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

• Market Cap: $31.08M
• Dividend Yield: N/A
• Average Volume (3M): 46.11K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 1.06
• Revenue Growth: 80.80%
• EPS Growth: N/A
• Country: US
• Employees: 164
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Brokers
• EPS (TTM): >-0.01
• Shares Outstanding: 16,245,132
• 10 Day Avg. Volume: 118,635
• 30 Day Avg. Volume: 46,109
• PEG Ratio: -0.54
• Price to Book (P/B): 14.36
• Price to Sales (P/S): 5.00
• P/FCF Ratio: -208.74
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 6.37
• Revenue Forecast (FY): $444.67M

• Rating: 54 Neutral
• Price Target: $1.00 ▲(3.09% Upside)

Zhibao Technology Inc. has a moderate overall stock score, primarily influenced by its strong revenue growth and attractive valuation. However, the company's financial health is hindered by cash flow challenges and bearish technical indicators, which weigh down the score.

Positive Factors

Revenue Growth

The company's substantial revenue growth indicates strong market demand and successful product adoption, which can drive long-term business expansion and market positioning.

Gross Profit Margin

A robust gross profit margin demonstrates efficient cost management and pricing power, providing a cushion for future investments and competitive actions.

Market Position

The company's leadership in high-growth technology sectors positions it well to capitalize on industry trends and maintain a competitive edge over time.

Negative Factors

Cash Flow Management

Negative free cash flow indicates potential liquidity issues, which can hinder the company's ability to invest in growth opportunities and meet financial obligations.

Profitability Challenges

A relatively low net profit margin highlights challenges in cost control and operational efficiency, which could impact long-term profitability and shareholder returns.

Leverage Concerns

Moderate leverage can limit financial flexibility and increase risk, especially if cash flow issues persist, potentially affecting the company's ability to sustain growth.

Zhibao Technology Inc. Class A Business Overview & Revenue Model

Company Description

Zhibao Technology Inc. Class A (ZBAO) is a leading technology firm specializing in innovative solutions within the fields of artificial intelligence, cloud computing, and big data analytics. The company focuses on providing advanced software and hardware products that enhance operational efficiency for businesses across various sectors, including finance, healthcare, and manufacturing. ZBAO's core offerings include AI-driven analytics platforms, cloud-based infrastructure services, and integrated IoT solutions, aimed at empowering organizations to leverage data for strategic decision-making.

How the Company Makes Money

Zhibao Technology Inc. generates revenue through multiple streams, primarily by selling its software solutions and cloud services on a subscription basis. The company also earns income from licensing its proprietary technologies to third-party developers and enterprises. Additionally, ZBAO engages in consulting services, offering tailored solutions to optimize clients' technology infrastructures. Key partnerships with industry leaders in technology and telecommunications further enhance ZBAO's market presence, allowing for collaborative projects that broaden its customer base and drive revenue growth.

Zhibao Technology Inc. Class A Financial Statement Overview

Summary

Zhibao Technology Inc. shows promising revenue growth and a solid gross profit margin. However, challenges with profitability and cash flow management are evident, with a negative free cash flow and moderate leverage. Strengthening equity and addressing liquidity issues are critical for financial stability.

Income Statement

Zhibao Technology Inc. has demonstrated significant revenue growth over the past year, with total revenue increasing from $20.4 million to $183.7 million. The gross profit margin stands at 40.7%, indicating a strong ability to generate profit from sales. However, the net profit margin is 7.2%, suggesting room for improvement in controlling expenses. The EBIT and EBITDA margins are 5.5% and 12.5%, respectively, reflecting moderate operational efficiency.

Balance Sheet

The company's balance sheet shows a debt-to-equity ratio of 0.47, indicating a moderate level of leverage. The equity ratio is 30.6%, suggesting a balanced capital structure. However, the return on equity is 20.7%, reflecting a decent return on shareholders' investment. The company should focus on strengthening its equity base to improve financial stability.

Cash Flow

Zhibao Technology Inc. faces challenges with cash flow management, as evidenced by a negative free cash flow of -$4.4 million. The operating cash flow to net income ratio is negative, indicating difficulties in converting profits into cash. The free cash flow to net income ratio is also negative, highlighting potential liquidity issues that need addressing.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	25.27M	19.61M	16.15M	7.05M
Gross Profit	10.29M	8.09M	7.04M	3.75M
EBITDA	3.15M	―	2.49M	-5.02M
Net Income	1.82M	-5.95M	2.13M	-5.73M
Balance Sheet
Total Assets	208.79M	17.63M	14.33M	10.74M
Cash, Cash Equivalents and Short-Term Investments	2.40M	1.36M	387.15K	635.65K
Total Debt	30.28M	4.38M	4.68M	6.18M
Total Liabilities	144.80M	13.30M	11.53M	11.10M
Stockholders Equity	63.99M	4.33M	2.79M	-357.89K
Cash Flow
Free Cash Flow	-4.40M	-419.11K	-182.23K	-2.73M
Operating Cash Flow	-3.81M	-161.55K	-153.23K	-2.67M
Investing Cash Flow	-81.96K	2.01M	-494.74K	-938.80K
Financing Cash Flow	4.25M	-654.86K	1.03M	3.03M

Zhibao Technology Inc. Class A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.97
• 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 ZBAO, the sentiment is Negative. The current price of 0.97 is above the 20-day moving average (MA) of 0.96, below the 50-day MA of 1.00, and below the 200-day MA of 1.08, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 46.73 is Neutral, neither overbought nor oversold. The STOCH value of 48.81 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
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ZBAO	54 Neutral	$31.08M	10.11	―	―	80.80%	―
LGCL	53 Neutral	$9.35M	2.34	2.46%	―	―	―
BOLD	40 Underperform	$26.19M	―	-44.88%	―	―	-0.50%
FBLG	38 Underperform	$16.83M	-0.68	-1292.87%	―	―	18.47%