Taoping (TAOP) AI Stock Analysis

• Market Cap: $1.88M
• Dividend Yield: N/A
• Average Volume (3M): 267.81K
• Price to Earnings (P/E): 0.4
• Beta (1Y): 1.45
• Revenue Growth: -15.10%
• EPS Growth: -177.14%
• Country: US
• Employees: 63
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -6.54
• Shares Outstanding: 890,000
• 10 Day Avg. Volume: 482,182
• 30 Day Avg. Volume: 267,813
• PEG Ratio: -3.89
• Price to Book (P/B): 3.62
• Price to Sales (P/S): 1.56
• P/FCF Ratio: -16.69
• Enterprise Value/Market Cap: 4.72
• Enterprise Value/Revenue: 0.24
• Enterprise Value/Gross Profit: 1.14
• Enterprise Value/Ebitda: 17.41
• 1Y Price Target: $2.00
• Price Target Upside: -5.21% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 38 Underperform
• Price Target: $2.00 ▼(-5.21% Downside)

Taoping's overall stock score is primarily driven by its weak financial performance and valuation concerns. The company's declining revenues, persistent losses, and cash flow challenges are significant risks. Technical analysis indicates bearish momentum, further impacting the score. The negative P/E ratio and lack of dividend yield highlight valuation issues.

Taoping Business Overview & Revenue Model

Company Description

Taoping Inc. provides cloud-based platform, resource sharing, and big data solutions to the Chinese new media, education residential community management, and elevator Internet of Things (IoT) industries in the People's Republic of China. It operates through three segments: Cloud-Based Technology, Blockchain Technology, and Traditional Information Technology. The company offers cloud-based software as a service to automate the interactive workflows between advertising agencies and their customers, including establishing new advertising projects, submitting advertisement proposals, revising and approving advertising proposals, processing payment online, remotely uploading advertisement content, and tracking and analyzing performance data. It also provides project-based technology products and services for the public sector; and software and hardware with integrated solutions, including information technology infrastructure, Internet-enabled display technologies, and IoT platforms to customers in government, education, residential community management, media, transportation, healthcare, and other private sectors, as well as related maintenance and support services. In addition, the company offers cloud-application-terminal and IoT technology based digital advertising distribution network and media resource sharing platform in the out-of-home advertising markets. Further, it operates Taoping Net, an advertising-resources trading service platform, which connect screen owners, advertisers, and consumers; Taoping App, which enable customers to distribute and manage ads from mobile terminals; and cryptocurrency mining and blockchain related services. The company was formerly known as China Information Technology, Inc. and changed its name to Taoping Inc. in June 2018. Taoping Inc. was founded in 1993 and is headquartered in Causeway Bay, Hong Kong.

How the Company Makes Money

Taoping generates revenue through several key streams, primarily by selling advertising services and digital signage products to businesses and government entities. The company earns income from the deployment of its digital advertising platforms, which allow clients to reach targeted audiences effectively. Additionally, Taoping monetizes its cloud services by providing software and data analytics solutions that enable clients to manage and optimize their advertising campaigns. Significant partnerships with various advertisers and technology firms contribute to its earnings, as these collaborations enhance the company's service offerings and market reach. Furthermore, Taoping benefits from recurring revenue models through long-term contracts and service agreements with clients, ensuring a steady cash flow.

Taoping Financial Statement Overview

Summary

Taoping faces significant financial challenges with declining revenues, persistent losses, and cash flow issues. Despite some improvement in leverage, profitability and cash generation remain weak, posing risks to financial stability and growth.

Income Statement

Taoping's income statement reveals a challenging financial position with declining revenue and profitability. The company experienced a revenue decline of 13.99% in the most recent year, and both gross and net profit margins have decreased over time. The EBIT and EBITDA margins are weak, indicating operational inefficiencies. The negative net profit margin highlights ongoing losses, which is a significant concern for future profitability.

Balance Sheet

The balance sheet shows moderate leverage with a debt-to-equity ratio of 0.50, which is an improvement from previous years. However, the return on equity remains negative, reflecting ongoing losses and poor returns for shareholders. The equity ratio is relatively stable, but the company's financial health is compromised by its inability to generate positive returns.

Cash Flow

Cash flow analysis indicates significant challenges, with negative operating and free cash flows. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is unfavorable, suggesting cash flow issues. The free cash flow to net income ratio is positive, but this is due to negative net income, not operational strength.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	36.67M	38.64M	24.23M	19.39M	11.06M
Gross Profit	7.77M	8.85M	7.23M	9.34M	3.94M
EBITDA	772.61K	3.35M	3.54M	-8.63M	-13.90M
Net Income	-1.82M	-697.94K	-7.08M	-9.92M	-17.69M
Balance Sheet
Total Assets	35.13M	32.83M	29.21M	47.16M	30.78M
Cash, Cash Equivalents and Short-Term Investments	1.58M	1.30M	1.01M	4.53M	882.77K
Total Debt	7.89M	9.00M	7.25M	8.04M	7.39M
Total Liabilities	19.26M	20.06M	19.59M	27.90M	29.80M
Stockholders Equity	15.87M	12.76M	9.62M	19.25M	-7.66M
Cash Flow
Free Cash Flow	-3.44M	-3.54M	-10.83M	-27.44M	-3.45M
Operating Cash Flow	-2.38M	-2.33M	-9.04M	-16.15M	-1.78M
Investing Cash Flow	-1.08M	-1.21M	4.31M	-14.00M	-1.73M
Financing Cash Flow	3.75M	3.84M	22.72K	33.03M	3.07M

Taoping Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TAOP, the sentiment is Negative. The current price of 2.11 is below the 20-day moving average (MA) of 2.97, below the 50-day MA of 3.19, and below the 200-day MA of 6.19, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 27.89 is Positive, neither overbought nor oversold. The STOCH value of 30.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TAOP.

Taoping Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CETX	52 Neutral	$3.84M	<0.01	-1102.76%	―	16.50%	―
APCX	46 Neutral	$5.25M	―	-349.71%	―	30.52%	56.70%
RVYL	43 Neutral	$10.20M	―	-2201.06%	―	-33.86%	74.09%
TAOP	38 Underperform	$1.88M	0.44	-46.76%	―	-15.10%	-177.14%
ATCH	34 Underperform	$47.27M	―	470.97%	―	―	―

Taoping Corporate Events

Taoping Inc. Releases Six-Month Financial Report Amidst Market Challenges

On October 1, 2025, Taoping Inc. released its unaudited consolidated financial statements for the six months ending June 30, 2025, and 2024. The report, filed with the SEC, highlights the company’s financial position, showing a decrease in total assets and equity compared to the previous year. This financial disclosure is crucial for stakeholders to assess Taoping’s financial health and operational performance amid challenges such as economic conditions affecting technology spending and competitive pressures in the advertising sector.

Taoping Inc. Acquires Skyladder Group to Enhance AI and Elevator Services

On September 29, 2025, Taoping Inc. announced a Share Purchase Agreement to acquire 100% equity interest in Skyladder Group Limited, a Hong Kong-based company, for approximately US$21.36 million. This strategic acquisition, payable in ordinary shares, is expected to enhance Taoping’s market position by expanding its service offerings in intelligent elevator services and AI-driven supervision. The transaction is set to close by December 31, 2025, with performance targets in place to unlock share tranches, impacting stakeholders by potentially increasing the company’s operational capabilities and market reach.

Taoping Inc. Restructures Share Classes and Expands Authorized Shares

On August 18, 2025, Taoping Inc., a British Virgin Islands business company, held a special meeting of shareholders in Shenzhen, China. During the meeting, shareholders approved significant changes to the company’s capital structure, including the creation of new classes of shares and an increase in the authorized number of shares from 100 million to over 5 billion. This restructuring aims to enhance the company’s flexibility in capital management and potentially strengthen its market position.