Hitek Global (HKIT) AI Stock Analysis

• Market Cap: $44.54M
• Dividend Yield: N/A
• Average Volume (3M): 17.70K
• Price to Earnings (P/E): 32.6
• Beta (1Y): 1.75
• Revenue Growth: -36.35%
• EPS Growth: -153.77%
• Country: US
• Employees: 30
• Sector: Technology
• Sector Strength: 81
• Industry: Software - Application
• EPS (TTM): -0.05
• Shares Outstanding: 21,107,365
• 10 Day Avg. Volume: 8,521
• 30 Day Avg. Volume: 17,702
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: <0.01
• Enterprise Value/Revenue: 0.11
• Enterprise Value/Gross Profit: 0.31
• Enterprise Value/Ebitda: 1.98
• 1Y Price Target: $1.50
• Price Target Upside: -3.23% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: $1.50 ▼(-3.23% Downside)

Hitek Global's overall stock score reflects its challenging financial performance with declining revenues, high leverage, and negative cash flows. While technical indicators show positive momentum, valuation concerns due to a negative P/E ratio weigh heavily on the stock's attractiveness.

Hitek Global Business Overview & Revenue Model

Company Description

Hitek Global (HKIT) is a company engaged in the technology sector, providing innovative solutions and services that cater to various industries. The company focuses on delivering cutting-edge technology and digital transformation services designed to enhance efficiency, productivity, and connectivity for businesses. Hitek Global offers a range of products and services that include software development, IT consulting, and systems integration.

How the Company Makes Money

Hitek Global makes money primarily through its diverse range of technology services and solutions. Its key revenue streams include software development contracts, where the company designs and implements custom software solutions for clients across different industries. Additionally, Hitek Global generates income from IT consulting services, offering expert advice and strategies to help businesses optimize their technology infrastructure. Systems integration projects, which involve the seamless combination of different IT systems and software applications, also contribute significantly to the company's earnings. Partnerships with major technology providers and strategic alliances further bolster Hitek Global's revenue by expanding its service offerings and market reach.

Hitek Global Financial Statement Overview

Summary

Hitek Global's financial performance is concerning, with declining revenues and profitability as seen in the income statement. Increased leverage and negative cash flows further highlight the company's financial 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.45M	2.90M	4.56M	6.43M	6.46M	5.80M
Gross Profit	1.26M	1.01M	1.92M	3.54M	3.88M	3.17M
EBITDA	193.87K	-283.45K	1.96M	1.65M	2.46M	2.13M
Net Income	547.33K	-896.69K	1.05M	1.42M	1.67M	1.69M
Balance Sheet
Total Assets	43.50M	41.54M	35.43M	21.21M	17.14M	14.41M
Cash, Cash Equivalents and Short-Term Investments	25.36M	30.17M	18.15M	5.49M	7.29M	4.69M
Total Debt	2.55M	2.53M	2.61M	2.68M	0.00	0.00
Total Liabilities	15.36M	6.27M	7.09M	7.68M	4.01M	3.24M
Stockholders Equity	28.14M	35.27M	28.34M	13.53M	13.13M	11.17M
Cash Flow
Free Cash Flow	410.66K	-979.03K	-587.72K	-1.79M	-240.16K	1.50M
Operating Cash Flow	466.49K	-688.54K	-61.91K	3.82M	-214.57K	1.93M
Investing Cash Flow	-6.98M	-9.56M	-6.95M	-7.35M	400.01K	-865.05K
Financing Cash Flow	6.12M	8.20M	15.14M	2.75M	0.00	0.00

Hitek Global Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 1.55 is above the 20-day moving average (MA) of 1.51, above the 50-day MA of 1.46, and above the 200-day MA of 1.34, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 59.97 is Neutral, neither overbought nor oversold. The STOCH value of 71.98 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	$48.01M	196.17	0.75%	―	9.18%	―
Sector *	61 Neutral	$35.56B	9.00	-10.49%	1.86%	8.45%	-8.32%
HKIT	55 Neutral	$44.54M	32.63	-2.82%	―	-36.35%	-153.77%
CXAI	47 Neutral	$17.16M	―	-89.23%	―	-15.10%	74.63%
MTC	44 Neutral	$23.22M	―	40.01%	―	―	―
AIXI	38 Underperform	$15.87M	―	544.07%	―	19.01%	44.24%
CNTM	28 Underperform	$713.06K	―	-363.40%	―	―	61.58%