ZW Data Action Technologies (CNET) AI Stock Analysis

• Market Cap: $3.43M
• Dividend Yield: N/A
• Average Volume (3M): 17.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.13
• Revenue Growth: -37.93%
• EPS Growth: -23.27%
• Country: US
• Employees: 50
• Sector: Communication Services
• Sector Strength: 59
• Industry: Advertising Agencies
• EPS (TTM): -1.47
• Shares Outstanding: 2,186,213
• 10 Day Avg. Volume: 35,687
• 30 Day Avg. Volume: 17,730
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.18
• Price to Cash Flow (P/CF): -4.10
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

ZW Data Action Technologies has a low overall stock score, primarily due to severe financial performance challenges, including declining revenues, negative margins, and cash flow issues. Technical analysis suggests bearish momentum, and the negative P/E ratio highlights valuation concerns. The combination of these factors indicates a high-risk investment with potential liquidity issues.

ZW Data Action Technologies Business Overview & Revenue Model

Company Description

ZW Data Action Technologies (CNET) is a technology company that operates primarily in the digital advertising and internet services sectors. The company offers a diverse range of services including internet advertising, precision marketing, and data analytics. It leverages a proprietary technology platform to deliver integrated marketing solutions to its clients, enabling them to reach their target audiences effectively.

How the Company Makes Money

ZW Data Action Technologies generates revenue primarily through its digital advertising services, where it provides internet advertising, search engine marketing, and data-driven marketing solutions to businesses. The company charges clients for advertising placements and marketing campaigns based on performance metrics such as impressions, clicks, and conversions. Additionally, ZW Data Action Technologies earns money through its data analytics services, where it provides insights and analysis to help businesses optimize their marketing strategies. The company may also engage in partnerships with other technology and advertising firms to expand its service offerings and enhance its revenue streams.

ZW Data Action Technologies Financial Statement Overview

Summary

ZW Data Action Technologies is experiencing a challenging financial situation. The company faces steep revenue declines, negative profit margins, and deteriorating balance sheet health, with negative stockholders' equity in the latest period. Cash flow issues further highlight operational struggles, with significant outflows and insufficient cash generation. These factors collectively indicate a high-risk profile with potential liquidity concerns.

Income Statement

The company has been facing consistent revenue declines, evident from a significant drop from $47.3M in 2021 to $18.5M in TTM (Trailing-Twelve-Months) 2024. The gross profit margin is negative, indicating costs exceed revenue. Net profit margins are deeply negative, exacerbated by declining revenues and high operating costs.

Balance Sheet

The balance sheet shows financial distress, with stockholders' equity turning negative in TTM 2024, indicating liabilities exceed assets. Additionally, the debt-to-equity ratio isn't meaningful due to negative equity, reflecting balance sheet instability. Return on equity is also negative, suggesting losses continue to erode shareholder value.

Cash Flow

The company struggles with negative free cash flow, indicating more cash is flowing out than in, with no signs of improvement in TTM 2024. The operating cash flow to net income ratio is unavailable due to negative figures, signaling operational inefficiencies and cash management issues.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
18.46M	30.59M	26.23M	47.33M	38.41M	58.08M
	Gross Profit
-188.00K	-436.00K	-194.00K	98.00K	632.00K	5.50M
	EBIT
-3.74M	-6.01M	-11.12M	-13.59M	-5.70M	-1.69M
	EBITDA
-2.92M	-3.13M	-6.78M	-12.96M	-4.83M	-1.02M
	Net Income Common Stockholders
-4.89M	-5.97M	-9.79M	-2.69M	-5.22M	-1.27M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
12.39M	817.00K	4.39M	7.17M	4.30M	1.60M
	Total Assets
26.82M	11.23M	19.66M	32.63M	20.67M	18.55M
	Total Debt
128.00K	247.00K	2.11M	2.40M	387.00K	691.00K
	Net Debt
-12.27M	-570.00K	-2.28M	-4.78M	-3.91M	-912.00K
	Total Liabilities
4.35M	4.98M	7.36M	10.87M	8.19M	7.14M
	Stockholders Equity
22.47M	6.25M	12.30M	21.77M	12.54M	11.47M
Cash Flow		Free Cash Flow
-1.74M	-2.09M	-3.19M	-10.33M	-1.68M	-6.43M
	Operating Cash Flow
-1.71M	-2.01M	-3.19M	-8.84M	326.00K	-4.31M
	Investing Cash Flow
584.02K	-1.54M	552.00K	-5.47M	-3.47M	-2.16M
	Financing Cash Flow
876.00K	0.00	-40.00K	17.11M	5.82M	4.35M

ZW Data Action Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.48
• 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 CNET, the sentiment is Negative. The current price of 1.48 is below the 20-day moving average (MA) of 1.50, below the 50-day MA of 1.58, and below the 200-day MA of 2.13, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 44.38 is Neutral, neither overbought nor oversold. The STOCH value of 28.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CNET.

ZW Data Action Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BIDU	76 Outperform	$31.66B	9.79	9.14%	―	-2.60%	16.71%
WB	63 Neutral	$2.31B	8.06	8.74%	―	-0.29%	-12.84%
Sector *	59 Neutral	$27.83B	1.88	-18.16%	4.00%	2.13%	-44.45%
CMCM	53 Neutral	$123.91M	―	-24.55%	―	―	―
SOHU	48 Neutral	$379.73M	―	-10.12%	―	-0.38%	-61.79%
FENG	41 Neutral	$26.23M	―	-4.47%	―	0.22%	49.14%
CNET	36 Underperform	$3.43M	―	-74.75%	―	-37.93%	-23.27%

ZW Data Action Technologies Corporate Events

ZW Data Action Technologies Announces Board Changes

ZW Data Action Technologies Inc. announced the resignation of Kevin Choi as an independent director, with no disagreement cited between him and the company. Justin Tam, with extensive experience in business development and healthcare technology, has been appointed as the new independent director, meeting qualifications according to Nasdaq Marketplace Rules.