KonaTel (KTEL) AI Stock Analysis

• Market Cap: $15.68M
• Dividend Yield: N/A
• Average Volume (3M): 40.20K
• Price to Earnings (P/E): 2.8
• Beta (1Y): -0.47
• Revenue Growth: -49.66%
• EPS Growth: -188.13%
• Country: US
• Employees: 28
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): -0.03
• Shares Outstanding: 43,566,814
• 10 Day Avg. Volume: 7,261
• 30 Day Avg. Volume: 40,197
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.38
• Enterprise Value/Revenue: 0.60
• Enterprise Value/Gross Profit: 1.46
• Enterprise Value/Ebitda: -1.35
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• Price Target: ―

KonaTel's stock score reflects substantial financial challenges and weak technical indicators. The stock appears undervalued, but financial instability and operational inefficiencies are significant risks. The positive strategic initiative announcement provides some optimism for future growth, balancing the score slightly upwards.

KonaTel Business Overview & Revenue Model

Company Description

KonaTel, Inc. (KTEL) is a telecommunications company that operates in the wireless, mobile communications, and IT solutions sectors. The company provides a range of services including mobile and VoIP services, as well as cloud-based communication solutions. KonaTel is dedicated to offering flexible and affordable communication services through its subsidiaries, focusing on enhancing connectivity and delivering comprehensive telecom solutions to a variety of customers, including businesses and individual consumers.

How the Company Makes Money

KonaTel generates revenue through multiple streams centered around its telecommunications services. Key revenue sources include the sale of wireless and VoIP services to both business and retail customers. Additionally, KonaTel earns money through its cloud-based communication solutions which cater to enterprise clients seeking scalable IT solutions. The company also leverages partnerships with network providers and technology firms to enhance its service offerings, contributing to its overall earnings. These strategic alliances help KonaTel maximize its market reach and improve service delivery, ultimately driving revenue growth.

KonaTel Financial Statement Overview

Summary

KonaTel faces significant financial challenges with negative profitability and substantial cash flow issues. While there have been slight improvements in liabilities and equity, operational inefficiencies and poor cash generation remain major concerns.

Income Statement

The income statement shows negative profitability with a consistent net loss over recent years, despite slight revenue growth in some periods. The gross profit margin remains modest, and negative EBIT and EBITDA margins indicate operational inefficiencies. The net profit margin continues to be negative, highlighting ongoing financial challenges.

Balance Sheet

The balance sheet demonstrates a mixed financial position. The debt-to-equity ratio is high historically, indicating significant leverage, although it improved in the latest year. The equity ratio is low, reflecting limited shareholder equity compared to total assets. Recent improvements in stockholders' equity and reduction in total liabilities are positive signs, yet overall financial stability remains a concern.

Cash Flow

Cash flow analysis reveals substantial negative free cash flow, indicating challenges in generating enough cash from operations to cover investments. The operating cash flow to net income ratio is unfavorable, reflecting cash flow issues. However, there was a significant positive financing cash flow in previous years, suggesting reliance on external financing to sustain operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.85M	15.50M	18.22M	20.02M	12.84M	9.36M
Gross Profit	4.04M	3.41M	3.37M	4.99M	5.73M	3.54M
EBITDA	-4.40M	4.79M	-3.11M	-2.54M	1.47M	1.10M
Net Income	-4.59M	4.49M	-3.94M	-2.95M	622.99K	238.62K
Balance Sheet
Total Assets	4.02M	5.31M	4.81M	5.45M	3.87M	2.94M
Cash, Cash Equivalents and Short-Term Investments	1.49M	1.68M	777.10K	2.06M	932.78K	715.20K
Total Debt	274.46K	341.52K	4.11M	3.65M	337.12K	326.06K
Total Liabilities	3.13M	2.80M	7.82M	5.00M	1.27M	1.41M
Stockholders Equity	890.24K	2.51M	-3.01M	455.36K	2.61M	1.53M
Cash Flow
Free Cash Flow	-1.34M	-3.99M	-1.79M	-1.82M	201.93K	560.71K
Operating Cash Flow	-1.34M	-3.99M	-1.79M	-1.82M	211.93K	571.55K
Investing Cash Flow	-850.00K	8.56M	0.00	10.00K	-10.00K	-10.83K
Financing Cash Flow	0.00	-3.66M	513.50K	2.93M	15.66K	-36.99K

KonaTel Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KTEL, the sentiment is Positive. The current price of 0.35 is above the 20-day moving average (MA) of 0.35, above the 50-day MA of 0.33, and above the 200-day MA of 0.29, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 57.39 is Neutral, neither overbought nor oversold. The STOCH value of 69.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KTEL.

KonaTel Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UCL	57 Neutral	$82.59M	42.10	21.08%	―	3.83%	-55.18%
KTEL	52 Neutral	$15.68M	2.79	-171.88%	―	-49.66%	-188.13%
KORE	49 Neutral	$44.26M	-0.61	146.66%	―	0.24%	68.22%
FNGR	47 Neutral	$91.49M	-15.38	-37.45%	―	11.55%	-26.87%
YDKG	25 Underperform	$108.25M	-1.43	―	―	2482.80%	-169.59%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

KonaTel Corporate Events

KonaTel Announces Strategic Initiative for Growth

KonaTel has announced a strategic initiative aimed at expanding its service offerings and enhancing its market position. This move is expected to strengthen the company’s operations and potentially increase its influence within the industry, benefiting stakeholders through improved services and growth opportunities.

Spark’s Take on KTEL Stock

According to Spark, TipRanks’ AI Analyst, KTEL is a Neutral.

KonaTel’s overall stock score reflects the company’s substantial financial hurdles and weak technical indicators. Despite appearing undervalued, the lack of clear earnings guidance and deteriorating financial health weigh heavily on its potential performance. Investors should be cautious, considering the high risk associated with financial instability and market sentiment.

To see Spark’s full report on KTEL stock, click here.