Royalty Management Holding (RMCO) AI Stock Analysis

• Market Cap: $15.86M
• Dividend Yield: N/A
• Average Volume (3M): 20.97K
• Price to Earnings (P/E): 108.8
• Beta (1Y): -0.08
• Revenue Growth: 65.21%
• EPS Growth: 98.07%
• Country: US
• Employees: N/A
• Sector: Financial
• Sector Strength: 84
• Industry: Asset Management
• EPS (TTM): >-0.01
• Shares Outstanding: 14,958,817
• 10 Day Avg. Volume: 38,205
• 30 Day Avg. Volume: 20,968
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 25.63
• Price to Cash Flow (P/CF): 2.90
• 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

RMCO's stock score reflects strong revenue growth and improved cash flow, offset by ongoing profitability challenges. Positive technical indicators suggest some market confidence, but the negative P/E ratio points to valuation concerns. Overall, while there are signs of improvement, financial and valuation challenges weigh heavily on the stock.

Royalty Management Holding Business Overview & Revenue Model

Company Description

Royalty Management Holding (RMCO) is a diversified company specializing in the management and monetization of intellectual property and royalty interests across various sectors, including entertainment, technology, and natural resources. The company focuses on acquiring, managing, and optimizing royalty streams to maximize returns for its stakeholders. RMCO leverages its expertise in royalty management to provide innovative solutions and strategic partnerships that enhance the value of its assets.

How the Company Makes Money

RMCO generates revenue primarily through the acquisition and management of royalty interests. The company invests in a diverse portfolio of intellectual property rights, including music, film, patents, and natural resource royalties, and collects ongoing payments from these assets. Revenue streams include licensing fees, royalty payments, and profit-sharing arrangements. RMCO also partners with industry leaders to enhance the monetization potential of its assets, leveraging strategic alliances and marketing initiatives to drive growth. The company's earnings are further supported by its ability to identify undervalued royalty opportunities and optimize their performance through active management and strategic investments.

Royalty Management Holding Financial Statement Overview

Summary

Royalty Management Holding exhibits strong revenue growth but is hindered by persistent profitability issues and operational inefficiencies. While the balance sheet shows good equity levels, high reliance on debt financing requires caution. Cash flow challenges persist, indicating a need for better cash management to support sustainable growth.

Income Statement

The company has shown significant revenue growth with total revenue increasing from 361,625 in the annual report to 675,940 in the TTM period, marking a robust growth trajectory. However, the persistent negative net income and EBIT margins indicate ongoing challenges in achieving profitability. The negative EBITDA and EBIT suggest that operating expenses remain high relative to revenues, which is a concern for future profitability.

Balance Sheet

The company's equity ratio is healthy, with stockholders' equity representing a significant portion of total assets. However, the debt-to-equity ratio is relatively high, indicating reliance on debt financing which could pose future risks if not managed carefully. The return on equity remains negative due to consecutive periods of net losses, impacting overall shareholder value.

Cash Flow

Operating cash flow remains negative, reflecting ongoing operational challenges. The company has improved its free cash flow compared to the previous year, but it remains negative, which could impact future growth initiatives. The ratio of operating cash flow to net income is unfavorably low, indicating inefficiencies in converting income into cash flow.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021
Income Statement		Total Revenue
675.94K	361.63K	172.69K	0.00
	Gross Profit
479.19K	109.66K	169.26K	0.00
	EBIT
-1.08M	-1.69M	-1.50M	-1.02M
	EBITDA
-674.62K	-1.28M	1.23M	-113.15K
	Net Income Common Stockholders
-913.93K	-2.07M	1.20M	-113.15K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
195.49K	195.49K	433.34K	293.15K
	Total Assets
13.61M	13.61M	12.50M	251.64K
	Total Debt
2.40M	2.40M	3.83M	174.27K
	Net Debt
2.21M	2.21M	3.40M	-118.88K
	Total Liabilities
3.99M	3.99M	4.31M	221.67K
	Stockholders Equity
9.62M	9.62M	8.18M	29.97K
Cash Flow		Free Cash Flow
-1.07M	-1.91M	7.19M	-1.37M
	Operating Cash Flow
-949.55K	-1.91M	7.87M	-1.37M
	Investing Cash Flow
2.67M	6.86M	-11.14M	-106.12M
	Financing Cash Flow
-2.10M	-5.26M	3.89M	107.78M

Royalty Management Holding Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RMCO, the sentiment is Negative. The current price of 1.06 is above the 20-day moving average (MA) of 1.05, below the 50-day MA of 1.08, and above the 200-day MA of 0.99, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 53.44 is Neutral, neither overbought nor oversold. The STOCH value of 59.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RMCO.

Royalty Management Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SBR	79 Outperform	$970.55M	12.19	922.55%	8.07%	4.88%	5.15%
RPRX	77 Outperform	$18.33B	16.63	12.75%	2.67%	-3.85%	-24.34%
Sector *	63 Neutral	$14.39B	9.81	8.95%	4.37%	16.38%	-11.64%
RMCO	50 Neutral	$15.86M	108.82	-0.88%	―	65.21%	98.07%