Fundamental analysis for Meta Materials Stock (MMAT:NSD) is Slightly Bearish

Stock Target Advisor’s own stock analysis of Meta Materials Stock is Slightly Bearish, which is based on 3 positive signals and 6 negative signals. At the last closing, MMAT stock price was USD 1.05MMAT stock price has changed by +0.36% over the past week, +0.20% over the past month and -80.23% over the last year.

 

About Meta Materials Inc. (MMAT:NSD):

Meta Materials Inc. invents, designs, develops, and manufactures various functional materials and nanocomposites. Its products include metaAIR, a laser glare protection eyewear; NANOWEB, a transparent conductive film; holoOPTIX, a holographic optical element; glucoWISE, a non-invasive glucose measurement device; and metaSURFACE, which allows an enhancement in signal to noise ratio of up to 40 times for magnetic resonance imaging scans. The company was formerly known as Torchlight Energy Resources, Inc. and changed its name to Meta Materials Inc. in June 2021. Meta Materials Inc. was incorporated in 2007 and is headquartered in Dartmouth, Canada.

 

What we like:

Underpriced compared to book value

MMAT stock price is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior Revenue Growth

MMAT stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

High Gross Profit to Asset Ratio

MMAT stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

 

What we don’t like:

Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the market news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Negative cashflow

Meta Materials stock had negative total cash flow in the most recent four quarters.

Negative free cash flow

Meta Materials stock had negative total free cash flow in the most recent four quarters.

Low Earnings Growth

MMAT stock has shown below median earnings growth in the previous 5 years compared to its sector.