7.35M	400.01K	-865.05K	0.00
	Financing Cash Flow
6.12M	15.14M	2.75M	0.00	0.00	0.00

Hitek Global Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HKIT, the sentiment is Positive. The current price of 1.23 is above the 20-day moving average (MA) of 1.22, below the 50-day MA of 1.24, and below the 200-day MA of 1.35, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.86 is Neutral, neither overbought nor oversold. The STOCH value of 38.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HKIT.

Hitek Global Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$10.96B	10.27	-6.73%	2.97%	7.73%	-11.60%
NTWK	55 Neutral	$27.50M	39.37	-2.43%	―	9.28%	60.89%
CXAI	55 Neutral	$21.98M	―	-94.70%	―	-3.04%	65.43%
HKIT	51 Neutral	$25.96M	32.37	2.02%	―	-47.08%	-59.18%
MTC	47 Neutral	$29.47M	―	40.01%	―	―	―
AIXI	38 Underperform	$27.17M	―	544.07%	―	6.89%	6.39%
CNTM	28 Underperform	$10.30M	―	-108.59%	―	―	-85.24%