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Martello Technologies Group Inc (TSE:MTLO)
:MTLO
Canadian Market

Martello Technologies Group Inc (MTLO) AI Stock Analysis

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Martello Technologies Group Inc

(MTLO)

Rating:41Neutral
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 (MTLO) vs. iShares MSCI Canada ETF (EWC)

Martello Technologies Group Inc Business Overview & Revenue Model

Company DescriptionMartello Technologies Group Inc. develops digital experience monitoring software solutions in Canada, the United States, Europe, Asia, Latin America, Australia, and internationally. The company operates through three segments: Vantage DX Monitoring – Mitel UC, Vantage DX Analytics – IT Service Analytics, and Vantage DX Monitoring – Microsoft 365. Its products portfolio includes proactive Microsoft 365 monitoring, Microsoft teams call quality analytics, Microsoft active network path analysis, Microsoft 365 and Microsoft teams advanced troubleshooting, ITSM incident workflows, and Microsoft 365 performance reports (SLA/OLA); Vantage DX, a single platform DEM suite, which optimizes the modern workplace with a focus on Microsoft 365 and Microsoft Teams, as well as UC performance analytics software; and subscription-based software as a service. The company also provides software licenses, hardware, training, and maintenance and support services. Martello Technologies Group Inc. is headquartered in Ottawa, Canada.
How the Company Makes MoneyMartello 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
45
Neutral
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
30
Negative
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
40
Negative
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
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
14.96M15.77M17.54M16.83M13.12M11.20M
Gross Profit
12.47M13.83M15.91M15.63M12.18M10.56M
EBIT
-4.04M-3.60M-5.81M-4.76M-8.35M-6.44M
EBITDA
-2.18M-1.95M-20.79M-3.70M-2.18M-4.99M
Net Income Common Stockholders
-5.79M-5.74M-8.22M-6.37M-8.18M-8.18M
Balance SheetCash, Cash Equivalents and Short-Term Investments
5.06M7.72M5.02M8.52M5.90M6.62M
Total Assets
17.32M20.56M41.94M49.69M25.24M29.52M
Total Debt
11.93M10.26M11.39M11.05M3.11M3.42M
Net Debt
6.97M2.65M6.53M2.71M207.66K-3.20M
Total Liabilities
20.82M19.82M22.26M23.05M10.15M11.21M
Stockholders Equity
-3.50M738.68K19.68M26.63M15.09M18.31M
Cash FlowFree 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
1.52M5.79M1.23M20.21M2.96M9.85M

Martello Technologies Group Inc Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.01
Price Trends
50DMA
0.01
Negative
100DMA
0.01
Negative
200DMA
0.01
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
45.99
Neutral
STOCH
<0.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MTLO, the sentiment is Negative. The current price of 0.01 is below the 20-day moving average (MA) of 0.01, below the 50-day MA of 0.01, and below the 200-day MA of 0.01, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.99 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:MTLO.

Martello Technologies Group Inc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$11.93B10.60-7.51%3.00%7.40%-8.09%
54
Neutral
C$9.98M20.16%79.84%70.95%
TSOPT
49
Neutral
C$7.33M36.35%4.13%-5.54%
45
Neutral
C$6.32M210.000.79%-74.44%
41
Neutral
C$5.84M
-6.44%13.82%
$3.31M-330.27%
43
Neutral
C$18.45M-1525.80%-7.43%30.13%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:MTLO
Martello Technologies Group Inc
0.01
-0.01
-50.00%
TSE:OPT
Optiva Inc
2.66
-3.36
-55.81%
TSE:NBVA
Nubeva Technologies Ltd
0.10
-0.28
-73.68%
VENZF
Venzee Technologies
0.08
-0.04
-33.33%
TSE:PLUR
Plurilock Security Inc
0.23
-0.05
-17.86%
TSE:EONX
Eonx Technologies
0.25
0.13
108.33%

Martello Technologies Group Inc Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Martello Technologies Secures CAD$2M through Private Placement
Positive
Mar 12, 2025

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.

Business Operations and StrategyFinancial Disclosures
Martello Strengthens MSP Channel with New Initiatives and Q3 FY25 Financial Results
Positive
Feb 14, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.