Zhongchao (ZCMD) AI Stock Analysis

• Market Cap: $33.34M
• Dividend Yield: N/A
• Average Volume (3M): 184.89K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.66
• Revenue Growth: -18.37%
• EPS Growth: 71.61%
• Country: US
• Employees: 111
• Sector: Healthcare
• Sector Strength: 58
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -0.12
• Shares Outstanding: 24,704,124
• 10 Day Avg. Volume: 541,455
• 30 Day Avg. Volume: 184,890
• PEG Ratio: 0.74
• Price to Book (P/B): 5.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 908.72
• Enterprise Value/Market Cap: 2.36
• Enterprise Value/Revenue: 1.13
• Enterprise Value/Gross Profit: 8.84
• Enterprise Value/Ebitda: -2.93
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• 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.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
15.86M	19.43M	14.15M	16.30M	17.99M
	Gross Profit
8.91M	8.51M	6.36M	9.44M	11.87M
	EBIT
-341.27K	-13.28M	-2.95M	-320.74K	4.49M
	EBITDA
87.95K	-4.90M	-2.22M	382.24K	4.49M
	Net Income Common Stockholders
-643.23K	-11.34M	-2.82M	238.66K	4.46M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
13.08M	13.45M	12.04M	14.21M	17.11M
	Total Assets
25.88M	24.42M	38.61M	36.27M	34.82M
	Total Debt
57.52K	808.16K	1.70M	201.56K	62.16K
	Net Debt
-7.78M	-6.74M	-9.82M	-13.71M	-15.01M
	Total Liabilities
1.73M	3.38M	5.60M	3.70M	2.98M
	Stockholders Equity
20.84M	18.01M	29.93M	32.57M	31.83M
Cash Flow		Free Cash Flow
-4.52M	-785.51K	-2.52M	1.06M	-1.89M
	Operating Cash Flow
-1.47M	54.23K	-661.74K	2.86M	-1.04M
	Investing Cash Flow
-1.81M	-3.75M	-3.35M	-4.02M	-4.09M
	Financing Cash Flow
3.84M	0.00	1.85M	0.00	11.50M

Zhongchao Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.32
• 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 1.32 is above the 20-day moving average (MA) of 1.17, above the 50-day MA of 1.19, and below the 200-day MA of 1.42, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.86 is Neutral, neither overbought nor oversold. The STOCH value of 38.71 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 *	54 Neutral	$5.41B	3.27	-45.10%	3.29%	16.81%	0.02%
PLUR	46 Neutral	$33.68M	―	-1205.58%	―	203.23%	13.57%
GRCE	46 Neutral	$40.06M	―	-22.89%	―	―	75.74%
ZCMD	43 Neutral	$33.34M	―	-3.31%	―	-18.37%	71.61%
SHOT	40 Neutral	$19.73M	―	-1514.12%	―	-61.03%	5.63%