Datametrex AI Ltd V.DM

Comparing DM to other AI and Healthcare Stocks

[Investor10X]

Should be an interesting few weeks.  Q3 financials out this week or next and perhaps more AI news.   Should continue the current pace of a $60 million run rate for the year.  $60 million x 10x valuation = $600 million/355 million shares outstanding = $1.69 ($600 million/425 million shares fully diluted = $1.41).  

DM had already hit $30 million for revenue for the year in Q2, one would think the stock should have at least been priced at half that number which would be a quarter of the $60 million run rate for the year.  ($15 million x 10 = $0.42).   $15 million would currently be the money the company has in bank when last we heard.

The company is proving out the revenue for the year with clean books, money in the bank, MediCall and an expanding AI sector into various verticals.  I think it's fair to look at DM based on a minimum $60 million run rate for the year.

1x valuation = $0.17 (fully diluted = $0.14)
2x valuation = $0.34 (fully diluted = $0.28)
3x valuation = $0.51 (fully diluted = $0.42)
4x valuation = $0.68 (fully diluted = $0.56)
5x valuation = $0.85 (fully diluted = $0.71)
6x valuation = $1.11 (fully diluted = $0.85)
7x valuation = $1.29 (fully diluted = $0.99)
8x valuation = $1.48 (fully diluted = $1.13)
9x valuation = $1.66 (fully diluted = $1.27)
10x valuation = $1.69 (fully diluted = $1.41)

Other companies from health and AI sectors 

Empower Clinics - CBDT (Healthcare)
Current share price: $0.335
Market Cap: $112 milion
Q2 revenue: $2.8 million
Currently trading at 3.98x revenue
EPS (-0.24)  However, this is due to warrants being exercised - mostly a paper loss, not real cash loss.

Therma Bright - THRM (Healthcare)
Current share price: $0.385 
Market Cap: $84 million
Revenue: $3 521 (9 months ended April, 2021) 
Currently trading at 24055x revenue (Yes, that is correct, 24 thousand fifty-five times!)
EPS (-0.05)

CoudMD - DOC (Healthcare)
Current share price: $1.36 
Market Cap: $316 million
Q2 revenue: $2.8 million
Currently trading at 113x revenue 
EPS (-0.12)

Fobi AI - FOBI (AI)
Current share price: $1.53 
Market Cap: $220 million
Revenue: $10 016 (9 months ended April, 2021)
Currently trading at 22149x revenue
(Yes, this is also correct based on the most updated infomation I could find on their revenue.  I'm sure their revenue is higher now, but there was no information for Q2 on Sedar)
EPS (-0.09)

The next 5 are condsidered the top junior AI companies in an article I found Nov. 4th, 2021

DeepSpatial - DSAI (AI)
Current share price: $0.16 
Market Cap: $15 million
Q2 revenue: no revenue, operating at a loss ($1.2 million cash on hand - I used this)
Currently trading at 12.5x cash on hand  (i.e. this number should be higher, with no revenue)
EPS (-0.03)

Zoomd Tech - ZOMD (AI)
Current share price: $0.59 
Market Cap: $56 million
Q2 revenue: 18 million
Currently trading at 3.1x revenue
EPS (-0.04)

Certive Solutions - CBP (AI)
Current share price: $0.055 
Market Cap: $7.89 million
Q2 revenue: $263 836
Currently trading at 30x revenue
EPS (-0.01)

Mobilum Technologies - MBLM (AI)
Current share price: $0.24 
Market Cap: $37.53 million
Q2 revenue: Operating at a loss ($6.9 million cash on hand - I'll use the cash on hand)
Currently trading at 5.4x cash on hand (i.e. this number should be far higher, with no revenue)
EPS (-0.12)

Plurilock Security - PLUR (AI)
Current share price: $0.50 
Market Cap: $35 million
Q2 revenue: $8.6 million
Currently trading at 4x revenue
EPS (-0.15)

I don't know what else to say.  Comparing DM to other AI or healthcare stocks shows that DM is so far undervalued that the stock price has no other direction, but to go up.  DM is the only one with a positive EPS and yet based on the revenue alone trades far below the other stocks in valuation.  DM also has a clean balance sheet and money in the bank.  A number of those stocks are trading far beyond their current revenue stream or at least the most up-to-date revenue I could find on sedar (i.e. THRM and FOBI).  And for others where I could not find a revenue number I was generous to use their cash on hand instead.

[TorlifTostorson]

Awesome post @Investor10X. Well appreciated! Great luck to you Torlif

[mellocello]

This post has been removed in accordance with Community Policy

[Maxdude]

Great job in pulling this detailed analysis together. DM is a classic mispriced stock by the market...for whatever reasons. This is a great opportunity for new investors like myself to pick up cheap shares....while it last. The spark will come....I have seen this scenario many times before. Think it was Warren Buffett who said he likes to buy mispriced stocks....please don't quote me on this

[Investor10X]

Thanks!  It's laughable how undervalued DM is.  It's also interesting that DM isn't even on the radar of some of these writers for their top 5 or top 10 junior AI companies.  

[astutein]

investor10x--After Q3 comes out with M&A comments  could you re-do your calculations based upon actual cash on hand and possible redo of your cash run calculations.

[Investor10X]

I can certainly do that.  All the expenses and liabilites will be listed as well as their assets and revenues.  However, the company should have a positive EPS, which will tell us that the company is profitable.  The higher the EPS the higher the corporate value.  For a junior micro/small cap company that is already a great achievement.  

[Investor10X]

Unfortuantely, the stock market doesn't always react to a positive EPS and give a stock the value that it deserves, many times it can just be a popularity contest.  Investors flock to names they know and stocks they hear about in the media.  This is why DM needs to get their name out there as much as possible. There are popular blue chip companies that are profitable like: Tesla EPS

[tankumo]

Stocks trade at anticipation of future. Cloud MD run rate is $160 million, Q3 guidance is 38 to 40 million, though Q2 is only 2.8 million. Both Cloud MD and DM are trading cheap, JMHO.

[Investor10X]

Sorry, my mistake CloudMD has $16 million for Q2, I mistakenly took the 2020 Q2 numbers.  They are trading at 19.8x revenue.   I certainly agree that stocks trade on anticipation of future earnings, which is why I'm giving 10x on revenue.  However, based on CloudMD's Q2 numbers they are currently on a $32 million run rate for the year.  You can only determine run rate

[themason]

How much of that is attributed to Ai, very little, hence the problem.

[Investor10X]

It is true that their AI and Technology revenue may continue to be under their AI and Technology of 2020 for the first three quarters.  However, as you will see from the numbers below DM is ahead of their 2020 total AI and Tech revenue for the year end total for 2021. AI and Tech 2020 Three months ended June 30, 2020 $2,526,686 Three months ended Sept. 30, 2020 $391,362 Nine months ended

[tankumo]

We may actually see over $60 million run rate.  JMHO.

[WalkingDead01]

Great Post Investor 10x .  I have nothing to add other than that DM is still an incredible opportunity and sooner or later we will be rewarded.   Good luck .

[shaker13]

Excellent work Investor10X I hope you don't mind me sharing your Due Diligence on Twitter https://twitter.com/riverdalkidd/status/1462636898459914241?s=21

[Investor10X]

You would need to correct the CloudMD Q2 revenue to $16 million, as I mistakingly took the Q2 from 2020.

[Sevear1]

Agree 100%, so undervalued in my opinion. Been holding for 2 years or so, and have been averaging up the whole time...lol. Without a doubt at some point this stock will get noticed and rise to it's proper valuation. Boggles the mind the amount of stocks out there with little or no revenue, hemorrhaging cash and are priced 2x, 5x or even 10x more!!

[baggerx99]

Had to rehash for some perspective of where the sp should be after the release of Q3....