Taoping (TAOP) AI Stock Analysis

• Market Cap: $4.21M
• Dividend Yield: N/A
• Average Volume (3M): 344.99K
• Price to Earnings (P/E): 0.4
• Beta (1Y): 1.97
• Revenue Growth: -5.08%
• EPS Growth: 93.27%
• Country: US
• Employees: 63
• Sector: Technology
• Sector Strength: 89
• Industry: Software - Infrastructure
• EPS (TTM): -0.18
• Shares Outstanding: 890,000
• 10 Day Avg. Volume: 96,913
• 30 Day Avg. Volume: 344,994
• PEG Ratio: 0.18
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.94
• Enterprise Value/Market Cap: 3.89
• Enterprise Value/Revenue: 0.11
• Enterprise Value/Gross Profit: 1.80
• Enterprise Value/Ebitda: 1.49
• 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. (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 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
EBITDA	3.73M	772.61K	3.35M	3.54M	-8.63M	-13.90M
Net Income	1.92M	-1.82M	-697.94K	-582.37K	-9.92M	-18.33M
Balance Sheet
Total Assets	34.08M	35.13M	32.83M	29.21M	47.16M	30.78M
Cash, Cash Equivalents and Short-Term Investments	480.30K	1.58M	1.30M	1.01M	4.53M	882.77K
Total Debt	9.88M	7.89M	9.00M	7.25M	8.78M	7.39M
Total Liabilities	18.24M	19.26M	20.06M	19.59M	27.90M	29.80M
Stockholders Equity	15.84M	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: 4.52
• 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 TAOP, the sentiment is Negative. The current price of 4.52 is below the 20-day moving average (MA) of 5.76, below the 50-day MA of 6.64, and below the 200-day MA of 10.29, indicating a bearish trend. The MACD of -0.83 indicates Positive momentum. The RSI at 37.93 is Neutral, neither overbought nor oversold. The STOCH value of 30.30 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 *	63 Neutral	$32.90B	6.03	-11.70%	1.95%	5.55%	-19.87%
TAOP	56 Neutral	$4.21M	0.44	-12.71%	―	-5.08%	93.27%
APCX	45 Neutral	$8.32M	―	-220.48%	―	-25.38%	67.34%
RVYL	44 Neutral	$13.23M	―	-309.32%	―	-23.82%	56.13%
CETX	40 Underperform	$3.25M	―	-445.39%	―	12.93%	97.06%
ATCH	34 Underperform	$2.94M	―	470.97%	―	―	-8852.46%