Taoping (TAOP) AI Stock Analysis

• Market Cap: $6.39M
• Dividend Yield: N/A
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): 0.4
• Beta (1Y): 1.90
• Revenue Growth: -5.08%
• EPS Growth: 93.27%
• Country: US
• Employees: 63
• Sector: Technology
• Sector Strength: 80
• Industry: Software - Infrastructure
• EPS (TTM): -0.18
• Shares Outstanding: 866,942
• 10 Day Avg. Volume: 100,555
• 30 Day Avg. Volume: 1,038,036
• PEG Ratio: <0.01
• Price to Book (P/B): 0.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.49
• Enterprise Value/Market Cap: 1.33
• Enterprise Value/Revenue: 0.06
• Enterprise Value/Gross Profit: 0.93
• Enterprise Value/Ebitda: 0.78
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 56 Neutral
• Price Target: ―

Taoping's overall stock score reflects strong revenue growth but significant challenges in profitability and cash flow management. While technical indicators suggest short-term momentum, the lack of earnings call guidance and undervaluation with a very low P/E ratio indicates investor caution regarding future prospects. Improvements in cash flow and profitability are crucial for enhancing the stock's attractiveness.

Taoping Business Overview & Revenue Model

Company Description

Taoping Inc. provides cloud-based platform, resource sharing, and big data solutions to the Chinese new media, education residential community management, and elevator Internet of Things (IoT) industries in the People's Republic of China. It operates through three segments: Cloud-Based Technology, Blockchain Technology, and Traditional Information Technology. The company offers cloud-based software as a service to automate the interactive workflows between advertising agencies and their customers, including establishing new advertising projects, submitting advertisement proposals, revising and approving advertising proposals, processing payment online, remotely uploading advertisement content, and tracking and analyzing performance data. It also provides project-based technology products and services for the public sector; and software and hardware with integrated solutions, including information technology infrastructure, Internet-enabled display technologies, and IoT platforms to customers in government, education, residential community management, media, transportation, healthcare, and other private sectors, as well as related maintenance and support services. In addition, the company offers cloud-application-terminal and IoT technology based digital advertising distribution network and media resource sharing platform in the out-of-home advertising markets. Further, it operates Taoping Net, an advertising-resources trading service platform, which connect screen owners, advertisers, and consumers; Taoping App, which enable customers to distribute and manage ads from mobile terminals; and cryptocurrency mining and blockchain related services. The company was formerly known as China Information Technology, Inc. and changed its name to Taoping Inc. in June 2018. Taoping Inc. was founded in 1993 and is headquartered in Causeway Bay, Hong Kong.

How the Company Makes Money

Taoping Inc. generates revenue primarily through its digital advertising and smart city solutions. The company earns money by selling and leasing its smart display screens, which are used by businesses for advertising purposes. Additionally, Taoping's cloud-based software solutions facilitate the distribution and management of digital advertisements, providing another revenue stream through service fees and subscription models. The company also engages in partnerships with local governments and enterprises to implement smart city technologies, further contributing to its revenue. These collaborations often involve the deployment of IoT devices and data analytics platforms, creating additional sales and service opportunities.

Taoping Financial Statement Overview

Summary

Taoping shows strong revenue growth, but its profitability remains a concern with persistent losses. The balance sheet is moderately leveraged, but cash flow issues persist, indicating potential liquidity challenges. Continued focus on cost management and improving cash flow would be crucial for financial stability.

Income Statement

Taoping's revenue grew significantly by 59.4% from 2022 to 2023, indicating strong sales performance. However, the net profit margin is negative due to continued losses, though there is a slight improvement compared to previous years. The gross profit margin is moderate at 22.9%, showing the company can cover direct costs, but the negative EBIT and EBITDA margins highlight challenges in managing operating expenses.

Balance Sheet

The debt-to-equity ratio stands at 0.70, which is moderate, suggesting some leverage but not excessively high. The equity ratio is 38.9%, indicating a reasonable proportion of assets financed by equity. Although stockholders' equity has increased, the company's financial stability is affected by consistent net losses, impacting return on equity, which remains negative.

Cash Flow

Taoping's operating cash flow is negative, but there is an improvement from 2022. Free cash flow remains negative, signaling cash management issues. However, the free cash flow growth rate has improved due to a smaller deficit than in previous years. The operating cash flow to net income ratio is negative, reflecting challenges in translating revenue into cash.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
42.64M	36.67M	38.64M	24.23M	24.85M	11.06M
	Gross Profit
9.12M	7.77M	8.85M	7.23M	9.34M	3.94M
	EBIT
1.35M	-1.61M	-197.70K	43.93K	-8.53M	-16.81M
	EBITDA
3.73M	772.61K	3.35M	3.54M	-8.63M	-13.90M
	Net Income Common Stockholders
1.92M	-1.82M	-697.94K	-582.37K	-9.92M	-18.33M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.30M	1.58M	1.30M	1.01M	4.53M	882.77K
	Total Assets
32.83M	35.13M	32.83M	29.21M	47.16M	30.78M
	Total Debt
9.00M	7.89M	9.00M	7.25M	8.78M	7.39M
	Net Debt
7.70M	6.31M	7.70M	6.24M	4.25M	6.51M
	Total Liabilities
20.06M	19.26M	20.06M	19.59M	27.90M	29.80M
	Stockholders Equity
12.76M	15.87M	12.76M	9.62M	19.25M	-7.66M
Cash Flow		Free Cash Flow
-5.61M	0.00	-3.54M	-10.83M	-27.44M	-3.45M
	Operating Cash Flow
-4.19M	-2.38M	-2.33M	-9.04M	-16.15M	-1.78M
	Investing Cash Flow
-1.64M	-1.08M	-1.21M	4.31M	-14.00M	-1.73M
	Financing Cash Flow
5.99M	3.75M	3.84M	22.72K	33.03M	3.07M

Taoping Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.37
• 50DMA: Positive
• 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 TAOP, the sentiment is Negative. The current price of 7.37 is above the 20-day moving average (MA) of 7.36, above the 50-day MA of 7.24, and below the 200-day MA of 11.22, indicating a neutral trend. The MACD of 0.17 indicates Positive momentum. The RSI at 49.34 is Neutral, neither overbought nor oversold. The STOCH value of 27.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TAOP.

Taoping Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$11.50B	10.46	-6.94%	2.92%	7.57%	-9.01%
TAOP	56 Neutral	$6.39M	0.44	-12.71%	―	-5.08%	93.27%
APCX	44 Neutral	$9.98M	―	-220.48%	―	-25.38%	67.34%
RVYL	41 Neutral	$4.84M	―	-309.32%	―	-23.82%	56.13%
CETX	40 Underperform	$1.63M	―	-445.39%	―	12.93%	97.06%
ATCH	34 Underperform	$3.12M	―	470.97%	―	―	-8852.46%
CISO		$25.95M	―	-215.99%	―	―	―