One-glance verdict
Undervalued
$0.75 our estimate vs market $0.33
57% below our estimate, below the bear case
Fundamentals snapshot
Taoping Inc.
TAOP · NCM · Technology · Software - Infrastructure
Current price
$0.33
52-week range
$0.29 - $3.13
Market cap
$3.13M
Balance sheet
Distressed
-9.40x Concerning
Net debt $12.73M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
3 Risks
1 rewards · 3 risks
- Reward Free cash flow was positive in 2/10 years.
- Risk Return on equity was -49.5% last year — the company lost money on shareholders' equity.
- Risk Net debt grew 23.6% over 3 years.
- Risk Operating margin compressed from -12.4% to -18.8% over 3 years.
What this company does
Taoping Inc.
Taoping Inc. offers technology that helps make things like smart cities and digital ads work in China. Their money mainly comes from selling cloud-based tech products and services to businesses, along with advertising and elevator services. This mix of tech sales and services is important because it shows how they're trying to make money from different areas.
How the company got here
Taoping Inc. has a long history, starting in 1993 under a different name, China Information Technology, Inc. It has evolved significantly over the years, shifting its focus to adapt to the changing technological landscape in China. A key turning point was its name change to Taoping Inc. in June 2018, signaling a renewed direction. The company's journey reflects the rapid growth and transformation of China's technology sector, moving from traditional IT to more advanced cloud-based and AI-driven solutions.
What it actually does
Taoping Inc. develops and provides internet-based information systems and cloud-app technologies. Think of them as building the digital infrastructure that helps various services connect and operate smoothly. Their work supports smart city initiatives, allowing different devices and systems within a city to communicate. They also offer solutions for digital advertising, making it easier for companies to reach their customers through online platforms and apps.
Cloud-based Technology
This segment is a major part of Taoping's business, focusing on cloud products and high-end data storage servers. They provide these services to various private sectors, including new media companies, healthcare providers, educational institutions, and residential community management. Essentially, they offer the digital backbone that allows these organizations to store vast amounts of data and run their applications efficiently over the internet. This is a significant revenue driver for the company.
Traditional Information Technology
This part of Taoping offers more traditional hardware and software solutions, often customized for specific business needs. They design and develop software products tailored to the requirements of private sector clients. While the company is increasingly focused on cloud and AI, this segment still contributes to their overall offerings by providing foundational IT solutions that businesses rely on.
Smart Elevator
Taoping is involved in providing services related to smart elevators, which are elevators equipped with technology for enhanced functionality and connectivity. This likely involves integrating software and hardware to improve elevator operations, safety, and potentially user experience within buildings. This segment represents a niche but distinct area of their business, leveraging technology in a specific real-world application.
Advertising and AI-related Products
Taoping operates platforms like Taoping Net, which acts as a marketplace connecting screen owners, advertisers, and consumers for advertising resources. They also have the Taoping App, allowing users to manage and distribute ads from their mobile devices. Beyond advertising, the company is also venturing into AI-related products and solutions, indicating a strategic push into newer, cutting-edge technologies to expand their market reach.
What management is betting on now
Management is focused on expanding their cloud-app technologies for smart city IoT (Internet of Things) platforms, which means connecting everyday objects to the internet to collect and share data. They are also heavily investing in digital advertising delivery systems and other internet-based information services. A key strategic priority is the development and integration of AI-related products and solutions, aiming to leverage artificial intelligence to create more advanced and valuable offerings for their clients and capture future growth opportunities.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$-3.44M
FY2025 Q4
$-3.90M
Revenue
$2.23M
Net income
$-10.06M
Diluted EPS
-7.88
Operating cash flow
$-2.55M
Free cash flow
$-3.90M
Fetching…
Sources
Revenue
$36.67M
Net income
$-1.82M
Diluted EPS
-0.29
Operating cash flow
$-2.38M
Free cash flow
$-3.44M
Fetching…
Sources
Is it cheap or expensive?
Fair value $0.75 vs current price $0.33
Our most-likely fair value is $0.75 a share — about 130.7% above today's price of $0.33, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $12.7M. Interest coverage -9.4x.
Net debt
$12.73M
Interest coverage
-9.40x
Taoping Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 4 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
TAOP
BASELINE
Taoping Inc.
Total debt $13.69M Interest coverage -9.40x This is the baseline the peer rows are being compared against.
Total debt $0.00 Interest coverage -17.57x Neither company has much profit cushion over interest right now.
Total debt $10.49M Interest coverage -22.01x Neither company has much profit cushion over interest right now.
Total debt $3.81M Interest coverage -1,171.65x Neither company has much profit cushion over interest right now.
Total debt $5.80M Interest coverage -11,573.87x Neither company has much profit cushion over interest right now.
What you should know
The case for and against TAOP
1 Reward
3 Risks
Rewards
-
Free cash flow was positive in 2/10 years.
Risks
-
Return on equity was -49.5% last year — the company lost money on shareholders' equity.
-
Net debt grew 23.6% over 3 years.
-
Operating margin compressed from -12.4% to -18.8% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
0.88x
P/B
0.18x
P/S
0.12x
EV/EBITDA
-2.80x
PEG ratio
0.10x
Profitability
How much profit each dollar creates
Gross margin
12.4%
Operating margin
-18.8%
Net margin
-31.4%
ROE
-49.5%
ROA
-13.0%
Health
Liquidity and balance-sheet strength
Debt / equity
0.79x
Current ratio
1.63x
Quick ratio
0.63x
Total debt
$13.69M
Total cash
$964.37K
Growth
How the business has been compounding
Revenue TTM
$101.77M
Revenue 5Y CAGR
-41.8%
EPS TTM
-2.33
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-16.30M
Free CF TTM
$-3.90M
FCF margin
-3.8%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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