MarketWise (MKTW) AI Stock Analysis

• Market Cap: $161.67M
• Dividend Yield: 8.03%
• Average Volume (3M): 736.57K
• Price to Earnings (P/E): 2.8
• Beta (1Y): 0.94
• Revenue Growth: -8.81%
• EPS Growth: 208.74%
• Country: US
• Employees: 439
• Sector: Technology
• Sector Strength: 44
• Industry: Software - Application
• EPS (TTM): 0.18
• Shares Outstanding: 45,013,798
• 10 Day Avg. Volume: 483,592
• 30 Day Avg. Volume: 736,572
• PEG Ratio: 0.01
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.43
• Price to Cash Flow (P/CF): 7.30
• P/FCF Ratio: 7.30
• 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

MarketWise's overall score is driven by its mixed financial performance, where operational strengths are offset by significant financial risks. The technical analysis suggests caution in the short term, while the valuation appears attractive with a low P/E ratio and high dividend yield. Positive corporate developments provide some optimism, but the need for financial restructuring remains critical.

MarketWise Business Overview & Revenue Model

Company Description

MarketWise, Inc. operates a multi-brand platform of subscription businesses that provides financial research, software, education, and tools for investors in the United States and Internationally. The company offers a portfolio of independent investment research, as well as various software and analytical tools on a subscription basis. It provides its research across various platforms, including desktop and laptop, as well as mobile devices, such as tablets and mobile phones. The company serves approximately 972 thousand paid subscribers and approximately 13.7 million free subscribers. MarketWise, Inc. was founded in 1999 and is headquartered in Baltimore, Maryland.

How the Company Makes Money

MarketWise primarily generates revenue through its subscription-based model. The company offers a variety of subscription tiers, each providing different levels of access to its proprietary investment research and analysis. Key revenue streams include recurring subscription fees from a large base of individual investors and up-selling additional premium services or specialized reports. Significant partnerships with financial data providers and expert analysts enhance the company's offerings, contributing to its ability to attract and retain subscribers. Additionally, MarketWise may earn revenue through advertising and affiliate marketing related to its digital content.

MarketWise Financial Statement Overview

Summary

MarketWise demonstrates a mixed financial health profile. Despite some operational capability indicated by revenue and margins, significant financial risks are evident due to negative equity and high liabilities. Operational cash flow is strong, but recent negative free cash flow impacts liquidity, requiring financial restructuring and revenue stabilization for improved stability.

Income Statement

MarketWise's income statement shows fluctuating revenue trends with a decline in recent years. The gross profit margin is strong, but the net profit margin has been inconsistent due to volatility in net income, resulting in periods of significant losses. The EBIT and EBITDA margins indicate some operational efficiency, though they are not consistently high.

Balance Sheet

The balance sheet reveals a weak equity position with negative stockholders' equity, indicating financial instability. The debt-to-equity ratio cannot be calculated due to negative equity, but high liabilities relative to assets suggest leverage concerns. This poses significant financial risk despite a manageable debt level.

Cash Flow

MarketWise's cash flow situation shows some resilience with positive operating cash flow in most periods. However, recent negative free cash flow raises concerns about cash generation sustainability. The operating cash flow to net income ratio has been positive, highlighting operational cash flow adequacy despite net income volatility.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
405.36B	448.18M	512.40M	549.18M	364.18M
	Gross Profit
354.69B	391.38M	449.71M	309.93M	209.57M
	EBIT
88.99B	51.80M	87.28M	-967.59M	-538.69M
	EBITDA
104.40B	58.21M	89.86M	-964.92M	-535.96M
	Net Income Common Stockholders
93.11B	1.78M	101.17M	-953.88M	-537.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
97.88M	155.17M	158.57M	139.08M	114.42M
	Total Assets
259.51M	396.56M	442.51M	421.55M	284.81M
	Total Debt
4.37M	5.81M	7.32M	8.21M	8.90M
	Net Debt
-93.51M	-149.36M	-151.26M	-130.87M	-105.52M
	Total Liabilities
477.44M	685.50M	740.89M	826.82M	1.21B
	Stockholders Equity
-217.92M	-11.08M	-21.20M	-48.55M	-914.75M
Cash Flow		Free Cash Flow
-22.83M	60.70M	48.20M	62.46M	55.39M
	Operating Cash Flow
-22.15M	62.43M	48.37M	63.63M	55.88M
	Investing Cash Flow
-681.00K	-1.90M	-13.24M	-8.31M	-9.65M
	Financing Cash Flow
-34.46M	-63.95M	-16.19M	-30.68M	-103.37M

MarketWise Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.50
• 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 MKTW, the sentiment is Negative. The current price of 0.5 is below the 20-day moving average (MA) of 0.60, below the 50-day MA of 0.59, and below the 200-day MA of 0.67, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 38.67 is Neutral, neither overbought nor oversold. The STOCH value of 13.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MKTW.

MarketWise Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RELX	78 Outperform	$92.96B	37.88	56.34%	1.54%	5.86%	13.13%
FDS	75 Outperform	$17.07B	31.89	28.12%	0.93%	4.66%	11.15%
SPGI	74 Outperform	$157.71B	40.69	11.44%	0.73%	13.68%	49.90%
MORN	70 Outperform	$12.69B	34.50	25.11%	0.56%	11.60%	161.17%
Sector *	58 Neutral	$21.03B	10.58	-16.29%	2.47%	4.38%	-23.63%
MKTW	50 Neutral	$161.67M	2.78	-10.56%	8.03%	-8.81%	208.74%

MarketWise Corporate Events

MarketWise Announces Special Dividend and Positive Cash Flow

On January 15, 2025, MarketWise, Inc. announced a special dividend of $0.03 per share, payable on February 26, 2025, to holders of Class A common stock as of January 29, 2025. The company reported preliminary, unaudited financial results for the fourth quarter of 2024, showing billings of $55 million, a 10% increase from the previous quarter, marking a return to positive cash flow after three quarters of negative results. MarketWise also highlighted improvements in operational efficiencies and maintained a strong balance sheet with $98 million in cash and no outstanding debt, which may enhance intrinsic shareholder value over time.