Royalty Management Holding (RMCO) AI Stock Analysis

• Market Cap: $62.38M
• Dividend Yield: 0.2%
• Average Volume (3M): 56.46K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.07
• Revenue Growth: 261.58%
• EPS Growth: -329.41%
• Country: US
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): -0.01
• Shares Outstanding: 15,140,734
• 10 Day Avg. Volume: 24,687
• 30 Day Avg. Volume: 56,460
• PEG Ratio: 1.44
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 18.50
• P/FCF Ratio: 28.64
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 16.47
• Enterprise Value/Gross Profit: 73.26
• Enterprise Value/Ebitda: -255.80
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: $4.00 ▲(13.64% Upside)

The score is primarily held back by weak financial performance: ongoing losses and negative operating/free cash flow outweigh strong revenue growth, despite a low-leverage balance sheet. Technically, the trend is positive with price above major moving averages, but overbought readings add near-term risk. Valuation is mixed, with a very high dividend yield offset by a negative P/E that reflects lack of profitability.

Positive Factors

Revenue Growth

Sustained TTM revenue growth of ~44% indicates robust demand and successful top-line expansion. Over the medium term this provides scale to absorb fixed costs, supports potential operating leverage, and creates a platform for reinvestment that can drive long-term profitability if converted efficiently.

Low Leverage

A debt-to-equity ratio near 0.044 reflects minimal financial leverage, giving the company strong balance sheet flexibility. This reduces default and refinancing risk, lowers fixed financial costs, and preserves capacity to fund operations or pursue strategic opportunities without heavy external borrowing.

Healthy Capital Structure

A healthy equity ratio provides a sizable capital buffer to withstand shocks and supports solvency. Over several months this stability allows management to prioritize operational fixes, invest in growth initiatives, or execute opportunistic M&A without immediate pressure to raise high-cost external capital.

Negative Factors

Negative Profitability

Persistent negative net and EBIT margins show the company fails to convert revenue into sustainable profits. Without structural margin improvement, continued losses will deplete equity, constrain reinvestment, and impede the ability to deliver consistent shareholder returns over the coming months.

Weak Cash Generation

Negative operating and free cash flows indicate the business cannot internally fund operations or growth, implying reliance on external financing. Over time this reduces strategic flexibility, may require dilution or costly borrowing, and increases funding risk during stressed market conditions.

Inefficient Use of Equity

A negative ROE reveals the company is not generating returns on shareholders' capital, signaling operational or allocation inefficiencies. If persistent, this undermines investor confidence, raises the cost of capital, and limits the firm’s ability to raise funds on favorable terms in the medium term.

Royalty Management Holding Business Overview & Revenue Model

Company Description

Royalty Management Holding Corporation operates as a royalty company that identifies and invests in undervalued assets. It acquires and invests in natural resources, patents, intellectual property, and digital assets. The company was founded in 2021 and is based in Fishers, Indiana.

How the Company Makes Money

RMCO generates revenue primarily through the acquisition and management of royalty streams from intellectual properties such as music, films, and patents. The company earns money by taking a percentage of the royalties generated from these assets, which can include licensing fees, distribution agreements, and performance rights. Additionally, RMCO may engage in strategic partnerships with content creators and industries to enhance its royalty portfolio. Other revenue streams may include consulting services for companies seeking to maximize their royalty income, along with investment returns from its diversified asset management strategies.

Royalty Management Holding Financial Statement Overview

Summary

Revenue growth is strong (TTM up 43.81%), but profitability is weak with negative net profit and EBIT margins, and cash flow quality is a major concern with negative operating and free cash flow. The balance sheet is a relative positive with very low leverage (debt-to-equity 0.044), but negative ROE underscores ongoing earnings inefficiency.

Income Statement

Royalty Management Holding shows a mixed performance in its income statement. The company has experienced significant revenue growth, particularly in the TTM period with a 43.81% increase. However, profitability remains a concern with negative net profit margins and EBIT margins, indicating ongoing operational challenges. The gross profit margin has decreased from previous years, suggesting rising costs or pricing pressures.

Balance Sheet

The balance sheet reflects a relatively stable financial position with a low debt-to-equity ratio of 0.044 in the TTM period, indicating low leverage. However, the return on equity is negative, highlighting inefficiencies in generating returns from equity. The equity ratio is healthy, suggesting a strong capital structure, but the company needs to improve its profitability to enhance shareholder value.

Cash Flow

Cash flow analysis reveals significant volatility. The TTM period shows negative operating and free cash flows, with a substantial decline in free cash flow growth. The operating cash flow to net income ratio is below 1, indicating challenges in converting income into cash. The company must focus on improving cash generation to support its operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.80M	807.09K	488.52K	178.80K	0.00
Gross Profit	854.00K	784.39K	471.93K	174.13K	0.00
EBITDA	-244.57K	84.44K	-319.47K	-1.96M	2.32M
Net Income	-349.24K	-114.26K	-1.11M	-2.71M	2.32M
Balance Sheet
Total Assets	18.02M	15.04M	13.61M	13.97M	251.64K
Cash, Cash Equivalents and Short-Term Investments	173.17K	114.14K	195.49K	433.34K	293.15K
Total Debt	354.09K	609.74K	2.40M	3.79M	174.27K
Total Liabilities	3.95M	1.41M	3.99M	4.30M	221.67K
Stockholders Equity	14.06M	13.63M	9.62M	9.67M	29.97K
Cash Flow
Free Cash Flow	-266.12K	521.29K	-276.40K	431.75K	-1.37M
Operating Cash Flow	-266.12K	646.29K	-276.40K	439.68K	-1.37M
Investing Cash Flow	997.00	-18.65K	-781.46K	-3.31M	-106.12M
Financing Cash Flow	301.45K	-690.44K	820.01K	3.48M	107.78M

Royalty Management Holding Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.52
• 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 RMCO, the sentiment is Positive. The current price of 3.52 is below the 20-day moving average (MA) of 3.85, above the 50-day MA of 3.06, and above the 200-day MA of 2.13, indicating a bullish trend. The MACD of 0.39 indicates Negative momentum. The RSI at 59.56 is Neutral, neither overbought nor oversold. The STOCH value of 50.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RMCO.

Royalty Management Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
RMCO	50 Neutral	$62.38M	-176.07	-2.53%	0.20%	261.58%	-329.41%