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ConnectM Technology Solutions (CNTM)
NASDAQ:CNTM
US Market

ConnectM Technology Solutions (CNTM) AI Stock Analysis

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ConnectM Technology Solutions

(NASDAQ:CNTM)

28Underperform
ConnectM Technology Solutions faces severe financial difficulties, with no revenue and ongoing losses. Technical indicators offer some short-term optimism, but long-term trends remain negative. Valuation metrics highlight unprofitability, and a potential Nasdaq delisting poses a significant risk. Overall, the stock is currently a high-risk investment with a low score of 28.

ConnectM Technology Solutions (CNTM) vs. S&P 500 (SPY)

ConnectM Technology Solutions Business Overview & Revenue Model

Company DescriptionConnectM Technology Solutions (CNTM) specializes in providing advanced connectivity and IoT solutions across various sectors, including transportation, energy, and logistics. The company focuses on enhancing operational efficiency and enabling data-driven decision-making through its innovative technology products and services.
How the Company Makes MoneyConnectM Technology Solutions makes money through a combination of product sales, subscription services, and consulting. The company generates revenue by selling its IoT devices and connectivity solutions to businesses in need of advanced data analytics and monitoring capabilities. Additionally, CNTM offers subscription-based access to its software platforms and analytics tools, which provide ongoing insights and operational enhancements for its clients. Consulting services are another key revenue stream, where CNTM leverages its industry expertise to assist organizations in optimizing their IoT deployments and achieving business goals. Partnerships with technology providers and industry leaders further bolster its revenue by expanding its market reach and enhancing its service offerings.

ConnectM Technology Solutions Financial Statement Overview

Summary
ConnectM Technology Solutions is facing significant financial challenges, with no revenue in the recent period and ongoing losses impacting both profitability and cash flow. While the company maintains a low level of debt, its financial stability is undermined by negative returns and cash outflows. Strategic initiatives to bolster revenue and improve operational efficiencies will be crucial for future financial health.
Income Statement
10
Very Negative
The company is facing significant challenges with negative revenue growth and profitability. Total revenue dropped to zero in the most recent year, and the net profit margin is severely negative, indicating operational inefficiencies. Both EBIT and EBITDA margins are negative, suggesting ongoing losses. The company needs to address these issues to improve its financial health.
Balance Sheet
40
Negative
The balance sheet shows a relatively low debt-to-equity ratio, indicating limited leverage, which is a positive aspect. However, the return on equity is negative due to consistent losses. While the equity ratio is decent, indicating some financial stability, the company must improve profitability to enhance shareholder value.
Cash Flow
20
Very Negative
Cash flow analysis reveals negative operating cash flow, which is a concern for liquidity. Free cash flow is also negative, reflecting ongoing cash outflows. The operating cash flow to net income ratio is not favorable, indicating inefficiencies in converting net income to cash. The company needs to focus on improving cash generation.
Breakdown
TTMDec 2023Dec 2022Dec 2021
Income StatementTotal Revenue
6.07M0.0015.44M4.34M
Gross Profit
1.87M0.004.04M892.49K
EBIT
-4.31M-2.98M-2.10M-19.89K
EBITDA
-12.79M-14.03M-3.52M-3.20M
Net Income Common Stockholders
-17.89M-14.94M-3.76M-19.89K
Balance SheetCash, Cash Equivalents and Short-Term Investments
9.84K5.95K5.94K5.06K
Total Assets
523.82K78.78M94.22M334.66K
Total Debt
324.00K3.68M166.96K80.00K
Net Debt
314.16K3.67M161.02K74.94K
Total Liabilities
545.73K28.97M8.51M329.55K
Stockholders Equity
-21.91K49.81M85.71M5.11K
Cash FlowFree Cash Flow
-4.45M-2.45M-797.18K-296.19K
Operating Cash Flow
-4.26M-2.45M-633.30K-10.53K
Investing Cash Flow
20.94M20.06M-92.92M-416.27K
Financing Cash Flow
-16.51M-17.61M93.55M15.59K

ConnectM Technology Solutions Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.56
Price Trends
50DMA
0.86
Negative
100DMA
0.90
Negative
200DMA
2.04
Negative
Market Momentum
MACD
-0.07
Negative
RSI
36.95
Neutral
STOCH
26.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNTM, the sentiment is Negative. The current price of 0.56 is below the 20-day moving average (MA) of 0.61, below the 50-day MA of 0.86, and below the 200-day MA of 2.04, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 36.95 is Neutral, neither overbought nor oversold. The STOCH value of 26.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CNTM.

ConnectM Technology Solutions Risk Analysis

ConnectM Technology Solutions disclosed 92 risk factors in its most recent earnings report. ConnectM Technology Solutions reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

ConnectM Technology Solutions Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$242.12B26.6720.02%2.60%-5.34%-30.57%
HPHPE
67
Neutral
$20.94B7.9512.09%3.26%10.93%43.19%
64
Neutral
$14.24B10.188.97%4.28%16.38%-12.00%
HPHPQ
61
Neutral
$26.30B10.0384.33%3.90%1.03%-18.56%
60
Neutral
$12.03B41.986.21%2.43%-8.82%-10.01%
55
Neutral
$713.64M63.632.30%-8.65%
28
Underperform
$19.89M-108.59%-85.24%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CNTM
ConnectM Technology Solutions
0.56
-10.52
-94.95%
CSCO
Cisco Systems
60.86
12.35
25.46%
HPQ
HP
27.90
-1.45
-4.94%
JNPR
Juniper Networks
36.12
-0.05
-0.14%
NTGR
Netgear
24.72
9.02
57.45%
HPE
Hewlett Packard Enterprise
15.79
-1.66
-9.51%

ConnectM Technology Solutions Corporate Events

Delistings and Listing ChangesRegulatory Filings and Compliance
ConnectM Faces Nasdaq Compliance Challenge Over Report Delay
Negative
Dec 13, 2024

ConnectM Technology Solutions received a notice from Nasdaq for not filing its Quarterly Report for September 2024, leading to non-compliance with Nasdaq’s listing rules. While this does not immediately affect their Nasdaq listing, failure to regain compliance by February 2025 could result in delisting. ConnectM has until February 4, 2025, to submit a compliance plan, and if accepted, it may gain an extension until May 2025. If the plan is rejected, the company can appeal. This notice was announced in compliance with Nasdaq’s requirement for disclosure of such notifications.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.