Royalty Management Holding (RMCO) AI Stock Analysis

• Market Cap: $36.64M
• Dividend Yield: 0.21%
• Average Volume (3M): 103.72K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.29
• 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: 104,906
• 30 Day Avg. Volume: 103,715
• PEG Ratio: 1.45
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 18.50
• P/FCF Ratio: 23.10
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 8.95
• Enterprise Value/Gross Profit: 39.82
• Enterprise Value/Ebitda: -139.04
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.06
• Revenue Forecast (FY): $6.00M

• Rating: 44 Neutral
• Price Target: $2.00 ▼(-34.43% Downside)

The overall stock score is primarily impacted by financial performance challenges, including profitability and cash flow issues. Technical analysis indicates bearish momentum, and valuation metrics suggest overvaluation. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

Significant revenue growth indicates strong market demand and effective royalty management, providing a foundation for future profitability improvements.

Balance Sheet Health

A low debt-to-equity ratio suggests financial stability and lower risk, providing the company with flexibility to invest in growth opportunities.

Market Position

Diversification across sectors enhances resilience against industry-specific downturns, supporting sustainable long-term growth and value creation.

Negative Factors

Profitability Challenges

Negative profit margins indicate operational inefficiencies, which can hinder the company's ability to generate returns and invest in growth.

Cash Flow Issues

Negative cash flows suggest difficulties in sustaining operations and funding growth, potentially impacting long-term financial health.

Operational Inefficiencies

Operational inefficiencies can lead to higher costs and reduced competitiveness, affecting the company's ability to achieve sustainable growth.

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

Royalty Management Holding shows strong revenue growth but struggles with profitability and cash flow management. The balance sheet is stable with low leverage, but operational inefficiencies and negative cash flows are significant concerns.

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: Neutral
• Last Price: 3.05
• 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 RMCO, the sentiment is Neutral. The current price of 3.05 is above the 20-day moving average (MA) of 2.94, above the 50-day MA of 2.89, and above the 200-day MA of 1.70, indicating a neutral trend. The MACD of -0.18 indicates Positive momentum. The RSI at 42.22 is Neutral, neither overbought nor oversold. The STOCH value of 30.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	44 Neutral	$36.64M	―	-2.53%	0.21%	261.58%	-329.41%