Prophecy DeFi Inc (PDFI) AI Stock Analysis

• Market Cap: C$1.35M
• Dividend Yield: N/A
• Average Volume (3M): 79.91K
• Price to Earnings (P/E): ―
• Beta (1Y): -2.02
• Revenue Growth: 56.46%
• EPS Growth: -53.38%
• Country: CA
• Employees: N/A
• Sector: Financial
• Sector Strength: 81
• Industry: Financial - Credit Services
• EPS (TTM): -0.02
• Shares Outstanding: 134,847,210
• 10 Day Avg. Volume: 115,548
• 30 Day Avg. Volume: 79,908
• PEG Ratio: -0.06
• Price to Book (P/B): -0.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.94
• 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: 39 Underperform
• Price Target: C$0.00 ▼( -100.00% Downside)

The overall stock score is heavily influenced by significant financial distress and weak technical indicators. Financial performance is the most critical factor, highlighting severe revenue and profitability challenges. Technical analysis further underscores the stock's bearish outlook. Valuation is poor, reflecting the lack of earnings and return to investors.

Prophecy DeFi Inc Business Overview & Revenue Model

Company Description

Prophecy DeFi Inc (PDFI) is a company operating in the decentralized finance (DeFi) sector. The company focuses on leveraging blockchain technology to provide financial services that eliminate traditional intermediaries, thereby increasing efficiency and transparency in financial transactions. Its core services include providing liquidity to decentralized exchanges, creating DeFi investment products, and leveraging smart contracts for various financial applications.

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

Overall, Prophecy DeFi Inc. exhibits significant financial instability across all statements. The income statement shows declining revenue and consistent losses, the balance sheet highlights solvency issues with negative equity, and the cash flow statement indicates cash management struggles. The company is facing severe financial challenges with minimal signs of improvement, suggesting a high-risk scenario for investors.

Income Statement

Prophecy DeFi Inc. has been experiencing negative revenue growth, with a significant decline from positive revenue in 2021 to negative values in recent periods. The company has consistently reported negative net income, indicating financial challenges. Gross profit margins are negative, and the negative EBIT and EBITDA margins further highlight profitability issues. There are no signs of revenue or profit improvements, suggesting ongoing operational difficulties.

Balance Sheet

The balance sheet reflects significant financial distress. Stockholders' equity is negative, indicating that liabilities exceed assets, a critical concern for solvency. The absence of debt-to-equity ratio calculation due to negative equity is notable. Additionally, negative return on equity and equity ratio exacerbate the financial instability, suggesting high risk for stakeholders.

Cash Flow

Cash flow analysis shows consistent negative operating and free cash flows, indicating cash management issues. The operating cash flow to net income ratio suggests inefficiencies in converting profits to cash. Although there is some positive investing cash flow, it is overshadowed by the negative operational performance and lack of free cash flow growth.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
-1.79M	-89.73K	-6.67M	1.31M	7.37K	-811.00K
	Gross Profit
-1.94M	-89.73K	-6.88M	1.31M	-53.47K	-898.22K
	EBIT
999.06K	-544.32K	-28.13M	-5.96M	-375.33K	-1.26M
	EBITDA
495.31K	-544.32K	0.00	-5.86M	0.00	0.00
	Net Income Common Stockholders
-1.06M	-1.70M	-30.08M	-5.96M	-375.33K	-1.26M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
195.03K	1.52M	972.12K	6.65M	18.42K	54.58K
	Total Assets
1.59M	3.69M	5.31M	33.82M	356.52K	452.12K
	Total Debt
0.00	5.89M	5.67M	5.44M	0.00	0.00
	Net Debt
-195.03K	5.45M	4.69M	-1.22M	-18.42K	-54.58K
	Total Liabilities
128.50K	6.27M	6.30M	5.86M	530.36K	250.63K
	Stockholders Equity
1.46M	-2.59M	-988.50K	26.30M	-173.84K	201.49K
Cash Flow		Free Cash Flow
-1.41M	-1.84M	-2.60M	-3.63M	-36.16K	-176.17K
	Operating Cash Flow
-1.41M	-1.84M	-2.60M	-3.22M	-36.16K	-176.17K
	Investing Cash Flow
877.66K	1.47M	-2.92M	-1.47M	0.00	35.72K
	Financing Cash Flow
-185.81K	-169.14K	-158.34K	11.33M	0.00	0.00

Prophecy DeFi Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.01
• 50DMA: Neutral
• 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, equal to 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	$12.66B	9.79	7.67%	17015.07%	12.23%	-6.06%
DMGI	48 Neutral	$58.94M	―	-18.42%	―	17.11%	-26125.00%
PDFI	39 Underperform	C$1.35M	―	22.16%	―	56.46%	-53.38%
BTC	34 Underperform	C$11.15M	―	-566.22%	―	55.13%	90.42%

Prophecy DeFi Inc Corporate Events

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.