XChange TECINC (XHG) AI Stock Analysis

• Market Cap: $4.66B
• Dividend Yield: N/A
• Average Volume (3M): 791.53K
• Price to Earnings (P/E): ―
• Beta (1Y): -1.46
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 38
• Sector: Real Estate
• Sector Strength: 65
• Industry: Real Estate - Services
• EPS (TTM): N/A
• Shares Outstanding: 999,658
• 10 Day Avg. Volume: 2,025,280
• 30 Day Avg. Volume: 791,533
• PEG Ratio: <0.01
• Price to Book (P/B): -0.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -55.63
• 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

XHG's overall stock score is primarily impacted by severe financial distress, with declining revenue and negative cash flows indicating ongoing operational challenges. Technical analysis signals a bearish trend with strong downward momentum, while the lack of valuation metrics further underscores the company's weak financial position.

XChange TECINC Business Overview & Revenue Model

Company Description

XChange TEC.INC engages in the professional insurance agency business in the People's Republic of China. The company provides a various insurance products underwritten by insurance companies, including state-owned property and casualty insurance companies, as well as various regional property and casualty insurance companies. It also offers automobile, life, health, group accident, and other property related insurances primarily to individual end consumers. In addition, the company operates a SaaS platform to offer comprehensive services to online customers. It sells insurance primarily through a network of external referral sources that include external registered sales representatives and strategic channel partners, as well as through the in-house sales force. The company was formerly known as FLJ Group Limited and changed its name to XChange TEC.INC in May 2024. XChange TEC.INC was founded in 2012 and is based in Shanghai, the People's Republic of China.

How the Company Makes Money

XChange TECINC generates revenue primarily through transaction fees, subscription models, and licensing of their technology platforms. The company charges fees for each transaction processed via its digital payment systems and cryptocurrency exchanges. Additionally, XHG offers subscription plans for businesses utilizing its advanced blockchain solutions, ensuring a consistent stream of income. The licensing of its proprietary technologies to other financial institutions and tech companies further contributes to its revenue model. Partnerships with leading banks and fintech companies expand its market reach and amplify its earnings potential.

XChange TECINC Financial Statement Overview

Summary

XHG faces significant financial challenges, with declining revenues, negative profitability, and high leverage. These factors indicate ongoing risks in maintaining financial health, and strategic changes or restructuring might be necessary to improve performance.

Income Statement

The company has experienced a significant decline in revenue over the years, with a drop from $1.23 billion in 2019 to $288.37 million in 2024. Gross profit margins have been negative in recent years, indicating a challenge in covering production costs. Net income has been consistently negative, highlighting ongoing profitability issues.

Balance Sheet

The company's financial stability is concerning, with a negative equity position indicating liabilities exceed assets. The debt-to-equity ratio is not calculable due to negative equity, but total debt remains high compared to total assets, signaling potential solvency risks.

Cash Flow

Operating cash flows have been consistently negative, indicating challenges in generating cash from operations. Free cash flow has similarly been negative, suggesting difficulties in maintaining liquidity. The company's reliance on financing activities to manage cash flow further elevates risks.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
76.74M	288.37M	0.00	652.33M	1.04B	1.21B
	Gross Profit
76.74M	13.47M	0.00	-58.67M	86.55M	-9.70M
	EBIT
66.89M	-588.82M	-25.73M	-29.36M	-27.34M	-1.50B
	EBITDA
0.00	-586.25M	-25.73M	-453.04M	-27.34M	-1.14B
	Net Income Common Stockholders
387.43M	-226.82M	-71.31M	820.02M	-569.17M	-1.53B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
125.48M	10.12M	360.00K	563.00K	16.32M	22.88M
	Total Assets
1.57B	782.84M	85.65M	95.54M	377.63M	850.73M
	Total Debt
482.62M	1.10B	44.43M	6.54M	1.09B	1.49B
	Net Debt
357.14M	1.09B	44.07M	5.98M	1.08B	1.47B
	Total Liabilities
2.47B	1.34B	729.08M	668.40M	2.86B	2.85B
	Stockholders Equity
-909.91M	-556.57M	-643.42M	-572.86M	-2.49B	-2.00B
Cash Flow		Free Cash Flow
-2.09M	-9.77M	-39.87M	-39.59M	-109.66M	-44.33M
	Operating Cash Flow
-2.09M	-9.77M	-39.87M	-39.59M	-109.66M	54.84M
	Investing Cash Flow
10.07M	10.17M	0.00	-11.47M	-6.49M	-138.67M
	Financing Cash Flow
1.88M	8.67M	37.89M	29.31M	101.60M	-134.92M

XChange TECINC Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.75
• 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 XHG, the sentiment is Negative. The current price of 1.75 is below the 20-day moving average (MA) of 2.21, below the 50-day MA of 8.67, and below the 200-day MA of 95.69, indicating a bearish trend. The MACD of -1.75 indicates Negative momentum. The RSI at 32.21 is Neutral, neither overbought nor oversold. The STOCH value of 20.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for XHG.

XChange TECINC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JLL	76 Outperform	$10.99B	20.93	8.16%	―	13.63%	78.40%
CWK	74 Outperform	$2.40B	14.97	9.53%	―	1.24%	1205.18%
EXPI	67 Neutral	$1.26B	―	-6.44%	2.50%	6.69%	-137.52%
Sector *	60 Neutral	$2.82B	10.29	0.31%	8508.26%	5.91%	-17.42%
NMRK	58 Neutral	$2.14B	29.46	5.32%	1.04%	13.87%	90.42%
MMI	53 Neutral	$1.14B	―	-1.09%	1.68%	14.79%	82.32%
XHG	38 Underperform	$4.66B	―	40.75%	―	―	―