KonaTel (KTEL) AI Stock Analysis

• Market Cap: $12.40M
• Dividend Yield: N/A
• Average Volume (3M): 34.42K
• Price to Earnings (P/E): 3.2
• Beta (1Y): -0.15
• Revenue Growth: -0.47%
• EPS Growth: N/A
• Country: US
• Employees: 37
• Sector: Communication Services
• Sector Strength: 73
• Industry: Telecommunications Services
• EPS (TTM): 0.09
• Shares Outstanding: 43,503,660
• 10 Day Avg. Volume: 10,532
• 30 Day Avg. Volume: 34,421
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.72
• Price to Cash Flow (P/CF): -3.30
• 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

KonaTel's overall stock score reflects the company's substantial financial hurdles and weak technical indicators. Despite appearing undervalued, the lack of clear earnings guidance and deteriorating financial health weigh heavily on its potential performance. Investors should be cautious, considering the high risk associated with financial instability and market sentiment.

KonaTel Business Overview & Revenue Model

Company Description

KonaTel (KTEL) is a telecommunications company that operates within the mobile communications sector. It provides a range of voice and data services, focusing primarily on offering mobile virtual network operator (MVNO) services. KonaTel delivers these services through its subsidiaries, catering to both consumer and business markets with a variety of flexible plans.

How the Company Makes Money

KonaTel generates revenue primarily through its MVNO services, where it purchases network access at wholesale rates from larger carriers and sells mobile voice and data services to its customers. The company earns money by offering competitive pricing plans that cater to different customer needs, including prepaid and postpaid options. Additionally, KonaTel's business-to-business services include providing communication solutions tailored for enterprises and government entities. Key partnerships with major network operators enhance its service offerings and coverage, contributing significantly to its revenue by leveraging existing infrastructure while minimizing capital expenditure on network maintenance.

KonaTel Financial Statement Overview

Summary

KonaTel is experiencing significant financial challenges. The Income Statement Score of 35 highlights a decline in revenue and negative operating margins. The Balance Sheet Score of 40 reflects high liabilities and potential solvency issues. The Cash Flow Score of 20 underscores severe liquidity problems with negative operating and free cash flows. Overall, these scores indicate operational inefficiencies and financial instability.

Income Statement

KonaTel's revenue has seen a decline from 2022 to TTM, indicating a negative growth trajectory. The company is operating at a loss, as shown by negative EBIT and EBITDA margins. Although the net profit margin is positive in the TTM period, this is likely due to non-operational factors, given the negative EBIT. Gross profit margin has also decreased significantly from 2022 to TTM, raising concerns about cost management and pricing power.

Balance Sheet

The balance sheet shows improvement in stockholders' equity, turning positive in TTM after being negative in 2023. However, the debt-to-equity ratio is concerning due to high total liabilities relative to equity. The equity ratio shows low equity compared to total assets, indicating potential solvency issues. These factors suggest financial instability and a need for better capital management.

Cash Flow

The cash flow statement reflects severe challenges, with negative operating cash flow and free cash flow in TTM. There is a substantial decrease in free cash flow from the previous period, indicating liquidity issues. The operating cash flow to net income ratio is negative, highlighting inefficiencies in converting revenue into cash.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
18.03M	18.22M	20.02M	12.83M	9.36M	9.17M
	Gross Profit
550.20K	3.37M	4.99M	5.73M	3.54M	2.87M
	EBIT
-4.84M	-3.12M	-2.53M	638.35K	267.88K	-1.61M
	EBITDA
-4.71M	-3.11M	-2.54M	1.47M	1.10M	-638.35K
	Net Income Common Stockholders
4.09M	-3.94M	-2.98M	622.99K	-413.93K	-1.58M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	777.10K	2.06M	932.78K	715.20K	191.47K
	Total Assets
0.00	4.81M	5.45M	3.87M	2.94M	3.20M
	Total Debt
0.00	4.11M	3.65M	337.12K	326.06K	220.84K
	Net Debt
0.00	3.34M	1.59M	-595.67K	-389.13K	29.36K
	Total Liabilities
55.07K	7.82M	5.00M	1.27M	1.41M	1.68M
	Stockholders Equity
-55.07K	-3.01M	455.36K	2.61M	1.53M	1.52M
Cash Flow		Free Cash Flow
-4.58M	-1.79M	-1.82M	201.93K	560.71K	154.30K
	Operating Cash Flow
-4.58M	-1.79M	-1.82M	211.93K	571.55K	176.68K
	Investing Cash Flow
9.56M	0.00	10.00K	-10.00K	-10.83K	58.60K
	Financing Cash Flow
-3.61M	513.50K	2.93M	15.66K	-36.99K	-100.32K

KonaTel Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.30
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KTEL, the sentiment is Negative. The current price of 0.3 is below the 20-day moving average (MA) of 0.31, below the 50-day MA of 0.32, and below the 200-day MA of 0.36, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 48.16 is Neutral, neither overbought nor oversold. The STOCH value of 68.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KTEL.

KonaTel Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
USM	65 Neutral	$5.40B	―	-0.85%	―	-3.48%	-169.60%
TDS	64 Neutral	$3.77B	―	-0.54%	0.45%	-3.80%	83.27%
Sector *	58 Neutral	$25.04B	3.23	-10.53%	4.39%	2.30%	-43.13%
ATNI	56 Neutral	$276.18M	―	-5.13%	5.38%	-4.35%	-78.64%
LUMN	47 Neutral	$3.52B	―	-12.49%	―	-9.95%	99.47%
KTEL	41 Neutral	$12.40M	3.22	414.90%	―	-0.47%	―
SHEN	41 Neutral	$661.57M	―	-4.05%	0.83%	14.16%	-443.30%