Company Overview
Freight Technologies, Inc. operates as a technology company that engages in the freight management business within the United States and Mexico, utilizing its subsidiary to deliver specialized logistics solutions. The company functions within the Technology sector and specifically the Software - Application industry, providing digital infrastructure for cross-border shipping operations. As of the latest reported data, the entity maintains a market capitalization of $2.83M and employs 82 individuals to support its operational capabilities. The annualized revenue over the trailing twelve months stands at $13.26M, positioning the firm as a micro-cap entity with a relatively small operational footprint. These valuation metrics, combined with the employee count, indicate that the company is currently in a growth phase where capital efficiency is paramount, rather than establishing a massive market presence comparable to large-cap peers. The small market cap relative to the revenue base suggests a high degree of volatility and significant risk associated with early-stage software adoption in the freight logistics sector.
Financial Health
The company reported revenue of $13.26M for the trailing twelve months, yet recorded a net income of $-5,343,165 and an EBITDA of $-5,262,938. The substantial gap between the positive revenue figure and the deeply negative net income reveals a cost structure where operating expenses significantly exceed gross profits, resulting in a gross margin of -24.4%. This negative gross margin indicates that the cost of goods sold is higher than the revenue generated from sales, a situation common in early-stage software development or hardware-integrated logistics models. Furthermore, the operating margin sits at -54.3%, while the profit margin is -40.3%, both figures highlighting intense pressure on profitability before accounting for financing costs and taxes. Regarding liquidity, the company holds $291,940 in cash against a total debt load of $3.31M, resulting in a debt-to-equity ratio of 52.75 which characterizes the balance sheet as heavily leveraged rather than conservative. The current ratio of 0.94 indicates that the company's current assets are insufficient to cover its current liabilities, suggesting potential short-term liquidity constraints. Additionally, metrics for Return on Equity and Return on Assets are listed as N/A, reflecting the fact that the company is currently unable to generate positive returns on the equity invested or the assets held due to its net loss position.
Valuation Assessment
The valuation metrics for Freight Technologies, Inc. present a complex picture, with a trailing P/E ratio of 0.02 and a forward P/E of -0.28. The difference between these two figures implies that the market expects earnings to remain negative in the near future, as a negative forward P/E typically signals anticipated losses rather than a transition to profitability. The price-to-book ratio is recorded at 3.26, indicating that the market values the company at more than three times its net book value, a premium often seen in technology firms despite current losses. Alternative valuation measures such as the price-to-sales ratio of 0.21 and an EV/EBITDA of -4.47 suggest that the stock is priced based on sales multiples rather than earnings power, which is typical for unprofitable growth companies. In terms of trading range, the 52-week high is $69.80 and the 52-week low is $0.99, placing the current trading price significantly below the high and well above the low, reflecting the extreme volatility inherent in small-cap technology stocks. The beta value of 0.82 indicates that the stock's price volatility is slightly lower than the broader market average, suggesting that while still risky, its movements are somewhat dampened relative to the overall market index.
Growth & Income
Freight Technologies, Inc. demonstrated a revenue growth rate of 30.2% year-over-year, while earnings growth is listed as N/A due to the company's persistent net losses. Because the earnings growth rate cannot be calculated against a positive baseline, the comparison between revenue and earnings growth implies that the company is prioritizing top-line expansion over immediate profitability. The company does not pay dividends, as evidenced by a dividend yield of N/A and a payout ratio of 0.0%. This lack of dividend distribution confirms that the company reinvests all available cash flow, if any, and retained earnings directly back into business operations to fuel growth rather than distributing income to shareholders. The overall growth and income profile is characterized by rapid revenue expansion offset by significant operational deficits and a complete absence of income generation for investors.