Next Technology Holding (NXTT) AI Stock Analysis

• Market Cap: $29.19M
• Dividend Yield: N/A
• Average Volume (3M): 367.67K
• Price to Earnings (P/E): <0.1
• Beta (1Y): -0.69
• Revenue Growth: 259.01%
• EPS Growth: -61.05%
• Country: US
• Employees: 6
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 54.36
• Shares Outstanding: 4,082,556
• 10 Day Avg. Volume: 61,421
• 30 Day Avg. Volume: 367,666
• PEG Ratio: <0.01
• Price to Book (P/B): 0.17
• Price to Sales (P/S): 7.83
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.74
• Enterprise Value/Revenue: 14.19
• Enterprise Value/Gross Profit: 27.13
• Enterprise Value/Ebitda: -1.17
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: ―

Next Technology Holding's stock score of 44 reflects a challenging financial and operational outlook, with declining revenues and cash flow concerns overshadowing recent net income improvements. Technical indicators suggest bearish momentum, and while the low P/E ratio suggests potential undervaluation, it is mitigated by operational inefficiencies. The appointment of a new CTO is a positive step, but its impact on immediate performance is limited.

Positive Factors

Strong Equity Position

A strong equity position with low debt enhances financial stability, providing a solid foundation for long-term growth and resilience against economic fluctuations.

New CTO Appointment

The appointment of a new CTO with expertise in AI/ML can drive technological innovation, potentially leading to improved product offerings and competitive advantage in the tech industry.

Positive Net Income Trend

Improved net income indicates effective cost management or one-time gains, which can enhance investor confidence and provide capital for reinvestment in growth initiatives.

Negative Factors

Declining Revenue

Declining revenue suggests challenges in market demand or competitive positioning, which can impact long-term growth prospects and necessitate strategic adjustments.

Negative Cash Flow

Negative cash flow indicates potential liquidity issues, limiting the company's ability to invest in growth opportunities and meet financial obligations without external financing.

Operational Inefficiencies

Operational inefficiencies reflected in negative margins can hinder profitability and require strategic changes to improve cost management and operational effectiveness.

Next Technology Holding Business Overview & Revenue Model

Company Description

Next Technology Holding Inc. provides technical services and solutions through its social e-commerce platform primarily in Mainland China. It offers YCloud, a micro-business cloud intelligent internationalization system that conducts multi-channel data analysis through the learning of big data and social recommendation relationships, as well as provides users with AI fission and management systems, and supply chain systems. The company's YCloud system also provides micro-business owners with various payment methods, such as Alipay, WeChat, and UnionPay. In addition, it offers chatGPT technical services; and technical system support, software development, and services. The company serves individual and corporate users in the micro business industry. It also has operations in Hong Kong and Singapore. The company was formerly known as WeTrade Group, Inc. and changed its name to Next Technology Holding Inc in April 2024. Next Technology Holding Inc. was incorporated in 2019 and is headquartered in Beijing, the People Republic of China.

How the Company Makes Money

NXTT generates revenue through a multifaceted business model that includes software licensing, subscription-based cloud services, and customized AI solutions. Key revenue streams come from selling enterprise software licenses to businesses, providing ongoing cloud services through a subscription model, and developing bespoke AI analytics solutions for clients. Significant partnerships with major cloud providers and enterprise clients enhance NXTT's market reach and contribute to its earnings. Additionally, the company invests in research and development to continuously innovate and expand its product offerings, which is critical for maintaining competitive advantage and driving revenue growth.

Next Technology Holding Financial Statement Overview

Summary

Next Technology Holding shows mixed financial health. While the company has a strong equity position, the income statement highlights operational challenges with declining revenues and negative margins. The cash flow situation raises concerns about liquidity and cash management. Improvements in net income suggest some recovery, but sustainability remains questionable without addressing operational inefficiencies.

Income Statement

The income statement reflects some troubling trends. The company has seen a significant decline in revenue from 2022 to 2024, with a negative revenue growth rate. The gross profit margin remains positive, but the company is experiencing negative EBIT and EBITDA margins, indicating operational inefficiencies. However, the net profit margin has improved significantly due to a substantial net income in the most recent period, likely influenced by non-operational factors.

Balance Sheet

The balance sheet indicates a solid equity base with a low debt-to-equity ratio, suggesting financial stability. The equity ratio is quite high, reflecting that a large portion of the company's assets is financed by equity. However, there are concerns about the company's total assets, which have fluctuated significantly over the periods. The return on equity is positive, driven by recent net income improvements.

Cash Flow

The cash flow statement presents challenges, as the operating cash flow and free cash flow have been inconsistent and sometimes negative, indicating potential cash management issues. There is no clear trend of free cash flow growth, and with operating cash flow at zero in the latest period, there could be liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.59M	1.80M	2.63M	0.00	14.38M	6.27M
Gross Profit	1.88M	1.07M	1.44M	1.98M	11.70M	5.66M
EBITDA	-43.36M	0.00	-1.78M	-6.53M	6.03M	3.77M
Net Income	302.67M	21.55M	-9.92M	-9.15M	5.18M	2.68M
Balance Sheet
Total Assets	679.54M	92.92M	48.93M	46.52M	19.47M	13.54M
Cash, Cash Equivalents and Short-Term Investments	12.36M	668.39K	668.39K	22.93K	616.59K	4.64M
Total Debt	2.00M	760.35K	0.00	0.00	2.54M	3.18M
Total Liabilities	104.43M	11.29M	4.22M	4.82M	4.94M	4.65M
Stockholders Equity	575.11M	81.63M	44.71M	41.71M	14.53M	8.89M
Cash Flow
Free Cash Flow	153.78M	0.00	20.21M	-18.30M	-4.17M	1.16M
Operating Cash Flow	153.78M	0.00	20.21M	-17.61M	-3.75M	1.16M
Investing Cash Flow	0.00	0.00	-32.62M	493.95K	-1.03M	0.00
Financing Cash Flow	7.95M	0.00	13.05M	39.53M	689.03K	-3.68M

Next Technology Holding Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 8.26
• 50DMA: Negative
• 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 NXTT, the sentiment is Neutral. The current price of 8.26 is above the 20-day moving average (MA) of 7.14, below the 50-day MA of 10.41, and below the 200-day MA of 166.64, indicating a neutral trend. The MACD of -0.93 indicates Negative momentum. The RSI at 48.70 is Neutral, neither overbought nor oversold. The STOCH value of 25.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NXTT.

Next Technology Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
WFCF	60 Neutral	$58.69M	22.15	27.34%	―	-1.17%	43.94%
SOGP	56 Neutral	$51.91M	14.35	―	―	―	―
YXT	50 Neutral	$60.08M	17.58	―	―	―	―
UPLD	47 Neutral	$43.34M	-0.86	―	―	-15.54%	61.46%
NXTT	44 Neutral	$29.19M	0.01	93.25%	―	259.01%	-61.05%
RCT	39 Underperform	$59.26M	―	―	―	―	―

Next Technology Holding Corporate Events

Next Technology Holding Signs Bitcoin MOU with Nexgen

Next Technology Holding Inc., through its subsidiary Next Investment Group Limited, has signed a non-binding Memorandum of Understanding with Global Nexgen Limited to explore a strategic transaction involving Bitcoin. The MOU outlines two potential transactions: purchasing up to 10,000 BTC at a fixed price of $84,000 per BTC or acquiring Global Nexgen based on its Bitcoin holdings at the same price. The agreement is non-binding and requires exclusive negotiation for 90 days, with no assurance of a final agreement.