Victory Square Technologies Inc (VST) AI Stock Analysis

• Market Cap: C$20.41M
• Dividend Yield: N/A
• Average Volume (3M): 197.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.06
• Revenue Growth: 48.51%
• EPS Growth: 89.48%
• Country: CA
• Employees: 19
• Sector: Communication Services
• Sector Strength: 82
• Industry: Asset Management Services
• EPS (TTM): -0.02
• Shares Outstanding: 99,564,970
• 10 Day Avg. Volume: 86,184
• 30 Day Avg. Volume: 197,316
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.25
• Price to Cash Flow (P/CF): -13.60
• 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

Victory Square Technologies Inc displays promising technical momentum and strategic growth initiatives, particularly through its recent corporate events. However, significant challenges remain in terms of profitability and valuation. The company's financial performance shows ongoing operational inefficiencies and negative cash flow, which weigh heavily on the overall score. Despite this, the technical indicators and positive corporate developments provide a potential for improved future performance.

Victory Square Technologies Inc Business Overview & Revenue Model

Company Description

Victory Square Technologies Inc is an accelerator with more than 20 portfolio companies focused on emerging technologies such as Blockchain, Machine Learning, Artificial Intelligence, and VR/AR. Its operating segment includes investments, immersive services, software development and technology.

How the Company Makes Money

Victory Square Technologies Inc. makes money primarily through strategic investments and the development of its portfolio companies. The company earns revenue by acquiring equity stakes in promising startups and emerging technology companies, which have the potential for high growth and profitability. As these companies grow and succeed, VST benefits through the appreciation of its equity holdings and potential exits, such as mergers, acquisitions, or public offerings. Additionally, VST may generate income through consulting services, management fees, or strategic partnerships with other firms that seek to leverage VST's expertise in scaling technology businesses.

Victory Square Technologies Inc Financial Statement Overview

Summary

Victory Square Technologies Inc exhibits substantial revenue growth but continues to face profitability and cash flow challenges. While the balance sheet shows a strong equity base and manageable leverage, the negative margins and cash flow issues underscore operational inefficiencies that need addressing. Moving forward, the company must focus on improving its cost structure and cash conversion to enhance financial health.

Income Statement

Victory Square Technologies Inc's revenue has shown significant growth over recent years, with the latest TTM revenue increasing by 33.15% compared to the previous year. However, the company struggles with profitability, as evidenced by negative margins: a gross profit margin of 15.59%, a net profit margin of -10.34%, an EBIT margin of -41.34%, and an EBITDA margin of -57.85%. These negative margins highlight substantial operational challenges and inefficiencies impacting overall performance.

Balance Sheet

The company's balance sheet shows a relatively stable financial position with an improving equity base. The current debt-to-equity ratio is 0.16, indicating manageable leverage. However, the return on equity (ROE) is negative at -13.57%, reflecting the company's ongoing net losses. The equity ratio of 79.49% suggests a strong asset base backed by equity, yet profitability remains a concern.

Cash Flow

Despite recent improvements, the cash flow statement reveals ongoing challenges with cash management. The free cash flow remains negative, and the operating cash flow to net income ratio is less than ideal, indicating difficulties in converting sales into cash. While there is a modest reduction in negative free cash flow, the overall cash flow position remains weak.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
16.05M	12.06M	5.93M	1.49M	1.49M	3.53M
	Gross Profit
2.50M	5.49M	3.26M	910.14K	527.79K	1.07M
	EBIT
-6.64M	-6.00M	-13.63M	-13.36M	-2.87M	-4.91M
	EBITDA
-9.28M	-13.50M	-24.59M	-16.59M	16.25M	-3.63M
	Net Income Common Stockholders
-1.66M	-14.15M	-28.59M	-19.43M	19.92M	-8.92M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.84M	2.20M	3.83M	4.38M	4.57M	256.60K
	Total Assets
17.86M	11.78M	24.18M	37.33M	42.65M	13.21M
	Total Debt
307.94K	6.84M	6.60M	4.28M	2.23M	2.44M
	Net Debt
-2.43M	4.64M	2.78M	-98.09K	-2.32M	2.23M
	Total Liabilities
1.76M	12.07M	10.93M	6.17M	3.95M	4.56M
	Stockholders Equity
14.34M	3.96M	13.97M	27.38M	32.94M	8.33M
Cash Flow		Free Cash Flow
-2.22M	-3.39M	-4.17M	-8.86M	-3.26M	-2.61M
	Operating Cash Flow
-1.17M	-3.18M	-3.61M	-8.57M	-3.26M	-2.58M
	Investing Cash Flow
-775.89K	1.48M	-808.30K	-3.51M	-70.33K	-681.25K
	Financing Cash Flow
77.20K	95.35K	3.87M	11.90M	7.75M	737.48K

Victory Square Technologies Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.22
• 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 TSE:VST, the sentiment is Negative. The current price of 0.22 is below the 20-day moving average (MA) of 0.22, below the 50-day MA of 0.31, and above the 200-day MA of 0.16, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 37.36 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:VST.

Victory Square Technologies Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	59 Neutral	$29.20B	0.14	-12.92%	4.06%	2.18%	-51.74%
VST	55 Neutral	C$20.41M	―	-14.06%	―	48.51%	89.48%
GRN	55 Neutral	C$12.55M	―	-65.49%	―	5.42%	-55.46%
QST	44 Neutral	C$7.85M	―	-13.04%	―	-43.46%	35.70%
DM	44 Neutral	C$1.75M	―	-158.04%	―	-26.19%	24.21%

Victory Square Technologies Inc Corporate Events

Hydreight Technologies Reports Significant 2023 Growth and Expansion

Hydreight Technologies Inc. has reported significant growth and achievements in 2023, expanding its network to over 650 cities and increasing its nurse workforce to approximately 3,000. The company provided nearly 40,000 patient services, filled thousands of pharmacy orders, and grew its doctor network to over 100 across the U.S. Hydreight also expanded its product offerings and white label solutions, which now include aesthetics and semaglutide, aiming to enhance patient outcomes and broaden service options.

Victory Square Launches $10 Million Health Accelerator for US Expansion

Victory Square Technologies Inc., along with Hydreight Technologies Inc., has launched a $10 million Digital Health Accelerator program aimed at investing in emerging healthcare brands to improve patient care across the United States. This initiative seeks to capitalize on the projected $7.2 trillion opportunity in the US healthcare market by providing essential infrastructure and resources to healthcare companies, facilitating rapid market entry and expansion without the typical complexities and delays.

Victory Square Technologies Reports Strong Q3 2024 Results

Victory Square Technologies Inc. reported a significant financial turnaround in Q3 2024, with a net income of $10.66 million and earnings per share of $0.11, highlighting their successful strategy and diversified portfolio. Key achievements included Hydreight Technologies’ record revenue and the successful launch of VSDHOne telemedicine and e-commerce solution.