Locafy Ltd. (LCFY) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: N/A
• Average Volume (3M): 14.28K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 26
• Sector: Communication Services
• Sector Strength: 77
• Industry: Internet Content & Information
• EPS (TTM): -0.65
• Shares Outstanding: 1,382,185
• 10 Day Avg. Volume: 8,929
• 30 Day Avg. Volume: 14,284
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 9.67
• Price to Cash Flow (P/CF): N/A
• 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

Locafy Ltd.'s overall score is driven by significant financial weaknesses, including persistent negative profit margins and declining revenue, which are major concerns. Technical indicators suggest bearish momentum, and the negative P/E ratio highlights valuation concerns. These factors collectively present a high-risk investment profile.

Locafy Ltd. Business Overview & Revenue Model

Company Description

Locafy Ltd. (LCFY) is a technology company that operates in the digital marketing sector, primarily focusing on local search engine optimization (SEO) solutions. The company provides cloud-based software platforms designed to enhance the online visibility of businesses, enabling them to appear more prominently in local search results. Its core products and services include location-based marketing tools, SEO software, and online presence management solutions that cater to small and medium-sized enterprises (SMEs) as well as larger organizations seeking to improve their digital footprint.

How the Company Makes Money

Locafy Ltd. generates revenue primarily through subscription-based models for its digital marketing and SEO software solutions. Clients, ranging from small businesses to larger enterprises, subscribe to Locafy's platforms to enhance their local search visibility and manage their online presence. The company's revenue streams include recurring subscription fees for access to its cloud-based tools and additional fees for premium features or services. Significant partnerships with digital agencies and marketing firms also contribute to its earnings by expanding Locafy's market reach and customer base. These partnerships often involve co-branded solutions or reseller agreements, further driving subscription sales.

Locafy Ltd. Financial Statement Overview

Summary

Locafy Ltd. is facing significant financial challenges with persistent losses and cash flow issues. While the company maintains a manageable debt level, its negative profit margins and declining revenue growth are concerning. The balance sheet shows some stability, but recurring losses and negative cash flows indicate potential risks.

Income Statement

Locafy Ltd. reports negative profit margins across the board with a gross profit margin of 54.34% TTM. However, the net profit margin is negative at -58.10% TTM, indicating significant losses. Revenue has decreased by 7.26% compared to the previous year. The company also shows negative EBIT and EBITDA margins, reflecting operational inefficiencies.

Balance Sheet

The balance sheet shows a debt-to-equity ratio of 0.14 TTM, which is relatively low, suggesting manageable leverage. However, return on equity is negative due to ongoing losses. Equity ratio is 60.72%, indicating a decent proportion of equity to assets. Overall, the balance sheet stability is affected by recurring negative equity in past years.

Cash Flow

Locafy Ltd. has a negative free cash flow growth rate and negative operating cash flow to net income ratio, indicating cash flow challenges. The free cash flow to net income ratio is also negative, highlighting issues in converting reported earnings into cash flow.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
3.85M	4.15M	5.38M	4.22M	2.19M	1.99M
	Gross Profit
2.09M	4.15M	-1.61M	-1.99M	-819.68K	-1.38M
	EBIT
-2.13M	-2.87M	-3.79M	-4.34M	-936.85K	-2.21M
	EBITDA
-596.60K	-1.44M	-2.50M	-3.50M	-558.15K	-1.87M
	Net Income Common Stockholders
-2.24M	-2.99M	-3.89M	-5.84M	-1.04M	-2.41M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
720.67K	305.82K	3.24M	4.08M	650.73K	161.19K
	Total Assets
2.78M	6.16M	9.23M	8.55M	2.78M	1.63M
	Total Debt
523.00K	604.18K	719.34K	758.52K	566.30K	868.15K
	Net Debt
-127.73K	328.30K	-2.46M	-3.33M	-84.43K	706.96K
	Total Liabilities
3.62M	2.85M	4.24M	3.44M	3.62M	3.80M
	Stockholders Equity
-835.48K	3.31M	4.99M	5.12M	-835.48K	-2.16M
Cash Flow		Free Cash Flow
-2.73M	-3.28M	-3.88M	-4.24B	-938.45K	-1.54M
	Operating Cash Flow
-811.16K	-1.11M	-2.26M	-4.24B	-496.03K	-1.48M
	Investing Cash Flow
-2.00M	-2.13M	-1.62M	-2.01M	-442.42K	-54.14K
	Financing Cash Flow
1.34M	341.13K	2.85M	9.18M	1.43M	1.40M

Locafy Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LCFY, the sentiment is Negative. The current price of 3.65 is below the 20-day moving average (MA) of 4.86, below the 50-day MA of 6.15, and below the 200-day MA of 5.98, indicating a bearish trend. The MACD of -0.50 indicates Positive momentum. The RSI at 34.23 is Neutral, neither overbought nor oversold. The STOCH value of 7.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LCFY.

Locafy Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SEMR	72 Outperform	$1.34B	158.23	3.46%	―	22.47%	872.41%
HUBS	67 Neutral	$28.63B	6,047.44	0.29%	―	21.07%	―
SPT	64 Neutral	$1.16B	―	-39.88%	―	21.66%	8.66%
FVRR	63 Neutral	$880.14M	53.10	5.08%	―	8.33%	436.49%
YEXT	61 Neutral	$755.11M	―	-18.61%	―	4.11%	-935.85%
Sector *	58 Neutral	$25.97B	3.12	-10.67%	4.37%	2.16%	-43.01%
LCFY	37 Underperform		―	-54.46%	―	―	―