Company Overview
Greenpro Capital Corp. operates within the Industrials sector as a provider of financial consulting and corporate advisory services, targeting small and medium-sized enterprises across a diverse geographic footprint that includes Hong Kong, China, Malaysia, Singapore, Indonesia, Thailand, Japan, Taiwan, the United Kingdom, and the United States. The company functions primarily through its Service Business division, delivering specialized advisory solutions to clients in these international markets. In terms of scale, the organization employs a workforce of 48 individuals and carries a market capitalization of $23.46M. Despite this market cap, the company's annual revenue for the trailing twelve months stands at $3.11M, which indicates that the firm operates as a micro-cap entity with limited revenue generation relative to its valuation multiple.
Financial Health
The financial statements for the trailing twelve months reveal a revenue of $3.11M, a net income of $-1,279,774, and an EBITDA of $-1,087,070, highlighting a significant structural disconnect between top-line activity and bottom-line profitability. The substantial gap between the $3.11M in revenue and the $-1,279,774 in net income reveals a cost structure where operating expenses and other charges are aggressively consuming the entire revenue base, resulting in a loss that exceeds the gross profit generated. Free cash flow for the period was $-866,779, which signifies a lack of financial flexibility and an inability to fund operations or capital expenditures without external financing. The company reports a cash balance of $775,388 against total debt of $55,914, creating a scenario where liquid assets are nearly sufficient to cover liabilities, yet the negative cash flow prevents the preservation or growth of this cash reserve. Margin analysis shows a gross margin of 85.1%, indicating high pricing power or low direct costs on services, while the operating margin of -132.4% and profit margin of -41.1% demonstrate severe inefficiencies in managing overhead and other expenses relative to sales. The debt-to-equity ratio of 1.29 suggests a leveraged balance sheet where debt obligations exceed equity, contrasting with the current ratio of 1.41, which indicates adequate short-term liquidity to meet immediate obligations. Furthermore, the return on equity of -27.8% and return on assets of -12.0% reveal that management effectiveness is currently negative, as the company is eroding shareholder value and utilizing assets to generate losses rather than returns.
Valuation Assessment
Valuation metrics for Greenpro Capital Corp. present a complex picture with a trailing P/E ratio that is N/A due to losses, while the forward P/E is listed as -38.86, implying that expected earnings do not yet reflect profitability and that the market is pricing in future recovery rather than current performance. The price-to-book ratio stands at 5.24, indicating a significant market premium over the company's book value, which suggests investors are valuing the firm based on growth potential or intangible assets despite its current lack of earnings. Alternative valuation metrics such as the price-to-sales ratio of 7.54 and the EV/EBITDA of -20.33 suggest that the stock is priced based on revenue multiples rather than earnings power, reflecting the market's focus on top-line expansion over profitability. The stock trades between a 52-week high of $3.05 and a 52-week low of $0.83, meaning the current price sits within this range but the specific trading level relative to the high and low requires monitoring of market sentiment given the volatility. The beta value of 1.53 indicates that the stock exhibits high price volatility relative to the broader market, moving more aggressively than the market average and carrying elevated systematic risk for investors.
Growth & Income
The company's growth profile is characterized by a revenue growth rate of -27.1% year-over-year, while earnings growth is N/A due to the absence of recent net income, indicating that the business is contracting in terms of top-line sales. Since earnings are negative and earnings growth is not applicable, the decline in revenue is the primary driver of financial deterioration, implying that the company is unable to grow its earnings faster than its revenue because it lacks a profitable base. As a non-dividend payer, the company reports a dividend yield of N/A and a payout ratio of 0.0%, confirming that the firm reinvests its limited cash flow into growth initiatives or simply retains cash to service debt rather than distributing income to shareholders. The overall growth and income profile for Greenpro Capital Corp. is currently defined by significant revenue contraction and a complete absence of dividend income or retained earnings growth, positioning the company as a high-risk, non-income-generating asset in the Industrials sector.