Zhongchao (ZCMD) AI Stock Analysis

• Market Cap: $13.43M
• Dividend Yield: N/A
• Average Volume (3M): 69.01K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.23
• Revenue Growth: -24.64%
• EPS Growth: 92.19%
• Country: US
• Employees: 111
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -0.12
• Shares Outstanding: 24,839,130
• 10 Day Avg. Volume: 16,721
• 30 Day Avg. Volume: 69,011
• PEG Ratio: 0.13
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.53
• P/FCF Ratio: -1.87
• Enterprise Value/Market Cap: 1.63
• Enterprise Value/Revenue: 1.66
• Enterprise Value/Gross Profit: 3.17
• Enterprise Value/Ebitda: -53.69
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: ―

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.

Positive Factors

Strong Equity Position

A strong equity position with low leverage provides Zhongchao with a stable financial foundation, reducing risk and enhancing resilience against market fluctuations.

Gross Profit Margin

A high gross profit margin indicates effective cost management, which can support profitability and competitive pricing strategies over the long term.

Healthcare Education Demand

The demand for healthcare education and training is likely to remain robust, providing Zhongchao with a steady revenue stream from its educational services.

Negative Factors

Declining Revenues

Declining revenues can hinder growth and profitability, impacting Zhongchao's ability to invest in new opportunities and maintain competitive positioning.

Negative Cash Flows

Negative cash flows indicate liquidity challenges, limiting Zhongchao's ability to fund operations and invest in growth initiatives, potentially affecting long-term sustainability.

Operational Inefficiencies

Operational inefficiencies leading to negative margins can erode profitability and hinder Zhongchao's ability to compete effectively in the market.

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 financial challenges with declining revenues, consistent net losses, and negative cash flows. While the balance sheet shows a strong equity position and low leverage, the company's operational inefficiencies and liquidity issues raise concerns about its long-term sustainability.

Income Statement

Zhongchao's income statement reveals a decline in total revenue from the previous year and negative net income, indicating financial difficulties. The gross profit margin stands at 56.2%, showing efficiency in managing production costs. However, the negative EBIT and net profit margins reflect operational inefficiencies and persistent losses.

Balance Sheet

The balance sheet indicates a strong equity position with an equity ratio of 80.5%, suggesting financial stability and low leverage, as evidenced by a minimal debt-to-equity ratio of 0.003. However, the return on equity is negative due to persistent losses, highlighting challenges in generating returns for shareholders.

Cash Flow

The cash flow statements show negative free cash flow and operating cash flow, indicating liquidity challenges. The significant decline in free cash flow from the previous year underscores the company's struggles to generate cash from operations, posing risks for future financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.12M	15.86M	19.43M	14.15M	16.30M	17.99M
Gross Profit	6.88M	8.91M	8.51M	6.36M	9.44M	11.87M
EBITDA	-406.67K	87.95K	-4.49M	-2.22M	-2.32K	4.67M
Net Income	-1.70M	-643.23K	-11.34M	-2.94M	238.66K	4.46M
Balance Sheet
Total Assets	26.31M	25.88M	24.42M	38.61M	36.27M	34.82M
Cash, Cash Equivalents and Short-Term Investments	15.03M	13.08M	13.45M	12.04M	14.21M	17.11M
Total Debt	27.59K	57.52K	808.16K	1.70M	201.56K	62.16K
Total Liabilities	2.56M	1.73M	3.38M	5.60M	3.70M	2.98M
Stockholders Equity	20.27M	20.84M	18.01M	29.93M	32.57M	31.83M
Cash Flow
Free Cash Flow	-1.41M	-4.52M	-785.51K	-2.52M	1.06M	-1.89M
Operating Cash Flow	-461.96K	-1.47M	54.23K	-661.74K	2.86M	-1.04M
Investing Cash Flow	-990.36K	-1.81M	-3.75M	-3.35M	-4.02M	-4.09M
Financing Cash Flow	3.84M	3.84M	0.00	1.85M	0.00	11.50M

Zhongchao Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.53
• 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 0.53 is below the 20-day moving average (MA) of 0.55, below the 50-day MA of 0.61, and below the 200-day MA of 0.98, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 46.20 is Neutral, neither overbought nor oversold. The STOCH value of 39.13 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 *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ZCMD	43 Neutral	$13.43M	-2.70	-8.96%	―	-24.64%	92.19%
SCNX	40 Underperform	$22.46M	-0.31	-44.11%	―	-73.18%	92.38%
VSEE	38 Underperform	$14.24M	-0.56	―	―	187.24%	82.90%

Zhongchao Corporate Events

Zhongchao Inc. Faces Nasdaq Compliance Challenge

Zhongchao Inc. received a notification from Nasdaq on November 28, 2025, regarding non-compliance with the Minimum Bid Price Requirement, as its Class A ordinary shares had closed below $1.00 per share from October 9 to November 26, 2025. The company has until May 28, 2026, to regain compliance by maintaining a closing bid price of at least $1.00 per share for ten consecutive business days. If compliance is not achieved, the company may face delisting, though it may be eligible for an additional compliance period if certain conditions are met. Zhongchao is exploring options, including a reverse stock split, to address this issue.

Zhongchao Inc. Announces Extraordinary General Meeting for January 2026

Zhongchao Inc. has announced an extraordinary general meeting of its Class A ordinary shareholders to be held on January 20, 2026, in New York. The meeting will address two key proposals: a special resolution to increase the voting rights of Class B ordinary shares from 100 to 1,000 votes per share, and an ordinary resolution to adjourn the meeting if necessary. The board of directors recommends voting in favor of both proposals, which could significantly impact the company’s governance structure by altering the balance of voting power among shareholders.