WiMi Hologram Cloud (WIMI) AI Stock Analysis

• Market Cap: $41.74M
• Dividend Yield: N/A
• Average Volume (3M): 380.67K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 1.34
• Revenue Growth: -8.74%
• EPS Growth: N/A
• Country: US
• Employees: 107
• Sector: Communication Services
• Sector Strength: 76
• Industry: Advertising Agencies
• EPS (TTM): 0.51
• Shares Outstanding: 8,815,026
• 10 Day Avg. Volume: 465,101
• 30 Day Avg. Volume: 380,670
• PEG Ratio: 46.77
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.01
• 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: $2.50
• Price Target Upside: -39.61% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 62 Neutral
• Price Target: $4.50 ▲(8.70%Upside)

WiMi's stock score is driven primarily by its favorable valuation, suggesting it is undervalued. The technical analysis supports a short-term bullish trend, although long-term indicators warrant caution. Financial performance shows potential with a strong cash position but is hindered by declining revenue and margins. The absence of recent earnings call data and corporate events means these did not factor into the score.

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 Hologram Cloud generates revenue through several key streams. Primarily, the company earns money by providing holographic AR advertising services, where it creates and delivers holographic ads for clients, enhancing engagement and user interaction. Additionally, WiMi offers holographic AR entertainment products, such as software and content for virtual reality experiences, which are monetized through direct sales, subscriptions, or licensing agreements. The company may also benefit from partnerships with other technology firms, broadcasters, and media companies to expand its reach and enhance its product offerings. WiMi's ability to innovate within the AR space and attract a diverse client base significantly contributes to its earnings potential.

WiMi Hologram Cloud Financial Statement Overview

Summary

WiMi Hologram Cloud shows mixed financial results. The company has a strong cash position and low leverage, which are positives, but it faces challenges with declining revenue and operational margins. Recent improvements in net income and free cash flow are promising, but asset management needs enhancement.

Income Statement

WiMi Hologram Cloud's income statement shows a declining revenue trend over the past few years, with revenue decreasing from 2019 to 2024. Gross profit margin has also decreased, indicating cost pressures. The company reported negative EBIT and EBITDA in recent years, reflecting operational challenges. Net profit margin improved in 2024, turning positive after a series of losses, suggesting some recovery.

Balance Sheet

The balance sheet highlights a strong cash position with cash and short-term investments significantly exceeding total debt, resulting in negative net debt. The debt-to-equity ratio is low, indicating low leverage. However, the equity ratio has been declining, and stockholders' equity decreased slightly in 2024, signaling potential risks in asset management.

Cash Flow

The cash flow analysis shows substantial growth in free cash flow in 2024, with a significant increase in operating cash flow. The free cash flow to net income ratio is favorable, suggesting efficient cash management. However, the company has experienced fluctuations in financing and investing cash flows, indicating inconsistent cash flow stability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	541.92M	585.37M	682.29M	933.79M	766.01M
Gross Profit	153.98M	173.70M	143.05M	249.57M	169.43M
EBITDA	118.05M	-222.07M	-308.71M	-228.44M	-135.73M
Net Income	71.64M	-421.19M	-376.82M	-254.39M	-144.96M
Balance Sheet
Total Assets	2.15B	1.03B	1.26B	1.51B	1.17B
Cash, Cash Equivalents and Short-Term Investments	1.92B	773.84M	611.23M	785.44M	387.90M
Total Debt	125.62M	49.92M	44.07M	90.37M	101.10M
Total Liabilities	767.42M	269.47M	110.98M	165.56M	163.37M
Stockholders Equity	999.18M	752.98M	1.05B	1.26B	997.25M
Cash Flow
Free Cash Flow	532.88M	20.49M	-239.26M	33.00M	-67.45M
Operating Cash Flow	532.90M	88.56M	-238.16M	58.16M	-66.96M
Investing Cash Flow	-416.77M	-304.74M	-90.25M	-237.67M	-228.13M
Financing Cash Flow	667.60M	3.86M	108.86M	579.41M	562.64M

WiMi Hologram Cloud Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.14
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WIMI, the sentiment is Neutral. The current price of 4.14 is above the 20-day moving average (MA) of 3.43, above the 50-day MA of 3.23, and below the 200-day MA of 7.33, indicating a neutral trend. The MACD of 0.28 indicates Negative momentum. The RSI at 64.41 is Neutral, neither overbought nor oversold. The STOCH value of 80.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WIMI.

WiMi Hologram Cloud Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WIMI	62 Neutral	$41.74M	8.37	8.21%	―	-8.74%	―
Sector *	62 Neutral	$42.18B	-1.56	-12.06%	2.81%	2.10%	-71.01%
MCHX	61 Neutral	$89.12M	―	-16.55%	―	-2.67%	21.65%
SWAG	60 Neutral	$28.72M	―	-12.15%	―	17.04%	-2188.42%
INUV	59 Neutral	$80.78M	―	-34.39%	―	18.20%	50.08%
HHS	47 Neutral	$25.11M	―	-147.49%	―	-4.46%	-3053.30%
FLNT	45 Neutral	$50.85M	―	-123.16%	―	-15.07%	33.40%