Mogo Finance Technology (MOGO) AI Stock Analysis

• Market Cap: C$33.28M
• Dividend Yield: N/A
• Average Volume (3M): 29.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.86
• Revenue Growth: 9.80%
• EPS Growth: 21.30%
• Country: CA
• Employees: 255
• Sector: Technology
• Sector Strength: 65
• Industry: Software - Infrastructure
• EPS (TTM): -0.56
• Shares Outstanding: 24,472,378
• 10 Day Avg. Volume: 24,671
• 30 Day Avg. Volume: 29,826
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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$4.26
• Price Target Upside: 238.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Mogo's overall stock score of 50 reflects a mixed outlook. The company's revenue growth and improved cash flow are positive signs, but challenges with profitability and high leverage weigh heavily. Technical indicators suggest a neutral market stance, and valuation remains a concern due to negative earnings. While the earnings call provided some optimism with strategic shifts, the balance of growth and financial health issues results in an average score.

Positive Factors

Financial Strategy

The ability to generate cash internally removes the risk of a dilutive capital raise, which has been a headwind for MOGO shares.

Market Conditions

A declining Fed Funds rate should reduce borrowing costs on Mogo’s credit facility, driving improvements to cash flow.

Profitability

The company has shifted towards improved profitability and sustainability, with higher gross margin and meaningfully lower operating expenses leading to adjusted EBITDA above the forecast.

Negative Factors

Crypto Exposure

The company's investment portfolio has meaningful exposure to crypto, which it could choose to monetize under favorable conditions.

Historical Stock Performance

MOGO shares traded as high as $35 on a split adjusted basis as recently as 2021 while generating less revenue and significant adj. EBITDA losses.

Market Speculation

The potential return of former President Donald Trump, a proponent of cryptocurrencies, could serve as a catalyst for MOGO shares due to its significant crypto exposure.

Mogo Finance Technology Business Overview & Revenue Model

Company Description

Mogo Finance Technology Inc. (MOGO) is a Canadian-based financial technology company that offers a range of innovative financial solutions to consumers to help them manage and improve their financial health. The company's platform provides products such as personal loans, identity fraud protection, a digital spending account, and a credit score monitoring service. Mogo aims to empower consumers by offering easy access to a variety of financial tools through a user-friendly mobile app and online portal.

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 is experiencing revenue growth but faces challenges with high costs leading to negative profitability metrics. The balance sheet shows moderate leverage but declining equity, posing financial risks. Recent positive shifts in cash flow are promising but need to be sustained.

Income Statement

Mogo Finance Technology has shown a notable increase in revenue from the previous period, but the company is struggling with negative gross profit and net margins, indicating high costs relative to revenue. The EBIT and EBITDA margins are significantly negative, reflecting operational inefficiencies and potentially high fixed costs.

Balance Sheet

The company has a moderate debt-to-equity ratio, suggesting a balanced use of leverage. However, the negative return on equity and low equity ratio highlight challenges in generating returns for shareholders and maintaining financial stability. The decline in stockholders' equity indicates potential risks.

Cash Flow

There is a positive shift in operating cash flow and free cash flow, suggesting improvements in cash generation. The free cash flow to net income ratio is positive, indicating better cash management, although the company has faced challenges in previous years.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
64.83M	68.95M	57.52M	44.24M	59.80M
	Gross Profit
46.27M	46.24M	46.04M	35.50M	41.02M
	EBIT
-3.88M	-33.48M	-33.94M	2.31M	-3.65M
	EBITDA
-2.20M	-43.53M	-4.46M	2.13M	17.01M
	Net Income Common Stockholders
-17.89M	-165.68M	-33.21M	-26.98M	-21.92M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
16.13M	29.27M	69.21M	12.12M	5.37M
	Total Assets
207.76M	221.49M	393.87M	104.47M	151.10M
	Total Debt
88.90M	87.73M	88.72M	91.39M	5.21M
	Net Debt
72.76M	58.46M	19.52M	79.27M	-159.00K
	Total Liabilities
114.04M	110.61M	124.09M	99.23M	149.35M
	Stockholders Equity
93.72M	110.89M	269.78M	5.24M	-92.75M
Cash Flow		Free Cash Flow
-12.59M	-34.95M	-37.61M	38.99M	-24.30M
	Operating Cash Flow
-9.17M	-27.01M	-29.64M	43.80M	-15.21M
	Investing Cash Flow
-3.09M	-9.15M	-39.59M	-4.82M	-9.09M
	Financing Cash Flow
-1.02M	-3.08M	125.86M	-37.28M	14.27M

Mogo Finance Technology Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.26
• 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:MOGO, the sentiment is Negative. The current price of 1.26 is above the 20-day moving average (MA) of 1.22, below the 50-day MA of 1.34, and below the 200-day MA of 1.67, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.30 is Neutral, neither overbought nor oversold. The STOCH value of 51.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:MOGO.

Mogo Finance Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GEO	75 Outperform	C$143.38M	11.35	7.94%	―	11.18%	137.62%
Sector *	59 Neutral	$10.75B	10.37	-6.64%	3.00%	7.30%	-12.02%
MOGO	50 Neutral	C$33.28M	―	-16.02%	―	9.80%	21.30%
HUT	49 Neutral	C$1.94B	4.00	2.56%	―	199.41%	―
DYA	40 Underperform	C$76.06M	―	2492.91%	―	258.52%	-4.87%

Mogo Finance Technology Corporate Events

Mogo Inc. Reports Strong Q4 2024 Results with Strategic Growth in Wealth and Payments

Mogo Inc. reported a net income of $10.4 million for Q4 2024, with total revenue increasing by 5% to $71.2 million for the fiscal year. The company saw significant growth in its Wealth and Payments segments, with revenues increasing by 19% and 27% respectively in Q4. Mogo’s strategic focus on improving cash flow resulted in a 53% increase in cash flow from operations for the year. The company is positioning itself for long-term growth by intensifying investments in key areas, supported by a renewed and enhanced credit facility.

Mogo Inc. Extends Credit Facility with Fortress, Enhances Financial Flexibility

Mogo Inc. announced an amendment to its senior credit facility with Fortress Investment Group, extending the maturity date by three years to January 2, 2029, reducing the interest rate by 100 basis points, and potentially increasing the available capital from $60 million to $100 million. This strategic move is aimed at lowering Mogo’s cost of capital and enhancing financial flexibility to support long-term growth, reinforcing its relationship with Fortress, a respected investment manager.