Treasure Global, Inc. (TGL) AI Stock Analysis

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Treasure Global, Inc.

(NASDAQ:TGL)

34Underperform

Treasure Global, Inc. faces significant financial distress with declining revenue, persistent losses, and liquidity issues. The technical analysis indicates bearish trends, and the company's valuation metrics are unattractive due to negative earnings and no dividends. These factors contribute to a low overall score, suggesting caution for potential investors.

Treasure Global, Inc. (TGL) vs. S&P 500 (SPY)

Market Cap

$3.22M

Dividend YieldN/A

Average Volume (3M)363.40K

Price to Earnings (P/E)―

Beta (1Y)-0.55

Revenue Growth-95.52%

EPS Growth-625.88%

CountryUS

Employees25

SectorTechnology

Sector Strength51

IndustrySoftware - Application

Share Statistics

EPS (TTM)-3.61

Shares Outstanding1,628,536

10 Day Avg. Volume829,329

30 Day Avg. Volume363,396

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)2.40

Price to Cash Flow (P/CF)-2.30

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Treasure Global, Inc. Business Overview & Revenue Model

Company DescriptionTreasure Global Inc. designs and develops a Malaysian e-commerce platform that helps subscribers to connect with local merchants by offer activities, travel, goods, services and rewards. The company offers z-city, a cross profit-sharing platform that allows business owners to promote their product, increase their network, and reap the profits and rewards. Treasure Global Inc. was founded in 2020 and is based in New York, New York.

How the Company Makes MoneyTreasure Global, Inc. makes money through a revenue model that includes transaction fees, subscription fees, and partnerships with retailers and businesses. The company generates revenue by charging fees on transactions processed through its digital payment platforms. Additionally, it offers subscription-based services for businesses looking to integrate loyalty programs into their operations, providing them with tools to better engage their customers. Strategic partnerships with retailers and other businesses also play a significant role, as these partnerships help expand the company's reach and facilitate a broader adoption of its payment and loyalty solutions.

Treasure Global, Inc. Financial Statement Overview

Summary

Treasure Global, Inc. faces serious financial challenges. The company struggles with declining revenue, persistent losses, and cash flow issues despite an improved debt position. The combination of negative margins, equity concerns, and liquidity problems suggests a need for strategic restructuring for financial recovery.

Income Statement

Very Negative

The income statement shows a significant decline in revenue over the years, with a shrinking gross profit margin from previous periods. The company is experiencing consistent negative EBIT and net income, indicating operational inefficiencies and profitability challenges. Revenue growth has been negative, contributing to a low score in this vertical.

Balance Sheet

Negative

The balance sheet reveals a transition from high leverage in prior years to a debt-free status in the latest TTM. However, the negative stockholders' equity in previous years and low return on equity highlight ongoing financial instability. The company's equity ratio has improved, suggesting better asset management, but the overall weak financial health limits the score.

Cash Flow

Negative

The cash flow statement indicates negative operating and free cash flows, reflecting liquidity issues. There is no visible growth in free cash flow, and the operating cash flow to net income ratio is adversely affected by persistent losses. Although financing activities have provided some cash inflow, they have not been sufficient to stabilize cash flow metrics.

TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Breakdown
Income Statement		Total Revenue
2.40M	22.07M	69.41M	79.67M	14.02M	268.17K
	Gross Profit
703.95K	816.06K	523.28K	476.19K	139.94K	42.99K
	EBIT
-4.56M	-6.06M	-10.24M	-10.18M	-7.59M	-110.97K
	EBITDA
-3.98M	-5.35M	-10.10M	-10.06M	-7.51M	-110.97K
	Net Income Common Stockholders
-4.44M	-6.59M	-11.73M	-11.75M	-7.92M	-110.97K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.58M	371.65K	4.59M	1.85M	2.84M	372.00
	Total Assets
2.31M	4.28M	6.37M	2.70M	3.69M	635.38K
	Total Debt
7.72M	64.71K	5.03M	14.89M	5.07M	54.44K
	Net Debt
6.14M	-135.30K	434.11K	13.05M	2.22M	54.07K
	Total Liabilities
14.16M	897.85K	6.50M	18.30M	10.21M	214.72K
	Stockholders Equity
-11.85M	3.38M	-130.33K	-15.60M	-6.52M	420.65K
Cash Flow		Free Cash Flow
-2.14M	-4.92M	-9.65M	-8.98M	-6.88M	-489.65K
	Operating Cash Flow
-3.19M	-4.71M	-9.56M	-8.66M	-6.80M	-489.30K
	Investing Cash Flow
-2.24M	-252.61K	-61.24K	-311.74K	-84.85K	-342.00
	Financing Cash Flow
4.37M	350.47K	12.66M	8.16M	9.80M	493.87K

Treasure Global, Inc. Technical Analysis

Technical Analysis Sentiment

Negative

Last Price1.98

Price Trends

50DMA

6.33

Negative

100DMA

9.08

Negative

200DMA

33.74

Negative

Market Momentum

MACD

-1.30

Positive

RSI

17.37

Positive

STOCH

10.98

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TGL, the sentiment is Negative. The current price of 1.98 is below the 20-day moving average (MA) of 4.05, below the 50-day MA of 6.33, and below the 200-day MA of 33.74, indicating a bearish trend. The MACD of -1.30 indicates Positive momentum. The RSI at 17.37 is Positive, neither overbought nor oversold. The STOCH value of 10.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TGL.

Treasure Global, Inc. Risk Analysis

Treasure Global, Inc. disclosed 48 risk factors in its most recent earnings report. Treasure Global, Inc. reported the most risks in the “Tech & Innovation” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Treasure Global, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (57)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AMZN	78 Outperform	$1.96T	33.48	24.29%	―	10.99%	91.61%
PYPL	74 Outperform	$61.92B	15.66	20.00%	―	7.10%	4.45%
EBAY	73 Outperform	$30.09B	16.38	34.29%	1.70%	2.79%	-23.30%
XYZ	73 Outperform	$33.41B	11.85	14.50%	―	10.06%	38060.98%
Sector *	57 Neutral	$19.95B	9.66	-12.05%	2.76%	5.40%	-24.89%
TGL	34 Underperform	$3.22M	―	-37.33%	―	-95.52%	-625.88%

* Technology Sector Average

Performance Comparison

TGL

Treasure Global, Inc.

1.98

-200.77

-99.02%

AMZN

Amazon

184.87

1.25

0.68%

EBAY

eBay

64.58

14.62

29.26%

SHOP

Shopify

83.71

15.14

22.08%

PYPL

PayPal Holdings

62.59

-0.92

-1.45%

XYZ

Block

53.94

-19.56

-26.61%

Treasure Global, Inc. Earnings Call Summary

Earnings Call Date: Feb 12, 2025 | % Change Since: -74.94% | Next Earnings Date: May 13, 2025

Earnings Call Sentiment Neutral

Treasure Global demonstrated significant achievements in AI and blockchain, as well as improved profitability and recognition in the e-commerce sector. However, these gains were overshadowed by a substantial revenue decline and reduced cash reserves, indicating challenges in maintaining user engagement and financial stability.

Highlights

ZCITY Premium Store Success

The launch of the ZCITY Premium Store exceeded expectations, enhancing gross profit margins and driving transactions with over 6,000 Bill Saver Bonanza Packs sold in four months.

AI and Blockchain Initiatives

Treasure Global strengthened its position in the blockchain market with new partnerships and AI initiatives, including an exclusive AI wallet on Telegram and collaboration with AIO Synergy to revolutionize the AI landscape.

Significant Gross Profit Increase

Gross profit reached USD 217,000, marking a substantial increase of 47% compared to the same period last year.

Decrease in Net Losses

Net losses decreased substantially to approximately USD 1.7 million compared to USD 2.9 million in the third quarter of fiscal year 2023.

Marketing Contract Achievement

Secured a USD 2 million marketing contract with Satria Dunia Sdn Bhd to showcase Korean beauty products using ZCITY's AI marketing engine.

Recognition at Asia eCommerce Awards

ZCITY won a silver trophy for the best e-commerce solution at the MARKETING-INTERACTIVE Asia eCommerce Awards 2023.

Lowlights

Revenue Decline

Total revenue for the quarter was USD 1.6 million, reflecting a decrease of approximately 76% compared to USD 6.7 million in the second quarter of fiscal year 2024.

Decline in Quarterly Active Users

Quarterly active users for the quarter ending March 31, 2024, decreased despite ongoing efforts to enhance ZCITY's features and offerings.

Cash Balance Reduction

Cash balance decreased to approximately USD 0.3 million from USD 4.1 million as of March 31, 2023.

Company Guidance

In the third quarter of fiscal year 2024, Treasure Global Inc. demonstrated significant progress across various metrics, despite a challenging macro environment. The company reported a substantial increase in gross profit, reaching USD 217,000, up by 47% from the previous year. However, total revenue for the quarter saw a decline to USD 1.6 million, a 76% drop compared to the previous quarter, attributed to the strategic shift towards higher-margin business channels. Net losses decreased significantly to approximately USD 1.7 million from USD 2.9 million the previous year, driven by cost management and operational efficiency improvements. The company's cash balance stood at approximately USD 0.3 million as of March 31, 2024, with future sales expected to bolster this position. ZCITY, a key platform for Treasure Global, reported over 2.69 million registered users, 2,027 registered merchants, and 41,455 quarterly active users, with 0.19 million transactions recorded in the quarter. Despite some declines in user engagement, the company remains optimistic about ZCITY's long-term growth potential, focusing on enhancing features and offerings. The call highlighted the company's strategic initiatives, including AI-driven innovations, market expansion, and a new partnership within the blockchain sector, as well as a USD 2 million marketing contract with Satria Dunia Sdn Bhd to promote Korean beauty products. Treasure Global's commitment to innovation and strategic market positioning is poised to drive sustained growth and shareholder value.

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.