Society Pass (SOPA) AI Stock Analysis

• Market Cap: $4.57M
• Dividend Yield: N/A
• Average Volume (3M): 7.01M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• Revenue Growth: -24.44%
• EPS Growth: 58.73%
• Country: US
• Employees: 40
• Sector: Technology
• Sector Strength: 45
• Industry: Software
• EPS (TTM): -5.11
• Shares Outstanding: 3,718,030
• 10 Day Avg. Volume: 184,797
• 30 Day Avg. Volume: 7,005,154
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.65
• Price to Cash Flow (P/CF): 0.60
• P/FCF Ratio: 0.60
• 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: $16.00
• Price Target Upside: 1244.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

Society Pass is facing significant financial challenges, with a weak balance sheet and negative cash flow reflecting high financial risk. The technical analysis indicates some short-term bullish momentum, yet the stock appears overbought. Valuation metrics are unfavorable, primarily due to negative profitability. Overall, the stock presents high-risk factors that overshadow its revenue growth, resulting in a cautious overall score.

Positive Factors

Market Opportunities

Continued strong economic expansion, robust population growth, and the increasing adoption of mobile technology are providing large and fast-growing market opportunities for Society Pass in Southeast Asia.

Strategic Initiatives

The announcement of plans to spinoff two of its businesses in IPOs in 2024 is expected to drive significant value to Society Pass’s shareholders.

Negative Factors

Financial Performance

Society Pass recently reported its fiscal Q3 2024 results with revenue falling short of both estimates and consensus, and no financial guidance provided.

Society Pass Business Overview & Revenue Model

Company Description

Society Pass Inc is building an ecosystem of platforms and technology enabled companies that synergistically work together in transforming how consumers and merchants interact with one another in Southeast Asia and South Asia. Through the acquisition of companies and partnership with visionary entrepreneurs, the company meet the growing demand for better services in sectors such as lifestyle, beauty, travel, and food and beverage.

How the Company Makes Money

Society Pass generates revenue primarily through transaction fees, service charges, and membership subscriptions associated with its digital marketplace and payment solutions. The company partners with a diverse range of merchants to offer products and services on its platform, earning a percentage of each transaction processed. Additionally, Society Pass may enhance its earnings through strategic partnerships and alliances within the e-commerce and fintech ecosystems, leveraging shared resources and technologies to drive growth and market expansion.

Society Pass Financial Statement Overview

Summary

Society Pass demonstrates revenue growth but faces significant challenges with profitability and financial stability. The high debt-to-equity ratio and negative cash flow indicate potential risks, despite some operational improvements. The financial performance is weak, primarily due to high leverage, decreasing equity, and the need for better cash flow management.

Income Statement

Society Pass shows a consistent growth in revenue over the years, with a TTM revenue of $6.9 million, up from $5.6 million in 2022. Despite this growth, the company struggles with profitability, reflected in negative EBIT and net profit margins. The gross profit margin is positive at around 24.2% for the TTM, but high operating expenses lead to negative EBIT and EBITDA margins, indicating ongoing operational inefficiencies.

Balance Sheet

The balance sheet displays a weak financial position with significant liabilities compared to equity, resulting in a high debt-to-equity ratio of approximately 1.56 in the TTM. The equity has drastically decreased over the years, indicating potential financial instability. There is a low equity ratio of about 5% in the TTM, suggesting high leverage and risk. The company's assets have also decreased, further indicating financial challenges.

Cash Flow

Cash flow analysis indicates negative operating and free cash flow, which have improved slightly from previous years. The operating cash flow to net income ratio remains negative, reflecting challenges in converting revenue into actual cash. Despite negative free cash flow, there is a minor improvement in cash flow management as seen in the reduced operating cash outflow in the TTM.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
6.91M	8.17M	5.64M	519.88K	52.45K	10.41K
	Gross Profit
1.67M	2.47M	966.97K	-190.80K	-36.21K	9.64K
	EBIT
-11.17M	-17.96M	-30.66M	-34.21M	-3.75M	-4.49M
	EBITDA
-10.73M	-16.80M	-30.68M	-31.60M	-2.94M	-7.28M
	Net Income Common Stockholders
-11.82M	-18.13M	-33.79M	-34.77M	-3.83M	-7.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
650.70K	3.63M	18.93M	23.26M	506.67K	606.49K
	Total Assets
8.74M	16.36M	32.70M	35.18M	7.87M	8.74M
	Total Debt
0.00	1.43M	1.57M	629.13K	83.20K	53.44K
	Net Debt
-606.49K	-2.20M	-17.36M	-22.64M	-423.46K	-553.05K
	Total Liabilities
2.31M	11.33M	12.69M	2.85M	18.28M	15.79M
	Stockholders Equity
6.43M	5.31M	20.35M	32.43M	-10.41M	-7.05M
Cash Flow		Free Cash Flow
-5.31M	-14.27M	-15.02M	-10.86M	-1.25M	-1.60M
	Operating Cash Flow
-5.27M	-13.91M	-14.45M	-10.81M	-1.25M	-1.57M
	Investing Cash Flow
-53.78K	-340.25K	177.39K	-246.84K	0.00	-92.31K
	Financing Cash Flow
1.65M	-785.52K	10.18M	33.82M	1.21M	1.32M

Society Pass Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SOPA, the sentiment is Negative. The current price of 1.19 is below the 20-day moving average (MA) of 1.95, below the 50-day MA of 1.63, and below the 200-day MA of 1.26, indicating a bearish trend. The MACD of -0.24 indicates Positive momentum. The RSI at 42.21 is Neutral, neither overbought nor oversold. The STOCH value of 32.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SOPA.

Society Pass Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UBER	78 Outperform	$147.59B	15.53	60.08%	―	17.96%	410.17%
AMZN	73 Outperform	$2.08T	36.02	24.29%	―	10.99%	91.61%
ZM	73 Outperform	$22.34B	23.09	11.92%	―	3.05%	55.96%
YELP	72 Outperform	$2.29B	18.38	17.79%	―	5.61%	37.61%
DASH	72 Outperform	$77.18B	708.30	1.68%	―	24.17%	―
Sector *	58 Neutral	$21.35B	9.96	-19.72%	2.38%	5.03%	-22.83%
SOPA	45 Neutral	$4.57M	―	-206.19%	―	-24.44%	58.73%