Company Overview
Jiuzi Holdings, Inc. operates within the consumer cyclical sector, specifically focusing on the auto and truck dealerships industry, where it engages in the sales of new energy batteries in China. The company structures its operations through two distinct segments: proprietary product development and the resale of sourced equipment and accessories from third-party products. This business model encompasses the full lifecycle of battery distribution, including production, transportation, and packaging services. In terms of scale, Jiuzi Holdings, Inc. is a micro-cap entity with a market capitalization of $1.30M and employs 33 individuals to generate annual revenue of $2.88M. These financial figures indicate that the company operates with a very small market footprint and limited revenue generation capabilities relative to the broader automotive supply chain. The low market cap suggests the stock is priced for speculative growth or niche market positioning rather than established dominance, while the modest employee count reflects a lean operational structure typical of early-stage or highly specialized manufacturers in the new energy sector.
Financial Health
The company reported revenue of $2.88M over the trailing twelve months, yet it simultaneously recorded a net income of -$10,191,058 and an EBITDA of -$9,957,149. The substantial gap between the positive revenue and the negative net income reveals a cost structure where expenses far exceed income, resulting in a significant loss for every dollar of sales generated. Free cash flow stands at -$8,102,739, which indicates that the company is burning cash and lacks the financial flexibility to fund operations or capital expenditures without external financing. Margin analysis shows a gross margin of 0.7%, an operating margin of -493.3%, and a profit margin of 0.0%, highlighting severe inefficiencies where operating costs are disproportionately high compared to sales. On the balance sheet, the company holds $4.57M in cash against $599,420 in debt, but the debt-to-equity ratio is 4.26, suggesting a highly leveraged position relative to equity rather than a conservative stance. Despite the high debt load, the current ratio of 5.79 indicates strong short-term liquidity, implying the company has ample current assets to cover its short-term liabilities. Return on Equity is -90.7% and Return on Assets is -45.0%, metrics that reveal management is currently ineffective at generating returns on the capital invested by shareholders or utilized in the asset base.
Valuation Assessment
Trailing and forward P/E ratios are both N/A due to the company's negative earnings, meaning traditional earnings-based valuation multiples cannot be applied to assess the stock's value. The price-to-book ratio is 0.09, indicating that the market values the company at less than 10% of its book value, which suggests the market is pricing in significant risks or potential liquidation value rather than operational premiums. Alternative valuation metrics such as the price-to-sales ratio of 0.45 and an EV/EBITDA of 0.28 provide a perspective based on sales and enterprise value, though the low EV/EBITDA figure reflects the negative earnings environment. The stock's price range over the last 52 weeks spans from a low of $0.75 to a high of $312.80, representing a massive volatility range where the current trading price sits significantly below the 52-week high relative to the 52-week low. The beta value is 1.59, which means the stock price is expected to be 59% more volatile than the broader market, amplifying both potential gains and losses during periods of market fluctuation.
Growth & Income
Revenue growth year-over-year and earnings growth year-over-year are both N/A, preventing a direct comparison of earnings growth rates relative to revenue growth in this specific reporting period. As a non-dividend payer, the company does not distribute a dividend yield or a payout ratio to shareholders, effectively reinvesting all available earnings or capital into business operations rather than returning cash to investors. The absence of a payout ratio of 0.0% confirms that the company retains its cash reserves, likely to fund the expansion of its new energy battery sales or to service its existing debt obligations. Overall, the growth and income profile is characterized by a lack of historical growth data, zero dividend income, and a capital-intensive approach where cash flow is negative and returns on capital are negative.