Prophecy DeFi Inc (PDFI) AI Stock Analysis

• Market Cap: C$696.24K
• Dividend Yield: N/A
• Average Volume (3M): 225.16K
• Price to Earnings (P/E): ―
• Beta (1Y): -2.95
• 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: 139,247,210
• 10 Day Avg. Volume: 654,297
• 30 Day Avg. Volume: 225,165
• PEG Ratio: -0.02
• Price to Book (P/B): -0.52
• Price to Sales (P/S): -4.57
• P/FCF Ratio: -2.08
• 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: Moderate Sell
• 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's overall stock score is significantly impacted by its poor financial performance, which is the most heavily weighted component. The lack of technical analysis data and negative valuation metrics further contribute to the low score. The absence of earnings call insights and corporate events means these factors do not influence the overall evaluation.

Positive Factors

Innovative Business Model

The company's focus on decentralized finance and smart contracts positions it well in the growing DeFi sector, offering potential for long-term growth as the financial industry shifts towards more decentralized solutions.

Revenue Diversification

Diversified revenue streams from transaction fees, partnerships, and staking rewards help mitigate risks associated with reliance on a single income source, providing stability and growth potential in the evolving blockchain ecosystem.

Corporate Restructuring

Efforts to amend convertible debenture terms reflect proactive steps to improve financial stability and attract new capital, potentially facilitating future business development and enhancing financial health.

Negative Factors

Financial Distress

Ongoing financial distress, characterized by revenue generation issues and profitability challenges, threatens the company's ability to sustain operations and invest in growth, necessitating urgent corrective measures.

High Leverage

High leverage and negative equity increase financial risk, potentially hindering the company's ability to meet obligations and limiting strategic flexibility, posing a threat to long-term viability.

Negative Cash Flow

Persistent negative operating cash flow highlights operational inefficiencies and financial instability, limiting the company's ability to fund operations and invest in growth without external financing.

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 faces significant financial challenges across all verticals. The income statement reflects operational inefficiencies and lack of profitability. The balance sheet shows high leverage and negative equity, indicating financial instability. Cash flow analysis reveals negative cash flows, further highlighting the company's struggle to generate cash from operations.

Income Statement

Prophecy DeFi Inc shows significant challenges in its income statement, with negative revenue and declining revenue growth. 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 potential difficulties in covering operating expenses.

Balance Sheet

The balance sheet reveals a concerning financial structure with negative stockholders' equity, indicating liabilities exceed assets. The debt-to-equity ratio is negative, highlighting high leverage and financial instability. Return on equity is also negative, suggesting the company is not generating returns for shareholders.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, indicating cash outflows exceed inflows. The free cash flow to net income ratio is positive, suggesting some alignment between cash flow and reported earnings, but overall cash flow health is weak due to negative growth and coverage ratios.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	-1.76M	-1.39M	-2.04M	-4.04M	1.34M	7.37K
Gross Profit	-2.17M	-2.14M	-2.89M	-4.89M	1.31M	-53.47K
EBITDA	-1.59M	-2.51M	-1.54M	-27.24M	-5.77M	-375.33K
Net Income	-1.80M	-2.71M	-1.75M	-27.45M	-5.96M	-375.33K
Balance Sheet
Total Assets	674.21K	1.51M	3.69M	5.31M	33.82M	356.52K
Cash, Cash Equivalents and Short-Term Investments	25.96K	11.50K	437.35K	4.41M	6.65M	18.42K
Total Debt	5.37M	5.67M	5.89M	5.67M	5.44M	0.00
Total Liabilities	6.28M	6.61M	6.31M	6.30M	5.86M	530.36K
Stockholders Equity	-5.60M	-5.10M	-2.62M	-988.50K	27.95M	-173.84K
Cash Flow
Free Cash Flow	-811.06K	-1.28M	-1.84M	-2.60M	-3.63M	-36.16K
Operating Cash Flow	-674.23K	-1.14M	-1.84M	-2.60M	-3.22M	-36.16K
Investing Cash Flow	910.76K	916.10K	1.47M	-2.92M	-1.47M	0.00
Financing Cash Flow	-279.69K	-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	52 Neutral	$86.38M	-5.05	-14.48%	―	24.20%	-3756.52%
BIGG	41 Neutral	C$30.24M	―	-63.28%	―	36.80%	9.34%
BTC	39 Underperform	C$5.42M	-0.87	-277.20%	―	―	-15.07%
PDFI	37 Underperform	C$696.24K	-0.75	22.16%	―	-37.82%	-51.90%

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.