Last Updated: 19 Sep 2024
Executive Summary
XIAO-I Corporation, a Chinese provider of AI services, is currently trading at $3.3. Despite strong revenue growth, the company faces challenges with profitability, leading to a negative EPS and EBITDA. Analysts have a neutral outlook on the stock, with no strong buy or sell recommendations.
Company Overview
XIAO-I Corporation provides smart city, software, and architectural design AI services in China. The company has a market capitalization of $31.6 million and is headquartered in Shanghai.
Fundamental Analysis
Revenue: Revenue for the trailing twelve months (TTM) was $59.2 million, showing a 7.5% increase year-over-year.
Earnings: The company reported a net loss of $3.4 million for the TTM, resulting in an EPS of -$3.36.
Profitability: XIAO-I Corporation has negative profit margins, with a gross profit margin of -44.7% and an operating margin of -25.4%.
Return on Assets: The company has a negative return on assets (-21.6%) and a zero return on equity, indicating poor profitability.
Technical Analysis
Price Action: The stock has been trading below its 50-day and 200-day moving averages, indicating a bearish trend.
Support and Resistance: The stock has strong support at $2.061 and resistance at $24.66.
Moving Averages: The 50-day moving average is currently at $4.8, and the 200-day moving average is at $12.17.
Short Term Outlook
The short-term outlook for XIAO-I Corporation is uncertain. The stock is trading below its moving averages and has a negative earnings trend. However, the company's revenue growth is a positive sign.
Long Term Outlook
The long-term outlook for XIAO-I Corporation depends on the company's ability to improve its profitability. If the company can increase its margins and reduce its losses, it could see significant growth potential in the future. However, the AI industry is highly competitive, and the company faces challenges from both domestic and international players.
Analyst Recommendations
Analysts have a neutral outlook on XIAO-I Corporation. There are no strong buy or sell recommendations, and the analyst target price is $18.
