Tapinator (TAPM) AI Stock Analysis

• Market Cap: $955.07K
• Dividend Yield: N/A
• Average Volume (3M): 775.00
• Price to Earnings (P/E): 17.1
• Beta (1Y): -0.73
• Revenue Growth: 5.15%
• EPS Growth: -698.55%
• Country: US
• Employees: 7
• Sector: Communication Services
• Sector Strength: 88
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.01
• Shares Outstanding: 2,824,810
• 10 Day Avg. Volume: 212
• 30 Day Avg. Volume: 775
• PEG Ratio: 0.04
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.30
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: ―

Tapinator's stock reflects a mixed outlook. Financial performance shows resilience in profitability amidst revenue declines, supported by a strong balance sheet. Technical indicators suggest positive momentum, slightly tempered by valuation metrics indicating potential overvaluation. The absence of earnings call data and corporate events limits additional insights.

Tapinator Business Overview & Revenue Model

Company Description

Tapinator, Inc. develops and publishes mobile games and applications on the iOS, Google Play, and Amazon platforms in North America and Europe. The company's library includes approximately 300 titles, such as Video Poker Classic and Crypto Trillionaire. It also provides in-app purchase and subscription services. The company was founded in 2013 and is headquartered in New York, New York.

How the Company Makes Money

Tapinator generates revenue primarily through in-app purchases and advertising within its mobile games. In-app purchases allow players to buy virtual goods or enhancements that enhance gameplay or provide additional features. Additionally, Tapinator monetizes its games by integrating advertisements, which can include banner ads, interstitial ads, and rewarded video ads. The company often collaborates with advertising networks and partners to optimize ad placements and maximize ad revenue. Tapinator's earnings are significantly influenced by the popularity and engagement levels of its games, as well as its ability to attract and retain a large player base.

Tapinator Financial Statement Overview

Summary

Overall, Tapinator presents a mixed financial picture. While profitability margins have improved, the decline in revenue and negative free cash flow pose risks. The company maintains a strong balance sheet with low leverage, but growth in equity value is limited. Continuous focus on revenue growth and cash management will be essential for future financial stability and performance improvement.

Income Statement

Tapinator has shown a mixed performance over the years. The gross profit margin has been relatively stable, with a notable increase in 2023, reaching 70.9%. However, the company experienced a decline in total revenue from 2022 to 2023, marking a negative growth rate of 19.9%. Despite this, the net profit margin improved to 0.8% in 2023, indicating better cost management. The EBIT and EBITDA margins also indicate modest profitability improvements. The overall trajectory shows resilience in profit margins despite challenges in revenue growth.

Balance Sheet

Tapinator's balance sheet reveals a solid equity base, with an equity ratio of 42.7% in 2023, which indicates a moderate reliance on debt. The debt-to-equity ratio is low at 0.21, reflecting a strong financial position. However, stockholders' equity has only seen a slight increase, suggesting limited growth in asset value. The return on equity is low at 2.8%, indicating room for improvement in utilizing equity to generate profits.

Cash Flow

Cash flow analysis shows a volatile performance. Operating cash flow has increased significantly in 2023, suggesting improved operational efficiency. However, the free cash flow has been negative, reflecting high capital expenditures that exceed operating cash inflows. The ratio of operating cash flow to net income is strong, indicating good cash generation relative to reported profits. Nonetheless, the overall cash position could be affected by continuous negative free cash flow.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
4.78M	4.44M	5.54M	5.84M	4.45M	3.76M
	Gross Profit
3.06M	3.15M	3.54M	4.01M	2.60M	1.87M
	EBIT
160.94K	220.84K	665.62K	1.16M	28.96K	-2.26M
	EBITDA
686.39K	271.15K	743.76K	1.11M	-19.64K	-1.72M
	Net Income Common Stockholders
-100.51K	37.69K	285.27K	665.58K	-547.50K	-2.38M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
871.31K	571.34K	534.60K	1.18M	206.04K	167.02K
	Total Assets
2.23M	3.15M	2.95M	3.86M	1.27M	1.40M
	Total Debt
0.00	281.46K	361.85K	430.19K	169.06K	248.62K
	Net Debt
-871.31K	-289.88K	-172.75K	-744.99K	-36.98K	81.60K
	Total Liabilities
1.06M	1.81M	1.65M	2.99M	1.24M	1.11M
	Stockholders Equity
1.17M	1.35M	1.30M	864.47K	35.63K	295.86K
Cash Flow		Free Cash Flow
-848.71K	-132.01K	-300.72K	2.13M	114.82K	-782.15K
	Operating Cash Flow
457.70K	976.19K	332.38K	2.72M	789.24K	-170.42K
	Investing Cash Flow
-908.12K	-939.45K	-882.97K	-1.62M	-674.42K	-611.73K
	Financing Cash Flow
0.00	0.00	-90.00K	-129.97K	-75.79K	77.85K

Tapinator Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TAPM, the sentiment is Negative. The current price of 0.34 is below the 20-day moving average (MA) of 0.36, below the 50-day MA of 0.38, and below the 200-day MA of 0.38, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 30.64 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TAPM.

Tapinator Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TAPM	66 Neutral	$955.07K	17.05	-30.66%	―	5.15%	-698.55%
Sector *	61 Neutral	$14.27B	5.74	-4.20%	3.65%	2.73%	-35.75%
MSGM	49 Neutral	$17.86M	561.82	-31.58%	―	-9.65%	―
SLE	44 Neutral	$4.72M	―	-1222.32%	―	-43.42%	81.31%
CNET	38 Underperform	$2.74M	―	-80.78%	―	-49.52%	-86.35%
BAOS		$3.59M	―		―	―	―
VSME	31 Underperform	$7.84M	―	-157.27%	―	―	―