Last Updated: 16 Sep 2024
Executive Summary
Freight Technologies Inc. (FRGT) is a transportation logistics technology platform operating in North America. Despite its strong revenue growth, the company faces significant challenges, including negative profitability and low analyst ratings. The stock price is currently trading at $0.13, below its 52-week high of $6. Investors should approach FRGT with caution due to its financial struggles and uncertain future prospects.
Company Overview
Freight Technologies Inc. operates Freight App, a transportation logistics platform that connects shippers with carriers. The company aims to streamline the logistics process and improve efficiency for its clients. FRGT has a market capitalization of $181 million and is headquartered in New York, New York.
Fundamental Analysis
Financial Performance: FRGT has reported negative profitability in recent years, with an EBITDA of -$82.4 million and an EPS of -$77.9. The company's profit margin is -0.547%, and its return on assets and equity are also negative.
Revenue and Growth: FRGT's revenue has grown in recent quarters, with a revenue TTM of $170.6 million. However, the company's quarterly revenue growth YOY has declined by -0.217%.
Valuation: FRGT is currently trading at a price-to-sales ratio of 0.106 and a price-to-book ratio of 0.694. These ratios indicate that the stock may be undervalued compared to its peers.
Technical Analysis
Price Action: FRGT's stock price has been on a downward trend in recent months, falling from a 52-week high of $6 to its current price of $0.13.
Moving Averages: The stock's 50-day moving average is $0.216, while its 200-day moving average is $1.357. The current price is below both moving averages, indicating a bearish trend.
Support and Resistance: The stock has support at $0.119, its 52-week low. Resistance is at $0.216, its 50-day moving average.
Short Term Outlook
In the short term, FRGT's stock price is likely to continue its downward trend. The company's negative profitability and weak technical indicators suggest that the stock is not a good investment at this time. Investors should wait for signs of improvement in the company's fundamentals before considering a position.
Long Term Outlook
The long-term outlook for FRGT is uncertain. The company's financial struggles and lack of analyst support are major concerns. However, if FRGT can improve its profitability and execute on its growth plans, it could potentially become a more attractive investment in the future.
Analyst Recommendations
Analysts are generally bearish on FRGT. Out of the analysts covering the stock, 1 has a buy rating, while the rest have hold or sell ratings. The average analyst target price is $90, which is significantly higher than the current price of $0.13. However, investors should be cautious about relying on analyst recommendations, as they can be biased and inaccurate.
