Hitek Global (HKIT) AI Stock Analysis

• Market Cap: $41.02M
• Dividend Yield: N/A
• Average Volume (3M): 8.97K
• Price to Earnings (P/E): 32.6
• Beta (1Y): 1.52
• Revenue Growth: -36.35%
• EPS Growth: -153.77%
• Country: US
• Employees: 30
• Sector: Technology
• Sector Strength: 95
• Industry: Software - Application
• EPS (TTM): -0.05
• Shares Outstanding: 21,107,365
• 10 Day Avg. Volume: 12,371
• 30 Day Avg. Volume: 8,974
• PEG Ratio: -1.15
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 44.39
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 1.30
• Enterprise Value/Gross Profit: 29.13
• Enterprise Value/Ebitda: 7.86
• 1Y Price Target: $1.50
• Price Target Upside: 7.14% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 48 Neutral
• Price Target: $1.50 ▲(7.14%Upside)

Hitek Global's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues and profitability, and a challenging cash flow position. Technical analysis provides mixed signals, with limited bullish momentum. The valuation is unattractive due to negative earnings and no dividend yield.

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's financial performance is weak, marked by declining revenues, negative net income, and increased financial risks. The income statement shows a significant revenue drop, while the balance sheet indicates higher leverage. Cash flows are negative, reflecting operational challenges.

Income Statement

Hitek Global's income statement shows a concerning trend with declining revenues and profitability. The company reported a significant drop in total revenue from $6.4 million in 2021 to $2.9 million in 2024, indicating a negative growth trajectory. Gross profit margin has also decreased, suggesting reduced efficiency in managing production costs. Net income turned negative in 2024, highlighting potential challenges in maintaining profitability. The negative EBIT and EBITDA margins in 2024 further underscore operational inefficiency.

Balance Sheet

The balance sheet reveals a mixed picture. Despite the company's assets increasing over the years, the equity ratio has decreased, indicating higher leverage. The debt-to-equity ratio remains relatively low, which is a positive sign of stability. However, the declining return on equity reflects a diminishing ability to generate returns from shareholders' investments. Overall, the balance sheet remains stable but shows signs of increased financial risk.

Cash Flow

Hitek Global's cash flow statement shows a challenging financial position. Operating cash flow has been negative in recent years, raising concerns about the firm's ability to generate cash from its core operations. Free cash flow is also negative, indicating potential difficulties in funding growth or returning value to shareholders. The cash flow from financing activities is positive, suggesting reliance on external funding to sustain operations, which poses a long-term risk.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.90M	4.56M	6.43M	6.46M	5.80M
Gross Profit	1.01M	1.92M	3.54M	3.88M	3.17M
EBITDA	-283.45K	1.96M	1.65M	2.46M	2.13M
Net Income	-896.69K	1.05M	1.42M	1.67M	1.69M
Balance Sheet
Total Assets	41.54M	35.43M	21.21M	17.14M	14.41M
Cash, Cash Equivalents and Short-Term Investments	30.17M	18.15M	5.49M	7.29M	4.69M
Total Debt	2.53M	2.61M	2.68M	0.00	0.00
Total Liabilities	6.27M	7.09M	7.68M	4.01M	3.24M
Stockholders Equity	35.27M	28.34M	13.53M	13.13M	11.17M
Cash Flow
Free Cash Flow	-979.03K	-587.72K	-1.79M	-240.16K	1.50M
Operating Cash Flow	-688.54K	-61.91K	3.82M	-214.57K	1.93M
Investing Cash Flow	-9.56M	-6.95M	-7.35M	400.01K	-865.05K
Financing Cash Flow	8.20M	15.14M	2.75M	0.00	0.00

Hitek Global Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 1.4 is above the 20-day moving average (MA) of 1.40, above the 50-day MA of 1.37, and above the 200-day MA of 1.33, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 52.15 is Neutral, neither overbought nor oversold. The STOCH value of 40.74 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
NTWK	67 Neutral	$51.99M	209.57	0.75%	―	9.18%	―
Sector *	62 Neutral	$34.85B	5.63	-12.19%	2.01%	5.91%	-17.91%
CXAI	53 Neutral	$21.19M	―	-86.92%	―	-9.33%	74.24%
HKIT	48 Neutral	$41.02M	32.63	-2.82%	―	-36.35%	-153.77%
MTC	44 Neutral	$24.32M	―	40.01%	―	―	―
AIXI	38 Underperform	$19.17M	―	544.07%	―	19.01%	44.24%
CNTM	28 Underperform	$1.46M	―	-108.59%	―	―	-85.24%