Mega Matrix (MPU) AI Stock Analysis

• Market Cap: $71.21M
• Dividend Yield: N/A
• Average Volume (3M): 697.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.13
• Revenue Growth: 19.87%
• EPS Growth: -111.99%
• Country: US
• Employees: 18
• Sector: Communication Services
• Sector Strength: 97
• Industry: Rental & Leasing Services
• EPS (TTM): -0.15
• Shares Outstanding: 61,881,430
• 10 Day Avg. Volume: 196,864
• 30 Day Avg. Volume: 697,776
• PEG Ratio: -0.08
• Price to Book (P/B): 3.74
• Price to Sales (P/S): 1.46
• P/FCF Ratio: 12.82
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: ―

Mega Matrix's financial performance is hindered by profitability challenges and unstable revenue growth, though improved cash flows and a debt-free balance sheet provide some relief. Technical analysis indicates short-term strength but highlights potential overbought conditions. The negative P/E ratio and absence of dividends reflect market concerns over future profitability. Overall, the stock is in a neutral to slightly positive position, with room for improvement in financial stability and earnings growth.

Positive Factors

Debt-Free Balance Sheet

A debt-free balance sheet enhances financial stability and flexibility, allowing Mega Matrix to invest in growth opportunities without the burden of interest obligations.

Cash Flow Improvements

Improved cash flow indicates better financial health and operational efficiency, enabling Mega Matrix to fund operations and strategic initiatives more effectively.

Strategic Focus on Stablecoins

Focusing on stablecoin governance positions Mega Matrix at the forefront of digital asset innovation, potentially enhancing its market position in the growing blockchain sector.

Negative Factors

Profitability Challenges

Ongoing profitability challenges can hinder Mega Matrix's ability to reinvest in the business and may affect long-term financial sustainability and investor confidence.

Revenue Volatility

Revenue volatility reflects market and operational uncertainties, complicating financial planning and potentially impacting Mega Matrix's growth trajectory.

High Equity Reliance

Heavy reliance on equity for financing can limit financial flexibility and may dilute shareholder value if additional equity is issued to raise capital.

Mega Matrix Business Overview & Revenue Model

Company Description

Mega Matrix Corp., together with its subsidiaries, engages in the GameFi business in the metaverse ecosystem. The company offers Ethereum platform to stake on a node for the purpose of validating transactions and adding blocks to a respective blockchain network. It also provides aircraft advisory and management services. The company was formerly known as AeroCentury Corp. and changed its name to Mega Matrix Corp. in March 2022. Mega Matrix Corp. was incorporated in 1997 and is headquartered in Palo Alto, California.

How the Company Makes Money

Mega Matrix Corp. makes money through a variety of revenue streams centered around its expertise in blockchain technology and digital asset management. The company earns revenue by providing blockchain infrastructure services to businesses seeking to integrate blockchain solutions into their operations. Additionally, it offers consultancy services to organizations involved in cryptocurrency markets, helping them navigate the complexities of digital assets. Mega Matrix also generates income through strategic partnerships with other tech firms and digital asset platforms, which enhance its service offerings and expand its market reach.

Mega Matrix Financial Statement Overview

Summary

Mega Matrix faces challenges with profitability and revenue growth, impacting its income statement scores. The balance sheet reveals a strong equity position with no debt, but is limited by a high reliance on equity. Cash flow improvements are a positive sign, but historical instability warrants caution. The company needs to stabilize its income generation and maintain consistent cash flows to improve its financial health.

Income Statement

Mega Matrix has shown significant volatility in its revenue with recent TTM revenue of $36.18 million compared to $47.8 million in the previous year, indicating a decline. The company struggles with profitability, as evidenced by negative net income and EBIT margins in the TTM. The gross profit margin appears positive at 58.1% for the TTM, but the negative net and EBIT margins are concerning.

Balance Sheet

The company has improved its equity position with a positive stockholders' equity of $14.11 million, up from prior periods. The debt-to-equity ratio is favorable as the company currently holds no debt, reducing financial leverage risks. However, the equity ratio of 72.5% suggests reliance on equity for asset financing, which could limit financial flexibility.

Cash Flow

Cash flow has improved with a positive free cash flow of $3.51 million in the TTM, compared to negative values in previous years. The operating cash flow to net income ratio is positive, indicating effective cash management. However, historical fluctuations and previous negative cash flows remain a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	35.37M	36.18M	47.80K	448.60K	6.29M	16.02M
Gross Profit	20.07M	21.02M	-233.30K	-334.00K	4.89M	8.69M
EBITDA	-4.74M	-7.02M	-88.47K	-9.12M	18.40M	-21.96M
Net Income	-8.56M	-8.88M	-4.06M	-8.47M	14.95M	-42.24M
Balance Sheet
Total Assets	16.60M	19.46M	13.34M	12.55M	14.95M	93.38M
Cash, Cash Equivalents and Short-Term Investments	4.01M	8.88M	3.38M	7.26M	7.38M	2.41M
Total Debt	0.00	0.00	8.44M	4.19M	645.10K	88.97M
Total Liabilities	5.69M	5.35M	2.94M	5.59M	3.14M	110.99M
Stockholders Equity	10.92M	14.11M	10.40M	7.98M	12.05M	-17.62M
Cash Flow
Free Cash Flow	-8.01M	4.12M	-3.00M	-5.90M	-4.76M	3.98M
Operating Cash Flow	-8.01M	4.12M	-3.00M	-5.86M	-3.76M	3.98M
Investing Cash Flow	-1.83M	-1.89M	-4.83M	-52.50K	10.80M	17.12M
Financing Cash Flow	1.86M	3.50M	3.70M	5.79M	-4.76M	-19.42M

Mega Matrix Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MPU, the sentiment is Negative. The current price of 1.05 is below the 20-day moving average (MA) of 1.20, below the 50-day MA of 1.10, and below the 200-day MA of 1.41, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 44.36 is Neutral, neither overbought nor oversold. The STOCH value of 20.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MPU.

Mega Matrix Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRG	71 Outperform	$1.21B	7.73	24.56%	1.72%	3.71%	9.14%
WLFC	71 Outperform	$931.67M	8.18	18.91%	0.82%	27.90%	19.25%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
MPU	55 Neutral	$71.21M	-2.83	-62.46%	―	19.87%	-111.99%
CTOS	50 Neutral	$1.35B	-53.93	-3.00%	―	7.39%	34.57%
ALTG	49 Neutral	$152.15M	-1.88	-160.65%	4.88%	-3.95%	-47.70%