Zhongchao (ZCMD) AI Stock Analysis

• Market Cap: $29.89M
• Dividend Yield: N/A
• Average Volume (3M): 6.39K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.82
• Revenue Growth: -18.37%
• EPS Growth: 71.61%
• Country: US
• Employees: 111
• Sector: Healthcare
• Sector Strength: 54
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -0.12
• Shares Outstanding: 24,704,124
• 10 Day Avg. Volume: 11,880
• 30 Day Avg. Volume: 6,393
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: -0.02
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -0.05
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Zhongchao's overall stock score is low primarily due to significant financial struggles, including negative cash flows and net losses. Technical analysis indicates a bearish trend, further weighing on the stock. Valuation metrics are also unfavorable, with a negative P/E ratio and no dividend yield, suggesting limited investor appeal at present.

Zhongchao Business Overview & Revenue Model

Company Description

Zhongchao Inc. provides healthcare information, education, and training services in the People's Republic of China. The company offers online and onsite health information services, healthcare education programs, and healthcare training products, including clinical practice training, open classes of popular medical topics, interactive case studies, academic conference and workshops, continuing education courses, and articles and short videos with educational healthcare content. It also provides customized medical courses and medical training services; and patient management services through online platform under the Zhongxun brand. The company operates through its mdmooc.org online platform under the MDMOOC brand; and Sunshine Health Forums, a Wechat subscription account and mobile app. It serves enterprises, non-for-profit organizations, and medical journals, as well as healthcare professionals, nurses, doctors, and other healthcare workers. The company was founded in 2012 and is headquartered in Shanghai, China.

How the Company Makes Money

Zhongchao Inc. generates revenue primarily through its Medical Training and Education segment by offering training programs to healthcare professionals, which include online courses, workshops, and seminars. These programs are often developed in collaboration with medical institutions and professional organizations, providing tailored educational content that meets industry standards and requirements. Additionally, the company monetizes its Internet-Based Healthcare Information Platforms through advertising, subscriptions, and partnerships with pharmaceutical companies and healthcare organizations that wish to reach their target audiences via Zhongchao's platforms. Revenue is further bolstered through collaborations with governmental and non-governmental organizations that seek Zhongchao's expertise in healthcare education and information dissemination.

Zhongchao Financial Statement Overview

Summary

Zhongchao faces considerable financial challenges with declining profit margins and a deteriorating cash flow situation. Despite low leverage, the company needs to address its operational inefficiencies to improve profitability and cash flow stability. The revenue growth is a positive aspect, but it needs to translate into improved margins to support long-term financial health.

Income Statement

The income statement reveals a challenging financial situation for Zhongchao. Gross profit margin has declined, with a 43.8% in 2023 compared to 44.9% in 2022. Revenue growth from 2022 to 2023 was strong at 37.3%, but the company has been suffering from negative EBIT and net income margins, reflecting operational inefficiencies and potential cost management issues. There is a notable deterioration in both EBIT and net income, suggesting potential risks to profitability.

Balance Sheet

Zhongchao's balance sheet exhibits mixed signals. The debt-to-equity ratio remains low at 0.045 in 2023, indicating minimal leverage, which is a positive sign of financial stability. However, equity has been decreasing over the years, pointing to potential risks. The equity ratio of 73.8% in 2023 suggests a strong capital structure, but the declining trend in stockholders' equity might be concerning.

Cash Flow

The cash flow statement shows significant challenges, particularly with free cash flow remaining negative, indicating potential cash constraints. The operating cash flow to net income ratio has improved but remains low, suggesting inefficiencies in cash generation. The free cash flow growth rate from 2022 to 2023 is negative, indicating a deterioration in cash flow position.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
19.43M	14.15M	16.30M	17.99M	14.88M
	Gross Profit
8.51M	6.36M	9.44M	11.87M	10.23M
	EBIT
-13.28M	-2.95M	-320.74K	4.49M	3.64M
	EBITDA
-4.90M	-2.22M	382.24K	4.49M	3.64M
	Net Income Common Stockholders
-11.34M	-2.82M	238.66K	4.46M	4.05M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
13.45M	12.04M	14.21M	17.11M	7.83M
	Total Assets
24.42M	38.61M	36.27M	34.82M	17.74M
	Total Debt
808.16K	1.70M	201.56K	62.16K	251.58K
	Net Debt
-6.74M	-9.82M	-13.71M	-15.01M	-7.58M
	Total Liabilities
3.38M	5.60M	3.70M	2.98M	2.40M
	Stockholders Equity
18.01M	29.93M	32.57M	31.83M	15.39M
Cash Flow		Free Cash Flow
-785.51K	-2.52M	1.06M	-1.89M	95.08K
	Operating Cash Flow
54.23K	-661.74K	2.86M	-1.04M	1.41M
	Investing Cash Flow
-3.75M	-3.35M	-4.02M	-4.09M	-203.07K
	Financing Cash Flow
0.00	1.85M	0.00	11.50M	-1.19M

Zhongchao Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.13
• 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 ZCMD, the sentiment is Negative. The current price of 1.13 is below the 20-day moving average (MA) of 1.18, below the 50-day MA of 1.24, and below the 200-day MA of 1.43, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 45.37 is Neutral, neither overbought nor oversold. The STOCH value of 68.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZCMD.

Zhongchao Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	52 Neutral	$5.21B	3.55	-41.91%	2.83%	15.12%	0.42%
GRCE	46 Neutral	$41.43M	―	-22.89%	―	―	75.74%
ZCMD	43 Neutral	$29.89M	―	-3.31%	―	-18.37%	71.61%
SHOT	40 Underperform	$37.06M	―	-1457.29%	―	-67.69%	-104.65%
PLUR	39 Underperform	$38.60M	―	-1205.58%	―	89.92%	21.39%