MCAP Inc. (MCAP) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 0.84%
• Average Volume (3M): 17.00
• Price to Earnings (P/E): 22.8
• Beta (1Y): 0.08
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 7
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.25
• Shares Outstanding: 24,165,539
• 10 Day Avg. Volume: 10
• 30 Day Avg. Volume: 17
• 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: N/A
• Enterprise Value/Revenue: -8.04
• Enterprise Value/Gross Profit: -17.05
• Enterprise Value/Ebitda: -75.69
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 57 Neutral
• Price Target: ―

MCAP's stock score reflects strong revenue growth overshadowed by profitability and cash flow challenges. The technical analysis shows some positive momentum, but valuation concerns due to a high P/E ratio suggest caution. Improving operational efficiency and cash conversion rates are critical for long-term success.

MCAP Inc. Business Overview & Revenue Model

Company Description

MCAP Inc. operates as a real estate holding company specializes in acquiring undervalued land and real estate properties in the United States. The company was formerly known as MetaCap Inc. and changed its name to MCAP Inc. in March 2022. MCAP Inc. was founded in 1995 and is based in Far Hills, New Jersey.

How the Company Makes Money

MCAP Inc. generates revenue primarily through interest income on the mortgage loans it originates and services. The company earns money by charging interest rates on the loans provided to borrowers, which are typically higher than the rates it pays to obtain funding. Additionally, MCAP earns servicing fees by managing mortgage accounts on behalf of investors and clients, ensuring timely payments and handling customer interactions. The company also generates revenue through the sale and securitization of mortgage-backed securities, partnering with financial institutions and investors to package and sell these securities in the capital markets. Key factors contributing to MCAP's earnings include its ability to efficiently manage risk, maintain competitive interest rates, and sustain strong relationships with both borrowers and investors.

MCAP Inc. Financial Statement Overview

Summary

MCAP Inc. demonstrates robust revenue growth but struggles with profitability and cash flow management. The balance sheet remains strong with low leverage, yet declining return on equity and cash flow issues pose significant risks. A focus on improving operational efficiency and cash conversion is crucial for sustaining growth.

Income Statement

MCAP Inc. has exhibited a significant revenue growth of approximately 40.92% year-over-year, indicating strong demand for its offerings. However, the gross profit margin declined, alongside a decrease in net profit margin from 10.07% to 2.75%, highlighting potential cost inefficiencies or increased expenses. The EBIT and EBITDA margins are also lower, suggesting challenges in operational efficiency.

Balance Sheet

The balance sheet of MCAP Inc. is strong, with a low debt-to-equity ratio of 0.04, indicating minimal leverage and financial risk. The equity ratio is 1.82%, reflecting a solid capital structure. However, the return on equity decreased significantly from 51.89% to 14.77%, suggesting lower profitability from equity investments.

Cash Flow

MCAP Inc. shows a concerning cash flow situation with negative operating cash flow and free cash flow, indicating potential liquidity issues. The free cash flow growth rate is negative, and both operating and free cash flow to net income ratios are negative, highlighting issues in translating earnings into cash.

Breakdown	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	87.77M	144.46M	102.55M
Gross Profit	41.39M	41.19M	45.16M
EBITDA	9.43M	8.82M	16.37M
Net Income	4.28M	3.98M	10.32M
Balance Sheet
Total Assets	968.30M	1.48B	1.43B
Cash, Cash Equivalents and Short-Term Investments	956.17M	1.47B	1.43B
Total Debt	0.00	1.10M	6.50M
Total Liabilities	930.82M	1.45B	1.41B
Stockholders Equity	37.48M	26.91M	19.90M
Cash Flow
Free Cash Flow	-119.49K	-4.91M	14.31M
Operating Cash Flow	-32.72K	-4.91M	14.67M
Investing Cash Flow	-3.51M	668.48K	-356.73K
Financing Cash Flow	145.12K	-2.93M	3.59M

MCAP Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MCAP, the sentiment is Positive. The current price of 11.72 is above the 20-day moving average (MA) of 11.68, above the 50-day MA of 10.96, and above the 200-day MA of 7.72, indicating a bullish trend. The MACD of 0.19 indicates Positive momentum. The RSI at 72.98 is Negative, neither overbought nor oversold. The STOCH value of 50.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MCAP.

MCAP Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MCAP	57 Neutral	―	22.75	34.76%	0.84%	―	―
MRIN	45 Neutral	6.30M	-0.51	-156.53%	―	-9.89%	47.46%
WLDS	44 Neutral	30.71M	-0.72	-204.12%	―	-9.05%	77.41%
SVRE	41 Neutral	13.43M	-0.02	-328.67%	―	16.11%	83.66%
FRGT	40 Underperform	3.61M	-0.02	855.46%	―	-19.53%	92.37%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%