One-glance verdict
Undervalued
$34.57 our estimate vs market $0.81
98% below our estimate, below the bear case
Fundamentals snapshot
WiMi Hologram Cloud Inc.
WIMI · NGM · Communication Services · Advertising Agencies
Current price
$0.81
52-week range
$0.81 - $5.50
Market cap
$14.91M
Balance sheet
Healthy
-1.80x Concerning
Net cash $431.38M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Returns 1.3% on equity, ahead of 66% of its peers.
- Reward Free cash flow was positive in 5/10 years.
- Risk Stock trades 492.5% above its 5-year average P/E.
- Risk Forward P/E (4.8x) is higher than trailing (0.9x) - earnings are expected to drop.
What this company does
WiMi Hologram Cloud Inc.
WiMi Hologram Cloud builds augmented reality (AR) technology, which adds computer-generated images to your view of the real world, primarily for advertising and entertainment in China. While most of its business comes from these AR services, it also develops and sells semiconductor products (the tiny electronic chips that are the brains of modern devices). This matters because it shows the company is trying to compete in both the next-generation content market with AR and the foundational hardware market with chips.
How the company got here
WiMi Hologram Cloud Inc. was founded in 2015 and is based in Beijing, China. The company went public on the Nasdaq stock exchange in 2020. It has established itself as a technology provider focused on holographic augmented reality (AR), which overlays computer-generated images onto the real world. WiMi has grown by developing a range of services and products, including those for advertising, entertainment, and even the semiconductor industry.
What it actually does
WiMi Hologram Cloud creates technology that places three-dimensional (3D) digital objects into videos and the real world. Think of it like the special effects you see in movies, but designed for advertising, entertainment, and other industries. For example, their software can insert a 3D animation of a product into a video you're watching. The company provides a mix of software, hardware, and technical services to make these holographic AR experiences possible.
AR Advertising Services
This is one of the main ways WiMi makes money. Companies pay WiMi to use its software to place holographic AR ads in videos. This allows advertisers to create more engaging and interactive commercials by inserting 3D virtual objects directly into the video content. This segment is a core part of WiMi's business, serving as a foundational element of their revenue (the total money a company brings in from sales).
AR Entertainment
This part of the company focuses on using holographic AR for fun and engaging experiences. This includes things like game distribution platforms and special software for mixed reality (MR), which blends the real and virtual worlds. They also create payment middleware software, which helps process payments within these entertainment applications. This segment represents another key pillar of their business, alongside advertising.
Semiconductor Related Products and Services
In a newer line of business, WiMi has expanded into the semiconductor industry. They provide computer chip products and services related to central processing algorithms (the core instructions that make a computer run) to other businesses. This also includes selling complete solutions that combine both software and hardware. This segment shows WiMi's effort to diversify its business beyond just advertising and entertainment.
What management is betting on now
WiMi's leadership is heavily focused on research and development to stay at the forefront of holographic AR technology. They are particularly interested in the 'Metaverse' and are developing AR and VR (Virtual Reality) devices and software for this emerging digital world. The company is also making significant investments in advanced areas like quantum computing and artificial intelligence to enhance their image and data processing capabilities. Their long-term goal is to become a globally recognized leader in the holographic AR industry.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$74.13M
FY2025 Q4
$8.39M
Revenue
$60.07M
Net income
$44.00M
Diluted EPS
2.27
Operating cash flow
$16.75M
Free cash flow
$8.39M
Fetching…
Sources
Revenue
$75.39M
Net income
$9.97M
Diluted EPS
1.01
Operating cash flow
$74.13M
Free cash flow
$74.13M
Fetching…
Sources
Is it cheap or expensive?
Fair value $34.57 vs current price $0.81
Our most-likely fair value is $34.57 a share — about 4,163.1% above today's price of $0.81, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $431.4M - more cash than debt. Interest coverage -1.8x.
Net debt
$-431.38M
Interest coverage
-1.80x
WiMi Hologram Cloud 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.
Healthy
Worse cushion
Baseline
Better cushion
WIMI
BASELINE
WiMi Hologram Cloud Inc.
Total debt $35.55M Interest coverage -1.80x This is the baseline the peer rows are being compared against.
Total debt $6.72M Interest coverage 0.06x This peer still has a real interest-payment cushion, while WIMI does not.
Total debt $45.45M Interest coverage -3.74x Neither company has much profit cushion over interest right now.
Total debt $1.16M Interest coverage -13.30x Neither company has much profit cushion over interest right now.
Total debt $67.68M Interest coverage -1.27x Neither company has much profit cushion over interest right now.
What you should know
The case for and against WIMI
3 Rewards
2 Risks
Rewards
-
Returns 1.3% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 5/10 years.
-
Trades at 0.9x P/E vs peer median 121.8x (99.3% cheaper).
Risks
-
Stock trades 492.5% above its 5-year average P/E.
-
Forward P/E (4.8x) is higher than trailing (0.9x) - earnings are expected to drop.
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)
0.88x
Forward P/E
4.77x
P/B
0.05x
P/S
0.04x
EV/EBITDA
1,611.97x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
25.8%
Operating margin
0.5%
Net margin
31.4%
ROE
1.3%
ROA
-0.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.10x
Current ratio
3.56x
Quick ratio
3.46x
Total debt
$35.55M
Total cash
$466.93M
Growth
How the business has been compounding
Revenue TTM
$316.08M
Revenue 5Y CAGR
-20.0%
EPS TTM
0.92
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$69.19M
Free CF TTM
$8.39M
FCF margin
2.7%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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