Bedrijfsoverzicht
MDJM Ltd is a specialized entity focused on the management and rental of properties alongside the operational execution of hotels within the United Kingdom. The company functions within the consumer cyclical sector, specifically categorized under the lodging industry, which implies that its financial performance is intrinsically linked to broader economic cycles and discretionary consumer spending habits. Operating on a very limited scale, the organization employs only two individuals, reflecting a highly lean organizational structure typical of micro-cap enterprises. The company's current market capitalization stands at $18.05M, while its trailing twelve-month revenue amounts to $59,959, figures that collectively indicate a micro-cap status with minimal operational footprint. This restricted scale suggests that the business is likely a privately held or niche operation that has chosen not to pursue significant expansion or public financing beyond its initial listing, resulting in a valuation that does not yet reflect the revenue potential of a larger, diversified lodging operator.
Financiële gezondheid
The financial performance of MDJM Ltd over the trailing twelve months reveals a complex picture, with reported revenue of $59,959 contrasted sharply against a net income of $-1,708,782 and an EBITDA of $-2,042,505. The substantial disparity between the nominal revenue and the massive negative net income indicates a severe cost structure issue or potential accounting adjustments where expenses significantly outweigh reported sales. Despite the negative earnings, the company reports positive free cash flow of $334,339, which suggests that the company retains some operational liquidity and possesses a degree of financial flexibility to meet immediate obligations without relying solely on external financing. Profitability metrics further highlight this anomaly, with a gross margin of 100.0% indicating that cost of goods sold is either negligible or not recognized in this reporting period, while the operating margin stands at -3043.3% and the profit margin at 0.0%, signaling extreme operational inefficiency or specific non-operating losses impacting the bottom line. On the balance sheet side, the company holds $1.31M in cash against $0 in debt, creating a conservative capital structure that is entirely unleveraged. The debt-to-equity ratio is listed as N/A due to the absence of debt, yet the return on equity is -39.3% and return on assets is -27.7%, metrics that reveal management is currently destroying shareholder value and failing to generate returns on the deployed capital base. Liquidity is supported by a current ratio of 2.90, which indicates that the company has sufficient current assets to cover its short-term liabilities nearly three times over, providing a safety net despite the negative earnings.
Waarderingsbeoordeling
Valuation metrics for MDJM Ltd present mixed signals due to the lack of profitability, with the trailing P/E ratio and forward P/E both listed as N/A because the company has no positive earnings to support these calculations. The price-to-book ratio is recorded at 0.00, which indicates that the market capitalization is effectively zero or negligible relative to the book value of the company's equity, suggesting a significant discount or a re-evaluation of the company's tangible assets. Alternative valuation measures provide more insight, as the price-to-sales ratio is an extreme 300.98, implying that the market is valuing the company at more than three hundred times its sales, while the EV/EBITDA stands at 0.56, reflecting a valuation based on enterprise value relative to earnings before interest, taxes, depreciation, and amortization that is low due to the negative earnings. The stock price has exhibited extreme volatility, trading between a 52-week low of $0.11 and a 52-week high of $174.90, meaning the current price sits somewhere within this massive range but is heavily dependent on speculative trading rather than fundamental earnings support. The beta of -0.82 further characterizes the stock's behavior, indicating that the price moves inversely to the broader market, suggesting that the asset class acts as a hedge or counter-cyclical instrument rather than a traditional equity investment that correlates with market rises and falls.
Growth & Income
Growth dynamics show a revenue growth year-over-year of 116.4%, which is a doubling of sales, while the earnings growth year-over-year is N/A due to the absence of positive prior year earnings. The fact that revenue growth is positive while earnings remain negative implies that top-line expansion has not yet translated into bottom-line profitability, likely due to the aforementioned massive operating losses or one-time charges. As a non-dividend payer, the company offers a dividend yield of N/A and a payout ratio of 0.0%, which means the organization does not distribute cash to shareholders and instead retains all available cash, including its $1.31M balance, to fund operations or potentially cover its substantial deficits. The overall growth and income profile is characterized by high revenue expansion paired with significant financial distress, offering no current income return to investors and relying entirely on speculative price appreciation or a turnaround in operational efficiency to achieve future solvency.