Taoping (TAOP) AI Stock Analysis

• Market Cap: $1.54M
• Dividend Yield: N/A
• Average Volume (3M): 161.55K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.75
• Revenue Growth: -15.10%
• EPS Growth: -177.14%
• Country: US
• Employees: 63
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -6.54
• Shares Outstanding: 1,002,100
• 10 Day Avg. Volume: 15,611
• 30 Day Avg. Volume: 161,551
• PEG Ratio: -3.89
• Price to Book (P/B): 3.62
• Price to Sales (P/S): 1.56
• P/FCF Ratio: -16.69
• Enterprise Value/Market Cap: 7.22
• Enterprise Value/Revenue: 0.31
• Enterprise Value/Gross Profit: 2.06
• Enterprise Value/Ebitda: -2.83
• 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: 40 Underperform
• Price Target: $1.50 ▼(-5.06% Downside)

The score is primarily weighed down by weak financial performance (declining revenue, ongoing losses, and negative cash flow). Technicals also reflect a strong downtrend (below key moving averages with negative MACD), with oversold indicators only modestly offsetting. Valuation is difficult to justify with a negative P/E and no dividend support.

Positive Factors

Market Expansion

The acquisition of Skyladder Group expands Taoping's operations into the IoT and technology sectors in China, potentially enhancing its market position and service offerings.

Strategic Partnerships

These partnerships enhance Taoping's service offerings and market reach, supporting revenue generation and competitive positioning in the digital advertising sector.

Recurring Revenue Model

Long-term contracts and service agreements provide steady cash flow, contributing to financial stability and predictability in revenue streams.

Negative Factors

Declining Revenue

The declining revenue trend indicates challenges in maintaining market share and sales growth, which could impact long-term profitability and business sustainability.

Negative Cash Flow

Persistent negative cash flows suggest operational inefficiencies and potential liquidity issues, limiting the company's ability to invest in growth and innovation.

Ongoing Losses

Ongoing losses and negative margins reflect operational challenges and inefficiencies, posing risks to financial health and shareholder returns.

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 generates revenue through several key streams, primarily by selling advertising services and digital signage products to businesses and government entities. The company earns income from the deployment of its digital advertising platforms, which allow clients to reach targeted audiences effectively. Additionally, Taoping monetizes its cloud services by providing software and data analytics solutions that enable clients to manage and optimize their advertising campaigns. Significant partnerships with various advertisers and technology firms contribute to its earnings, as these collaborations enhance the company's service offerings and market reach. Furthermore, Taoping benefits from recurring revenue models through long-term contracts and service agreements with clients, ensuring a steady cash flow.

Taoping Financial Statement Overview

Summary

Taoping is facing financial difficulties characterized by declining revenues, persistent losses, and cash flow challenges. Despite some improvement in leverage, the company's profitability and cash generation remain weak, posing significant risks to financial stability and future growth prospects.

Income Statement

Taoping's income statement reveals a challenging financial position with declining revenue and profitability. The company experienced a revenue decline of 13.99% in the most recent year, and both gross and net profit margins have decreased over time. The EBIT and EBITDA margins are weak, indicating operational inefficiencies. The negative net profit margin highlights ongoing losses, which is a significant concern for future profitability.

Balance Sheet

The balance sheet shows moderate leverage with a debt-to-equity ratio of 0.50, which is an improvement from previous years. However, the return on equity remains negative, reflecting ongoing losses and poor returns for shareholders. The equity ratio is relatively stable, but the company's financial health is compromised by its inability to generate positive returns.

Cash Flow

Cash flow analysis indicates significant challenges, with negative operating and free cash flows. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is unfavorable, suggesting cash flow issues. The free cash flow to net income ratio is positive, but this is due to negative net income, not operational strength.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	36.20M	36.67M	38.64M	24.23M	19.39M	11.06M
Gross Profit	5.40M	7.77M	8.85M	7.23M	9.34M	3.94M
EBITDA	-3.93M	772.61K	3.35M	3.54M	-8.63M	-13.90M
Net Income	-7.09M	-1.82M	-697.94K	-7.08M	-9.92M	-17.69M
Balance Sheet
Total Assets	30.32M	35.13M	32.83M	29.21M	47.16M	30.78M
Cash, Cash Equivalents and Short-Term Investments	2.17M	1.58M	1.30M	1.01M	4.53M	882.77K
Total Debt	10.41M	7.89M	9.00M	7.25M	8.04M	7.39M
Total Liabilities	15.84M	19.26M	20.06M	19.59M	27.90M	29.80M
Stockholders Equity	14.48M	15.87M	12.76M	9.62M	19.25M	-7.66M
Cash Flow
Free Cash Flow	-2.94M	-3.44M	-3.54M	-10.83M	-27.44M	-3.45M
Operating Cash Flow	-1.33M	-2.38M	-2.33M	-9.04M	-16.15M	-1.78M
Investing Cash Flow	-1.63M	-1.08M	-1.21M	4.31M	-14.00M	-1.73M
Financing Cash Flow	4.64M	3.75M	3.84M	22.72K	33.03M	3.07M

Taoping Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TAOP, the sentiment is Neutral. The current price of 1.58 is above the 20-day moving average (MA) of 1.46, below the 50-day MA of 1.92, and below the 200-day MA of 4.01, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 46.64 is Neutral, neither overbought nor oversold. The STOCH value of 57.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TAOP.

Taoping Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CETX	43 Neutral	$19.61M	-0.01	-415.08%	―	16.50%	―
DTSS	41 Neutral	$8.57M	-2.23	-93.31%	―	68.56%	89.48%
RVYL	41 Neutral	$5.23M	-0.10	-993.23%	―	-44.25%	82.71%
TAOP	40 Underperform	$1.54M	-0.13	-46.76%	―	-15.10%	-177.14%
HUBC	39 Underperform	$10.18M	-1.30	―	―	-30.70%	82.02%

Taoping Corporate Events

Taoping Completes Acquisition of Skyladder Group

On November 26, 2025, Taoping Inc. completed the acquisition of Skyladder Group Limited, a Hong Kong-based company, through a Share Purchase Agreement. The acquisition, initially agreed upon on September 29, 2025, involved the issuance of 7,882,921 ordinary shares of Taoping to Skyladder’s shareholders. A Supplemental Agreement was signed on November 25, 2025, adjusting the revenue and profit targets for unlocking a portion of the shares. This acquisition is expected to enhance Taoping’s market position by expanding its operations into the IoT and technology sectors in China.

The most recent analyst rating on (TAOP) stock is a Sell with a $2.00 price target. To see the full list of analyst forecasts on Taoping stock, see the TAOP Stock Forecast page.