TNL Mediagene (TNMG) AI Stock Analysis

• Market Cap: $9.18M
• Dividend Yield: N/A
• Average Volume (3M): 11.02M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.60
• Revenue Growth: 35.08%
• EPS Growth: -10462.99%
• Country: US
• Employees: 529
• Sector: Healthcare
• Sector Strength: 45
• Industry: Advertising Agencies
• EPS (TTM): -0.31
• Shares Outstanding: 28,285,133
• 10 Day Avg. Volume: 12,249,583
• 30 Day Avg. Volume: 11,015,397
• PEG Ratio: >-0.01
• Price to Book (P/B): 5.35
• Price to Sales (P/S): 4.01
• P/FCF Ratio: -18.89
• Enterprise Value/Market Cap: 3.19
• Enterprise Value/Revenue: 0.60
• Enterprise Value/Gross Profit: 1.65
• Enterprise Value/Ebitda: -0.40
• 1Y Price Target: $3.50
• Price Target Upside: 993.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 43 Neutral
• Price Target: $0.50 ▲(56.25% Upside)

TNL Mediagene's overall stock score is primarily impacted by its challenging financial performance, characterized by significant profitability and cash flow issues. The technical analysis suggests a mixed outlook with some short-term stability but a bearish long-term trend. The valuation is unattractive due to negative earnings and lack of dividends, further weighing down the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates successful market expansion and product adoption, supporting long-term business sustainability and potential profitability improvements.

Strategic Expansion

Expansion into new language markets can enhance global reach and audience engagement, driving future revenue growth and strengthening competitive positioning.

Digital Asset Strategy

The digital asset strategy can enhance financial flexibility and open new business opportunities, aligning with industry trends and supporting future growth initiatives.

Negative Factors

Profitability Challenges

Severe profitability issues highlight operational inefficiencies, posing risks to sustainable growth and necessitating strategic interventions to improve financial health.

Cash Flow Issues

Negative cash flow indicates challenges in generating sufficient cash from operations, raising concerns about liquidity and the ability to fund future growth.

High Leverage

High leverage can strain financial flexibility and increase risk, potentially impacting the company's ability to invest in growth and manage economic downturns.

TNL Mediagene Business Overview & Revenue Model

Company Description

TNL Mediagene engages in digital advertising, integrated marketing, marketing survey, artificial intelligence technology, data analysis, content service platform, and production of audio-visual programs. It operates media, technology, and digital studio businesses primarily in Japan and Taiwan.

How the Company Makes Money

TNL Mediagene makes money primarily through multiple revenue streams, including digital advertising, subscription services, and content licensing. The company's digital advertising revenue is generated by partnering with brands to offer targeted advertising solutions across its platforms, utilizing data-driven insights to maximize reach and engagement. Subscription services provide a steady income stream, as readers pay for premium content and exclusive features. Additionally, TNMG licenses its content to other media outlets and platforms, further expanding its reach and monetization potential. Strategic partnerships with technology firms and media companies also play a crucial role in enhancing TNMG's offerings and expanding its revenue opportunities.

TNL Mediagene Financial Statement Overview

Summary

TNL Mediagene is facing significant financial challenges. Despite a 35.3% revenue increase in 2024, the company suffers from severe profitability issues with a negative EBIT margin of -157.4% and a net profit margin of -175.3%. The balance sheet shows high leverage with a debt-to-equity ratio of 63.6%, and cash flow is negative, indicating liquidity concerns and operational inefficiencies.

Income Statement

TNL Mediagene's income statement reveals significant challenges. The company has experienced a rapid increase in total revenue year-over-year, with a notable increase of 35.3% in 2024 compared to 2023. However, this growth is overshadowed by substantial losses, exemplified by a negative EBIT margin of -157.4% and a net profit margin of -175.3% for 2024. The company faces profitability issues, which are further highlighted by negative EBITDA and net income, indicating operational inefficiencies and potential risks in sustaining growth.

Balance Sheet

The balance sheet of TNL Mediagene highlights a mixed financial position. While the company has managed to maintain a positive stockholders' equity in 2024, the debt-to-equity ratio is concerning at 63.6%, suggesting high leverage. The equity ratio stands at 39.2%, indicating moderate reliance on equity financing. However, the return on equity is negative due to consistent net losses, raising concerns about the company's ability to generate returns for shareholders.

Cash Flow

TNL Mediagene's cash flow statement underscores substantial cash management issues. The operating cash flow is negative, reflecting challenges in generating sufficient cash from operations. The company has a negative free cash flow growth rate, exacerbating liquidity concerns. Additionally, the free cash flow to net income ratio is unfavorable, indicating that the company struggles to convert its net income into positive cash flow, raising red flags about its financial health.

Breakdown	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	48.49M	35.84M	20.01M
Gross Profit	17.74M	12.65M	7.74M
EBITDA	-73.92M	1.33M	-10.01M
Net Income	-85.00M	-804.98K	-11.01M
Balance Sheet
Total Assets	92.92M	119.62M	26.53M
Cash, Cash Equivalents and Short-Term Investments	3.65M	3.03M	3.91M
Total Debt	23.14M	17.59M	6.71M
Total Liabilities	56.51M	47.25M	50.67M
Stockholders Equity	36.40M	72.62M	-25.30M
Cash Flow
Free Cash Flow	-10.30M	-1.68M	-1.04M
Operating Cash Flow	-10.21M	-1.42M	-760.11K
Investing Cash Flow	947.95K	252.74K	-2.36M
Financing Cash Flow	10.00M	530.97K	4.99M

TNL Mediagene Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
LGMK	47 Neutral	$1.88M	―	-57.40%	―	6.77%	97.28%
BDRX	45 Neutral	$4.81M	―	-60.37%	―	-100.00%	86.75%
TNMG	43 Neutral	$9.18M	―	-164.27%	―	35.08%	-10462.99%
SLRX	30 Underperform	$3.86M	―	-660.37%	―	―	74.27%
BJDX	29 Underperform	$3.85M	―	-96.69%	―	―	98.25%

TNL Mediagene Corporate Events

TNL Mediagene Announces Board Changes in July 2025

On June 30, 2025, TNL Mediagene announced the resignation of Ms. Takako Masai from its Board of Directors for personal reasons, with no disagreements with the company’s operations. Subsequently, Ms. Naoko Okumoto was appointed as an interim director effective July 1, 2025, bringing extensive experience in tech investment and cross-border business development. Her appointment is expected to enhance the company’s strategic insight and global perspective, pending shareholder approval at the upcoming annual meeting.

TNL Mediagene Amends Share Purchase Agreement with Tumim Stone Capital

TNL Mediagene, a company involved in media and technology, has announced amendments to its ordinary share purchase agreement with Tumim Stone Capital LLC, originally dated November 25, 2024. On June 13, 2025, the amendments removed the requirement that the closing sale price of TNL Mediagene’s ordinary shares must be at least $1.00 per share. Following this amendment, TNL Mediagene issued a purchase notice to Tumim for 440,000 ordinary shares, expected to be issued around June 20, 2025. This strategic move aims to enhance the company’s financial flexibility and market positioning.