Zhibao Technology Inc. Class A (ZBAO) AI Stock Analysis

• Market Cap: $31.49M
• Dividend Yield: N/A
• Average Volume (3M): 149.84K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 1.10
• Revenue Growth: 80.80%
• EPS Growth: N/A
• Country: US
• Employees: 164
• Sector: General
• Sector Strength: N/A
• Industry: Insurance - Brokers
• EPS (TTM): >-0.01
• Shares Outstanding: 14,707,073
• 10 Day Avg. Volume: 152,935
• 30 Day Avg. Volume: 149,844
• PEG Ratio: 0.04
• Price to Book (P/B): 26.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -273.68
• Enterprise Value/Market Cap: 3.72
• Enterprise Value/Revenue: 1.00
• Enterprise Value/Gross Profit: 10.04
• Enterprise Value/Ebitda: -6.39
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: $1.00 ▲(7.53%Upside)

The overall score reflects strong revenue growth counterbalanced by inconsistent profitability and liquidity issues. Technically, the stock is experiencing bearish momentum, which weighs negatively on the score. The reasonable valuation provides some support, but the lack of dividends could deter some investors.

Zhibao Technology Inc. Class A Business Overview & Revenue Model

Company Description

Zhibao Technology Inc. Class A (ZBAO) is a technology company operating in the digital solutions sector. Its core services include providing advanced software platforms and IT solutions aimed at enhancing operational efficiencies for businesses across various industries. Zhibao Technology focuses on leveraging innovative technologies to offer products such as cloud-based management systems, data analytics tools, and enterprise resource planning (ERP) software.

How the Company Makes Money

Zhibao Technology Inc. generates revenue primarily through the sale and licensing of its software products and solutions. It offers subscription-based services for its cloud platforms, which provide recurring revenue streams. The company also earns income through consulting and implementation services, assisting clients in integrating Zhibao's technologies into their existing systems. Additionally, strategic partnerships with industry leaders help expand its market reach and drive sales growth. Zhibao may also engage in collaborations to develop custom solutions, further contributing to its revenue.

Zhibao Technology Inc. Class A Financial Statement Overview

Summary

Zhibao Technology Inc. has shown considerable revenue growth, indicating strong business development. However, volatile EBIT and net income figures, along with negative cash flow, reflect inconsistent profitability and potential liquidity issues. The balance sheet indicates manageable leverage but highlights the need for better asset management.

Income Statement

Zhibao Technology Inc. has demonstrated significant revenue growth over the past year, with total revenue jumping from $20.4M to $183.7M, indicating strong business development. The gross profit margin stands at 40.7%, reflecting effective cost management. However, volatile EBIT and net income figures suggest fluctuating operational efficiency, with a notable swing from a net loss to a net income of $13.3M. This variability presents a risk to consistent profitability.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 0.47, indicating manageable leverage levels. However, the equity ratio is relatively low at 30.6%, which might point to limited financial cushioning against liabilities. The return on equity (ROE) remains positive, yet highlights the necessity for strengthening equity and asset management to ensure sustainable growth.

Cash Flow

Cash flow analysis reveals challenges, with negative operating cash flow of -$3.8M and free cash flow of -$4.4M, suggesting difficulties in generating cash from core operations. This negative cash flow to net income ratio signals potential liquidity issues. Despite substantial financing inflows, the company must improve its cash conversion efficiency to stabilize its financial standing.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement		Total Revenue
34.17M	183.67M	20.43M	16.76M	6.89M
	Gross Profit
11.65M	74.76M	7.95M	6.78M	3.14M
	EBIT
3.19M	10.11M	-44.55M	12.64M	-35.76M
	EBITDA
3.66M	22.87M	16.71M	-32.48M	12.29M
	Net Income Common Stockholders
2.81M	13.25M	-6.40M	1.96M	-5.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
18.35M	2.40M	2.05M	982.06K	635.65K
	Total Assets
43.15M	208.79M	17.63M	14.33M	10.74M
	Total Debt
7.56M	30.28M	4.38M	4.68M	6.18M
	Net Debt
-10.78M	27.88M	2.34M	3.70M	5.55M
	Total Liabilities
33.07M	144.80M	13.30M	11.53M	11.10M
	Stockholders Equity
10.08M	63.99M	4.33M	2.79M	-357.89K
Cash Flow		Free Cash Flow
-12.39M	-4.40M	-419.11K	-182.23K	-2.73M
	Operating Cash Flow
-2.02M	-3.81M	-161.55K	-153.23K	-2.67M
	Investing Cash Flow
-655.00K	-592.34K	2.01M	-494.74K	-938.80K
	Financing Cash Flow
6.21M	30.91M	-654.86K	1.03M	3.03M

Zhibao Technology Inc. Class A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.93
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZBAO, the sentiment is Negative. The current price of 0.93 is below the 20-day moving average (MA) of 1.03, below the 50-day MA of 1.08, and below the 200-day MA of 2.09, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 38.89 is Neutral, neither overbought nor oversold. The STOCH value of 26.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZBAO.

Zhibao Technology Inc. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LGCL	73 Outperform	$48.69M	8.73	40.01%	―	―	―
Sector *	58 Neutral	$4.95B	18.19	-16.94%	6.95%	13.73%	-24.47%
ZBAO	54 Neutral	$31.49M	10.02	48.31%	―	80.80%	―
BOLD	40 Underperform	$24.40M	―	-54.06%	―	―	―
FBLG	38 Underperform	$30.50M	―	-559.73%	―	―	―