Hitek Global (HKIT) AI Stock Analysis

• Market Cap: $25.54M
• Dividend Yield: N/A
• Average Volume (3M): 14.86K
• Price to Earnings (P/E): 31.8
• Beta (1Y): 1.92
• Revenue Growth: -47.08%
• EPS Growth: -59.18%
• Country: US
• Employees: 48
• Sector: Technology
• Sector Strength: 69
• Industry: Software - Application
• EPS (TTM): 0.04
• Shares Outstanding: 21,107,365
• 10 Day Avg. Volume: 15,703
• 30 Day Avg. Volume: 14,856
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.05
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 0.64
• 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 stock score is primarily driven by its weak financial performance, marked by declining revenues and negative profitability. Technical analysis suggests bearish momentum, while valuation metrics indicate potential overvaluation. The absence of earnings call data and corporate events means these areas do not influence the score. Overall, significant financial challenges overshadow the technical and valuation aspects, resulting in a moderate stock score.

Hitek Global Business Overview & Revenue Model

Company Description

Hitek Global Inc. provides information technology (IT) consulting and solutions to business in various industry sectors in China. It offers services to small and medium businesses, which consist of anti-counterfeiting tax control system (ACTCS) tax devices, including golden tax disk and printers, ACTCS services, and IT services; and sells hardware to large businesses, such as laptops, printers, desktop computers and related accessories, as well as Internet servers, cameras, and monitors. Hitek Global Inc. was founded in 1996 and is headquartered in Xiamen, China.

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

Hitek Global Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.21
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HKIT, the sentiment is Negative. The current price of 1.21 is below the 20-day moving average (MA) of 1.22, below the 50-day MA of 1.24, and below the 200-day MA of 1.36, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 43.37 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$10.95B	10.52	-7.07%	3.00%	7.30%	-12.04%
NTWK	55 Neutral	$27.77M	39.37	-2.43%	―	9.28%	60.89%
HKIT	50 Neutral	$25.54M	31.84	2.02%	―	-47.08%	-59.18%
CXAI	48 Neutral	$21.79M	―	-94.70%	―	-3.04%	65.43%
MTC	47 Neutral	$29.47M	―	40.01%	―	―	―
AIXI	38 Underperform	$31.06M	―	544.07%	―	6.89%	6.39%
CNTM	28 Underperform	$23.25M	―	-108.59%	―	―	-85.24%