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Waton Financial Limited
(NASDAQ:WTF)
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Rating:44Neutral
Price Target:
$3.00
▼(-2.91% Downside)
Action:Reiterated
Date:08/02/26
The score is held down primarily by deteriorating financial performance—especially the swing to sizable losses and the 2026 cash burn—despite an otherwise acceptable (but weakening) balance-sheet profile. Technicals show only modest short-term stabilization while the longer-term trend remains negative, and valuation is unattractive/unclear given negative earnings and no dividend support.
Positive Factors
AI-native platform transition
MoTA Alpha represents a structural shift from brokerage/SaaS to an AI-native fintech platform with a creator marketplace and multi-agent workflow. If adopted, this can diversify revenue toward platform fees, create network effects via third-party agents, and raise long-term gross margin potential.
Negative Factors
Cash burn / negative FCF
A sharp move to negative operating and free cash flow in 2026 is a structural funding risk. Continued cash burn can force dilutive equity raises or higher debt, constrain R&D and marketing for MoTA, and impair the company’s ability to sustain a product-led transition without securing external financing.
Read all positive and negative factors
Positive Factors
Negative Factors
AI-native platform transition
MoTA Alpha represents a structural shift from brokerage/SaaS to an AI-native fintech platform with a creator marketplace and multi-agent workflow. If adopted, this can diversify revenue toward platform fees, create network effects via third-party agents, and raise long-term gross margin potential.
Read all positive factors
Waton Financial Limited (WTF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$143.75M
Dividend YieldN/A
Average Volume (3M)124.39K
Price to Earnings (P/E)―
Beta (1Y)1.24
Revenue Growth-0.67%
EPS Growth-1219.57%
CountryUS
Employees51
SectorGeneral
Sector StrengthN/A
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)N/A
Shares Outstanding48,237,473
10 Day Avg. Volume22,117
30 Day Avg. Volume124,385
Financial Highlights & Ratios
PEG Ratio0.99
Price to Book (P/B)7.41
Price to Sales (P/S)14.53
P/FCF Ratio-21.81
Enterprise Value/Market Cap0.95
Enterprise Value/Revenue236.07
Enterprise Value/Gross Profit294.46
Enterprise Value/Ebitda-115.50
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Waton Financial Limited Business Overview & Revenue Model
Company Description
Waton Financial Limited, established in 1989 and based in Kowloon City, Hong Kong, specializes in providing securities brokerage and financial technology services. The company offers clients access to trading on major stock exchanges, including th...
How the Company Makes Money
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Waton Financial Limited Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
54
Neutral
Cash Flow
24
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 577.28K | 11.08M | 7.45M | 10.06M | 5.74M | 252.82K |
| Gross Profit | 462.80K | 2.47M | 3.00M | 6.74M | 4.35M | 191.16K |
| EBITDA | -1.18M | -13.54M | -10.87M | 3.53M | 3.91M | -1.63M |
| Net Income | -1.39M | -15.15M | -11.97M | 2.50M | 3.08M | -1.50M |
Balance Sheet | ||||||
| Total Assets | 30.72M | 54.66M | 30.72M | 32.68M | 40.77M | 5.79M |
| Cash, Cash Equivalents and Short-Term Investments | 7.72M | 12.99M | 7.72M | 4.95M | 19.09M | 1.73M |
| Total Debt | 525.36K | 2.58M | 525.36K | 2.86M | 5.29M | 2.41M |
| Total Liabilities | 17.96M | 32.93M | 17.96M | 21.94M | 26.61M | 4.98M |
| Stockholders Equity | 12.77M | 21.73M | 12.77M | 10.74M | 14.16M | 816.84K |
Cash Flow | ||||||
| Free Cash Flow | 371.67K | -7.38M | 346.22K | -2.11M | 11.96M | 745.56K |
| Operating Cash Flow | 372.54K | -7.06M | 359.96K | -1.85M | 11.97M | 750.91K |
| Investing Cash Flow | -860.00 | -2.03M | -13.74K | -8.21M | -4.98K | -5.36K |
| Financing Cash Flow | 597.51K | 19.58M | 2.76M | -8.30M | 12.98M | 1.05M |
Waton Financial Limited Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
58 Neutral | $24.37M | 12.40 | 30.08% | ― | 5.04% | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
47 Neutral | $47.09M | -21.57 | -9.56% | ― | -7.04% | 66.60% | |
44 Neutral | $143.75M | -57.98 | -19.47% | ― | -0.67% | -1219.57% | |
44 Neutral | $4.22M | -0.10 | 641.51% | ― | -51.65% | 58.35% | |
42 Neutral | $49.34M | -0.05 | 65.74% | ― | -20.78% | -530.91% |
* General Sector Average
WTF
Waton Financial Limited
2.88
-1.37
-32.24%
MGLD
Marygold Companies
1.07
0.33
44.99%
BCG
Binah Capital Group
1.35
-0.69
-33.99%
BENF
Beneficient
3.00
0.73
32.16%
CWD
CaliberCos, Inc. Class A
0.52
-2.07
-79.92%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.