Professional Diversity (IPDN) AI Stock Analysis

• Market Cap: $3.06M
• Dividend Yield: N/A
• Average Volume (3M): 74.05K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• Revenue Growth: -12.88%
• EPS Growth: 53.73%
• Country: US
• Employees: 41
• Sector: Industrials
• Sector Strength: 92
• Industry: Staffing & Employment Services
• EPS (TTM): -2.02
• Shares Outstanding: 2,083,285
• 10 Day Avg. Volume: 15,204
• 30 Day Avg. Volume: 74,051
• PEG Ratio: <0.01
• Price to Book (P/B): <0.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.01
• Enterprise Value/Market Cap: -77.33
• Enterprise Value/Revenue: -0.15
• Enterprise Value/Gross Profit: -0.30
• Enterprise Value/Ebitda: 0.33
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 35 Underperform
• Price Target: $1.50 ▲( 2.04% Upside)

Professional Diversity faces significant financial difficulties, with persistent profitability and cash flow challenges. The technical analysis shows a bearish trend, and valuation metrics suggest caution. These factors contribute to a low overall stock score, indicating high risk.

Professional Diversity Business Overview & Revenue Model

Company Description

Professional Diversity Network, Inc. (IPDN) is a leading operator of online networks dedicated to serving diverse professionals in various industries. The company specializes in connecting job seekers from a wide array of backgrounds, including women, minorities, veterans, LGBT, and disabled professionals, with potential employers who value diversity and inclusion. IPDN offers networking, training, and career development services through its various online platforms.

How the Company Makes Money

Professional Diversity Network, Inc. generates revenue primarily through its recruitment services, which include job postings and access to its resume database for employers looking to diversify their workforce. The company also earns money from membership fees, advertising on its platforms, and various training and career development programs. Strategic partnerships with organizations and companies committed to diversity and inclusion also contribute to IPDN's earnings.

Professional Diversity Financial Statement Overview

Summary

Professional Diversity faces significant financial challenges, particularly in profitability and cash flow management. Despite a solid equity base, operational inefficiencies and high negative margins present risks. A focus on improving operational efficiency and profitability is crucial for future stability and growth.

Income Statement

The company's income statement reveals significant challenges, as evidenced by persistent negative EBIT and Net Income margins. The TTM (Trailing-Twelve-Months) data shows a severe negative EBIT margin of approximately -46.8% and a Net Profit Margin of -47.9%. Revenue growth is misleading due to an anomaly in TTM data, suggesting operational inefficiencies and profitability issues.

Balance Sheet

The balance sheet indicates a strong equity position with an equity ratio of approximately 63.5% in TTM, suggesting financial stability. However, the company carries a high level of debt relative to its equity, reflected in a debt-to-equity ratio of 0.05, posing potential risks if earnings do not improve. The negative return on equity indicates unprofitable operations.

Cash Flow

Cash flow analysis shows persistent negative free cash flow, indicating cash management challenges. The TTM operating cash flow is significantly negative, and the free cash flow to net income ratio reflects inefficiencies, highlighting the need for operational improvements to support cash generation.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.51B	6.73M	7.70M	8.31M	6.10M	4.46M
	Gross Profit
788.39M	3.88M	4.24M	4.05M	4.57M	3.67M
	EBIT
-707.13M	-2.60M	-4.54M	-3.10M	-2.89M	-4.85M
	EBITDA
-701.61M	-2.20M	-3.91M	-2.24M	-2.43M	-3.91M
	Net Income Common Stockholders
-723.78M	-2.51M	-4.31M	-3.08M	-2.86M	-4.16M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
496.44M	1.73M	627.64K	1.24M	3.40M	2.12M
	Total Assets
7.74B	7.98M	6.33M	6.84M	8.98M	8.67M
	Total Debt
256.43M	279.31K	365.71K	444.72K	516.76K	510.52K
	Net Debt
-240.01M	-1.45M	-261.93K	-792.28K	-2.89M	-1.61M
	Total Liabilities
3.44B	3.14M	3.76M	4.53M	5.88M	5.33M
	Stockholders Equity
4.92B	5.32B	3.05M	2.55M	2.79M	3.35M
Cash Flow		Free Cash Flow
-286.27M	-2.76M	-3.24M	-2.31M	-1.95M	-3.55M
	Operating Cash Flow
-286.09M	-2.50M	-3.03M	-2.25M	-1.87M	-3.54M
	Investing Cash Flow
-1.30B	-962.89M	-946.50K	-61.00K	-1.29M	-65.41K
	Financing Cash Flow
1.38B	4.49M	3.36M	145.00K	4.44M	4.93M

Professional Diversity Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.47
• 50DMA: Negative
• 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 IPDN, the sentiment is Negative. The current price of 1.47 is below the 20-day moving average (MA) of 1.60, below the 50-day MA of 1.76, and below the 200-day MA of 4.54, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 43.22 is Neutral, neither overbought nor oversold. The STOCH value of 2.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IPDN.

Professional Diversity Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$4.39B	11.81	5.20%	249.39%	3.96%	-12.36%
DHX	62 Neutral	$94.09M	268.89	-7.21%	―	-7.42%	-567.61%
MHH	61 Neutral	$87.65M	42.64	2.52%	―	3.93%	―
BGSF	61 Neutral	$49.66M	―	-3.95%	4.69%	-12.93%	-159.19%
JOB	51 Neutral	$21.43M	―	-70.70%	―	-17.38%	-1165.13%
HSON	50 Neutral	$24.76M	―	-8.66%	―	-9.28%	-244.22%
IPDN	35 Underperform	$3.06M	―	-67.31%	―	-12.88%	53.73%

Professional Diversity Corporate Events

Professional Diversity Appoints New Directors Amid Resignations

Professional Diversity Network, Inc. announced the resignation of directors Michael D. Belsky and Chris Renn on April 18 and 19, 2025, respectively, with no disagreements cited. On April 22, 2025, Eloisa Sultan and Long Yi were appointed as new directors, joining the Audit Committee and Compensation Committee, enhancing the company’s governance with their extensive experience in healthcare and finance.

Professional Diversity Ends Stock Purchase Agreement

Professional Diversity Network, Inc. announced the termination of its Common Stock Purchase Agreement with Tumim Stone Capital LLC, which was initially entered on June 30, 2023. The agreement allowed the company to sell up to $12,775,000 worth of newly issued shares, but as of the latest report, only $2,846,017 worth of shares had been sold. The termination notice was given on February 25, 2024, and will be effective five business days thereafter, indicating no further shares will be sold under this agreement.