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FlexShopper - AI Stock Analysis
Analysis generated June 6, 2024
FlexShopper, Inc. is a publicly traded e-commerce company that offers a variety of retail products through a lease-to-own financing option. The company aims to provide customers with convenient and affordable solutions for purchasing products like electronics, furniture, appliances, and more. FlexShopper serves a unique niche by allowing customers with less-than-perfect credit histories to access high-quality goods through manageable weekly payments.
Fundamental Analysis
Revenue: For the last quarter, FlexShopper reported a revenue of $34 million. This represents a 12.14% increase from the previous quarter, signaling solid quarter-over-quarter growth. Furthermore, when compared to the same quarter last year, revenue increased by 10.26%, indicating positive year-over-year growth. These numbers are critical as they highlight the company's ability to grow its sales consistently.
Net Income: The net income for the last quarter was $210,000, a decrease of 160.48% from the previous quarter. This notable drop is a cause for concern and suggests potential issues with cost management or operational efficiencies. On the brighter side, net income has increased by 6.97% compared to the same quarter last year, providing some reassurance of long-term improvement.
EBITDA: FlexShopper's EBITDA for the last quarter was $7.8 million, representing a decline of 58.96% compared to the previous quarter. When compared to the same quarter last year, the EBITDA decreased by 59.99%, which is troubling and indicates potential struggles in maintaining profitability.
Price-Earnings Ratio (P/E): The current P/E ratio stands at 1.93, which is notably low. A low P/E ratio often suggests that the stock may be undervalued, presenting a potential buying opportunity for investors.
Technical Analysis
Stock Price: FlexShopper's current stock price is $1.11. This represents a 1.83% increase compared to a month ago, showing a short-term upward trend. However, when compared to a year ago, the stock price has decreased by 5.93%, a factor that could raise concerns about long-term performance.
Simple Moving Average (SMA): The current SMA10 is $1.11, which aligns with the previous SMA10. This indicates a potential stabilization but could also suggest a lack of upward momentum.
Relative Strength Index (RSI): With an RSI of 39.1, the stock is in neutral territory. This RSI value indicates neither overbought nor oversold conditions, providing no strong signal for buying or selling based on momentum.
Alternative Data Analysis
Job Postings and Employee Sentiment: FlexShopper currently has 16 open positions according to popular job boards. This number is down by 11% over the last couple of months, suggesting that the company might be focusing on improving margins or cutting costs. This can be interpreted as a negative sign for a company looking to grow.
Customer Acquisition: The company's website has attracted approximately 560,000 visitors, an increase of 81% in the last couple of months. This sharp rise in web traffic is a bullish sign, indicating that more potential customers are showing interest in FlexShopper's offerings.
Customer Engagement: FlexShopper has seen a 20% increase in its Instagram followers, now totaling 7,300. This rise in social media engagement suggests increased interest and potential customer growth. The company's Twitter page has 470 followers, remaining steady over the past few months without significant changes.
AI Score: According to AltIndex's AI score, which evaluates a stock based on fundamental, technical, and alternative data, FlexShopper has a score of 67. This score is categorized as a 'buy' signal, indicating a positive outlook from an AI-driven perspective.
Conclusion and Recommendation
In summary, FlexShopper presents a mixed but promising investment opportunity. The fundamental analysis reveals a company that is experiencing consistent revenue growth but struggling with profitability concerns. Technical analysis shows stability with a slightly bearish outlook, but the alternative data provides a more encouraging picture with increasing customer interest and online engagement.
Recommendation: Given the overall analysis, FlexShopper appears to be undervalued with room for upward potential. While there are notable concerns regarding profitability, the increasing customer interest and low P/E ratio provide a compelling case for considering a buy.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.