Graphex Group Limited Sponsored ADR (GRFX) AI Stock Analysis

• Market Cap: $25.44M
• Dividend Yield: N/A
• Average Volume (3M): 33.45K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.23
• Revenue Growth: -28.68%
• EPS Growth: -96.77%
• Country: US
• Employees: 232
• Sector: Basic Materials
• Sector Strength: 62
• Industry: Industrial Materials
• EPS (TTM): -0.04
• Shares Outstanding: 46,952,270
• 10 Day Avg. Volume: 21,869
• 30 Day Avg. Volume: 33,448
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• 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: $0.28
• Price Target Upside: -68.89% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Graphex Group Limited's overall stock score reflects significant financial challenges, notably declining revenues and negative net margins. Technical analysis shows mixed signals with some medium-term support, but valuation remains unattractive due to a negative P/E ratio. These factors combine to indicate a cautious outlook for investors.

Positive Factors

Production performance

The production of graphene products and the landscaping design business exceeded estimates.

Technological advantage

Graphex's technology enhances production, positioning the company to benefit from global energy transition and electrification efforts.

Negative Factors

Debt and capital raising

The company is anticipated to raise capital by issuing additional debt due to a cash burn and high debt levels.

Financial risk

The GRFX leverage ratio is expected to increase significantly, indicating higher financial risk.

Market environment

Spherical graphene prices declined significantly, contributing to a challenging market environment.

Graphex Group Limited Sponsored ADR Business Overview & Revenue Model

Company Description

Graphex Group Limited Sponsored ADR (GRFX) is a company primarily engaged in the production and sale of graphene products. The company operates in the advanced materials sector, focusing on the development and commercialization of innovative graphene-based solutions. Graphex Group's core products include graphene raw materials and various graphene-enhanced applications that cater to industries such as energy storage, electronics, composites, and coatings.

How the Company Makes Money

Graphex Group Limited generates revenue through the sale of its graphene products and solutions. The company's key revenue streams are derived from the production and distribution of graphene raw materials and the development of customized graphene-enhanced applications for various industrial sectors. Graphex Group collaborates with industry partners and research institutions to innovate and expand its product offerings, thereby creating additional revenue opportunities. The company's earnings are influenced by factors such as the growing demand for advanced materials in technology and manufacturing sectors, strategic partnerships, and its ability to scale production efficiently to meet market needs.

Graphex Group Limited Sponsored ADR Financial Statement Overview

Summary

Graphex Group Limited faces significant financial challenges, with declining revenues, increasing net losses, and deteriorating cash flows. High leverage adds risk, though there is some stability in equity levels. The company needs to address these operational and financial issues to improve its financial health.

Income Statement

The income statement shows declining total revenue from $391 million in 2021 to $291 million in 2023, representing a negative revenue growth rate. Gross profit margins have decreased from 37.9% in 2021 to 33.2% in 2023. The company has a negative net profit margin, with net losses increasing from $53 million in 2021 to $113 million in 2023. EBIT and EBITDA margins are also negative, reflecting operating challenges.

Balance Sheet

The balance sheet indicates a high debt-to-equity ratio of 0.63 in 2023, suggesting significant leverage. Stockholders' equity decreased from $380 million in 2022 to $369 million in 2023, while total assets slightly declined. The equity ratio has slightly improved to 43.6% in 2023, indicating moderate stability despite high leverage.

Cash Flow

There is a negative free cash flow trend, with free cash flow falling from $41 million in 2022 to -$11 million in 2023. Operating cash flows have turned negative, and the free cash flow to net income ratio is unfavorable, indicating weak cash flow management.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
291.93M	341.24M	391.04M	388.85M	313.94M
	Gross Profit
96.82M	119.96M	148.34M	157.02M	124.15M
	EBIT
-110.49M	-60.00M	-60.46M	-36.65M	-29.88M
	EBITDA
-90.53M	-40.00K	6.49M	16.62M	13.10M
	Net Income Common Stockholders
-113.17M	-69.66M	-53.55M	-91.70M	-57.08M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
27.21M	31.50M	31.46M	43.92M	55.08M
	Total Assets
847.34M	894.68M	1.10B	1.10B	1.15B
	Total Debt
233.16M	308.80M	530.91M	620.03M	595.82M
	Net Debt
205.97M	277.33M	499.45M	576.10M	541.94M
	Total Liabilities
477.70M	524.83M	905.89M	935.71M	930.38M
	Stockholders Equity
369.69M	380.58M	197.31M	171.52M	220.69M
Cash Flow		Free Cash Flow
-11.89M	41.56M	-31.15M	-12.06M	-28.52M
	Operating Cash Flow
-11.16M	42.38M	-29.40M	3.23M	-22.86M
	Investing Cash Flow
12.12M	-88.82M	1.33M	-12.23M	-97.75M
	Financing Cash Flow
-4.26M	52.38M	18.59M	-7.35M	89.36M

Graphex Group Limited Sponsored ADR Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GRFX, the sentiment is Negative. The current price of 0.9 is below the 20-day moving average (MA) of 0.97, below the 50-day MA of 1.08, and below the 200-day MA of 1.19, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 41.75 is Neutral, neither overbought nor oversold. The STOCH value of 22.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GRFX.

Graphex Group Limited Sponsored ADR Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CBAT	59 Neutral	$71.73M	6.17	10.06%	―	-13.61%	―
SLDP	52 Neutral	$202.31M	―	-21.13%	―	15.67%	-45.59%
PLL	50 Neutral	$164.58M	―	-20.54%	―	―	―
Sector *	49 Neutral	$1.96B	-1.23	-21.20%	3.72%	0.88%	-29.24%
GRFX	45 Neutral	$25.44M	―	-34.23%	―	-28.68%	-96.77%
NVX	44 Neutral	$178.39M	―	-47.77%	―	-27.50%	-58.61%
AMTX	36 Underperform	$66.65M	―	37.38%	―	43.34%	-56.81%