Victory Square Technologies Inc (VST) AI Stock Analysis

• Market Cap: C$37.36M
• Dividend Yield: N/A
• Average Volume (3M): 175.30K
• Price to Earnings (P/E): 26.4
• Beta (1Y): 0.78
• Revenue Growth: 38.95%
• EPS Growth: N/A
• Country: CA
• Employees: 19
• Sector: Financial
• Sector Strength: 67
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): N/A
• Shares Outstanding: 100,964,970
• 10 Day Avg. Volume: 218,452
• 30 Day Avg. Volume: 175,298
• PEG Ratio: -0.25
• Price to Book (P/B): 5.28
• Price to Sales (P/S): 1.94
• P/FCF Ratio: -19.21
• 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: 62 Neutral
• Price Target: C$0.50 ▲(35.14% Upside)

Victory Square Technologies Inc. has a balanced outlook with strong technical momentum and strategic corporate developments in digital health. However, financial performance concerns, particularly around profitability and cash flow, weigh on the overall score. The stock's valuation is reasonable, supporting its growth strategy, but caution is advised due to potential overbought technical indicators.

Victory Square Technologies Inc Business Overview & Revenue Model

Company Description

Victory Square Technologies Inc. is a private equity and venture capital firm specializing in incubation, acquisition and invests in startups, Early stage and provides the senior leadership and resources needed to growth. Through its portfolio companies it focuses on technologies in blockchain, digital health, web3, creator economy, metaverse, machine learning, climate tech, youth, mental health, healthcare, special needs, technology, First Nation, artificial intelligence, and virtual reality/augmented reality, health, mobile gaming, film, esports, cannabis, and education. The company formerly known as Fantasy 6 Sports Inc. and changed its name to Victory Square Technologies Inc. in June 2017. It prefers to take minority investment in the companies. Victory Square Technologies Inc. was incorporated in 2015 and is headquartered in Vancouver, Canada with an additional office in Lewes, Delaware.

How the Company Makes Money

Victory Square Technologies Inc. makes money primarily through its investments in early-stage tech companies. The company generates revenue by acquiring equity stakes in these startups and then providing them with the necessary resources and mentorship to grow. As these portfolio companies mature and increase in value, VST profits from either selling its equity stake at a higher valuation or realizing returns through successful exits such as mergers, acquisitions, or public offerings. Additionally, VST may earn revenue from dividends or licensing fees from its portfolio companies. The firm's success is largely attributed to its strategic partnerships and its ability to identify promising companies with significant growth potential.

Victory Square Technologies Inc Financial Statement Overview

Summary

Victory Square Technologies Inc. shows promising revenue growth with a 38.7% increase, but profitability and cash flow stability remain concerns due to high leverage and consistent negative free cash flow. The shift to positive net income and increasing equity are positive indicators for potential future improvement.

Income Statement

Victory Square Technologies Inc. experienced substantial revenue growth, with a 38.7% increase from the previous year, indicating solid performance in revenue generation. However, the company's profitability remains a concern, as evidenced by a negative EBIT margin and volatile net profit margins over the years. The recent TTM (Trailing-Twelve-Months) shows a shift to positive net income, suggesting potential profitability improvements.

Balance Sheet

The company maintains a high debt-to-equity ratio, which poses a financial risk due to leverage. Despite this, stockholders' equity has been increasing, indicating shareholders' interest is growing. The equity ratio is moderate, suggesting a balanced asset structure, but the high liabilities relative to equity remain a concern.

Cash Flow

Cash flow management is a challenge, with consistent negative free cash flow highlighting operational cash strain. Although there's slight improvement in operating cash flow relative to net income, the company must focus on enhancing cash generation and reducing capital expenditures to stabilize its cash position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.70M	16.72M	12.06M	5.93M	1.49M	1.49M
Gross Profit	6.46M	6.37M	5.49M	3.26M	910.14K	527.79K
EBITDA	2.41M	2.06M	-13.50M	-24.59M	-16.59M	16.25M
Net Income	1.30M	1.23M	-14.15M	-28.59M	-19.43M	19.92M
Balance Sheet
Total Assets	15.04M	10.22M	11.78M	24.18M	37.33M	42.65M
Cash, Cash Equivalents and Short-Term Investments	6.09M	1.23M	2.20M	3.83M	4.38M	4.57M
Total Debt	2.41M	2.41M	6.84M	6.60M	4.28M	2.23M
Total Liabilities	7.87M	7.47M	12.07M	10.93M	6.17M	3.95M
Stockholders Equity	10.35M	6.13M	3.96M	13.97M	27.38M	32.94M
Cash Flow
Free Cash Flow	-1.27M	-1.69M	-3.39M	-4.17M	-8.86M	-3.26M
Operating Cash Flow	65.00K	-503.33K	-3.18M	-3.61M	-8.57M	-3.26M
Investing Cash Flow	-249.97K	-213.03K	1.48M	-808.30K	-3.51M	-70.33K
Financing Cash Flow	4.66M	-181.11K	95.35K	3.87M	11.90M	7.75M

Victory Square Technologies Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.37
• 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:VST, the sentiment is Positive. The current price of 0.37 is above the 20-day moving average (MA) of 0.29, above the 50-day MA of 0.24, and above the 200-day MA of 0.23, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 74.49 is Negative, neither overbought nor oversold. The STOCH value of 88.69 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:VST.

Victory Square Technologies Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	67 Neutral	$17.04B	11.60	9.79%	3.95%	10.64%	1.80%
VST	62 Neutral	C$37.36M	26.43	18.68%	―	38.95%	―
PRYNF	―	$1.48M	―		―	―	―
EGLXF	―	$13.89M	―	-105.94%	―	―	―
ENTEF	―	$4.32M	―	-337.09%	―	―	―
GMETF	―	$777.71K	―		―	―	―
VRTS	51 Neutral	C$9.71M	―	-251.82%	―	-4.88%	93.73%

Victory Square Technologies Inc Corporate Events

Victory Square Technologies’ Cease Trade Order Revoked by BCSC

Victory Square Technologies announced that the British Columbia Securities Commission has revoked the management cease trade order, which was initially issued due to a delay in filing their audited annual financial statements. The company has since filed both its annual and interim financial statements, bringing it up to date with its continuous disclosure obligations. This revocation allows management and insiders to resume trading in the company’s securities, potentially stabilizing investor confidence and enhancing the company’s operational transparency.

Victory Square Technologies Focuses on Digital Health Expansion in Q1 2025

Victory Square Technologies reported its Q1 2025 financial results, highlighting a focus on expanding its holdings in the digital health and wellness sector. The company sees significant growth opportunities in this fragmented market, exemplified by its flagship holding, Hydreight Technologies, which offers a compliant platform for healthcare services across the U.S. Additionally, Victory Square holds stakes in Insu Therapeutics, which is developing an oral insulin tablet, and Pawsible Ventures, which is exploring pet wellness and telehealth opportunities. These strategic focuses aim to leverage Victory Square’s expertise in digital health to create scalable business opportunities.

Victory Square Technologies Reports Strong 2024 Financial Growth and Strategic Advancements

Victory Square Technologies reported significant financial growth in 2024, with adjusted revenue reaching $23 million, up from $17.6 million in 2023. The company achieved strategic milestones, including the sale of BlockX and expansion in healthcare investments, positioning it for continued growth. Hydreight Technologies, a key portfolio company, expanded its digital health platform across the U.S., achieving national recognition and supporting a large network of healthcare professionals. Victory Square also advanced its digital health initiatives and invested in Insu Therapeutics, which is developing an innovative oral insulin tablet for diabetes care.

Victory Square Technologies Faces Filing Delays, Implements Trade Restrictions

Victory Square Technologies Inc. announced a delay in filing its audited annual financial statements and management’s discussion and analysis for the fiscal year ended December 31, 2024, leading to a management cease trade order (MCTO) that restricts its CEO and CFO from trading company securities until the filings are completed. The company anticipates completing these filings by June 20, 2025, and has confirmed compliance with regulatory guidelines, with no undisclosed material changes or defaults.

Victory Square Technologies Delays Annual Financial Filings

Victory Square Technologies Inc. has announced a delay in filing its audited annual financial statements and related documents for the fiscal year ending December 31, 2024, resulting in a management cease trade order for its CEO and CFO. Despite the delay, Victory Square is working diligently to complete these filings by June 11, 2025, and has assured stakeholders that no material changes or undisclosed information have occurred since the default announcement.

Victory Square Technologies Delays Annual Financial Filings

Victory Square Technologies has announced a delay in filing its audited annual financial statements and related documents for the fiscal year ending December 31, 2024. The company has been granted a management cease trade order, restricting its CEO and CFO from trading in company securities until the filings are completed, expected by May 30, 2025. The delay does not affect other shareholders’ ability to trade. VST is working diligently to complete the filings and has confirmed no material changes or undisclosed information since the default announcement.