Datametrex AI Limited (DM) AI Stock Analysis

• Market Cap: C$1.55M
• Dividend Yield: N/A
• Average Volume (3M): 23.91K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.83
• Revenue Growth: 49.97%
• EPS Growth: 67.56%
• Country: CA
• Employees: 21
• Sector: Technology
• Sector Strength: 44
• Industry: Information Technology Services
• EPS (TTM): -0.02
• Shares Outstanding: 20,632,671
• 10 Day Avg. Volume: 21,128
• 30 Day Avg. Volume: 23,906
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.26
• Price to Cash Flow (P/CF): 1.20
• P/FCF Ratio: 1.10
• 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

Datametrex AI Limited faces severe financial and operational challenges, reflected in declining revenues and profitability margins, and negative cash flows. The technical analysis indicates bearish momentum. However, recent positive corporate events, including strategic acquisitions and focus on healthcare and AI, provide some optimism for future growth potential.

Datametrex AI Limited Business Overview & Revenue Model

Company Description

Datametrex AI Limited, together with its subsidiaries, provides collecting, analyzing, and presenting structured and unstructured data using its patented machine learning and artificial intelligence in Canada and South Korea. The company operates through two segments, AI and Technology and Health Security. It offers health security services, such as COVID-19 related services, concierge medical services, and telemedicine services, as well as big data, artificial intelligence, and system integration services. The company also sells Covid-19 test kits. In addition, it provides NexaSecurity, a social-media discovery and monitoring platform; Nexalogy's Social Media Automated Reporting Technologies; and Datametrex EV solutions. Further, the company provides Medi-Call health app, a subscription service that connects patients with doctors, providing technology-driven e-health or m-health care services including prescriptions and in-person visits to a residential or work setting. Datametrex AI Limited is headquartered in Toronto, Canada.

How the Company Makes Money

Datametrex AI Limited generates revenue through a diverse range of streams primarily centered around its AI and data analytics offerings. The company earns income by licensing its proprietary AI software and platforms to businesses seeking to leverage data insights for strategic decisions. Additionally, Datametrex provides cybersecurity solutions, generating revenue through service contracts and ongoing support. Key partnerships with industry leaders and government entities also contribute to its earnings by expanding its market reach and fostering collaborative projects. Consulting services in AI and data analytics further bolster the company's revenue by offering expertise to organizations looking to implement cutting-edge technologies in their operations.

Datametrex AI Limited Financial Statement Overview

Summary

Datametrex AI Limited is facing financial challenges, with declining revenue and consistent losses impacting profitability. The high leverage and limited equity raise concerns about financial stability, while negative cash flows suggest operational inefficiencies. Improvements in cost management and revenue growth are essential for better financial health.

Income Statement

The income statement reveals a declining revenue trend, with a significant decrease from previous years. The gross profit margin is negative, indicating higher costs than revenue. Net profit margin is also negative, showing consistent losses. EBIT and EBITDA margins are unfavorable, reflecting operational inefficiencies and high expenses relative to revenue.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, indicating significant leverage, which can be risky. The equity ratio is low, suggesting limited shareholder equity relative to assets. While the company has substantial total assets, the low stockholders' equity and high liabilities point to potential financial instability.

Cash Flow

Cash flow analysis indicates negative operating and free cash flow, reflecting operational difficulties in generating cash. The free cash flow to net income ratio is unfavorable, highlighting inadequate cash generation relative to net losses. Although financing activities provided some cash, overall cash flow remains a concern.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
10.95M	7.80M	30.49M	49.03M	12.38M	3.40M
	Gross Profit
-47.27K	2.17M	10.20M	21.03M	2.99M	1.49M
	EBIT
-6.13M	-5.80M	-2.30M	23.63M	-4.26M	-4.01M
	EBITDA
-16.09M	-6.95M	-13.46M	13.29M	-3.52M	-2.45M
	Net Income Common Stockholders
-20.13M	-19.14M	-17.26M	9.09M	-5.01M	-2.78M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
654.63K	1.13M	9.41M	17.99M	1.97M	119.67K
	Total Assets
9.32M	12.71M	36.00M	42.64M	10.00M	7.91M
	Total Debt
440.23K	5.19M	4.53M	253.77K	518.58K	449.82K
	Net Debt
-214.40K	4.85M	-4.41M	-15.15M	-1.45M	330.15K
	Total Liabilities
4.95M	11.70M	13.23M	10.15M	6.75M	5.00M
	Stockholders Equity
4.37M	1.00M	22.77M	32.49M	3.25M	2.91M
Cash Flow		Free Cash Flow
-3.56M	-6.94M	-2.28M	11.42M	-611.50K	-1.23M
	Operating Cash Flow
-3.45M	-5.62M	-249.09K	11.45M	-595.10K	-1.18M
	Investing Cash Flow
647.56K	-969.15K	-3.79M	-234.41K	-14.93K	-300.03K
	Financing Cash Flow
1.93M	-254.18K	-2.40M	2.19M	2.48M	967.41K

Datametrex AI Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SFTC	68 Neutral	$1.48B	27.49	-35.11%	2.12%	-6.14%	-14.96%
Sector *	58 Neutral	$9.99B	10.12	-6.46%	3.10%	7.47%	-11.60%
DM	42 Neutral	C$1.55M	―	-158.04%	―	49.97%	67.56%

Datametrex AI Limited Corporate Events

Datametrex AI Limited to Acquire Arbutus Health and Wellness Inc.

Datametrex AI Limited has signed a non-binding Letter of Intent to acquire Arbutus Health and Wellness Inc., a multidisciplinary medical clinic in Vancouver, for up to $1.1 million through common shares. This strategic acquisition aims to expand Datametrex’s healthcare business, strengthen its sector presence, and align with its long-term growth strategy. Additionally, Richard Yoon has resigned from the Board of Directors, and the company is in the process of identifying a suitable replacement.

Datametrex AI Limited Unveils Strategic Focus on Healthcare and AI

Datametrex AI Limited has announced a strategic plan to focus on its healthcare and AI businesses by expanding clinic operations and strengthening AI services. The company plans to acquire additional clinics, wind down non-core businesses, and split into two entities to enhance operational efficiency and shareholder value.

Datametrex AI Announces Share Consolidation Effective Date

Datametrex AI Limited has announced the effective date for its share consolidation, where its common shares will begin trading on a consolidated basis of one post-consolidation share for every thirty pre-consolidation shares on the TSX Venture Exchange. This move will adjust the total issued and outstanding number of shares to approximately 21,002,671, potentially impacting the company’s market dynamics and investor relations.

Datametrex AI Limited Proposes Share Consolidation for Capital Optimization

Datametrex AI Limited announced a proposed consolidation of its common shares, aiming to optimize the capital structure and attract financing. The consolidation will change the share ratio to one new share for every thirty existing shares, reducing the number of shares from 630,080,158 to 21,002,671, subject to regulatory approval. This move is expected to impact the company’s operations by potentially improving its financial flexibility and attractiveness to investors.

Datametrex AI Limited’s Subsidiary Secures $1.1M Service Order

Datametrex AI Limited announced that its subsidiary, Datametrex Korea, has received purchase orders valued at approximately $1.1 million for service and tech support, with a projected gross profit margin of 63%. This achievement highlights the company’s ongoing financial growth and its dedication to strengthening client partnerships and expanding its industry presence.