Prophecy DeFi Inc (PDFI) AI Stock Analysis

• Market Cap: C$674.32K
• Dividend Yield: N/A
• Average Volume (3M): 225.16K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.14
• Revenue Growth: -37.82%
• EPS Growth: -51.90%
• Country: CA
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): >-0.01
• Shares Outstanding: 14,984,964
• 10 Day Avg. Volume: 654,297
• 30 Day Avg. Volume: 225,165
• PEG Ratio: -0.86
• Price to Book (P/B): -26.05
• Price to Sales (P/S): -95.40
• P/FCF Ratio: -104.18
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 37 Underperform
• Price Target: C$0.00 ▼(-100.00% Downside)

Prophecy DeFi Inc. receives a low overall stock score due to significant financial instability, including negative profit margins and high leverage. The lack of technical analysis data and poor valuation metrics further contribute to the low score. Without improvements or additional data, the stock remains a high-risk investment.

Positive Factors

Innovative Business Model

The company's focus on DeFi and blockchain positions it well in a growing sector, offering innovative financial solutions that empower users.

Revenue Generation through Fees

The fee-based revenue model provides a scalable income stream as transaction volumes increase, supporting long-term financial growth.

Strategic Partnerships

Partnerships expand the user base and transaction volume, strengthening market position and revenue opportunities.

Negative Factors

Negative Profit Margins

Negative margins suggest the company struggles to cover costs, impacting profitability and long-term financial health.

High Leverage

High leverage can limit financial flexibility and increase risk, affecting the company's ability to sustain operations.

Declining Revenue

Declining revenue trends indicate challenges in market competitiveness and demand, threatening long-term sustainability.

Prophecy DeFi Inc Business Overview & Revenue Model

Company Description

Prophecy DeFi Inc (PDFI) is a leading decentralized finance (DeFi) company focused on providing innovative financial solutions utilizing blockchain technology. The company operates in the fintech sector, offering a range of products and services including yield farming, decentralized exchanges, and liquidity pools, aimed at empowering users with greater control over their financial assets while ensuring security and transparency.

How the Company Makes Money

Prophecy DeFi Inc generates revenue primarily through transaction fees associated with its decentralized exchange and liquidity pools. When users trade or swap tokens on its platform, a small fee is charged, which contributes to the company's earnings. Additionally, PDFI offers yield farming opportunities, where users can stake their cryptocurrencies to earn rewards, and the company takes a percentage of these rewards as a fee. Strategic partnerships with other blockchain projects and integrations with various wallets and DeFi platforms also enhance its revenue potential by expanding its user base and increasing transaction volumes.

Prophecy DeFi Inc Financial Statement Overview

Summary

Prophecy DeFi Inc. is facing significant financial challenges, including declining revenues, negative profit margins, high leverage, and negative cash flows. These factors indicate financial instability and potential risks in sustaining operations without strategic improvements or external support.

Income Statement

Prophecy DeFi Inc. has experienced significant revenue declines, with negative revenue growth and consistently negative profit margins. The gross profit margin and net profit margin are negative, indicating the company is not generating profit from its operations. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies and challenges in covering operating expenses.

Balance Sheet

The balance sheet shows a concerning financial structure with negative stockholders' equity, indicating liabilities exceed assets. The debt-to-equity ratio is negative, suggesting high leverage and potential solvency issues. Return on equity is also negative, highlighting the company's inability to generate returns for shareholders.

Cash Flow

Cash flow analysis reveals negative operating and free cash flows, indicating challenges in generating cash from operations. The free cash flow to net income ratio is slightly above 1, suggesting some ability to cover net losses with free cash flow. However, the overall cash flow position remains weak, with negative growth in free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	-1.69M	-1.39M	-2.04M	-4.04M	1.34M	7.37K
Gross Profit	-2.03M	-2.14M	-2.89M	-4.89M	1.31M	-53.47K
EBITDA	-1.45M	-2.51M	-1.54M	-27.24M	-5.77M	-375.33K
Net Income	-1.65M	-2.71M	-1.75M	-27.45M	-5.96M	-375.33K
Balance Sheet
Total Assets	411.71K	1.51M	3.69M	5.31M	33.82M	356.52K
Cash, Cash Equivalents and Short-Term Investments	139.42K	11.50K	437.35K	4.41M	6.65M	18.42K
Total Debt	5.43M	5.67M	5.89M	5.67M	5.44M	0.00
Total Liabilities	6.54M	6.61M	6.31M	6.30M	5.86M	530.36K
Stockholders Equity	-6.13M	-5.10M	-2.62M	-988.50K	27.95M	-173.84K
Cash Flow
Free Cash Flow	-721.81K	-1.28M	-1.84M	-2.60M	-3.63M	-36.16K
Operating Cash Flow	-584.98K	-1.14M	-1.84M	-2.60M	-3.22M	-36.16K
Investing Cash Flow	680.63K	916.10K	1.47M	-2.92M	-1.47M	0.00
Financing Cash Flow	-190.26K	-203.55K	-169.14K	-158.34K	11.33M	0.00

Prophecy DeFi Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
DMGI	44 Neutral	C$48.60M	-4.63	-10.10%	―	39.64%	-70.96%
BTC	39 Underperform	C$4.84M	-0.84	-277.20%	―	―	-15.07%
SPIR	38 Underperform	C$2.36M	―	―	―	―	―
PDFI	37 Underperform	C$674.32K	-3.75	22.16%	―	-37.82%	-51.90%

Prophecy DeFi Inc Corporate Events

Prophecy DeFi Simplifies Capital Structure with Debenture Conversion

Prophecy DeFi Inc. has announced the amendment and forced conversion of $5,360,000 in convertible debentures into common shares, simplifying its capital structure. This strategic move aligns with the company’s focus on long-term value creation and supports its investment objectives in the Blockchain and Decentralized Finance sectors.