Prestige Wealth, Inc. (PWM) AI Stock Analysis

• Market Cap: $18.67M
• Dividend Yield: N/A
• Average Volume (3M): 732.86K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.24
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 4
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): -0.09
• Shares Outstanding: 18,886,170
• 10 Day Avg. Volume: 190,234
• 30 Day Avg. Volume: 732,856
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $0.50
• Price Target Upside: -15.25% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 42 Neutral
• Price Target: $0.50 ▼(-15.25% Downside)

Prestige Wealth, Inc. is facing significant financial challenges, with declining revenues, profitability issues, and liquidity concerns being the most impactful factors. The technical analysis shows a slight short-term upward trend, but overall momentum is neutral. Valuation concerns are heightened by negative earnings and the lack of a dividend yield. These factors collectively result in a low overall stock score.

Prestige Wealth, Inc. Business Overview & Revenue Model

Company Description

Prestige Wealth Inc., through its subsidiaries, provides wealth management and asset management services. The company assists its clients in identifying and purchasing wealth management and asset management products. The company offers its services primarily for high net worth and ultra-high net worth individuals in Asia primarily in the mainland China or Hong Kong. The company was founded in 2017 and is based in Central, Hong Kong. Prestige Wealth Inc. operates as a subsidiary of Prestige Financial Holdings Group Limited.

How the Company Makes Money

Prestige Wealth, Inc. generates revenue primarily through management fees and performance-based fees. Management fees are typically charged as a percentage of assets under management (AUM), providing a steady and predictable income stream as the company manages clients' investment portfolios. Performance-based fees are earned when the investments managed by PWM exceed pre-defined performance benchmarks, aligning the company's interests with those of its clients. Additionally, PWM may earn revenue from financial planning services, which could include flat fees or hourly rates for specific advisory services. The company may also benefit from strategic partnerships with financial institutions and investment firms, enhancing its service offerings and expanding its client base.

Prestige Wealth, Inc. Financial Statement Overview

Summary

Prestige Wealth, Inc. is facing significant financial challenges, including declining revenues, ongoing losses, and negative cash flows. The balance sheet shows low leverage but a shrinking equity base and assets, indicating financial instability.

Income Statement

Prestige Wealth, Inc. has seen a decline in revenue over the past few years, with a significant decrease in 2024 compared to previous years. The company is experiencing negative EBIT and EBITDA margins, indicating operational challenges and inefficiencies. The net profit margin is negative, reflecting ongoing losses and a need for cost optimization or revenue enhancement strategies.

Balance Sheet

The company's balance sheet shows a moderate level of debt with a debt-to-equity ratio calculated as approximately 0.06 in 2024, indicating low leverage. However, stockholders' equity has decreased significantly, affecting the equity ratio. The decline in total assets and equity raises concerns about asset management and financial stability.

Cash Flow

Prestige Wealth, Inc.'s cash flow from operations is negative, which raises liquidity concerns. The free cash flow is also negative, indicating a potential struggle to fund operations without external financing. The operating cash flow to net income ratio is negative, reflecting inefficiencies in cash generation relative to accounting profits.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	639.91K	348.53K	2.09M	2.79M	2.56M
Gross Profit	639.91K	348.53K	2.09M	2.75M	2.56M
EBITDA	-5.70M	-1.05M	1.39M	1.65M	1.87M
Net Income	-6.88M	-1.04M	1.35M	1.91M	1.73M
Balance Sheet
Total Assets	6.33M	6.86M	6.00M	4.46M	6.77M
Cash, Cash Equivalents and Short-Term Investments	13.19K	431.31K	66.78K	750.22K	213.41K
Total Debt	180.52K	381.10K	―	―	0.00
Total Liabilities	3.29M	681.07K	619.56K	449.77K	1.37M
Stockholders Equity	3.04M	6.18M	5.38M	4.01M	5.40M
Cash Flow
Free Cash Flow	-1.66M	-996.58K	1.16M	1.30M	2.38M
Operating Cash Flow	-1.66M	-996.58K	1.16M	1.30M	2.38M
Investing Cash Flow	-1.76M	-2.34M	-1.36M	551.37K	-2.20M
Financing Cash Flow	2.75M	3.92M	-471.75K	-1.32M	-205.34K

Prestige Wealth, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PWM, the sentiment is Positive. The current price of 0.59 is above the 20-day moving average (MA) of 0.47, above the 50-day MA of 0.43, and below the 200-day MA of 0.71, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 70.78 is Negative, neither overbought nor oversold. The STOCH value of 70.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PWM.

Prestige Wealth, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$17.80B	11.87	10.23%	3.74%	9.69%	1.18%
RMCO	56 Neutral	$29.74M	108.82	-1.93%	0.12%	191.89%	90.32%
TURN	52 Neutral	$46.50M	15.58	6.41%	―	51.84%	―
MAAS	49 Neutral	$11.12M	―	-16.53%	―	2195.36%	-35.59%
CWD	43 Neutral	$5.02M	―	-5013.15%	―	-54.32%	-35.99%
PWM	42 Neutral	$18.67M	―		―	―	―
BENF	34 Underperform	$3.57M	―	-538.85%	―	78.84%	97.65%