MCAP Inc. (MCAP) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: N/A
• Average Volume (3M): 14.00
• Price to Earnings (P/E): 30.1
• Beta (1Y): 0.16
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 7
• Sector: Technology
• Sector Strength: 62
• Industry: Software - Application
• EPS (TTM): 0.18
• Shares Outstanding: 24,165,539
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 14
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• 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: -19.17
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

MCAP's overall score reflects strong revenue growth but is offset by profitability challenges and liquidity issues. The high P/E ratio suggests overvaluation, while neutral technical analysis indicates a lack of strong trading momentum. The absence of negative earnings call insights provides some stability, but significant improvement in cash flow management and operational efficiency is needed.

MCAP Inc. Business Overview & Revenue Model

Company Description

MCAP Inc. (MCAP) is a leading financial services company operating in the real estate and mortgage sectors. The company specializes in providing mortgage financing solutions, servicing, and asset management services to both residential and commercial clients. MCAP's core products include a range of mortgage products tailored to suit diverse client needs, including fixed-rate and variable-rate mortgages, as well as mortgage-backed securities.

How the Company Makes Money

MCAP Inc. generates revenue primarily through interest income on the mortgage loans it originates and services. The company earns money by charging interest rates on the loans provided to borrowers, which are typically higher than the rates it pays to obtain funding. Additionally, MCAP earns servicing fees by managing mortgage accounts on behalf of investors and clients, ensuring timely payments and handling customer interactions. The company also generates revenue through the sale and securitization of mortgage-backed securities, partnering with financial institutions and investors to package and sell these securities in the capital markets. Key factors contributing to MCAP's earnings include its ability to efficiently manage risk, maintain competitive interest rates, and sustain strong relationships with both borrowers and investors.

MCAP Inc. Financial Statement Overview

Summary

MCAP Inc. shows robust revenue growth of 40.92% year-over-year but faces challenges in profitability with declining net profit margins and operational inefficiencies. The balance sheet is strong with low leverage, but declining return on equity and negative cash flow indicate liquidity concerns and potential risks.

Income Statement

MCAP Inc. has exhibited a significant revenue growth of approximately 40.92% year-over-year, indicating strong demand for its offerings. However, the gross profit margin declined, alongside a decrease in net profit margin from 10.07% to 2.75%, highlighting potential cost inefficiencies or increased expenses. The EBIT and EBITDA margins are also lower, suggesting challenges in operational efficiency.

Balance Sheet

The balance sheet of MCAP Inc. is strong, with a low debt-to-equity ratio of 0.04, indicating minimal leverage and financial risk. The equity ratio is 1.82%, reflecting a solid capital structure. However, the return on equity decreased significantly from 51.89% to 14.77%, suggesting lower profitability from equity investments.

Cash Flow

MCAP Inc. shows a concerning cash flow situation with negative operating cash flow and free cash flow, indicating potential liquidity issues. The free cash flow growth rate is negative, and both operating and free cash flow to net income ratios are negative, highlighting issues in translating earnings into cash.

Breakdown
Dec 2023	Dec 2022
Income Statement		Total Revenue
144.46M	102.55M
	Gross Profit
41.19M	45.16M
	EBIT
8.05M	16.29M
	EBITDA
8.82M	16.37M
	Net Income Common Stockholders
3.98M	10.32M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.47B	1.43B
	Total Assets
1.48B	1.43B
	Total Debt
1.10M	6.50M
	Net Debt
-15.86M	-17.64M
	Total Liabilities
1.45B	1.41B
	Stockholders Equity
26.91M	19.90M
Cash Flow		Free Cash Flow
-4.91M	14.31M
	Operating Cash Flow
-4.91M	14.67M
	Investing Cash Flow
668.48K	-356.73K
	Financing Cash Flow
-2.93M	3.59M

MCAP Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.32
• 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 MCAP, the sentiment is Negative. The current price of 5.32 is below the 20-day moving average (MA) of 5.32, below the 50-day MA of 5.33, and below the 200-day MA of 5.44, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.39 is Neutral, neither overbought nor oversold. The STOCH value of 46.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MCAP.

MCAP Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TME	77 Outperform	$19.93B	22.22	10.75%	0.99%	0.63%	34.09%
ZM	77 Outperform	$21.78B	22.28	11.92%	―	3.05%	55.96%
AMZN	75 Outperform	$1.93T	32.98	24.29%	―	10.99%	91.61%
MTCH	63 Neutral	$7.42B	14.88	-865.98%	0.63%	3.41%	-10.41%
BMBL	61 Neutral	$471.79M	―	-44.89%	―	1.88%	-11430.00%
Sector *	59 Neutral	$10.72B	10.22	-6.67%	3.02%	7.42%	-11.38%
MCAP	52 Neutral		30.08	13.28%	―	―	―