KTMG Limited (XCF) AI Stock Analysis

• Market Cap: S$7.47M
• Dividend Yield: N/A
• Average Volume (3M): 4.99K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.82
• Revenue Growth: -6.00%
• EPS Growth: -267.05%
• Country: US
• Employees: 2,161
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): <0.01
• Shares Outstanding: 169,681,550
• 10 Day Avg. Volume: 30
• 30 Day Avg. Volume: 4,993
• PEG Ratio: -0.01
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.10
• P/FCF Ratio: -1.67
• 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: 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: 43 Neutral
• Price Target: S$0.04 ▼(-16.00% Downside)

KTMG Limited's overall stock score is primarily impacted by its financial performance, which shows strong revenue growth but significant profitability and leverage challenges. The technical analysis indicates a bearish trend, and the valuation reflects the company's current unprofitability. These factors collectively result in a low overall score, highlighting the need for operational improvements and financial stability.

Positive Factors

Diversified revenue streams

KTMG's mix of telecom infrastructure, IT consulting and software with long-term contracts and recurring maintenance creates durable revenue visibility. That contract mix supports customer retention, cross-sell potential and predictable cash inflows over the next several quarters.

Free cash flow improvement

A large rise in free cash flow materially improves liquidity and strategic optionality. Sustained FCF growth can fund capex, R&D or de-leveraging without equity raises, giving management flexibility to fix operations or invest in growth over the medium term.

Top-line expansion

Strong revenue growth indicates demand for KTMG's services and ability to scale sales across enterprise and government clients. Persistent top-line traction provides a basis to leverage fixed costs and improve margins if operational efficiencies follow.

Negative Factors

High financial leverage

A debt-to-equity ratio near 1.7 leaves limited buffer against revenue volatility and increases interest expense risk. Elevated leverage constrains capital allocation, raises refinancing risk in stress, and can slow investment in strategic initiatives over the medium term.

Sustained unprofitability

Negative and deteriorating margins reflect structural operational inefficiencies or pricing pressure. Continued losses reduce retained earnings, hinder reinvestment capacity, and mean the business must materially improve margins to sustain long‑term value creation.

Operating cash flow weakness

Negative operating cash flow signals operations aren't generating cash despite reported FCF gains. If cash generation remains dependent on one-off items or working capital moves, the company may struggle to fund daily operations and service debt sustainably.

KTMG Limited Business Overview & Revenue Model

Company Description

KTMG Limited, an investment holding company, operates as an integrated textile and apparel manufacturer in Malaysia, United States, the United Kingdom, Canada, European Union, and internationally. The company engages in the contract manufacturing of athleisure wear, casual wear, loungewear, and pyjamas for retailers. It is also involved in the knitting, dyeing, finishing, and printing of fabrics. In addition, the company holds properties. KTMG Limited was founded in 1988 and is headquartered in Batu Pahat, Malaysia.

How the Company Makes Money

KTMG Limited generates revenue through multiple streams, primarily by offering telecommunications infrastructure services, IT consulting, and software solutions. The company earns income from long-term contracts with enterprise clients, government projects, and recurring revenue from maintenance and support services. Additionally, partnerships with technology providers enhance its service offerings and open up new revenue channels. The firm's focus on innovation and quality service delivery ensures customer retention and attracts new clients, thus contributing significantly to its overall earnings.

KTMG Limited Financial Statement Overview

Summary

KTMG Limited shows strong revenue growth but faces significant profitability and leverage challenges. The high debt levels and negative profitability metrics highlight financial risks, while the substantial free cash flow growth provides some liquidity relief. Overall, the company needs to address operational inefficiencies and manage its leverage to improve financial health.

Income Statement

KTMG Limited has experienced a significant revenue growth of 17.76% in the latest year, indicating strong top-line expansion. However, profitability metrics are concerning, with a negative net profit margin of -5.23% and declining gross profit margin. The EBIT and EBITDA margins are also negative, reflecting operational challenges and inefficiencies.

Balance Sheet

The company has a high debt-to-equity ratio of 1.69, indicating significant leverage which could pose financial risks. Return on equity is negative, reflecting poor profitability relative to shareholder investment. The equity ratio is not provided, but the high leverage suggests potential balance sheet instability.

Cash Flow

Free cash flow has grown significantly by 620%, which is a positive sign for liquidity. However, operating cash flow is negative, and the operating cash flow to net income ratio is also negative, indicating cash flow challenges. The free cash flow to net income ratio is above 1, suggesting that free cash flow is covering net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	88.77M	104.53M	88.72M	106.29M	97.83M	71.00M
Gross Profit	8.13M	7.47M	8.10M	16.11M	13.59M	13.17M
EBITDA	1.31M	-1.46M	1.31M	7.47M	6.10M	7.27M
Net Income	-1.97M	-5.47M	-1.97M	3.46M	2.11M	3.10M
Balance Sheet
Total Assets	56.29M	60.50M	56.29M	50.93M	73.75M	57.03M
Cash, Cash Equivalents and Short-Term Investments	7.83M	5.90M	7.83M	6.31M	4.24M	4.96M
Total Debt	17.36M	25.68M	17.36M	14.17M	25.29M	20.53M
Total Liabilities	36.66M	45.26M	36.66M	28.15M	53.32M	38.59M
Stockholders Equity	19.58M	15.17M	19.58M	22.74M	20.41M	18.44M
Cash Flow
Free Cash Flow	-875.00K	-6.30M	261.00K	14.78M	-3.65M	2.03M
Operating Cash Flow	0.00	-5.88M	1.14M	15.38M	-1.03M	2.45M
Investing Cash Flow	-795.00K	-402.00K	-795.00K	-509.00K	-2.62M	-374.00K
Financing Cash Flow	2.60M	4.72M	3.51M	-12.55M	2.74M	-583.00K

KTMG Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:XCF, the sentiment is Negative. The current price of 0.05 is above the 20-day moving average (MA) of 0.04, above the 50-day MA of 0.05, and below the 200-day MA of 0.06, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 0.07 is Positive, neither overbought nor oversold. The STOCH value of -12.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SG:XCF.

KTMG Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5ML	71 Outperform	S$139.58M	13.76	17.76%	1.79%	-0.47%	-11.81%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
XCF	43 Neutral	S$7.47M	-1.36	-31.29%	―	-6.00%	-267.05%