MMTec (MTC) AI Stock Analysis

• Market Cap: $29.52M
• Dividend Yield: N/A
• Average Volume (3M): 110.46K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.30
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 34
• Sector: Technology
• Sector Strength: 69
• Industry: Software - Application
• EPS (TTM): -3.66
• Shares Outstanding: 25,186,865
• 10 Day Avg. Volume: 102,216
• 30 Day Avg. Volume: 110,458
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 4.39
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 186.05
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

MMTec's overall stock score of 47 reflects its robust revenue growth potential overshadowed by severe profitability and cash conversion challenges. Moderate leverage and stable cash flow provide some balance sheet stability, but technical indicators suggest mixed market sentiment. The low valuation score, with a negative P/E ratio, indicates concerns regarding profitability and immediate investor returns.

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 demonstrates strong gross margins and a solid equity position; however, it struggles with operational profitability and cash flow stability. High net income is driven by non-operational factors, necessitating caution in evaluating financial health.

Income Statement

The income statement shows a mixed performance. Gross profit margin is strong, indicating efficient cost control relative to revenue. However, the net profit margin is disproportionately high due to a significant one-time gain or reversal, not from operational profitability, as EBIT and EBITDA margins are negative. Revenue growth has been inconsistent, with a decline in the most recent year. Overall, while there are strengths in gross margin, the net profit margin is not reflective of operational success.

Balance Sheet

The balance sheet reflects a solid equity position with a favorable equity ratio, suggesting resilience and capacity to absorb financial fluctuations. The debt-to-equity ratio remains moderate, indicating manageable leverage. ROE is high due to improved net income, albeit the sustainability of this is questionable. The balance sheet is strong, but the high net income is not from core operations.

Cash Flow

Cash flow analysis reveals challenges, with negative operating cash flow indicating operational struggles. Free cash flow is negative, showing that cash generated is insufficient to cover capital expenditures. The ratios of operating and free cash flow to net income are concerning, highlighting reliance on non-operational income sources. Cash flow management requires attention.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
869.93K	1.10M	653.04K	742.13K	200.80K
	Gross Profit
696.99K	868.05K	511.73K	734.72K	109.91K
	EBIT
-4.84M	-5.79M	-5.93M	-3.18M	-2.22M
	EBITDA
-4.24M	-5.85M	-6.44M	-3.13M	-2.91M
	Net Income Common Stockholders
48.96M	-5.45M	-8.22M	-3.19M	-2.18M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.76M	3.83M	11.21M	1.43M	3.64M
	Total Assets
156.99M	11.42M	14.59M	3.71M	6.21M
	Total Debt
33.16M	1.05M	463.82K	786.79K	987.66K
	Net Debt
31.40M	-2.77M	-10.74M	-639.13K	-2.65M
	Total Liabilities
34.62M	2.03M	1.24M	1.01M	1.45M
	Stockholders Equity
122.36M	9.38M	13.35M	2.70M	4.75M
Cash Flow		Free Cash Flow
-5.15M	-5.59M	-4.13M	-2.00M	-2.27M
	Operating Cash Flow
-5.15M	-5.59M	-4.10M	-1.98M	-2.14M
	Investing Cash Flow
-86.54M	-3.54M	-2.59M	-331.94K	-725.48K
	Financing Cash Flow
89.67M	1.75M	16.47M	37.25K	6.44M

MMTec Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.17
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MTC, the sentiment is Positive. The current price of 1.17 is above the 20-day moving average (MA) of 1.02, above the 50-day MA of 1.08, and below the 200-day MA of 2.00, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 58.79 is Neutral, neither overbought nor oversold. The STOCH value of 73.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MTC.

MMTec Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$10.95B	10.52	-7.07%	3.00%	7.30%	-12.04%
NTWK	55 Neutral	$27.77M	39.37	-2.43%	―	9.28%	60.89%
HKIT	50 Neutral	$25.33M	31.58	2.02%	―	-47.08%	-59.18%
CXAI	49 Neutral	$21.79M	―	-94.70%	―	-3.04%	65.43%
MTC	47 Neutral	$29.52M	―	40.01%	―	―	―
AIXI	38 Underperform	$31.06M	―	544.07%	―	6.89%	6.39%
CNTM	28 Underperform	$23.25M	―	-108.59%	―	―	-85.24%