MMTec (MTC) AI Stock Analysis

• Market Cap: $7.66M
• Dividend Yield: N/A
• Average Volume (3M): 555.85K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.09
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 34
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -3.66
• Shares Outstanding: 25,186,865
• 10 Day Avg. Volume: 139,351
• 30 Day Avg. Volume: 555,852
• PEG Ratio: <0.01
• Price to Book (P/B): 1.48
• Price to Sales (P/S): 21.00
• P/FCF Ratio: 54.67
• Enterprise Value/Market Cap: 16.94
• Enterprise Value/Revenue: 48.46
• Enterprise Value/Gross Profit: 58.95
• Enterprise Value/Ebitda: -57.61
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: $2.50 ▲(1.63% Upside)

The overall stock score of 55 reflects a company with strong technical momentum but significant financial challenges. The positive technical indicators suggest potential short-term gains, but the negative financial performance and valuation metrics highlight substantial risks. Investors should be cautious and consider the company's ability to improve profitability and cash flow.

Positive Factors

Revenue Growth

The significant revenue growth rate indicates strong market demand and successful business expansion, enhancing long-term prospects.

Gross Profit Margin

A high gross profit margin reflects efficient cost management and pricing power, supporting sustainable profitability over time.

Cash Flow Management

Positive free cash flow suggests better cash management, providing the company with more flexibility for strategic investments and debt reduction.

Negative Factors

Profitability Challenges

Severe profitability issues due to high net losses could hinder long-term financial health and limit reinvestment capabilities.

Nasdaq Delisting Risk

Potential delisting from Nasdaq could reduce market visibility and investor confidence, impacting future capital raising efforts.

Leverage and Debt

Moderate debt levels may strain financial flexibility, especially if profitability issues persist, affecting long-term stability.

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 generates revenue primarily through a combination of project-based contracts and recurring service subscriptions. The company earns money by delivering customized software solutions and IT consulting services to clients, charging fees based on the scope and duration of projects. Additionally, MMTec offers cloud-based services and data analytics tools on a subscription basis, providing a steady stream of recurring revenue. Strategic partnerships with major technology providers enhance their service offerings and enable MMTec to tap into broader markets, further contributing to its earnings through collaborative projects and joint ventures.

MMTec Financial Statement Overview

Summary

MMTec shows strong revenue growth but faces significant profitability challenges with consistent net losses impacting key financial metrics. The balance sheet reflects moderate leverage, but negative returns on equity and cash flow ratios suggest operational inefficiencies. While there is potential for revenue expansion, the company must address profitability and cash conversion to enhance financial health.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.68M	1.87M	869.93K	1.07M	568.62K	742.13K
Gross Profit	2.20M	1.53M	696.99K	868.05K	511.73K	734.72K
EBITDA	-2.25M	-88.67M	-4.24M	-5.85M	-6.44M	-3.13M
Net Income	-109.23M	-91.17M	48.96M	-5.65M	-7.05M	-3.19M
Balance Sheet
Total Assets	20.30M	65.91M	156.99M	11.42M	14.59M	3.71M
Cash, Cash Equivalents and Short-Term Investments	10.19M	2.87M	1.76M	3.83M	11.21M	1.43M
Total Debt	32.42M	32.37M	33.16M	1.05M	463.82K	786.79K
Total Liabilities	40.12M	39.30M	34.62M	2.03M	1.24M	1.01M
Stockholders Equity	-19.82M	26.60M	122.36M	9.38M	13.35M	2.70M
Cash Flow
Free Cash Flow	932.42K	717.82K	-5.15M	-5.59M	-4.13M	-2.00M
Operating Cash Flow	932.40K	722.85K	-5.15M	-5.59M	-4.10M	-1.98M
Investing Cash Flow	18.00M	629.54K	-86.54M	-3.54M	-2.59M	-331.94K
Financing Cash Flow	-2.79M	-241.75K	89.67M	1.75M	16.47M	37.25K

MMTec Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 2.46 is above the 20-day moving average (MA) of 2.00, above the 50-day MA of 1.31, and above the 200-day MA of 1.11, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 64.88 is Neutral, neither overbought nor oversold. The STOCH value of 53.18 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
NTWK	62 Neutral	$35.51M	73.96	1.40%	―	7.70%	-36.01%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
MTC	55 Neutral	$7.66M	-0.07	-291.75%	―	―	―
HKIT	45 Neutral	$42.78M	―	-6.17%	―	-47.44%	-318.95%
CXAI	41 Neutral	$13.20M	―	-80.59%	―	-27.47%	83.06%
CNTM	40 Underperform	$23.18M	―	―	―	419.60%	75.23%
AIXI	37 Underperform	$8.85M	-0.45	―	―	19.01%	44.24%

MMTec Corporate Events

MMTEC Faces Nasdaq Delisting Due to Bid Price Deficiency

On October 28, 2025, MMTEC, Inc. announced receiving a delisting determination from Nasdaq due to not meeting the minimum bid price requirement of $1.00 per share for 30 consecutive business days. Despite a previous reverse stock split, the company is not eligible for an extended compliance period and faces delisting unless an appeal is made by November 3, 2025. MMTEC is considering its options, including appealing the decision, but there is no guarantee of success. The announcement has no immediate impact on the trading of MMTEC’s stock, but suspension is set for November 5, 2025, if no appeal is made.

MMTec Reports Mixed Financial Results for First Half of 2025

In the first half of 2025, MMTec, Inc. reported a significant increase in revenue and gross profit, both rising to approximately $0.81 million and $0.67 million respectively, due to enhanced placement agent services. Despite these gains, the company faced a net loss of approximately $46.43 million, largely attributed to credit losses and the sale of notes receivable, which impacted overall financial performance.