Datametrex AI (DM) AI Stock Analysis

• Market Cap: C$1.65M
• Dividend Yield: N/A
• Average Volume (3M): 59.01K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.81
• Revenue Growth: 49.97%
• EPS Growth: 67.56%
• Country: CA
• Employees: 21
• Sector: Technology
• Sector Strength: 82
• Industry: Information Technology Services
• EPS (TTM): N/A
• Shares Outstanding: 20,632,671
• 10 Day Avg. Volume: 112,638
• 30 Day Avg. Volume: 59,013
• PEG Ratio: 0.55
• Price to Book (P/B): 46.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -109.76
• 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

• Rating: 46 Neutral
• Price Target: ―

Datametrex AI Limited is currently facing significant financial challenges, marked by declining revenues, negative profitability, and high leverage. While recent strategic moves in healthcare and AI sectors, as well as a notable service order, offer potential growth avenues, the immediate financial and valuation concerns weigh heavily on the stock's outlook. Technical indicators suggest a neutral market position, further affecting the overall stock score.

Datametrex AI 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 Financial Statement Overview

Summary

Datametrex AI Limited is facing significant financial challenges, with declining revenues, negative profitability margins, and high leverage. The company's ability to generate cash flow is compromised, making it imperative to address operational inefficiencies and improve profitability to ensure long-term sustainability.

Income Statement

The income statement shows a declining trend in revenue growth from 2022 to 2024, with a significant decline from 2021 levels. Gross profit margins have decreased, and the company is experiencing negative EBIT and EBITDA margins, indicating operational inefficiencies. The net profit margin is also negative due to substantial net losses, reflecting challenges in achieving profitability.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage, which could pose financial risks. The equity ratio is relatively low, suggesting limited asset backing by equity. However, the company has managed to maintain positive stockholders' equity, though it has decreased over recent years. Return on equity is negative, highlighting profitability issues.

Cash Flow

The cash flow statement indicates negative operating and free cash flows in recent years, reflecting challenges in generating cash from core operations. The free cash flow to net income ratio is negative due to net losses, and the operating cash flow to net income ratio is also negative, raising concerns about cash flow sustainability.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
11.44M	7.80M	30.49M	49.03M	12.38M	3.40M
	Gross Profit
4.28M	2.17M	10.20M	21.03M	2.99M	1.49M
	EBIT
-3.07M	-5.80M	-2.40M	11.00M	-4.26M	-1.41M
	EBITDA
-10.41M	-6.95M	-13.46M	13.29M	-3.60M	-2.39M
	Net Income Common Stockholders
-11.46M	-19.14M	-17.26M	9.09M	-5.01M	-2.78M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
726.60K	1.13M	9.41M	17.99M	1.97M	119.67K
	Total Assets
14.76M	12.71M	36.00M	42.64M	10.00M	7.91M
	Total Debt
4.41M	5.19M	4.53M	253.77K	518.58K	449.82K
	Net Debt
3.84M	4.85M	-4.41M	-15.15M	-1.45M	330.15K
	Total Liabilities
10.58M	11.70M	13.23M	10.15M	6.75M	5.00M
	Stockholders Equity
4.18M	1.00M	22.77M	32.49M	3.25M	2.91M
Cash Flow		Free Cash Flow
-2.15M	-6.94M	-2.28M	11.42M	-611.50K	-1.23M
	Operating Cash Flow
-2.13M	-5.62M	-249.09K	11.45M	-595.10K	-1.18M
	Investing Cash Flow
742.67K	-969.15K	-3.79M	-234.41K	-14.93K	-300.03K
	Financing Cash Flow
1.61M	-254.18K	-2.40M	2.19M	2.48M	967.41K

Datametrex AI Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$11.95B	9.93	-7.21%	4.85%	7.32%	-8.25%
PTK	51 Neutral	$473.69M	―	-236.10%	―	-28.14%	-35.82%
DM	46 Neutral	C$1.65M	―	-158.04%	―	49.97%	67.56%

Datametrex AI 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.