Netcoins Holdings Inc (RM) AI Stock Analysis

• Market Cap: C$147.85M
• Dividend Yield: N/A
• Average Volume (3M): 119.14K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.23
• Revenue Growth: N/A
• EPS Growth: 51.07%
• Country: CA
• Employees: N/A
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.14
• Shares Outstanding: 53,961,060
• 10 Day Avg. Volume: 204,398
• 30 Day Avg. Volume: 119,138
• PEG Ratio: 0.34
• Price to Book (P/B): 8.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -20.74
• 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: 50 Neutral
• Price Target: C$2.50 ▲(13.64% Upside)

The score is held back primarily by weak financial performance—widening losses, $0 reported revenue, and a sharp swing to negative operating/free cash flow—despite low leverage and a larger 2024 balance sheet. Technicals offer a partial offset with a generally positive longer-term trend and neutral momentum, while valuation is not supportive because the company is unprofitable and no dividend yield is available.

Positive Factors

Low leverage / strong balance sheet

Very low debt and a materially larger equity and asset base provide durable financial flexibility. This reduces solvency risk through crypto market cycles, supports funding of product development or regulatory compliance, and buys time to execute a path to revenue without imminent default.

Clearly defined crypto brokerage business model

Operating an established crypto brokerage/exchange is a durable business with recurring transaction and custody revenue potential as digital asset adoption grows. Platform incumbency and custody capabilities can create stickiness for retail and, with approvals, institutional clients over the medium term.

Prior demonstrable cash generation (2023)

History of positive operating and free cash flow shows the business model can be cash-generative under certain conditions. That establishes a precedent for sustainable operations if trading volumes or monetization improve, making the 2024 cash burn potentially reversible with execution.

Negative Factors

No reported revenue

Zero reported revenue undermines visibility into core product-market fit and prevents assessment of gross margins or unit economics. Without recurring revenue, the company depends on capital or one-off items, raising structural sustainability concerns if commercialization is not achieved.

Widening losses and elevated cash burn

Material deterioration to negative operating and free cash flow signals persistent cash burn that will erode reserves absent revenue growth or financing. This structural cash gap increases funding risk and may force dilutive financing, asset sales, or cutbacks that impair long-term growth prospects.

Negative returns on equity

A deeply negative ROE indicates the enlarged equity base is not generating returns, reflecting ineffective capital deployment. Over the medium term, persistently negative ROE reduces shareholder value and limits ability to attract long-term capital without demonstrable improvement in profitability.

Netcoins Holdings Inc Business Overview & Revenue Model

Company Description

Axcap Ventures Inc. focuses on investing in various industries, including mineral exploration, technology, software development, and biotechnology industries. The company was formerly known as Netcoins Holdings Inc. and changed its name to Axcap Ventures Inc. in April 2022. Axcap Ventures Inc. is headquartered in Vancouver, Canada.

How the Company Makes Money

Netcoins Holdings Inc generates revenue primarily through transaction fees associated with the buying and selling of cryptocurrencies on its platform. These fees are charged as a percentage of each transaction or as a flat fee, depending on the nature of the trade. Additionally, the company may offer premium services, such as advanced trading tools or personalized customer support, which contribute to its revenue streams. Partnerships with financial institutions and integration with payment processors may also play a role in broadening its service offerings and enhancing its revenue potential. Netcoins' strategic focus on expanding its user base and increasing trading volume is a key driver of its financial performance.

Netcoins Holdings Inc Financial Statement Overview

Summary

Netcoins Holdings Inc. is facing significant financial challenges, with no revenue and consistent losses impacting both income and cash flow statements. The company's strong equity position is positive but might not be sustainable without a turnaround in operational performance. Reliance on financing to cover cash flow shortfalls highlights the need for strategic changes to improve financial health.

Income Statement

Netcoins Holdings Inc. has shown no revenue generation in recent years, which is a significant concern for future profitability. The company has consistently reported negative EBIT and net income, indicating continuous operational losses. The absence of revenue growth further exacerbates the weak income statement performance.

Balance Sheet

The company maintains a strong equity base with no debt, which is a positive aspect. However, the equity ratio has fluctuated due to consistent operational losses, which could affect long-term stability. The balance sheet shows a reliance on equity financing, which might not be sustainable if negative earnings continue.

Cash Flow

Netcoins Holdings Inc. has experienced negative operating cash flow in recent periods, raising concerns about cash generation from operations. While free cash flow growth appears volatile, the significant financing inflow suggests reliance on external funding, posing a risk to financial health if operational cash flows do not improve.

Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Netcoins Holdings Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RM, the sentiment is Positive. The current price of 2.2 is below the 20-day moving average (MA) of 2.35, above the 50-day MA of 2.12, and above the 200-day MA of 1.69, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 70.96 is Negative, neither overbought nor oversold. The STOCH value of 83.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:RM.

Netcoins Holdings Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
XTRA	52 Neutral	C$166.56M	-12.88	-108.12%	―	-12.14%	4.41%
WNDR	51 Neutral	C$206.05M	-5.93	-31.23%	―	13.16%	-1375.61%
RM	50 Neutral	C$147.85M	-4.12	-106.58%	―	―	51.07%
LQWD	48 Neutral	C$43.86M	-6.60	-21.52%	―	782.42%	-63.88%
ABXX	45 Neutral	C$61.56M	-2.34	-147.54%	―	-34.80%	-28.42%
ONE	41 Neutral	C$68.21M	-71.26	-144.12%	―	-10.57%	-117.50%