Clip Money Inc. (CLIP) AI Stock Analysis

• Market Cap: C$19.65M
• Dividend Yield: N/A
• Average Volume (3M): 34.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.90
• Revenue Growth: 222.33%
• EPS Growth: -5.42%
• Country: CA
• Employees: N/A
• Sector: Services
• Sector Strength: N/A
• Industry: Software - Infrastructure
• EPS (TTM): -0.04
• Shares Outstanding: 112,257,355
• 10 Day Avg. Volume: 10,066
• 30 Day Avg. Volume: 34,970
• PEG Ratio: -0.25
• Price to Book (P/B): -2.67
• Price to Sales (P/S): 8.97
• P/FCF Ratio: -2.83
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 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: 46 Neutral
• Price Target: C$0.17 ▼(-4.44% Downside)

The overall stock score is primarily impacted by the company's poor financial performance, characterized by negative margins and high leverage. Technical analysis provides a slightly more positive outlook, but the valuation remains unattractive due to negative earnings. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Recurring revenue model

Clip's mix of subscription software, transaction fees, hardware sales and maintenance creates recurring and semi-recurring revenue streams. That structural mix supports revenue predictability, customer stickiness and upsell potential, improving long-term cash flow visibility.

Integrated product suite

A diversified product set (POS, cash recycling, software) allows cross-selling and deeper integration into customers' operations. This broad solution offering strengthens competitive positioning in retail cash management and reduces single-product dependency over the medium term.

Sustained revenue growth

Consistent top-line growth near 23% TTM indicates sustained customer adoption and market demand for Clip's offerings. Over 2-6 months this supports scaling economics and provides a base to drive margin improvements if cost structure is optimized.

Negative Factors

Severe unprofitability

Very large negative margins signal the business is burning capital far faster than revenues grow. Such structural unprofitability undermines durable free cash flow generation, necessitating meaningful operational change or external funding to sustain operations long term.

Negative equity & high leverage

A negative equity base and elevated leverage materially constrain financial flexibility, increase refinancing risk, and limit the firm's ability to absorb shocks. This structural balance-sheet weakness heightens the chance of dilutive capital raises or distress in adverse conditions.

Weak cash generation & liquidity risk

Although FCF shows marginal growth, the firm posts negative operating cash flow and relies on cash that doesn't cover losses. This persistent shortfall creates ongoing liquidity pressure, likely requiring external financing or structural cost cuts within months to sustain operations.

Clip Money Inc. Business Overview & Revenue Model

Company Description

Clip Money Inc., a financial technology company, provides deposit network services to businesses and financial institutions in North America. The company offers Clip Drop Platform, an end-to-end system that includes user registration, location services, compliance and know your business (KYB), bar code and RFID tracking of deposit bags, and secure processing of deposits through ACH payment processing. Its platform also enhances the transaction experience while accelerating business cash flows, improving management transparency, and reducing shrinkage. In addition, the company offers cash pickup service, businesses can deposit their cash through its ClipDrop Boxes located in retailers and shopping mall centers. Clip Money Inc. is based in Toronto, Canada.

How the Company Makes Money

Clip Money Inc. generates revenue through several key streams, primarily by offering subscription-based services for its cash management software and hardware solutions. The company earns money from the sale of its point-of-sale systems and cash recycling devices, which are sold to businesses looking to streamline their cash handling processes. Additionally, Clip monetizes its services through transaction fees for payment processing, which are charged to businesses each time a transaction is completed through its systems. Partnerships with financial institutions and payment processors also contribute to its earnings, as these collaborations often involve revenue-sharing agreements or co-branded services. Furthermore, Clip may benefit from recurring revenue generated by maintenance and support contracts for its technologies.

Clip Money Inc. Financial Statement Overview

Summary

Clip Money Inc. is facing significant financial challenges. Despite some revenue growth, the company struggles with profitability, high leverage, and liquidity issues. Negative margins and equity highlight the need for strategic financial restructuring.

Income Statement

Clip Money Inc. has shown some revenue growth, with a TTM (Trailing-Twelve-Months) revenue growth rate of 22.88%. However, the company is struggling with profitability, as evidenced by negative margins across the board, including a net profit margin of -223.01% and an EBIT margin of -162.66%. The consistent negative margins indicate significant challenges in managing costs relative to revenue.

Balance Sheet

The balance sheet reveals a concerning financial structure with a negative stockholders' equity of -14.23 million, leading to a negative debt-to-equity ratio of -1.51. The return on equity is also negative, indicating that the company is not generating returns for its shareholders. The high leverage and negative equity position pose significant financial risks.

Cash Flow

Cash flow analysis shows some improvement in free cash flow growth at 1.77% TTM, but the company still faces challenges with negative operating cash flow and a high free cash flow to net income ratio of 1.12. This suggests that while there is some cash flow generation, it is not sufficient to cover net losses, indicating potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.91M	2.36M	577.92K	27.69K	―	181.00
Gross Profit	300.66K	-1.09M	-1.94M	-1.24M	―	-731.09K
EBITDA	-4.58M	-5.32M	-6.48M	-9.65M	―	-1.69M
Net Income	-9.42M	-9.34M	-9.32M	-12.14M	―	-2.54M
Balance Sheet
Total Assets	9.78M	13.78M	13.86M	9.86M	7.80M	5.34M
Cash, Cash Equivalents and Short-Term Investments	2.75M	2.00M	6.15M	1.48M	962.49K	3.16M
Total Debt	20.31M	15.68M	11.81M	6.23M	0.00	103.09K
Total Liabilities	24.01M	25.19M	13.01M	7.80M	7.36M	428.00K
Stockholders Equity	-14.23M	-7.94M	848.19K	2.06M	437.66K	4.91M
Cash Flow
Free Cash Flow	-4.30M	-7.49M	-7.35M	-6.54M	-3.16M	-113.25K
Operating Cash Flow	-3.88M	-7.32M	-6.68M	-4.87M	-2.05M	-82.51K
Investing Cash Flow	-422.42K	-699.27K	-898.42K	-1.68M	-1.12M	-1.57M
Financing Cash Flow	3.58M	1.73M	12.10M	7.05M	1.64M	2.75M

Clip Money Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.18
• 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 TSE:CLIP, the sentiment is Negative. The current price of 0.18 is below the 20-day moving average (MA) of 0.18, below the 50-day MA of 0.19, and below the 200-day MA of 0.22, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 45.65 is Neutral, neither overbought nor oversold. The STOCH value of 46.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CLIP.

Clip Money Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
CLIP	46 Neutral	C$19.65M	-1.41	―	―	222.33%	-5.42%
FTEC	44 Neutral	C$5.60M	-14.58	―	―	-26.64%	-187.27%
PKK	43 Neutral	C$8.13M	-0.26	―	―	-75.67%	77.36%

Clip Money Inc. Corporate Events

Clip Money Secures $3 Million Non-Dilutive Growth Loan from BDC

Clip Money Inc. has secured a CAD$3 million term loan from the Business Development Bank of Canada’s Growth and Transition Capital team, providing non-dilutive financing to support its working capital needs and growth initiatives. The loan, which carries a floating interest rate plus an additional non-compounding interest component and matures in August 2028, is backed by a first-ranking security interest over substantially all of Clip Money’s and its U.S. subsidiary’s personal property and a full guarantee from the U.S. entity. With no equity, warrants or other convertible instruments attached, the financing underscores institutional confidence in Clip Money’s business model and growth prospects, while allowing the company to pursue expansion of its North American deposit network without diluting existing shareholders.

The most recent analyst rating on (TSE:CLIP) stock is a Hold with a C$0.20 price target. To see the full list of analyst forecasts on Clip Money Inc. stock, see the TSE:CLIP Stock Forecast page.