MMTec (MTC) AI Stock Analysis

• Market Cap: $23.93M
• Dividend Yield: N/A
• Average Volume (3M): 78.26K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.49
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 34
• Sector: Technology
• Sector Strength: 94
• Industry: Software - Application
• EPS (TTM): -3.66
• Shares Outstanding: 25,186,865
• 10 Day Avg. Volume: 68,646
• 30 Day Avg. Volume: 78,257
• PEG Ratio: N/A
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 32.33
• Enterprise Value/Market Cap: 2.20
• Enterprise Value/Revenue: 9.34
• Enterprise Value/Gross Profit: 35.05
• Enterprise Value/Ebitda: -0.64
• 1Y Price Target: $1.00
• Price Target Upside: 4.17% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 45 Neutral
• Price Target: $1.00 ▲(4.17%Upside)

The stock score reflects significant challenges in financial performance, particularly profitability and cash conversion, which heavily impact the valuation score. Technical analysis offers some neutral signals but does not offset the financial concerns. The absence of earnings call data and corporate events leaves these areas unaddressed, maintaining the focus on underlying financial and technical factors.

MMTec Business Overview & Revenue Model

Company Description

MMTec, Inc., together with its subsidiaries, develops and deploys platforms that enable financial institutions to engage in securities market transactions and settlements worldwide. The company operates in two segments, Gujia, MM Future, MMBD Advisory and HC Securities; and MM Global. It offers Internet-based securities solutions comprising Securities Dealers Trading System, which supports securities registration and clearing, account management, risk management, trading and execution, and third party access middleware; Private Fund Investment Management System that supports multi-account management, fund valuation, risk management, quantitative trading access, liquidation, and requisition management; and Mobile Transaction Individual Client System and PC Client System for Apple IOS, Android, PC, and Web applications. The company enables its customers to white label its trading interface, as well as select modular functionalities. It serves hedge funds, mutual funds, registered investment advisors, proprietary trading groups, and brokerage firms. The company was founded in 2015 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

MMTec makes money through a diversified revenue model that includes subscription fees for its SaaS offerings, transaction-based fees from its trading platforms, and sales of market data to institutional clients. The company collaborates with financial institutions to offer tailored technology solutions that align with specific market needs, which also contributes significantly to its earnings. Additionally, strategic partnerships with brokerage firms allow MMTec to expand its reach and leverage industry expertise, further amplifying its revenue streams.

MMTec Financial Statement Overview

Summary

MMTec shows strong revenue growth but struggles with profitability, as evidenced by a highly negative net profit margin and negative returns on equity. The balance sheet indicates moderate leverage, and while cash flow is positive, there are challenges in converting profits into cash.

Income Statement

The income statement reveals significant challenges with profitability. The Gross Profit Margin is strong at 81.64%, indicating efficient cost management concerning revenue generation. However, the Net Profit Margin is extremely negative at -4879.43%, primarily due to substantial net losses. Revenue Growth Rate shows a remarkable increase of 114.87%, suggesting potential for revenue expansion. Nonetheless, the negative EBIT and EBITDA margins highlight ongoing operational inefficiencies.

Balance Sheet

The balance sheet shows a mixed picture. The Debt-to-Equity Ratio is 1.22, indicating a moderate reliance on debt financing. The Return on Equity is negative at -342.59%, reflecting substantial net losses relative to equity. However, the Equity Ratio stands at 40.36%, showing a reasonable proportion of assets financed by equity, suggesting some balance sheet stability.

Cash Flow

Cash flow analysis presents a stable yet concerning picture. The Free Cash Flow has turned positive, indicating improved cash management. However, the Operating Cash Flow to Net Income Ratio and Free Cash Flow to Net Income Ratio are negative, reflecting challenges in translating profits into cash. Despite this, the company has managed to maintain positive operating cash flow in the latest period.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.87M	869.93K	1.10M	653.04K	742.13K
Gross Profit	1.53M	696.99K	868.05K	511.73K	734.72K
EBITDA	-88.67M	-4.24M	-5.85M	-6.44M	-3.13M
Net Income	-91.17M	48.96M	-5.45M	-8.22M	-3.19M
Balance Sheet
Total Assets	65.91M	156.99M	11.42M	14.59M	3.71M
Cash, Cash Equivalents and Short-Term Investments	2.87M	1.76M	3.83M	11.21M	1.43M
Total Debt	32.37M	33.16M	1.05M	463.82K	786.79K
Total Liabilities	39.30M	34.62M	2.03M	1.24M	1.01M
Stockholders Equity	26.60M	122.36M	9.38M	13.35M	2.70M
Cash Flow
Free Cash Flow	717.82K	-5.15M	-5.59M	-4.13M	-2.00M
Operating Cash Flow	722.85K	-5.15M	-5.59M	-4.10M	-1.98M
Investing Cash Flow	629.54K	-86.54M	-3.54M	-2.59M	-331.94K
Financing Cash Flow	-241.75K	89.67M	1.75M	16.47M	37.25K

MMTec Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.96
• 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 MTC, the sentiment is Negative. The current price of 0.96 is below the 20-day moving average (MA) of 0.98, below the 50-day MA of 1.03, and below the 200-day MA of 1.68, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 45.65 is Neutral, neither overbought nor oversold. The STOCH value of 40.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MTC.

MMTec Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTWK	70 Neutral	$42.62M	179.90	0.75%	―	9.18%	―
Sector *	63 Neutral	$34.16B	5.47	-11.67%	1.85%	5.30%	-18.30%
HKIT	48 Neutral	$41.31M	32.63	-2.82%	―	-36.35%	-153.77%
CXAI	47 Neutral	$20.16M	―	-86.92%	―	-9.33%	74.24%
MTC	45 Neutral	$23.93M	―	40.01%	―	―	―
AIXI	38 Underperform	$21.09M	―	544.07%	―	19.01%	44.24%
CNTM	28 Underperform	$7.28M	―	-108.59%	―	―	-85.24%