ZW Data Action Technologies (CNET) AI Stock Analysis

• Market Cap: $3.53M
• Dividend Yield: N/A
• Average Volume (3M): 9.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.97
• Revenue Growth: -49.52%
• EPS Growth: -86.35%
• Country: US
• Employees: 25
• Sector: Communication Services
• Sector Strength: 84
• Industry: Advertising Agencies
• EPS (TTM): -1.55
• Shares Outstanding: 2,301,205
• 10 Day Avg. Volume: 18,147
• 30 Day Avg. Volume: 9,331
• PEG Ratio: 0.11
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.73
• Enterprise Value/Market Cap: 0.81
• Enterprise Value/Revenue: 0.03
• Enterprise Value/Gross Profit: 15.47
• Enterprise Value/Ebitda: -0.26
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

ZW Data Action Technologies is struggling with severe financial instability, marked by declining revenues and consistent losses. The technical analysis suggests a lack of upward momentum, while valuation metrics highlight the risks due to negative earnings. Without clear signs of improvement in financial performance or positive corporate developments, the stock remains highly risky.

ZW Data Action Technologies Business Overview & Revenue Model

Company Description

ZW Data Action Technologies Inc., through its subsidiaries, provides omni-channel advertising, precision marketing, and data analysis management systems in the People's Republic of China. It offers Internet advertising, precision marketing, and related data services through its Internet portals, including 28.com and liansuo.com that provide advertisers with tools to build sales channels in the form of franchisees, sales agents, distributors, and/or resellers. The company also develops and operates blockchain technology-based products and services. In addition, it provides other e-commerce online to offline advertising and marketing and related value-added technical services, as well as strategic corporation management services. The company was formerly known as ChinaNet Online Holdings, Inc. and changed its name to ZW Data Action Technologies Inc. in October 2020. ZW Data Action Technologies Inc. was founded in 2003 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

ZW Data Action Technologies generates revenue through a multi-faceted business model that includes digital marketing services, e-commerce solutions, and online advertising. The company earns money by offering customized marketing strategies and solutions that utilize data analytics to optimize clients' digital presence and improve their return on investment. Additionally, ZW Data Action Technologies partners with various platforms and providers to enhance its service offerings, driving additional revenue through these collaborations. The company's e-commerce operations also contribute to its earnings by facilitating transactions and offering related services to businesses seeking to expand their online sales channels.

ZW Data Action Technologies Financial Statement Overview

Summary

ZW Data Action Technologies faces significant financial challenges, with declining revenues, persistent losses, and negative equity. The company's financial stability is at risk due to shrinking revenues and poor cash flow management. Without strong corrective measures, the company's financial health remains vulnerable.

Income Statement

ZW Data Action Technologies has experienced declining revenues from $58.08M in 2019 to $15.44M in 2024, indicating a significant revenue contraction. Gross profit margins were negative in 2023 and 2022, highlighting operational inefficiencies. Negative EBIT and EBITDA margins reflect ongoing losses, with a net profit margin of -24.4% in 2024, indicating significant challenges in achieving profitability.

Balance Sheet

The company has a negative stockholders' equity of $-2.33M in 2024, indicating financial instability. With no debt in 2024, the debt-to-equity ratio cannot be calculated, but negative equity is a concern. The equity ratio is negative due to high liabilities relative to assets, signaling weak financial health and potential solvency risks.

Cash Flow

Operating cash flow was negative in recent years, with a free cash flow of $-2.06M in 2024, showing cash drain issues. The operating cash flow to net income ratio is negative, reflecting inadequate cash generation relative to net income losses. Despite this, investing cash flow improved in 2024, but overall cash flow health remains weak.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
15.44M	30.59M	26.23M	47.33M	38.41M
	Gross Profit
446.00K	-436.00K	-194.00K	98.00K	632.00K
	EBIT
-3.76M	-6.01M	-11.12M	-13.59M	-5.70M
	EBITDA
-2.80M	-3.13M	-6.78M	-12.96M	-4.83M
	Net Income Common Stockholders
-3.76M	-5.97M	-9.79M	-2.69M	-5.22M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
812.00K	817.00K	4.39M	7.17M	4.30M
	Total Assets
9.69M	11.23M	19.66M	32.63M	20.67M
	Total Debt
122.00K	247.00K	2.11M	2.40M	387.00K
	Net Debt
-690.00K	-570.00K	-2.28M	-4.78M	-3.91M
	Total Liabilities
5.97M	4.98M	7.36M	10.87M	8.19M
	Stockholders Equity
3.66M	6.25M	12.30M	21.77M	12.54M
Cash Flow		Free Cash Flow
-2.06M	-2.09M	-3.19M	-10.33M	-1.68M
	Operating Cash Flow
-2.06M	-2.01M	-3.19M	-8.84M	326.00K
	Investing Cash Flow
895.00K	-1.54M	552.00K	-5.47M	-3.47M
	Financing Cash Flow
1.07M	0.00	-40.00K	17.11M	5.82M

ZW Data Action Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.53
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNET, the sentiment is Negative. The current price of 1.53 is below the 20-day moving average (MA) of 1.58, below the 50-day MA of 1.53, and below the 200-day MA of 1.90, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.79 is Neutral, neither overbought nor oversold. The STOCH value of 14.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CNET.

ZW Data Action Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHR	64 Neutral	$17.34M	0.58	8.88%	―	-3.37%	-23.21%
Sector *	60 Neutral	$14.09B	6.90	-3.35%	3.68%	2.44%	-36.27%
LDWY	40 Underperform	$8.21M	―	-36.44%	―	97.63%	-945.35%
DRCT	40 Underperform	$9.60M	―	-320.07%	―	-69.54%	-19665.56%
CNET	38 Underperform	$3.53M	―	-75.89%	―	-49.52%	-86.35%
VSME	31 Underperform	$7.54M	―	-157.27%	―	―	―

ZW Data Action Technologies Corporate Events

ZW Data Action Technologies Announces Board Changes

ZW Data Action Technologies Inc. announced the resignation of Kevin Choi as an independent director, with no disagreement cited between him and the company. Justin Tam, with extensive experience in business development and healthcare technology, has been appointed as the new independent director, meeting qualifications according to Nasdaq Marketplace Rules.