OneConnect Financial Technology (OCFT) AI Stock Analysis

• Market Cap: $284.03M
• Dividend Yield: N/A
• Average Volume (3M): 33.41K
• Price to Earnings (P/E): 50.3
• Beta (1Y): 0.85
• Revenue Growth: -48.61%
• EPS Growth: -2291.48%
• Country: US
• Employees: 1,937
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Application
• EPS (TTM): -0.30
• Shares Outstanding: 38,999,355
• 10 Day Avg. Volume: 22,045
• 30 Day Avg. Volume: 33,413
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: -0.19
• Enterprise Value/Revenue: -0.02
• Enterprise Value/Gross Profit: -0.07
• Enterprise Value/Ebitda: 0.23
• 1Y Price Target: $7.49
• Price Target Upside: 3.31% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 42 Neutral
• Price Target: $7.00 ▼(-3.45% Downside)

The overall stock score is heavily influenced by the company's poor financial performance, characterized by declining revenues, persistent losses, and negative cash flows. Technical analysis suggests a bearish trend with potential for a short-term rebound. Valuation metrics are unattractive due to the negative P/E ratio and lack of dividend yield. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Strategic Partnerships

Partnerships with major financial institutions and Ping An Group enhance market reach and customer base, supporting long-term revenue growth.

Technology Platform

The company's tech-as-a-service model leverages AI, blockchain, and big data, positioning it well in the digital transformation of financial services.

Financial Stability

A strong equity base with low leverage provides financial stability, offering resilience against market volatility and operational challenges.

Negative Factors

Declining Revenues

Declining revenues indicate challenges in market demand or competitive positioning, impacting long-term growth prospects and profitability.

Negative Cash Flow

Persistent negative cash flow suggests operational inefficiencies and potential liquidity issues, limiting investment in growth opportunities.

Profitability Challenges

Ongoing net losses and negative margins highlight difficulties in achieving profitability, affecting long-term shareholder value and investment appeal.

OneConnect Financial Technology Business Overview & Revenue Model

Company Description

OneConnect Financial Technology Co., Ltd. provides cloud-platform-based Fintech solutions, and online information and operating support services for financial institutions in the People's Republic of China. It offers digital retail banking, digital commercial banking, digital auto insurance and life insurance, and artificial intelligence customer services, as well as sales management, risk management, and operation support services. The company also operates gamma core banking system, a customer centric solution; digitalized management platform that offers digital infrastructure for financial institutions to manage various aspects of their business, including data, smart operation, comprehensive risk, and asset and liability management, as well as accounting, personnel, and office management; Gamma FinCloud, an open PaaS and IaaS platform for ready-to-integrate financial technology components; and Blockchain network-as-a-service. In addition, it operates Regtech, an end-to-end regulatory solution to help regulatory authorities automate and digitalize their operations; and offers asset management and consulting services. The company serves customers in the financial services industry, including banking, insurance, and other financial institutions. It has a strategic agreement with the Hainan Local Financial Supervision Administration to develop smart financial and smart supervision services in the island province of Hainan, as well as the financial sector in Hainan free trade port. OneConnect Financial Technology Co., Ltd. was founded in 2015 and is headquartered in Shenzhen, the People's Republic of China.

How the Company Makes Money

OneConnect Financial Technology generates revenue primarily through its technology-as-a-service platform, offering subscription-based services to financial institutions. The company's key revenue streams include software licensing fees, implementation fees, and ongoing maintenance and support services. OneConnect collaborates with a variety of financial institutions, including major banks and insurance companies, which enables it to scale its services and drive growth. Additionally, its strategic partnerships with leading financial service providers and its parent company, Ping An Group, contribute to expanding its market reach and customer base, thereby enhancing its revenue potential.

OneConnect Financial Technology Financial Statement Overview

Summary

OneConnect Financial Technology faces significant financial challenges, with declining revenues, persistent losses, and negative cash flows. The balance sheet remains relatively stable with low leverage, but the inability to generate profits or positive cash flow highlights the need for strategic changes to improve operational efficiency and financial performance.

Income Statement

OneConnect Financial Technology has experienced declining revenues and negative profitability over the past years. The company has posted consistent net losses, with the most recent year showing a net profit margin of -20.44%. Gross profit margins have also declined, indicating struggles in maintaining cost efficiency. Despite some improvement in EBIT and EBITDA margins, they remain negative, highlighting ongoing operational challenges.

Balance Sheet

The balance sheet shows a strong equity base with an equity ratio of 64.49% in the latest year, suggesting financial stability. However, the company has a history of high liabilities relative to revenue, and a debt-to-equity ratio of 0.02 indicates limited leverage, which is a positive aspect. Yet, the consistent net losses have impaired return on equity, which remains negative, reflecting inefficiencies in generating shareholder value.

Cash Flow

The cash flow situation is concerning, with the company consistently generating negative operating cash flows. The free cash flow is also negative, indicating cash burn issues. The ratio of operating cash flow to net income is not favorable, suggesting difficulties in converting earnings into cash. Despite some inflows from investing activities, the overall cash flow position is weak.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.25B	3.67B	4.46B	4.13B	3.31B
Gross Profit	804.50M	1.35B	1.64B	1.44B	1.24B
EBITDA	-80.91M	-140.84M	-673.58M	-929.12M	-1.27B
Net Income	-459.68M	-362.71M	-928.03M	-1.33B	-1.41B
Balance Sheet
Total Assets	3.97B	8.07B	8.88B	9.34B	10.89B
Cash, Cash Equivalents and Short-Term Investments	2.40B	3.16B	3.83B	3.96B	5.12B
Total Debt	43.56M	357.33M	333.62M	815.26M	2.28B
Total Liabilities	1.46B	5.12B	5.60B	5.51B	5.60B
Stockholders Equity	2.56B	2.97B	3.29B	3.79B	5.20B
Cash Flow
Free Cash Flow	-304.27M	-685.93M	-813.93M	-532.35M	-969.33M
Operating Cash Flow	-276.85M	-648.46M	-745.98M	-404.33M	-704.14M
Investing Cash Flow	1.11B	318.63M	1.87B	388.44M	1.32B
Financing Cash Flow	-282.25M	-213.60M	-694.07M	-1.61B	1.53B

OneConnect Financial Technology Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.25
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OCFT, the sentiment is Neutral. The current price of 7.25 is below the 20-day moving average (MA) of 7.29, below the 50-day MA of 7.36, and above the 200-day MA of 5.59, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 44.41 is Neutral, neither overbought nor oversold. The STOCH value of 45.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OCFT.

OneConnect Financial Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$36.70B	12.21	-10.39%	1.84%	8.50%	-7.32%
ONTF	56 Neutral	$229.72M	―	-22.60%	―	-6.88%	15.83%
MKTW	53 Neutral	$298.13M	1.64	-10.56%	9.70%	-17.17%	497.89%
API	52 Neutral	$346.92M	―	-3.84%	―	-3.34%	48.15%
NRDY	48 Neutral	$239.68M	―	-105.81%	―	-10.85%	-15.09%
FRGE	47 Neutral	$231.50M	―	-28.14%	―	14.78%	21.87%
OCFT	42 Neutral	$284.03M	50.30	-24.21%	―	-48.61%	-2291.48%

OneConnect Financial Technology Corporate Events

OneConnect Financial Technology Reports Decline in 2025 Interim Results Amid Market Challenges

OneConnect Financial Technology Co., Ltd. released its 2025 Interim Report, revealing a significant decline in financial performance for the first half of the year. Revenue from continuing operations decreased by 43.4% compared to the same period in 2024, with a gross margin drop from 37.1% to 26.1%. The company attributes these declines to macroeconomic challenges and reduced IT budgets among its major clients, impacting its growth and profitability. Despite these challenges, OneConnect continues to focus on its long-term strategy of reducing revenue concentration from the Ping An Group and expanding its third-party business.

OneConnect Financial Technology Updates on Takeover Proposal and Financial Estimates

On July 20, 2025, OneConnect Financial Technology Co., Ltd. announced updates related to its ongoing takeover proposal and scheme, pursuant to Rule 10 of the Takeovers Code. The company provided unaudited financial estimates for the first quarter of 2025, which have been reviewed by PricewaterhouseCoopers and Gram Capital Limited. These estimates include details on gross profit, operating loss, and comprehensive loss. The board has reassessed these estimates and confirmed their validity as of the announcement date. Stakeholders are advised to exercise caution as the proposal and scheme are subject to conditions that may affect their implementation.