Meta Materials (MMATQ) AI Stock Analysis

• Market Cap: $66.95K
• Dividend Yield: N/A
• Average Volume (3M): 3.62K
• Price to Earnings (P/E): ―
• Beta (1Y): 195.94
• Revenue Growth: 13.75%
• EPS Growth: -255.86%
• Country: US
• Employees: 103
• Sector: Technology
• Sector Strength: 87
• Industry: Semiconductors
• EPS (TTM): N/A
• Shares Outstanding: 6,695,536
• 10 Day Avg. Volume: 774
• 30 Day Avg. Volume: 3,623
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.75
• Enterprise Value/Market Cap: 589.44
• Enterprise Value/Revenue: 1.22
• Enterprise Value/Gross Profit: 6.02
• Enterprise Value/Ebitda: -0.03
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 37 Underperform
• Price Target: ―

Meta Materials is currently struggling with significant financial challenges, including declining revenues and high net losses, which deeply affect its financial performance score. Technical analysis indicates a bearish trend, while valuation is unattractive due to lack of profitability. The absence of positive guidance or sentiment in the earnings call further contributes to a low overall stock score, suggesting caution for potential investors.

Meta Materials Business Overview & Revenue Model

Company Description

Meta Materials Inc. was an advanced materials and nanotechnology company that developed functional materials and nanocomposites for industries such as aerospace, automotive, consumer electronics, and clean energy.

How the Company Makes Money

Meta Materials generates revenue primarily through the sale and licensing of its advanced material technologies. The company collaborates with industry leaders to integrate its materials into their products, which can lead to licensing agreements and direct sales. Additionally, Meta Materials engages in research and development partnerships, which often provide funding and milestone payments. The company's ability to innovate and create unique solutions positions it to capture value in various high-growth markets, contributing significantly to its earnings.

Meta Materials Financial Statement Overview

Summary

Meta Materials is currently facing financial difficulties with declining revenues, persistent losses, and increasing financial leverage. Despite some gross profit efficiency, high operating losses and negative cash flows highlight ongoing challenges. The balance sheet indicates potential financial instability, with reduced assets and equity. Improving operational efficiency and reducing costs will be crucial for future recovery.

Income Statement

Meta Materials has experienced a significant decline in revenue over the past year, with a revenue shrinkage of approximately 21.9% from 2022 to 2023. The company faces substantial net losses, with a net profit margin of -4998% in 2023. Gross profit margin stands at 58.9%, indicating some efficiency in cost management at the gross level, but high operating expenses and negative EBIT margins of -5036% severely impact profitability.

Balance Sheet

The debt-to-equity ratio increased to 0.51 in 2023, showing elevated leverage compared to previous years. Stockholders' equity has significantly decreased, leading to a low equity ratio of 39.7%. This indicates a risk of financial instability, although the company maintains positive equity. The balance sheet reveals a reduced asset base and increasing liabilities, which could challenge future growth.

Cash Flow

Operating cash flow remains deeply negative, indicative of ongoing operational challenges. The free cash flow to net income ratio is approximately 1.06, suggesting cash outflows are nearly equivalent to net losses, reflecting poor cash management. While the company has raised capital via financing activities, this has not translated to positive free cash flow growth.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.83M	7.97M	10.20M	4.08M	1.12M
Gross Profit	6.56M	4.69M	7.16M	3.41M	1.12M
EBITDA	-378.42M	-387.65M	-75.23M	-87.23M	-8.03M
Net Income	-387.07M	-398.23M	-79.10M	-91.00M	-11.61M
Balance Sheet
Total Assets	46.36M	55.23M	408.92M	434.02M	10.23M
Cash, Cash Equivalents and Short-Term Investments	6.40M	9.72M	10.09M	49.52M	1.40M
Total Debt	10.47M	11.15M	7.90M	7.60M	11.88M
Total Liabilities	28.03M	33.29M	30.35M	99.32M	19.13M
Stockholders Equity	18.34M	21.94M	378.56M	334.71M	-8.90M
Cash Flow
Free Cash Flow	-39.41M	-50.59M	-81.83M	-47.55M	-8.59M
Operating Cash Flow	-32.62M	-42.22M	-62.24M	-34.76M	-7.93M
Investing Cash Flow	-561.89K	-1.03M	-19.47M	65.14M	2.41M
Financing Cash Flow	33.58M	41.60M	46.37M	15.66M	6.33M

Meta Materials Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$34.07B	6.13	-11.73%	1.80%	5.33%	-18.31%
PRSO	51 Neutral	$5.23M	―	-178.04%	―	5.99%	83.47%
LEDS	47 Neutral	$21.90M	―	-31.27%	―	160.76%	74.71%
PXLW	43 Neutral	$37.88M	―	-2911.20%	―	-47.93%	-37.78%
MOBX	42 Neutral	$40.29M	―	-1839.64%	―	―	―
SMTK	40 Underperform	$4.48M	―	-208.24%	―	854.55%	-40.89%
MMATQ	37 Underperform	$66.95K	―	-1814.40%	―	13.75%	-255.86%