Prophecy DeFi Inc (PDFI) AI Stock Analysis

• Market Cap: C$1.38M
• Dividend Yield: N/A
• Average Volume (3M): 45.90K
• Price to Earnings (P/E): ―
• Beta (1Y): -2.14
• Revenue Growth: -147.03%
• EPS Growth: -1135.00%
• Country: CA
• Employees: N/A
• Sector: Financial
• Sector Strength: 74
• Industry: Financial - Credit Services
• EPS (TTM): N/A
• Shares Outstanding: 138,247,210
• 10 Day Avg. Volume: 5,351
• 30 Day Avg. Volume: 45,904
• PEG Ratio: >-0.01
• Price to Book (P/B): -4.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.52
• 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: C$0.00 ▼(-100.00%Downside)

Prophecy DeFi Inc. faces significant financial challenges, with negative revenues and strained balance sheets being the primary concerns. While technical analysis suggests some potential for a technical rebound, the overall valuation remains unattractive due to negative earnings metrics. Corporate events aimed at restructuring provide some positive outlook but are not yet finalized.

Prophecy DeFi Inc Business Overview & Revenue Model

Company Description

Prophecy DeFi Inc. provides decentralized finance to retail and institutional investors. The company was formerly known as Bucephalus Capital Corp. and changed its name to Prophecy DeFi Inc. in June 2021. Prophecy DeFi Inc. is based in Toronto, Canada.

How the Company Makes Money

Prophecy DeFi Inc makes money primarily through providing liquidity to decentralized exchanges (DEXs), where they earn fees from trades executed on these platforms. Additionally, the company generates revenue by creating and managing DeFi investment products, which may include yield farming strategies, staking, and lending protocols. These financial products attract investors seeking higher returns compared to traditional finance. Furthermore, Prophecy DeFi may have strategic partnerships with other blockchain firms or technology providers, enabling them to expand their services and increase their market share within the DeFi space.

Prophecy DeFi Inc Financial Statement Overview

Summary

Prophecy DeFi Inc. is experiencing significant financial distress. The income statement shows negative revenues and gross profit, indicating severe operational challenges and profitability issues. The balance sheet is strained with negative stockholders' equity and high leverage, posing financial risks. Cash flow analysis reveals consistent negative operating cash flow, reflecting operational inefficiencies and financial instability.

Income Statement

Prophecy DeFi Inc. has consistently reported negative revenues and gross profit over the years, indicating severe operational challenges. The negative net income and declining EBIT margin highlight ongoing profitability issues. The company experiences significant revenue volatility, with a sharp drop in revenue from 2023 to 2024. These metrics emphasize the company's struggle to generate earnings and manage expenses effectively.

Balance Sheet

The balance sheet reveals a troubling financial position with negative stockholders' equity, indicating liabilities exceed assets. The debt-to-equity ratio cannot be calculated due to negative equity, but the high total debt relative to assets suggests significant leverage. This poses a risk, as the company may face difficulties meeting its financial obligations.

Cash Flow

Cash flow analysis shows negative operating cash flow consistently, reflecting operational inefficiencies. Although there is some positive investing cash flow, the free cash flow remains negative, indicating a deficit in generating cash. The inability to cover operating expenses with operating cash flow further highlights financial instability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
-581.43K	704.49K	-4.04M	1.31M	7.37K
	Gross Profit
-1.33M	-149.89K	-4.89M	1.31M	-53.47K
	EBIT
-2.71M	-1.75M	-27.45M	-5.96M	-375.33K
	EBITDA
-2.51M	-544.32K	-27.24M	-5.86M	0.00
	Net Income Common Stockholders
-2.71M	-1.70M	-27.45M	-5.96M	-375.33K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.50K	1.52M	972.12K	6.65M	18.42K
	Total Assets
1.51M	3.69M	5.31M	33.82M	356.52K
	Total Debt
5.67M	5.89M	5.67M	5.44M	0.00
	Net Debt
5.65M	5.45M	4.69M	-1.22M	-18.42K
	Total Liabilities
6.61M	6.27M	6.30M	5.86M	530.36K
	Stockholders Equity
-5.10M	-2.59M	-988.50K	26.30M	-173.84K
Cash Flow		Free Cash Flow
-1.28M	-1.84M	-2.60M	-3.63M	-36.16K
	Operating Cash Flow
-1.14M	-1.84M	-2.60M	-3.22M	-36.16K
	Investing Cash Flow
916.10K	1.47M	-2.92M	-1.47M	0.00
	Financing Cash Flow
-203.55K	-169.14K	-158.34K	11.33M	0.00

Prophecy DeFi Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PDFI, the sentiment is Negative. The current price of 0.01 is above the 20-day moving average (MA) of <0.01, below the 50-day MA of 0.01, and below the 200-day MA of 0.02, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 33.97 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:PDFI.

Prophecy DeFi Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$12.77B	9.78	7.84%	78.83%	12.06%	-7.99%
PDFI	46 Neutral	C$1.38M	―	22.16%	―	-147.03%	-1135.00%
BTC	34 Underperform	C$9.76M	―	-277.57%	―	55.13%	90.42%
BBKCF		$29.39M	―	-110.80%	―	―	―
BIDCF		$1.59M	―		―	―	―
BKBLF		$4.31M	―		―	―	―
DMGGF		$34.86M	―	-18.42%	―	―	―

Prophecy DeFi Inc Corporate Events

Prophecy DeFi Amends Convertible Debenture Terms to Boost Investment

Prophecy DeFi Inc. announced amendments to its previously issued convertible debentures, reducing the forced conversion price from $0.02 to $0.01. These changes aim to restructure the company’s balance sheet, attracting new investment capital and facilitating business development initiatives. The amendments require approval from both debenture holders and shareholders, with a meeting scheduled to finalize these changes. The Canadian Securities Exchange has conditionally approved the amendments, and further announcements will be made regarding their effective date.

Prophecy DeFi to Amend Convertible Debenture Terms for Strategic Growth

Prophecy DeFi Inc. announced its intention to amend the terms of its $5.36 million principal amount convertible debentures issued in December 2021. The proposed amendments, which require approval from both debenture holders and shareholders, aim to restructure the company’s balance sheet, enhancing its ability to attract new investment capital and pursue business development initiatives. The amendments have been conditionally approved by the Canadian Securities Exchange, and further details will be provided once all necessary approvals are obtained.