Company Overview
MDJM Ltd operates within the consumer cyclical sector, specifically targeting the lodging industry through its core activities in hotel and rental property management across the United Kingdom. The company manages and rents out properties while simultaneously operating hotels, a business model that has been in place since its founding in 2002. It underwent a rebranding from MDJLEAD LTD to MDJM Ltd in May 2018, reflecting its continued focus on these hospitality services. In terms of scale, MDJM Ltd carries a market capitalization of $18.05M and reports annual revenue of $59,959, supported by a workforce of just 2 employees. These financial metrics suggest a very small enterprise with limited operational footprint, where the revenue figure indicates a niche operation rather than a large-scale commercial entity. The combination of a market cap of $18.05M and minimal revenue highlights a capital-light structure that is heavily reliant on asset management fees rather than direct operational scale.
Financial Health
The company reports a trailing twelve-month revenue of $59,959, yet this figure masks a significant loss in profitability with a net income of $-1,708,782 and an EBITDA of $-2,042,505. The vast discrepancy between the positive revenue of $59,959 and the substantial net loss reveals an extreme cost structure where expenses far exceed income generation. Despite the operating losses, the company maintains a free cash flow of $334,339, which provides a degree of financial flexibility by allowing liquidity generation even while reporting accounting losses. This positive cash flow contrasts sharply with the negative net income, suggesting that non-cash expenses or specific accounting adjustments are driving the reported losses. The gross margin stands at 100.0%, which implies that the cost of goods sold is effectively zero or fully offset, though this must be weighed against the severe operating margin of -3043.3% and a profit margin of 0.0%. The operating margin indicates that overhead costs and operating expenses are disproportionately high relative to the tiny revenue base, erasing all profitability before tax. On the balance sheet, the company holds $1.31M in cash against a debt level marked as N/A, with a debt-to-equity ratio also listed as N/A, indicating a lack of significant traditional debt leverage. The current ratio is 2.90, which signals a strong short-term liquidity position with current assets nearly three times the value of current liabilities. Furthermore, the return on equity is -39.3% and the return on assets is -27.7%, metrics that reveal management is currently destroying value relative to the equity and asset base rather than generating returns.
Valuation Assessment
The trailing P/E ratio is N/A and the forward P/E is N/A, meaning traditional earnings-based valuation multiples cannot be applied due to the absence of positive earnings. The price-to-book ratio is 0.00, which indicates that the market price is significantly below the book value of the company's assets, a condition often seen in distressed or highly speculative micro-cap stocks. Alternative valuation metrics provide more insight, with a price-to-sales ratio of 300.98 and an EV/EBITDA of 0.56, suggesting the market prices the company based on revenue potential rather than earnings power. The stock trades within a volatile range defined by a 52-week high of $174.90 and a 52-week low of $0.11. Given the current market capitalization and the wide spread between the high and low, the company is trading at a significant discount relative to its 52-week high, reflecting high uncertainty and potential downside risk. The beta value is -0.82, which is an anomalous negative figure indicating that the stock price moves inversely to the broader market or exhibits extreme volatility patterns not typical of standard equities.
Growth & Income
Revenue growth year-over-year is recorded at 116.4%, while earnings growth year-over-year is N/A due to the reported losses. The disparity between high revenue growth and the absence of positive earnings growth implies that top-line expansion has not yet translated into bottom-line profitability, a common challenge for early-stage or struggling asset managers. The company does not pay a dividend, evidenced by a dividend yield of N/A and a payout ratio of 0.0%. Since there are no dividends to distribute, the company effectively reinvests its positive free cash flow back into operations or retains earnings to cover losses rather than returning capital to shareholders. The overall growth and income profile is characterized by aggressive top-line expansion coupled with severe net losses and a complete absence of dividend income for investors.