Martello Technologies Group Inc (MTLO) AI Stock Analysis

• Market Cap: C$5.84M
• Dividend Yield: N/A
• Average Volume (3M): 25.04K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.51
• Revenue Growth: -6.44%
• EPS Growth: 13.82%
• Country: CA
• Employees: 75
• Sector: Technology
• Sector Strength: 79
• Industry: Software - Infrastructure
• EPS (TTM): >-0.01
• Shares Outstanding: 583,707,460
• 10 Day Avg. Volume: 11,047
• 30 Day Avg. Volume: 25,043
• PEG Ratio: -0.13
• Price to Book (P/B): 2.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -11.19
• 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: 41 Neutral
• Price Target: ―

Martello Technologies faces significant financial and operational challenges, including declining revenue and negative equity. While recent corporate events provide some strategic direction, the stock remains under pressure due to weak technical indicators and a challenging valuation. The company's high leverage and negative profitability are major concerns for sustainability.

Martello Technologies Group Inc Business Overview & Revenue Model

Company Description

Martello Technologies Group Inc (MTLO) is a Canadian technology company that provides digital experience monitoring and optimization solutions. The company focuses on ensuring that businesses have reliable and efficient IT environments. Martello's core products include network performance management and unified communications performance analytics, which help organizations enhance their IT service delivery and improve user experience.

How the Company Makes Money

Martello Technologies Group Inc generates revenue primarily through the sale of its software solutions and services, which are designed to optimize and monitor digital user experiences. The company's key revenue streams include licensing fees for its software products, subscription-based services, and professional services. Martello collaborates with partners such as system integrators, managed service providers, and technology vendors to expand its market reach and enhance its solutions. These partnerships are significant in driving sales and expanding the customer base, contributing to the company's earnings.

Martello Technologies Group Inc Financial Statement Overview

Summary

Martello Technologies Group Inc is facing significant financial challenges, with declining revenues and negative profit margins. The company has negative equity and high leverage, indicating financial instability and risk.

Income Statement

Martello Technologies Group Inc has shown declining revenue from $17.54M in 2023 to $14.96M TTM. Gross Profit Margin remains strong at 83.3% TTM, but the Net Profit Margin is concerning at -38.7% TTM, indicating significant losses. Both EBIT and EBITDA margins are negative, reflecting ongoing operational challenges.

Balance Sheet

The company's balance sheet reveals a negative stockholders' equity of -$3.5M TTM, indicating potential financial distress. The Total Debt has increased to $11.93M TTM, resulting in a high Debt-to-Equity ratio. The Equity Ratio is negative, reflecting the overall financial instability.

Cash Flow

Operating Cash Flow remains negative at -$2.08M TTM, but there's an improvement from annual figures. The Free Cash Flow is also negative, showing a slight deterioration. The cash position has weakened, with Free Cash Flow to Net Income Ratio highlighting ongoing cash consumption issues.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
14.96M	15.77M	16.10M	17.54M	16.83M	11.20M
	Gross Profit
12.47M	13.83M	14.25M	15.91M	15.63M	10.56M
	EBIT
-4.04M	-3.60M	-23.52M	-5.81M	-4.76M	-6.44M
	EBITDA
-2.18M	-1.96M	-20.79M	-3.97M	-2.18M	-4.99M
	Net Income Common Stockholders
-5.79M	-5.74M	-25.19M	-8.22M	-6.37M	-8.18M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.06M	7.72M	5.02M	8.52M	5.90M	6.62M
	Total Assets
17.32M	20.56M	41.94M	49.69M	25.24M	29.52M
	Total Debt
11.93M	10.26M	11.39M	11.05M	3.11M	3.42M
	Net Debt
6.97M	2.65M	6.53M	2.71M	207.66K	-3.20M
	Total Liabilities
20.82M	19.82M	22.26M	23.05M	10.15M	11.21M
	Stockholders Equity
-3.50M	738.68K	19.68M	26.63M	15.09M	18.31M
Cash Flow		Free Cash Flow
-2.11M	-273.77K	-4.67M	-6.40M	-3.72M	-4.48M
	Operating Cash Flow
-2.08M	-253.39K	-4.65M	-6.35M	-3.61M	-4.32M
	Investing Cash Flow
-34.26K	-20.38K	-14.34K	-8.36M	-3.11M	-1.03M
	Financing Cash Flow
1.52M	5.79M	1.23M	20.21M	2.96M	9.85M

Martello Technologies Group Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MTLO, the sentiment is Positive. The current price of 0.02 is above the 20-day moving average (MA) of 0.01, above the 50-day MA of 0.01, and above the 200-day MA of 0.01, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 58.30 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:MTLO.

Martello Technologies Group Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BLN	69 Neutral	C$629.37M	―	-13.97%	―	26.80%	69.67%
GSI	69 Neutral	C$65.78M	144.83	-12.44%	―	-4.94%	-145.86%
Sector *	62 Neutral	$11.97B	10.08	-7.46%	2.96%	7.37%	-8.22%
MTLO	41 Neutral	C$5.84M	―		―	-6.44%	13.82%

Martello Technologies Group Inc Corporate Events

Martello Technologies Secures CAD$2M through Private Placement

Martello Technologies Group Inc. has successfully closed a non-brokered private placement, raising CAD$2 million through the issuance of 40 million common shares at CAD$0.05 each. The sole subscriber is Wesley Clover International Corporation, controlled by Martello’s Chairman, Terence Matthews. This transaction, classified as a related party transaction, increases Wesley Clover’s stake in Martello to approximately 54.90%. The funds will be used for general corporate and operational purposes, potentially strengthening Martello’s market position and operational capabilities.

Martello Strengthens MSP Channel with New Initiatives and Q3 FY25 Financial Results

Martello Technologies announced its Q3 FY25 financial results and highlighted strategic initiatives to strengthen its position with managed service providers (MSPs). Key developments include the launch of the Martello Partner Network and Vantage DX multitenancy, which align with MSP business models and aim to improve profitability and customer retention. The company is also enhancing its digital experience management solutions by incorporating Zoom monitoring capabilities and continuing to support Microsoft Teams premium services. These efforts, along with a focus on data security and privacy via SOC 2 Type 2 certification, are designed to differentiate Martello’s offerings in a competitive market and create growth opportunities, particularly in the Mitel channel.