Datasea Intelligent Technology Ltd

Datasea Intelligent Technology Ltd exhibits a capital structure with a market cap of $9.19 million and a price-to-book ratio of 7.34, indicating a premium valuation relative to its book value. The company's liquidity position is characterized by a current ratio of 1.19, suggesting limited short-term liquidity cushion. Free cash flow is negative at -$4.04 million, and operating cash flow is -$5.95 million, reflecting ongoing cash outflows from operations.

Profitability metrics are weak, with a return on equity of -3.31% and a return on assets of -1.23%, both significantly below industry norms. The company reported a net loss of $4.14 million and an operating loss of $4.11 million, indicating a challenging operating environment. Gross profit of $9.87 million is insufficient to cover operating expenses, contributing to the negative net income.

The company's revenue is not segmented by product or geography in the available data, but the negative operating cash flow and high debt-to-equity ratio of 0.39 suggest a concentration of risk in its core operations. The absence of detailed segment reporting limits visibility into geographic or product-specific performance.

Looking ahead, the company is projected to face continued financial pressure, with no clear indication of revenue growth in the current or next fiscal year. The negative operating cash flow and high debt load suggest a need for operational improvements or external financing to sustain operations.

The risk assessment highlights liquidity concerns, with net cash being negative after subtracting total debt. While dilution risk is currently low, the company's negative free cash flow and high debt-to-equity ratio could necessitate future equity issuance, potentially diluting existing shareholders.

Recent filings and transcripts do not provide additional context on the company's strategic direction or financial outlook, leaving investors with limited insight into management's plans to address ongoing losses and cash flow challenges.

Revenue surged 40,791% year-over-year to $71.6 million, demonstrating explosive top-line growth momentum.

The company achieved a 43.1% revenue CAGR over four years, indicating sustained long-term expansion.

Cash conversion of 1.44 exceeds the software cohort median of 0.92, suggesting efficient cash management.

Dilution risk is assessed as low, providing some protection for existing shareholder equity value.

The company posted a net loss of $5.1 million, resulting in a negative net margin of -2.99%.

Operating margin of -2.97% places the company in the bottom quartile of the software cohort.

Return on equity of -3.31% ranks in the bottom quartile, indicating poor capital efficiency.

Liquidity risk is rated as medium, posing potential challenges for short-term financial stability.

Revenue $24.0M, +558,5% YoY; Operating income −48,2% YoY.

• ▍Revenue $24.0M, +558,5% YoY
• ▍Operating income −48,2% YoY
• ▍Net income −20,0% YoY
• ▍Free cash flow −56,7% YoY
• ▍Net margin -47.5%

Revenue $3.6M, −78,7% YoY; Operating income −13,1% YoY.

• ▍Revenue $3.6M, −78,7% YoY
• ▍Operating income −13,1% YoY
• ▍Net income −45,4% YoY
• ▍Free cash flow +0,6% YoY
• ▍Net margin -260.4%

Revenue $17.1M, +9 652,7% YoY; Operating income −48,9% YoY.

• ▍Revenue $17.1M, +9 652,7% YoY
• ▍Operating income −48,9% YoY
• ▍Net income −40,3% YoY
• ▍Free cash flow −57,3% YoY
• ▍Net margin -38.2%