MCAP Inc. (MCAP) AI Stock Analysis

MCAP Inc.

(Other OTC:MCAP)

Select Model

Rating:46Neutral

Price Target:$9.50▲(0.00% Upside)

Action:reiterated

Date:08/08/26

MCAP scores below average, driven primarily by significant financial deterioration — TTM gross margins have collapsed to ~11% (alarming for a software company), revenue growth is inconsistent, and profitability has turned negative. The elevated P/E of ~41x is difficult to justify given these fundamentals, though the 4.8% dividend yield offers some appeal. The debt-free balance sheet and recent cash flow recovery are genuine positives but insufficient to offset the margin compression and valuation concerns. Technical indicators show mild short-term momentum but a bearish longer-term trend. Investors should closely monitor whether the margin deterioration is temporary or structural before considering a position.

Positive Factors

Conservative balance sheetEffectively no debt gives MCAP substantial financial flexibility and reduces exposure to interest burdens or refinancing pressure. A stronger equity base also supports resilience, allowing the company to absorb operating volatility while continuing to pursue mortgage lending and servicing opportunities.

Negative Factors

TTM profitability deteriorationThe TTM shift from stronger annual profitability to a small net loss signals that earnings power has weakened materially. Persistently lower profitability would reduce internally generated capital, pressure returns, and make recent cash-flow strength less dependable as a measure of ongoing performance.

MCAP Inc. (MCAP) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $234.24M
Dividend Yield: 4.21%
Average Volume (3M): 203
Price to Earnings (P/E): -950.0
Beta (1Y): -0.18
Revenue Growth: 10.77%
EPS Growth: -101.94%
Country: US
Employees: 7
Sector: Technology
Sector Strength: 61
Industry: Software - Application

MCAP Inc. Business Overview & Revenue Model

Company Description

MCAP Inc. functions as a real estate holding firm, primarily dedicated to acquiring undervalued land and properties across the United States. Established in 1995, the company was previously known as MetaCap Inc. before officially changing its name to...

MCAP Inc. Financial Statement Overview

Summary

MCAP's financial profile is concerning. The income statement score of 35 reflects collapsing TTM gross margins (~11%, far below software industry norms), volatile revenue, and near-breakeven profitability. The balance sheet score of 68 is a bright spot with zero debt and growing equity ($53.9M). Cash flow scored 52, with a strong TTM rebound to $29M operating cash flow, but historical volatility undermines confidence. The severe margin deterioration dominates, dragging the composite financial score well below average despite the solid balance sheet.

Income Statement

35Negative

Balance Sheet

68Positive

Cash Flow

52Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	107.53M	104.71M	87.77M	144.46M	102.55M
Gross Profit	-2.72M	43.37M	41.39M	41.19M	45.16M
EBITDA	-1.48M	11.14M	9.43M	8.82M	16.37M
Net Income	-238.62K	7.00M	4.28M	3.98M	10.32M
Balance Sheet
Total Assets	1.59B	868.54M	968.30M	1.48B	1.43B
Cash, Cash Equivalents and Short-Term Investments	1.57B	850.12M	956.17M	1.47B	1.43B
Total Debt	0	0	0	1.10M	6.50M
Total Liabilities	1.54B	819.86M	930.82M	1.45B	1.41B
Stockholders Equity	53.91M	48.68M	37.48M	26.91M	19.90M
Cash Flow
Free Cash Flow	28.66M	23.13M	-119.49K	542.51K	14.31M
Operating Cash Flow	29.04M	23.44M	-32.72K	-4.91M	14.67M
Investing Cash Flow	-3.05M	-5.94M	-3.51M	668.48K	-356.73K
Financing Cash Flow	-10.20M	-6.29M	145.12K	-2.93M	3.59M

MCAP Inc. Technical Analysis

Technical Analysis SentimentPositive

Last Price9.50

Price Trends

50DMA8.93Positive

100DMA8.39Positive

200DMA8.13Positive

Market Momentum

MACD0.18Positive

RSI84.15Negative

STOCH0.00Positive

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 9.50 is above the 20-day moving average (MA) of 9.32, above the 50-day MA of 8.93, and above the 200-day MA of 8.13, indicating a bullish trend. The MACD of 0.18 indicates Positive momentum. The RSI at 84.15 is Negative, neither overbought nor oversold. The STOCH value of 0.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MCAP.

MCAP Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

MCAP against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AGMH	46Neutral	$11.44M	-2.02	5.15%	―	-4.63%	-22.14%
MCAP	46Neutral	$234.73M	-950.00	-0.47%	4.21%	10.77%	-101.94%
CXAI	44Neutral	$3.11M	-0.04	-135.04%	―	-20.40%	32.15%
FRGT	41Neutral	$1.80M	-0.02	-92.67%	―	―	―

* Technology Sector Average

Performance Comparison

MCAP and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
MCAP	MCAP Inc.	9.50	-1.49	-13.56%
FRGT	Freight Technologies, Inc	1.07	-251.43	-99.58%
AGMH	Agm Group	0.51	-3.18	-86.28%
CXAI	Cxapp Inc.	1.33	-33.16	-96.14%
RMSG	Real Messenger Corporation	0.17	-1.99	-91.90%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 08, 2026

MCAP Inc. AI Stock Analysis