WiMi Hologram Cloud (WIMI) AI Stock Analysis

• Market Cap: $70.07M
• Dividend Yield: N/A
• Average Volume (3M): 432.61K
• Price to Earnings (P/E): 3.1
• Beta (1Y): 1.59
• Revenue Growth: -27.98%
• EPS Growth: N/A
• Country: US
• Employees: 107
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 0.51
• Shares Outstanding: 8,815,026
• 10 Day Avg. Volume: 277,492
• 30 Day Avg. Volume: 432,611
• PEG Ratio: -1.42
• Price to Book (P/B): 13.27
• Price to Sales (P/S): 24.47
• P/FCF Ratio: 24.89
• Enterprise Value/Market Cap: 0.68
• Enterprise Value/Revenue: 0.11
• Enterprise Value/Gross Profit: 0.40
• Enterprise Value/Ebitda: -61.67
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $4.00 ▲(30.72% Upside)

WiMi Hologram Cloud's overall score reflects its mixed financial performance and bearish technical indicators. While the stock appears undervalued, declining revenues and operational challenges weigh on its prospects. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Profitability

The strong net profit margin and low debt-to-equity ratio indicate efficient operations and conservative financial management, enhancing long-term profitability and stability.

Financial Growth

The significant growth in total assets reflects WiMi's expanding market presence and operational capabilities, supporting future business expansion and competitive positioning.

Cash Flow Improvement

Improving cash flow generation enhances WiMi's ability to invest in growth opportunities and manage financial obligations, supporting long-term sustainability.

Negative Factors

Revenue Decline

The continued decline in revenue poses a challenge to WiMi's growth strategy and may impact its ability to maintain market leadership in the holographic sector.

Operational Challenges

Negative operational margins indicate inefficiencies in cost management, which could hinder profitability and require strategic adjustments to improve operational performance.

Historical Volatility

Volatility in cash flows suggests potential instability in financial performance, which could affect WiMi's ability to consistently fund operations and strategic initiatives.

WiMi Hologram Cloud Business Overview & Revenue Model

Company Description

WiMi Hologram Cloud Inc. provides augmented reality (AR) based holographic services and products in China. It operates in three segments: AR Advertising Services, AR Entertainment, and Semiconductor Related Products and Services. The company primarily offers holographic AR advertising services and holographic AR entertainment products. Its holographic AR advertising software enables users to insert into video footages real or animated three-dimensional objects; and online holographic AR advertising solution embeds holographic AR ads into films and shows. The company's holographic AR entertainment products consist primarily of payment middleware software, game distribution platform, and holographic mixed reality software. In addition, it engages in the provision of central processing algorithm services, and provides computer chip products to enterprise customers, as well as sells comprehensive solutions for central processing algorithms and related services with software and hardware integration. Further, the company's holographic AR technologies are used in software engineering, content production, cloud, and big data. WiMi Hologram Cloud Inc. was founded in 2015 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

WiMi generates revenue through multiple streams, primarily by selling its holographic products and services to various industries. Its key revenue streams include direct sales of holographic displays and software solutions, subscription fees for access to its cloud-based platform, and licensing agreements for its technology. Additionally, WIMI engages in strategic partnerships with businesses and educational institutions to implement its holographic solutions, further expanding its market reach and revenue potential. The growing demand for immersive technologies in marketing and entertainment also contributes to the company's earnings, as it positions itself as a pioneer in the holographic space.

WiMi Hologram Cloud Financial Statement Overview

Summary

WiMi Hologram Cloud shows mixed financial performance. While profitability has improved with a significant net profit margin and low leverage, the company faces declining revenues and negative operational margins. Cash flow is improving but has been historically volatile.

Income Statement

WiMi Hologram Cloud's income statement shows mixed results. The TTM data indicates a significant net profit margin of 38.76%, which is a positive sign. However, the company has experienced a revenue decline of 10.45% in the TTM period, following a trend of decreasing revenues over the past years. The EBIT and EBITDA margins are negative, indicating operational challenges. Overall, while profitability has improved, the declining revenue trend and negative operational margins are concerning.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.20 in the TTM period, suggesting conservative leverage. The return on equity has improved to 13.73%, indicating better utilization of equity to generate profits. However, the equity ratio is not explicitly calculated, but the company's equity appears strong relative to its assets. The balance sheet shows strength in terms of low leverage and improved profitability metrics.

Cash Flow

Cash flow analysis reveals a positive trajectory with a 5.62% growth in free cash flow in the TTM period. The operating cash flow to net income ratio is 0.63, indicating decent cash generation relative to net income. The free cash flow to net income ratio is nearly 1, showing efficient conversion of net income to free cash flow. Despite these positives, the historical volatility in cash flows and past negative figures highlight potential risks.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	439.35M	541.92M	585.37M	682.29M	933.79M	766.01M
Gross Profit	118.50M	153.98M	173.70M	143.05M	249.57M	169.43M
EBITDA	-771.41K	12.94M	-222.07M	-249.85M	-112.87M	-131.59M
Net Income	170.28M	71.64M	-421.19M	-357.73M	-235.97M	-151.17M
Balance Sheet
Total Assets	3.40B	2.15B	1.03B	1.26B	1.51B	1.17B
Cash, Cash Equivalents and Short-Term Investments	3.19B	1.92B	773.84M	611.23M	785.44M	387.90M
Total Debt	292.53M	148.22M	49.92M	44.07M	90.37M	101.10M
Total Liabilities	972.86M	767.42M	269.47M	110.98M	165.56M	163.37M
Stockholders Equity	1.48B	999.18M	752.98M	1.05B	1.26B	997.25M
Cash Flow
Free Cash Flow	596.31M	532.88M	20.49M	-239.26M	33.00M	-67.45M
Operating Cash Flow	596.34M	532.90M	88.56M	-238.16M	58.16M	-66.96M
Investing Cash Flow	-559.39M	-416.77M	-304.74M	-90.25M	-237.67M	-228.13M
Financing Cash Flow	1.44B	667.60M	3.86M	108.86M	579.41M	562.64M

WiMi Hologram Cloud Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WIMI, the sentiment is Negative. The current price of 3.06 is below the 20-day moving average (MA) of 3.10, below the 50-day MA of 3.85, and below the 200-day MA of 4.62, indicating a bearish trend. The MACD of -0.26 indicates Negative momentum. The RSI at 42.72 is Neutral, neither overbought nor oversold. The STOCH value of 60.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WIMI.

WiMi Hologram Cloud Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
WIMI	56 Neutral	$70.07M	3.14	15.20%	―	-27.98%	―
MCHX	45 Neutral	$76.43M	-16.17	-14.61%	―	-4.32%	-13.99%
FLNT	38 Underperform	$56.99M	-1.47	-127.41%	―	-18.94%	37.05%
VSME	31 Underperform	$25.55M	-6.87	-194.72%	―	-11.51%	74.52%
YDKG	25 Underperform	$7.87M	―	-113.86%	―	2482.80%	-169.59%

WiMi Hologram Cloud Corporate Events

WiMi Hologram Cloud Reports Strong Financial Growth in Mid-2025

WiMi Hologram Cloud Inc. released its unaudited interim financial report for the six months ending June 30, 2025. The report highlights a significant increase in total assets from RMB 2.15 billion at the end of 2024 to RMB 3.4 billion by mid-2025, indicating strong financial growth. The company’s liabilities also rose, but the increase in shareholders’ equity suggests a positive outlook for stakeholders. This financial performance reflects WiMi’s expanding market presence and operational capabilities in the AR and holographic sectors.