Waton Financial Limited (WTF) AI Stock Analysis

17 Followers

Waton Financial Limited

(NASDAQ:WTF)

Select Model

Rating:42Neutral

Price Target:$2.00▼(-0.99% Downside)

Action:reiterated

Date:10/27/26

The overall score is very low at 42, driven primarily by severe financial distress. The company is unprofitable with deteriorating margins and negative cash flows, which is the most significant risk. This is compounded by weak technicals showing the stock in a persistent downtrend. The only mitigating factor is a solid balance sheet with low debt, but it is insufficient to offset the operational and market challenges.

Positive Factors

Revenue GrowthMeaningful revenue expansion indicates the company has demonstrated an ability to grow its business and reach customers. If this growth can be converted into sustainable profits, it provides a foundation for operating leverage, reinvestment, and improved financial resilience over the coming quarters.

Negative Factors

Severe Profitability DeteriorationThe shift from strong profits to consecutive and worsening losses materially weakens earnings power and makes results highly volatile. Continued losses could reduce internal funding capacity, constrain strategic investment, and undermine the value of earlier revenue growth unless profitability recovers.

Waton Financial Limited (WTF) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $96.47M
Dividend Yield: ―
Average Volume (3M): 9,678
Price to Earnings (P/E): -10.2
Beta (1Y): 1.23
Revenue Growth: 46.00%
EPS Growth: -24.77%
Country: US
Employees: 51
Sector: General
Sector Strength: 55
Industry: Financial - Capital Markets

Waton Financial Limited Business Overview & Revenue Model

Company Description

Waton Financial Limited, established in 1989 and based in Kowloon City, Hong Kong, specializes in providing securities brokerage and financial technology services. The company offers clients access to trading on major stock exchanges, including the H...

Waton Financial Limited Financial Statement Overview

Summary

Financial performance is weak. The Income Statement (Score 12) shows collapsing margins and significant net losses, and Cash Flow (Score 15) is burning cash. The Balance Sheet (Score 35) is the only positive, with low debt, but it is overshadowed by poor profitability and liquidity.

Income Statement

12Very Negative

Balance Sheet

35Negative

Cash Flow

15Very Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	6.48M	11.08M	7.45M	10.06M	5.74M	252.82K
Gross Profit	5.97M	2.47M	3.00M	6.74M	4.35M	191.16K
EBITDA	-1.74M	-13.54M	-10.87M	3.53M	3.91M	-1.63M
Net Income	-9.52M	-15.15M	-11.97M	2.50M	3.08M	-1.50M
Balance Sheet
Total Assets	54.66M	54.66M	30.72M	32.68M	40.77M	5.79M
Cash, Cash Equivalents and Short-Term Investments	12.99M	12.99M	7.72M	4.95M	19.09M	1.73M
Total Debt	2.58M	2.58M	525.36K	2.86M	5.29M	2.41M
Total Liabilities	32.93M	32.93M	17.96M	21.94M	26.61M	4.98M
Stockholders Equity	21.73M	21.73M	12.77M	10.74M	14.16M	816.84K
Cash Flow
Free Cash Flow	-7.38M	-7.38M	346.22K	-2.11M	11.96M	745.56K
Operating Cash Flow	-7.06M	-7.06M	359.96K	-1.85M	11.97M	750.91K
Investing Cash Flow	-2.03M	-2.03M	-13.74K	-8.21M	-4,978	-5,357
Financing Cash Flow	19.58M	19.58M	2.76M	-8.30M	12.98M	1.05M

Waton Financial Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price2.02

Price Trends

50DMA2.39Negative

100DMA2.63Negative

200DMA3.10Negative

Market Momentum

MACD-0.13Negative

RSI40.36Neutral

STOCH50.97Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WTF, the sentiment is Negative. The current price of 2.02 is below the 20-day moving average (MA) of 2.16, below the 50-day MA of 2.39, and below the 200-day MA of 3.10, indicating a bearish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 40.36 is Neutral, neither overbought nor oversold. The STOCH value of 50.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WTF.

Waton Financial Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

WTF against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MGLD	65Neutral	$84.45M	-37.10	-10.56%	―	6.52%	51.77%
BCG	62Neutral	$18.77M	5.48	30.04%	―	8.30%	426.61%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
WTF	42Neutral	$96.47M	-10.24	-50.96%	―	46.00%	-24.77%
CWD	41Neutral	$4.30M	-0.08	3235.42%	―	-31.34%	86.66%
BENF	40Underperform	$12.40M	-0.01	14.09%	―	-38.32%	94.03%

* General Sector Average

Performance Comparison

WTF and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
WTF	Waton Financial Limited	2.02	-3.13	-60.78%
MGLD	Marygold Companies, Inc.	1.97	1.06	116.48%
BCG	Binah Capital Group, Inc.	1.24	-0.23	-15.65%
BENF	Beneficient	0.63	-3.43	-84.53%
CWD	CaliberCos, Inc. Class A	0.38	-1.78	-82.27%

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: Oct 27, 2026

Waton Financial Limited AI Stock Analysis