MMTec, Inc. (MTC) | Investment Case

1. Company Snapshot

1.a. Company Description

MMTec, Inc., together with its subsidiaries, develops and deploys platforms that enable financial institutions to engage in securities market transactions and settlements worldwide.The company operates in two segments, Gujia, MM Future, MMBD Advisory and HC Securities; and MM Global.It offers Internet-based securities solutions comprising Securities Dealers Trading System, which supports securities registration and clearing, account management, risk management, trading and execution, and third party access middleware; Private Fund Investment Management System that supports multi-account management, fund valuation, risk management, quantitative trading access, liquidation, and requisition management; and Mobile Transaction Individual Client System and PC Client System for Apple IOS, Android, PC, and Web applications.

The company enables its customers to white label its trading interface, as well as select modular functionalities.It serves hedge funds, mutual funds, registered investment advisors, proprietary trading groups, and brokerage firms.The company was founded in 2015 and is headquartered in Beijing, the People's Republic of China.

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1.b. Last Insights on MTC

MMTEC, Inc.'s recent stock performance has been negatively impacted by the announcement of a 1-for-8 reverse stock split, which may lead to increased volatility and uncertainty among investors. The reverse stock split, effective December 18, 2024, may also raise concerns about the company's financial health and future prospects. This move may be seen as a negative signal, potentially weighing on investor sentiment in the short term.

1.c. Company Highlights

Last Price	2.49
Change Percentage	-6.39%
Open	2.6
Previous Close	2.66
Market Cap ( Millions)	63
Volume	69755
Year High	3.89
Year Low	0.25
M A 50	1.5
M A 200	1.14

FCF Yield	1.49%
Dividend Yield	0.00%
ROE	-3221.58%
Debt / Equity	-163.58%
Net Debt / EBIDTA	-987.88%
Price To Book	-3.16
Price Earnings Ratio	-0.57
Price To FCF	67.26
Price To sales	23.44
EV / EBITDA	-37.74

2. Transcript Summary

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3. NewsRoom

MMTEC, Inc. Announces Receipt of Nasdaq Delisting Determination Regarding Minimum Bid Price Deficiency

Oct -28

Source: prnewswire.com

MMTEC, Inc. Announces 1-for-8 Reverse Stock Split

Dec -12

Source: prnewswire.com

MMTEC, Inc. Announces Receipt of Nasdaq Notification Regarding Minimum Bid Price Deficiency

Jul -10

Source: prnewswire.com

MMTEC, INC. ANNOUNCES A PAUSE ON FINANCING ACTIVITIES IN THE NEXT SIX MONTHS

May -08

Source: prnewswire.com

We Think Destiny Pharma (LON:DEST) Can Afford To Drive Business Growth

Jan -04

Source:

MMTEC, Inc. Regains Compliance with Nasdaq Minimum Bid Price Deficiency

Nov -08

Source: prnewswire.com

MMTEC, INC. TO HOLD ITS 2023 ANNUAL MEETING OF SHAREHOLDERS ON NOVEMBER 10, 2023

Oct -13

Source: prnewswire.com

Is Ebusco Holding (AMS:EBUS) In A Good Position To Deliver On Growth Plans?

Jun -16

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (15.00%)

6. Segments

Market Data Services and Consulting Services

Expected Growth: 15%

MMTec, Inc.'s 15% growth in Market Data Services and Consulting Services is driven by increasing demand for real-time market data, growing adoption of cloud-based solutions, and expanding need for data analytics and insights. Additionally, the company's expertise in AI-powered consulting services and strategic partnerships with key industry players contribute to its rapid growth.

Introducing Broker Services

Expected Growth: 19%

MMTec's Introducing Broker Services growth is driven by increasing demand for online trading, strategic partnerships, and expansion into new markets. The company's robust technology infrastructure, competitive pricing, and high-quality customer service also contribute to its 19% growth. Additionally, the rising popularity of cryptocurrencies and derivatives trading further fuels the segment's growth.

7. Detailed Products

MMTec Cloud

A cloud-based platform providing scalable and secure infrastructure for businesses to deploy and manage their applications

MMTec Cybersecurity

A comprehensive cybersecurity solution offering threat detection, incident response, and penetration testing services

MMTec AI/ML

A suite of artificial intelligence and machine learning solutions for automation, predictive analytics, and data science

MMTec IT Consulting

Expert IT consulting services for strategy, implementation, and management of IT infrastructure and applications

MMTec Data Analytics

A data analytics platform providing insights, reporting, and visualization capabilities for informed decision-making

8. MMTec, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for MMTec, Inc. is medium due to the availability of alternative products in the market.

Bargaining Power Of Customers

The bargaining power of customers for MMTec, Inc. is high due to the concentration of buyers in the market.

Bargaining Power Of Suppliers

The bargaining power of suppliers for MMTec, Inc. is low due to the availability of multiple suppliers in the market.

Threat Of New Entrants

The threat of new entrants for MMTec, Inc. is medium due to the moderate barriers to entry in the market.

Intensity Of Rivalry

The intensity of rivalry for MMTec, Inc. is high due to the high level of competition in the market.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	21.19%
Debt Cost	3.95%
Equity Weight	78.81%
Equity Cost	13.18%
WACC	11.22%
Leverage	26.88%

11. Quality Control: MMTec, Inc. passed 5 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Perfect

A-Score: 5.5/10

Value: 5.2

Growth: 7.6

Quality: 8.0

Yield: 0.0

Momentum: 6.0

Volatility: 6.0

1-Year Total Return ->

SYLA Technologies

A-Score: 5.3/10

Value: 7.5

Growth: 5.7

Quality: 5.4

Yield: 0.0

Momentum: 7.5

Volatility: 5.7

1-Year Total Return ->

AGM Group Holdings

A-Score: 4.7/10

Value: 9.6

Growth: 8.4

Quality: 8.8

Yield: 0.0

Momentum: 0.5

Volatility: 0.7

1-Year Total Return ->

HeartCore Enterprises

A-Score: 4.6/10

Value: 7.9

Growth: 4.2

Quality: 6.4

Yield: 1.7

Momentum: 6.0

Volatility: 1.7

1-Year Total Return ->

Xiao-I

A-Score: 4.2/10

Value: 9.8

Growth: 4.7

Quality: 6.5

Yield: 0.0

Momentum: 2.5

Volatility: 2.0

1-Year Total Return ->

MMTec

A-Score: 3.4/10

Value: 6.9

Growth: 4.9

Quality: 4.8

Yield: 0.0

Momentum: 0.5

Volatility: 3.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

31.18%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

11.22%

MMTec, Inc. - VGG6181K1140

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on MTC

1.c. Company Highlights

More Volatile

Strong Momentum

Average Quality

Weak Momentum

Fairly Valued

Lower Growth

Better Quality

Cheaper

Average Growth

Lower Quality

Medium Volatility

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (15.00%)

6. Segments

Market Data Services and Consulting Services

Expected Growth: 15%

Introducing Broker Services

Expected Growth: 19%

7. Detailed Products

MMTec Cloud

MMTec Cybersecurity

MMTec AI/ML

MMTec IT Consulting

MMTec Data Analytics

8. MMTec, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: MMTec, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.49$

Current Price

2.49$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA