Mogo Finance Technology (MOGO) AI Stock Analysis

• Market Cap: C$64.48M
• Dividend Yield: N/A
• Average Volume (3M): 143.12K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.34
• Revenue Growth: 5.92%
• EPS Growth: -54.25%
• Country: CA
• Employees: 255
• Sector: Technology
• Sector Strength: 95
• Industry: Software - Infrastructure
• EPS (TTM): -0.06
• Shares Outstanding: 24,472,378
• 10 Day Avg. Volume: 110,838
• 30 Day Avg. Volume: 143,122
• PEG Ratio: 0.05
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.32
• 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: C$5.49
• Price Target Upside: 108.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: C$3.00 ▲(13.64%Upside)

Mogo's overall stock score reflects a mixed outlook. The company's strong technical indicators and positive corporate events highlight potential growth and innovation. However, the financial challenges and weak valuation metrics due to ongoing losses weigh heavily on the score.

Positive Factors

Bitcoin Strategy

Mogo, Inc. has committed to Bitcoin, integrating it into its corporate framework, which has led to a 112.4% increase in shares and provides investors exposure to Bitcoin.

Financial Flexibility

A strengthened balance sheet is expected to provide increased financial flexibility, allowing Mogo to accelerate investment in growing wealth and payment verticals.

Valuation Upside

Mogo's shares are valued at $4, representing a significant upside potential of approximately 55% from recent trading levels.

Negative Factors

Business Transition

The exit from the institutional brokerage business may cause temporary disruption in 2025 results and lower overall revenue.

Operational Risks

There are risks associated with technology, performance of referral partnerships, cybersecurity, credit, liquidity, dilution, and increasing macroeconomic uncertainty.

Mogo Finance Technology Business Overview & Revenue Model

Company Description

Mogo Inc. operates as a financial technology company in Canada and internationally. The company provides digital solutions to the consumers to get in control of their financial health. It offers Mogo app to access a digital spending account with Mogo Visa Platinum Prepaid Card; MogoCrypto that enables the buying and selling of bitcoin; MogoProtect, a free ID fraud protection and monthly credit score monitoring; MogoMortgage, a digital mortgage experience; and MogoMoney that provides access to personal loans. The company also offers Mogo Trade, a free stock trading platform with real-time stock quotes and funding; and Mogo Ventures to manage its existing investments in strategic partners and companies. In addition, it operates Carta, a digital payments software platform that enable financial technology companies, banks, and corporations to issue payment products to consumers via multiple channels, including physical, virtual, and tokenized cards, as well as payment switching and routing services. Mogo Inc. was founded in 2003 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Mogo Finance Technology makes money primarily through interest income generated from its personal loan products, fees associated with its digital financial services, and subscription fees from its premium offerings. The company's revenue model is largely based on its ability to attract users to its platform and convert them into paying customers for its various financial products and services. Mogo also generates revenue through partnerships with other financial institutions and companies, which help to expand its customer base and increase its market reach. Additionally, Mogo leverages data analytics to optimize its customer acquisition strategies and drive further revenue growth.

Mogo Finance Technology Financial Statement Overview

Summary

Mogo Finance Technology's financial statements reveal mixed performance. The strong gross profit margin is overshadowed by ongoing net losses and high financial leverage. Positive free cash flow is a bright spot, yet operational inefficiencies and significant debt levels pose notable risks.

Income Statement

Mogo Finance Technology's income statement shows mixed results. The TTM data reveals a gross profit margin of 73.5%, indicating strong profitability in core operations. However, the net profit margin is negative due to persistent losses, with the TTM net income standing at -$21.9 million. Revenue has been inconsistent, with recent declines, as demonstrated by a TTM revenue of $70.6 million down from $71.1 million in the previous year. EBIT margin improved but remains low at 9.4%, and the EBITDA margin is negative, reflecting operational challenges.

Balance Sheet

The balance sheet analysis points to financial leverage concerns. The debt-to-equity ratio is high at 1.20, indicating significant reliance on debt financing. Return on equity is negative due to ongoing losses. The equity ratio stands at 40.6%, which is reasonable but shows a decline in equity as a proportion of total assets over recent years, suggesting weakening financial stability.

Cash Flow

Cash flow performance is moderate. The TTM free cash flow is positive at $7.77 million, showing an improvement from previous periods. However, the operating cash flow to net income ratio indicates challenges, suggesting that operational cash generation is not strong enough to cover net losses. Free cash flow to net income ratio is positive, showing some improvement in cash flow management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	71.15M	64.83M	68.95M	57.52M	44.24M
Gross Profit	56.62M	46.27M	46.24M	46.04M	35.50M
EBITDA	7.13M	-2.20M	-43.53M	-4.46M	2.13M
Net Income	-13.68M	-17.89M	-165.68M	-33.21M	-26.98M
Balance Sheet
Total Assets	189.65M	207.76M	221.49M	393.87M	104.47M
Cash, Cash Equivalents and Short-Term Investments	34.62M	16.13M	29.27M	69.21M	12.12M
Total Debt	85.62M	88.90M	87.73M	88.72M	91.39M
Total Liabilities	108.43M	114.04M	110.61M	124.09M	99.23M
Stockholders Equity	81.22M	93.72M	110.89M	269.78M	5.24M
Cash Flow
Free Cash Flow	15.23M	-12.59M	-34.95M	-37.61M	38.99M
Operating Cash Flow	15.31M	-9.17M	-27.01M	-29.64M	43.80M
Investing Cash Flow	-2.79M	-3.09M	-9.15M	-39.59M	-4.82M
Financing Cash Flow	-3.52M	-1.02M	-3.08M	125.86M	-37.28M

Mogo Finance Technology Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MOGO, the sentiment is Positive. The current price of 2.64 is above the 20-day moving average (MA) of 2.42, above the 50-day MA of 2.05, and above the 200-day MA of 1.74, indicating a bullish trend. The MACD of 0.23 indicates Positive momentum. The RSI at 57.70 is Neutral, neither overbought nor oversold. The STOCH value of 33.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:MOGO.

Mogo Finance Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NOW	69 Neutral	C$55.83M	14.39	679.89%	―	-10.35%	―
Sector *	63 Neutral	$34.60B	5.43	-11.67%	1.84%	5.30%	-18.55%
MOGO	60 Neutral	C$64.48M	―	-27.51%	―	5.92%	-54.25%
PLUR	49 Neutral	C$18.85M	―	-1525.80%	―	0.55%	69.82%
CLIP	43 Neutral	C$20.99M	―		―	271.43%	15.04%

Mogo Finance Technology Corporate Events

Mogo Inc. Successfully Concludes Annual General Meeting with Key Resolutions Approved

Mogo Inc. held its annual general meeting of shareholders where all proposed resolutions, including the election of directors, reappointment of auditors, and renewal of the stock option plan, were approved. The meeting saw a significant shareholder turnout with 38.94% of outstanding shares represented. The approval of these resolutions supports Mogo’s strategic initiatives and reinforces its commitment to providing innovative financial solutions, potentially strengthening its market position and stakeholder confidence.

The most recent analyst rating on (TSE:MOGO) stock is a Buy with a C$3.00 price target. To see the full list of analyst forecasts on Mogo Finance Technology stock, see the TSE:MOGO Stock Forecast page.

Mogo Seeks Extension on Warrant Expiry Dates

Mogo Inc. has applied to the Toronto Stock Exchange to extend the expiry date of over 1.1 million common share purchase warrants by one year, from June 13, 2025, to June 13, 2026. This extension, pending approval from the TSX and warrantholders, aims to provide additional time for warrant holders to exercise their rights, potentially impacting the company’s financial strategy and market positioning.

The most recent analyst rating on (TSE:MOGO) stock is a Buy with a C$3.00 price target. To see the full list of analyst forecasts on Mogo Finance Technology stock, see the TSE:MOGO Stock Forecast page.

Mogo Inc. Reports Strong Q1 2025 Growth and AI-Driven Transformation

Mogo Inc. reported its Q1 2025 financial results, highlighting significant growth in its Wealth and Payments segments, with revenues increasing by 41% and 34% respectively over the previous year. Despite a slight decrease in total revenue due to exiting a low-margin legacy brokerage business, Mogo maintained a solid balance sheet and positive cash flow. The company launched MOGO 3.0, an initiative to become fully AI-native, aiming to improve margins, accelerate product development, and enhance customer experiences. Mogo also renewed and lowered the rate on its credit facility, extended its maturity, and continued to expand its AI-powered offerings, indicating a strategic focus on long-term growth and innovation.