Telkonet (TKOI) AI Stock Analysis

• Market Cap: $4.21M
• Dividend Yield: N/A
• Average Volume (3M): 157.05K
• Price to Earnings (P/E): ―
• Beta (1Y): -1.12
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 29
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): N/A
• Shares Outstanding: 299,212,280
• 10 Day Avg. Volume: 157,049
• 30 Day Avg. Volume: 157,049
• PEG Ratio: 0.03
• Price to Book (P/B): 0.17
• Price to Sales (P/S): 0.05
• P/FCF Ratio: -0.31
• Enterprise Value/Market Cap: 1.75
• Enterprise Value/Revenue: 0.87
• Enterprise Value/Gross Profit: 1.75
• Enterprise Value/Ebitda: -6.12
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 37 Underperform
• Price Target: $0.00 ▼(-100.00% Downside)

The overall stock score for Telkonet is heavily impacted by its poor financial performance, characterized by declining revenues, persistent losses, and negative cash flows. The absence of technical analysis and valuation data further limits the ability to assess the stock's potential. With no earnings call or corporate events data to provide additional insights, the stock's outlook remains challenging.

Positive Factors

Strategic Partnerships

Strategic partnerships enhance market reach and facilitate deployment of energy management solutions, supporting long-term revenue growth.

Subscription-Based Revenue Model

A subscription-based model provides recurring revenue, enhancing cash flow predictability and customer retention over the long term.

Low Debt Levels

Low debt levels indicate financial stability, reducing risk and providing flexibility for future investments and growth opportunities.

Negative Factors

Declining Revenues

Declining revenues can hinder the company's ability to invest in growth and innovation, impacting long-term competitiveness and market position.

Negative Cash Flows

Negative cash flows indicate cash management challenges, limiting the company's ability to fund operations and strategic initiatives sustainably.

Persistent Losses

Persistent losses undermine profitability and can erode shareholder value, posing a risk to long-term financial health and stability.

Telkonet Business Overview & Revenue Model

Company Description

Telkonet, Inc. provides EcoSmart and Rhapsody platform of intelligent automation solutions for the Internet of Things in the United States. Its EcoSmart platform provides savings, management reporting, analytics, and virtual engineering of a customer's portfolio and/or property's room-by-room energy consumption. The company's EcoSmart suite of energy management products comprise EcoInput, a lighting controller installed directly in line with existing light switches, making them intelligent and manageable; EcoTouch Thermostat, a touch capacitive thermostat interface; EcoInsight Thermostat, a programmable and controllable wired thermostat; EcoAir Thermostat, a wireless thermostat; EcoSource Controller, a remote HVAC control device; EcoSmart VRF controllers; EcoConnect Bridge, an Ethernet to Zigbee bridge that serves as the coordinator for various EcoSmart devices; and EcoCommander Gateway, a network-edge gateway server that provides data aggregation, analytics, reporting, and management of the EcoSmart product suite. It also offers EcoSense Occupancy Sensor, a remote occupancy sensor, which monitor environments with various sensors that are designed to detect motion or body heat; EcoSwitch Light Switch, an energy management product that saves energy; EcoGuard Outlet, which monitors and controls the flow of power to various outlets; and EcoContact Door and Window Sensor, a remote and wireless door/window contact solution. In addition, the company provides EcoCentral, a cloud-based dashboard; EcoCare professional support and maintenance services; and EcoSmart Mobile that offer iOS and Android applications. It serves hospitality, healthcare, public housing, educational, governmental, military, multiple dwelling units, and other commercial markets. The company was founded in 1977 and is headquartered in Waukesha, Wisconsin.

How the Company Makes Money

Telkonet generates revenue primarily through the sale of its EcoSmart energy management systems and related hardware, software, and services. The company offers a subscription-based model for its software solutions, allowing clients to pay for ongoing services and updates. Key revenue streams include direct sales of EcoSmart products, recurring subscription fees from software licenses, and service contracts for installation and support. Additionally, Telkonet has formed strategic partnerships with various hospitality and property management companies, enhancing its market reach and facilitating the deployment of its energy management solutions, which further contributes to its earnings.

Telkonet Financial Statement Overview

Summary

Telkonet faces significant financial challenges with declining revenues, persistent losses, and negative cash flows. While the debt levels are manageable, the company struggles with profitability and cash generation, which could impact its ability to sustain operations and invest in growth opportunities.

Income Statement

Telkonet's income statement reflects a challenging financial position with consistent net losses and declining revenue. The gross profit margin remains relatively stable, but the negative net profit margin and declining revenue growth rate indicate profitability issues. The EBIT and EBITDA margins are also negative, highlighting operational inefficiencies.

Balance Sheet

The balance sheet shows a low debt-to-equity ratio, which is a positive sign of financial stability. However, the negative return on equity indicates that the company is not generating sufficient returns on its equity base. The equity ratio is relatively low, suggesting limited equity financing compared to total assets.

Cash Flow

Telkonet's cash flow statement reveals negative operating and free cash flows, indicating cash management challenges. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is unfavorable, suggesting inefficiencies in converting income into cash. The free cash flow to net income ratio is slightly above 1, indicating that free cash flow is marginally covering net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.45M	7.56M	8.90M	8.45M	6.27M	6.49M
Gross Profit	4.20M	3.82M	4.53M	4.20M	3.24M	2.89M
EBITDA	-1.20M	-915.91K	-1.12M	-1.20M	-340.36K	-3.05M
Net Income	-1.30M	-983.11K	-1.19M	-1.29M	-412.79K	-3.15M
Balance Sheet
Total Assets	7.88M	24.67M	28.96M	7.88M	5.86M	6.49M
Cash, Cash Equivalents and Short-Term Investments	3.24M	847.40K	2.15M	3.24M	2.36M	3.01M
Total Debt	508.03K	260.65K	412.69K	508.03K	1.06M	2.01M
Total Liabilities	3.28M	22.27M	25.57M	3.28M	4.95M	6.88M
Stockholders Equity	4.60M	2.40M	3.38M	4.60M	911.74K	1.32M
Cash Flow
Free Cash Flow	-3.69M	-1.30M	-1.07M	-3.69M	-1.70M	-844.79K
Operating Cash Flow	-3.60M	-1.21M	-996.25K	-3.60M	-1.70M	-844.79K
Investing Cash Flow	-86.25K	-97.15K	-75.25K	-86.25K	0.00	0.00
Financing Cash Flow	4.57M	-1.06K	-20.00K	4.57M	1.05M	556.00K

Telkonet 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%
ELSE	61 Neutral	$15.14M	37.40	2.81%	―	5.36%	-8.88%
SOBR	44 Neutral	$3.17M	-0.31	-203.38%	―	―	―
WATT	38 Underperform	$11.07M	-0.31	-175.08%	―	599.15%	82.47%
TKOI	37 Underperform	$4.21M	―	-35.22%	―	―	―