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

• Market Cap: $30.89M
• Dividend Yield: N/A
• Average Volume (3M): 96.89K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 1.04
• 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: 87,983
• 30 Day Avg. Volume: 96,895
• PEG Ratio: N/A
• Price to Book (P/B): 3.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.50
• Enterprise Value/Market Cap: 0.68
• Enterprise Value/Revenue: 0.18
• Enterprise Value/Gross Profit: 1.81
• Enterprise Value/Ebitda: -1.15
• 1Y Price Target: $1.00
• Price Target Upside: 2.04% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: $1.00 ▲(2.04%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.

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. is experiencing strong revenue growth, but faces challenges with profitability and cash flow. The income statement shows significant revenue increases and a positive net income, but the volatility in EBIT and net income raises concerns about operational efficiency. The balance sheet indicates manageable leverage, though the low equity ratio highlights the need for improved financial cushioning. Negative cash flows suggest liquidity issues, necessitating focus on cash conversion and financial stability.

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	183.67M	20.43M	16.76M	6.89M
Gross Profit	74.76M	7.95M	6.78M	3.14M
EBITDA	22.87M	16.71M	-32.48M	12.29M
Net Income	13.25M	-6.40M	1.96M	-5.40M
Balance Sheet
Total Assets	208.79M	17.63M	14.33M	10.74M
Cash, Cash Equivalents and Short-Term Investments	2.40M	2.05M	982.06K	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	-592.34K	2.01M	-494.74K	-938.80K
Financing Cash Flow	30.91M	-654.86K	1.03M	3.03M

Zhibao Technology Inc. Class A Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.98
• 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 Neutral. The current price of 0.98 is above the 20-day moving average (MA) of 0.98, below the 50-day MA of 1.00, and below the 200-day MA of 1.66, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 50.21 is Neutral, neither overbought nor oversold. The STOCH value of 43.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	63 Neutral	$68.09M	8.60	40.01%	―	―	―
Sector *	56 Neutral	$6.50B	15.33	-28.41%	6.35%	11.10%	-32.94%
ZBAO	54 Neutral	$30.89M	10.54	48.31%	―	80.80%	―
BOLD	40 Underperform	$25.97M	―	-54.06%	―	―	―
FBLG	38 Underperform	$27.17M	―	-559.73%	―	―	―