Breaking Down FingerMotion, Inc. (FNGR) Financial Health: Key Insights for Investors

Are you keeping a close watch on FingerMotion, Inc. (FNGR) and trying to gauge its financial stability? With a year-over-year revenue increase of 5%, reaching $35.79 million in fiscal year 2024, alongside a significant 67% surge in gross profits to $3.86 million, there are definitely some positive signals. But what about the challenges, like the 60% decline in SMS & MMS revenue, or the net loss of $3.76 million? Let’s dive into the key financial insights that can help you make informed decisions.

FingerMotion, Inc. (FNGR) Revenue Analysis

FingerMotion, Inc. is focused on evolving mobile payment and recharge platform with a core competency in China. The company's revenue streams are primarily derived from:

• SMS Platform: Revenues are generated from the distribution of SMS and MMS messages, which includes services like content distribution and marketing campaigns.
• Recharge Platform: This involves facilitating top-ups for mobile phones, and other digital services.
• Data Insights: Leveraging data analytics to provide insights and solutions, enhancing their service offerings.

Here's a breakdown of FingerMotion, Inc.'s revenue streams, based on the fiscal year 2024 data:

For the six months ended January 31, 2024, FingerMotion, Inc. reported total revenue of $7.86 million, a decrease of 10.4% compared to $8.77 million for the six months ended January 31, 2023.

The revenue decrease was primarily due to a reduction in the SMS and MMS business, which decreased $1.49 million, or 23.0%, from $6.47 million for the six months ended January 31, 2023 to $4.98 million for the six months ended January 31, 2024. This decrease was offset by an increase in the Recharge Platform revenues, which increased $0.57 million, or 28.9%, from $1.98 million for the six months ended January 31, 2023 to $2.55 million for the six months ended January 31, 2024.

In fiscal year 2023, FingerMotion, Inc. reported total revenue of $17.85 million, which represents an increase of approximately 24% compared to $14.44 million in fiscal year 2022.

Here is a summary of the company's revenue performance:

Analyzing these figures reveals the fluctuating dynamics within FingerMotion's revenue streams, highlighting both challenges and growth opportunities.

To gain more insights into the investors of FingerMotion, Inc., check out: Exploring FingerMotion, Inc. (FNGR) Investor Profile: Who’s Buying and Why?

FingerMotion, Inc. (FNGR) Profitability Metrics

Understanding FingerMotion, Inc.'s financial health requires a close examination of its profitability metrics. Key indicators include gross profit, operating profit, and net profit margins. Also important are the trends in profitability over time, comparisons with industry averages, and an analysis of operational efficiency.

For the fiscal year 2024, FingerMotion reported:

• Annual revenue of $35.79 million, a 5% increase compared to FY 2023.
• Gross profits of $3.86 million, a substantial 67% increase compared to FY 2023.
• Operating expenses of $7.68 million, a 15% decrease from FY 2023.
• A net loss of $3.76 million, which is a 50% reduction in net loss compared to FY 2023.

Here's a more detailed breakdown of FingerMotion's profitability:

• Gross Profit: FingerMotion's gross profit for FY 2024 was $3.86 million, a 67% increase from the previous year. This indicates improved cost management and higher margins.
• Operating Expenses: Operating expenses decreased by 15% to $7.68 million, reflecting better cost efficiency. However, general and administrative expenses rose by $908,368, or 16%.
• Net Loss: The company's net loss was reduced by 50% to $3.76 million, demonstrating a focus on minimizing losses.

The company's revenue streams are divided into several categories, with varying performance across the board:

• Telecommunications Products & Services: Revenue increased by 21%.
• SMS & MMS: Revenue declined by 60%.
• Big Data: Revenue decreased by 25%.

Here's a table summarizing FingerMotion's Income Statement data from 2021-2024 (in USD Thousands):

It's also worth noting FingerMotion's strategic shift towards higher-margin projects and product diversification. The company aims to continue this transition, which could further enhance profitability.

To gain more insight into FingerMotion's mission, vision, and core values, you can explore Mission Statement, Vision, & Core Values of FingerMotion, Inc. (FNGR).

FingerMotion, Inc. (FNGR) Debt vs. Equity Structure

Understanding how FingerMotion, Inc. (FNGR) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, its debt-to-equity ratio, and how it strategically uses debt and equity to fund its activities.

As of the fiscal year 2024, FingerMotion, Inc. (FNGR) reported the following regarding its debt profile:

• Long-term debt: FingerMotion's long-term debt stood at $0 as of December 31, 2023.
• Short-term debt: The company's short-term debt was also reported as $0 for the same period.

The absence of both short-term and long-term debt suggests that FingerMotion, Inc. (FNGR) is currently not relying on debt financing to support its operations. This could indicate a strong reliance on equity or internally generated funds.

The debt-to-equity ratio is a key metric to assess a company's financial leverage. It indicates the proportion of debt and equity a company uses to finance its assets. Since FingerMotion, Inc. (FNGR) has $0 debt, calculating the debt-to-equity ratio directly isn't applicable. However, it implies a 0% reliance on debt relative to equity, suggesting a conservative financing approach.

Here's a breakdown of FingerMotion, Inc. (FNGR)'s capital structure based on available data:

Analyzing recent financial activities, there's no explicit mention of recent debt issuances, credit ratings, or refinancing activities for FingerMotion, Inc. (FNGR) in the provided context. This reinforces the observation that the company is not actively using debt financing.

FingerMotion, Inc. (FNGR) appears to be primarily funded by equity, which can provide financial flexibility and reduce the risk of financial distress associated with high debt levels. You might also be interested in reading Mission Statement, Vision, & Core Values of FingerMotion, Inc. (FNGR).

FingerMotion, Inc. (FNGR) Liquidity and Solvency

Liquidity is a critical aspect of FingerMotion, Inc.'s (FNGR) financial health, indicating its ability to meet short-term obligations. Key metrics such as the current and quick ratios provide insights into the company's liquidity position. Analyzing working capital trends and cash flow statements further enhances our understanding of its financial stability.

Based on the most recent filings, here’s an overview:

Current and Quick Ratios:

These ratios measure a company's ability to pay off its short-term liabilities with its current assets. The current ratio includes all current assets, while the quick ratio excludes inventory to focus on the most liquid assets.

• A current ratio of around 1.4x indicates that FingerMotion, Inc. has $1.40 of current assets for every $1.00 of current liabilities.
• The quick ratio, being slightly lower, suggests that the company can comfortably meet its short-term obligations even without relying on the sale of inventory.

Working Capital Trends:

Monitoring the trend of working capital (current assets minus current liabilities) helps assess whether the company is efficiently managing its short-term resources.

• An increase in working capital generally indicates improved liquidity, while a decrease may signal potential challenges in meeting short-term obligations.

Cash Flow Statements Overview:

Analyzing the cash flow statement provides a deeper understanding of how FingerMotion, Inc. generates and uses cash. It is divided into three main sections:

• Operating Activities: This section shows the cash generated from the company's core business operations. Consistent positive cash flow from operations is a healthy sign.
• Investing Activities: This includes cash flow from the purchase and sale of long-term assets, such as property, plant, and equipment (PP&E).
• Financing Activities: This section covers cash flow from activities such as borrowing, issuing stock, and paying dividends.

Potential Liquidity Concerns or Strengths:

Based on available data and analysis:

• FingerMotion, Inc. exhibits a stable liquidity position, supported by its current and quick ratios.
• Consistent positive cash flow from operating activities further strengthens its ability to meet short-term obligations.

For a deeper dive into FingerMotion, Inc.'s financial health, you can explore further details at: Breaking Down FingerMotion, Inc. (FNGR) Financial Health: Key Insights for Investors

FingerMotion, Inc. (FNGR) Valuation Analysis

When evaluating whether FingerMotion, Inc. (FNGR) is overvalued or undervalued, several key financial ratios and indicators should be considered. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, as well as stock price trends, dividend yield, payout ratios, and analyst consensus.

Here's a breakdown of these elements:

• Price-to-Earnings (P/E) Ratio: As of March 2025, FingerMotion's P/E ratio is -11.3. This negative P/E ratio suggests the company is currently not profitable, making it difficult to assess valuation based on earnings. The P/E ratio has fluctuated significantly over the past few years, with a historical P/E ratio ranging from -16.5x in 2022.
• Price-to-Book (P/B) Ratio: The P/B ratio for FingerMotion is 7.88. A high P/B ratio can indicate that the stock is overvalued, as investors are paying a premium for the company's net assets.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: The EV/EBITDA ratio is -10.38. Like the negative P/E ratio, a negative EV/EBITDA suggests challenges in using this metric for valuation, as it typically indicates the company has negative earnings before interest, taxes, depreciation, and amortization.

To provide a clearer picture, here's a summary of FingerMotion's key valuation ratios:

Analyzing FingerMotion, Inc.'s (FNGR) stock price trends over the last 12 months reveals significant volatility. Over the past year, FNGR has shown a -52.24% decrease. However, more recently, the stock has demonstrated some positive momentum, with a 15.50% increase compared to the previous week and a 7.19% rise over the last month.

The stock's 52-week high is $3.96, while the 52-week low is $1.03, reflecting substantial price fluctuation. As of April 17, 2025, the stock price closed at $1.49, marking a 17.32% increase on the day.

Key price points and volatility metrics include:

• Current Price (Apr 18, 2025): $1.49
• 52-Week High: $3.96
• 52-Week Low: $1.03
• Volatility: 20.97%

FingerMotion, Inc. (FNGR) does not currently offer a dividend. The current dividend yield is 0.00%, and the trailing annual dividend rate is also $0.00. The company has not paid dividends in recent years. Given this, dividend yield and payout ratios are not applicable for assessing the stock's valuation.

Analyst consensus on FingerMotion, Inc. (FNGR) stock valuation leans positive. As of April 2025, the consensus rating is a Strong Buy. One analyst has provided this rating, projecting a price target of $5, which suggests a potential increase of 235.57% from the current stock price of $1.49.

It's important to note that analyst ratings are not a guaranteed prediction and should be considered as one factor among many when making investment decisions.

For further insights into the investors of FingerMotion, Inc. (FNGR), consider exploring this resource: Exploring FingerMotion, Inc. (FNGR) Investor Profile: Who’s Buying and Why?

FingerMotion, Inc. (FNGR) Risk Factors

Analyzing the financial health of FingerMotion, Inc. (FNGR) involves understanding various internal and external risk factors that could impact its performance. These risks range from industry-specific challenges to broader market conditions.

Key risks that FingerMotion, Inc. (FNGR) faces include:

• Industry Competition: The telecommunications and digital payment industries are highly competitive. New technologies and evolving consumer preferences could quickly render FingerMotion, Inc. (FNGR)'s offerings obsolete or less attractive, impacting revenue and market share.
• Regulatory Changes: Regulations governing digital payments, mobile services, and data privacy are constantly evolving. Changes in these regulations could increase compliance costs, limit FingerMotion, Inc. (FNGR)'s operational flexibility, or even restrict its ability to offer certain services.
• Market Conditions: Economic downturns or fluctuations in consumer spending could reduce demand for FingerMotion, Inc. (FNGR)'s services. Additionally, changes in currency exchange rates could impact the company’s financial results, particularly if it operates internationally.

Operational, financial, and strategic risks, as they appear in recent earnings reports or filings, require consideration. For example:

• Operational Risks: These include potential disruptions to FingerMotion, Inc. (FNGR)'s technology infrastructure, security breaches, or failures in its systems. Such events could lead to service interruptions, loss of customer data, and reputational damage.
• Financial Risks: FingerMotion, Inc. (FNGR) is exposed to risks related to its capital structure, liquidity, and ability to generate sufficient cash flow to meet its obligations. Fluctuations in interest rates or changes in credit market conditions could impact its borrowing costs and access to capital.
• Strategic Risks: These involve challenges related to FingerMotion, Inc. (FNGR)'s business strategy, such as its ability to innovate, adapt to changing market conditions, and successfully execute its growth plans. Failure to address these risks could result in missed opportunities and reduced competitiveness.

Mitigation strategies and plans that FingerMotion, Inc. (FNGR) might employ include:

• Diversification: Expanding its service offerings and entering new markets to reduce reliance on any single product or region.
• Technology Investments: Investing in cybersecurity measures and robust IT infrastructure to prevent disruptions and protect customer data.
• Compliance Programs: Implementing comprehensive compliance programs to ensure adherence to all applicable laws and regulations.
• Financial Planning: Maintaining a strong balance sheet and implementing prudent financial management practices to mitigate financial risks.

Here is an example of how FingerMotion, Inc. (FNGR) might manage its risk exposure:

For further insights, explore Breaking Down FingerMotion, Inc. (FNGR) Financial Health: Key Insights for Investors.

FingerMotion, Inc. (FNGR) Growth Opportunities

FingerMotion, Inc. (FNGR) is strategically positioned to capitalize on several key growth drivers, underpinning its future revenue and earnings potential. These drivers include product innovation, strategic market expansion, and synergistic partnerships.

Key growth drivers:

• Product Innovations: Continued investment in and roll-out of innovative products such as the expansion of its SMS platform, which not only enhances user engagement but also opens new revenue streams.
• Market Expansion: Expanding into new geographical markets and demographics, thereby broadening its user base and revenue sources.
• Strategic Acquisitions: Pursuing strategic acquisitions that complement existing services and technologies, enhancing market presence and service offerings.

Future revenue growth projections and earnings estimates for FingerMotion, Inc. (FNGR) are based on several factors, including market trends, technological advancements, and the company's strategic initiatives. While specific figures are subject to market dynamics and internal performance, the general trajectory points towards substantial growth, driven by increased demand for its services and effective market penetration.

Strategic initiatives and partnerships that may drive future growth:

• Partnerships with Key Industry Players: Forming alliances with major players in the telecommunications and technology sectors to expand service reach and enhance technological capabilities.
• Regulatory Adaptations: Navigating and adapting to regulatory changes to maintain compliance and leverage new opportunities within the evolving legal landscape.

FingerMotion, Inc.'s (FNGR) competitive advantages include its proprietary technology, strategic partnerships, and established market presence. These elements collectively enhance the company's ability to innovate and respond effectively to market demands.

A summary of FingerMotion, Inc.'s (FNGR) competitive positioning is outlined below:

For more detailed insights into FingerMotion, Inc.'s (FNGR) financial health, you can refer to this analysis: Breaking Down FingerMotion, Inc. (FNGR) Financial Health: Key Insights for Investors