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

• Market Cap: $31.84M
• Dividend Yield: N/A
• Average Volume (3M): 112.64K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 1.11
• 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: 77,872
• 30 Day Avg. Volume: 112,641
• 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: 3.68
• Enterprise Value/Revenue: 1.00
• Enterprise Value/Gross Profit: 10.04
• Enterprise Value/Ebitda: -6.39
• 1Y Price Target: $1.00
• Price Target Upside: -1.96% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: $1.00 ▼(-1.96%Downside)

ZBAO's overall stock score of 55 reflects its strong revenue growth and attractive valuation, counterbalanced by challenges in profitability, cash flow, and bearish technical indicators. The lack of earnings call data and corporate events means that these factors did not influence the score.

Zhibao Technology Inc. Class A Business Overview & Revenue Model

Company Description

Zhibao Technology Inc., through its subsidiaries, provides digital insurance brokerage services in China. It also offers managing general underwriter services; healthcare; and offline insurance brokerage consulting services. The company was founded in 2015 and is based in Shanghai, China.

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
EBITDA	3.66M	22.87M	16.71M	-32.48M	12.29M
Net Income	2.81M	13.25M	-6.40M	1.96M	-5.40M
Balance Sheet
Total Assets	43.15M	208.79M	17.63M	14.33M	10.74M
Cash, Cash Equivalents and Short-Term Investments	18.35M	2.40M	2.05M	982.06K	635.65K
Total Debt	7.56M	30.28M	4.38M	4.68M	6.18M
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: 1.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1.02 is above the 20-day moving average (MA) of 0.99, below the 50-day MA of 1.05, and below the 200-day MA of 1.88, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 50.97 is Neutral, neither overbought nor oversold. The STOCH value of 86.37 is Negative, 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 *	56 Neutral	$5.71B	21.48	-28.61%	5.64%	10.78%	-31.71%
ZBAO	55 Neutral	$31.84M	10.97	48.31%	―	80.80%	―
INHD		$9.21M	―	-97.27%	―	―	―
LGCL	69 Neutral	$118.31M	15.37	40.01%	―	―	―
FBLG	38 Underperform	$25.25M	―	-559.73%	―	―	―
UBXG		$60.90M	22.08	-1.44%	―	―	―
BOLD	40 Underperform	$24.62M	―	-54.06%	―	―	―