Company Overview
MDB Capital Holdings, LLC functions as a broker-dealer entity that operates through specific subsidiaries to deliver services within the capital markets ecosystem. The company is situated in the Financial Services sector and specifically within the Capital Markets industry, which implies a business model focused on facilitating securities transactions and potentially providing related intellectual property or technology services. MDB Capital Holdings, LLC maintains a market capitalization of $30.21M, reports annual revenue of $1.25M, and employs 16 individuals to execute its operational strategy. The combination of a market cap near $30 million and annual revenue of only $1.25 million indicates that the company operates on a relatively small scale, suggesting a niche presence or a capital-light structure common in specialized brokerage firms. The low employee count of 16 relative to the revenue figure further highlights a highly leveraged or automated operational model typical of modern broker-dealers.
Financial Health
MDB Capital Holdings, LLC reported a revenue of $1.25M for the trailing twelve months, yet generated a net income of $11.43M, while EBITDA is not available for direct calculation. The substantial gap where net income significantly exceeds the reported revenue reveals a unique cost structure where non-operating income, such as equity earnings from investments or unrealized gains, likely constitutes a major portion of the bottom line rather than operational profitability. Free cash flow is not reported in the available data, which limits the ability to assess immediate financial flexibility based on cash generation from operations alone. The gross margin stands at -39.7%, indicating that the cost of goods sold exceeds the revenue from core trading activities, a characteristic often seen in brokerage firms where revenue is commission-based and costs are high. The operating margin is -300.2%, reflecting significant operating expenses that outweigh operating revenues, while the profit margin is 913.8%, demonstrating that total income drives profitability despite negative operating metrics. The company holds $15.93M in cash against $635,421 in debt, resulting in a debt-to-equity ratio of 1.07, which suggests a balance sheet that is heavily reliant on equity financing rather than debt leverage. The current ratio is 39.37, a figure that indicates an exceptionally strong short-term liquidity position where current assets vastly exceed current liabilities. Return on Equity is 29.5% and Return on Assets is 27.1%, metrics that reveal management is effectively utilizing shareholder capital and total assets to generate substantial returns.
Valuation Assessment
The trailing P/E ratio is 2.08, while the forward P/E is not available, a situation that implies analysts lack visibility into future earnings expectations or that projected earnings are not yet modeled for this specific entity. The price-to-book ratio is 0.51, indicating that the company is trading at a discount to its book value, which suggests the market values the firm less than the net assets it holds on the balance sheet. The price-to-sales ratio is 24.16, and EV/EBITDA is not available, meaning valuation is primarily driven by sales multiples rather than earnings multiples due to the unique earnings composition. The stock has a 52-week high of $6.52 and a 52-week low of $2.75, placing the current trading price within a defined volatility range that reflects recent market sentiment shifts. The beta value is 1.06, which means the stock price volatility is slightly higher than the broader market average, exposing investors to marginally increased systemic risk during market downturns.
Growth & Income
Revenue growth year-over-year and earnings growth year-over-year are both not available, preventing a direct comparison of how earnings are growing relative to revenue or providing historical growth trajectories. Since the dividend yield is not available and the payout ratio is 0.0%, the company does not distribute cash to shareholders, which implies that all earnings are retained within the business. The zero payout ratio indicates that the company reinvests its substantial net income into growth initiatives, capital expansion, or debt reduction rather than paying dividends. Overall, the growth and income profile is characterized by significant retained earnings with no current distribution to investors, focusing entirely on internal capital accumulation.