Taoping (TAOP) AI Stock Analysis

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Taoping

(NASDAQ:TAOP)

56Neutral

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 (TAOP) vs. S&P 500 (SPY)

Market Cap

$3.95M

Dividend YieldN/A

Average Volume (3M)21.33M

Price to Earnings (P/E)0.4

Beta (1Y)1.40

Revenue Growth-5.08%

EPS Growth93.27%

CountryUS

Employees63

SectorTechnology

Sector Strength77

IndustrySoftware - Infrastructure

Share Statistics

EPS (TTM)-0.05

Shares Outstanding13,384,088

10 Day Avg. Volume62,495,711

30 Day Avg. Volume21,326,791

Financial Highlights & Ratios

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 Cap2.15

Enterprise Value/Revenue0.06

Enterprise Value/Gross Profit0.93

Enterprise Value/Ebitda0.78

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Taoping Business Overview & Revenue Model

Company DescriptionTaoping Inc. (TAOP) is a Chinese company operating in the technology and new media sectors. The company specializes in providing integrated end-to-end cloud-based platform solutions, with a focus on digital advertising and smart display screens. Taoping offers a range of products and services including cloud-based software, digital advertising distribution networks, and smart city solutions, aiming to enhance connectivity and engagement through innovative technology.

How the Company Makes MoneyTaoping 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

Neutral

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

Neutral

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

Neutral

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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 Price0.20

Price Trends

50DMA

0.25

Negative

100DMA

0.29

Negative

200DMA

0.39

Negative

Market Momentum

MACD

>-0.01

Negative

RSI

45.07

Neutral

STOCH

22.35

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 0.2 is below the 20-day moving average (MA) of 0.23, below the 50-day MA of 0.25, and below the 200-day MA of 0.39, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 45.07 is Neutral, neither overbought nor oversold. The STOCH value of 22.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TAOP.

Taoping Risk Analysis

Taoping disclosed 58 risk factors in its most recent earnings report. Taoping reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Taoping Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$11.60B	10.64	-6.04%	2.94%	7.87%	-11.74%
TAOP	56 Neutral	$3.95M	0.44	-12.71%	―	-5.08%	93.27%
RVYL	47 Neutral	$7.24M	―	-243.87%	―	-14.99%	59.75%
APCX	43 Neutral	$9.12M	―	-184.93%	―	-45.24%	64.61%
CETX	37 Underperform	$2.69M	―	-1329.57%	―	-0.86%	63.99%
ATCH	34 Underperform	$1.52M	―	470.97%	―	―	-8852.46%

* Technology Sector Average

Performance Comparison

TAOP

Taoping

0.20

-0.52

-72.22%

CETX

Cemtrex

1.72

-625.55

-99.73%

APCX

AppTech

0.26

-0.66

-71.74%

RVYL

Ryvyl

0.87

-0.65

-42.76%

ATCH

AtlasClear Holdings

0.26

-65.74

-99.61%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.