📊 NMGX Key Takeaways
Is Nano Magic Inc. (NMGX) a Good Investment?
Nano Magic is technically insolvent with negative stockholders' equity of -$144.9K and faces imminent liquidity failure given only $38.7K cash while burning $1.6M annually in operating losses. Despite modest 8% revenue growth, deteriorating profitability (losses worsening 35.9% YoY) and inability to generate positive operating cash flow indicate structural operational collapse with ~3 weeks of cash runway at current burn rate.
Despite 8% revenue growth, Nano Magic’s gross margin is exceptionally thin (~2.6%) and the company continues to post large operating and free cash flow losses, leading to negative equity and very limited cash. Liquidity is strained (current 0.54x; quick 0.17x), implying a near‑term financing need, while the cost structure appears misaligned with the revenue base. Without rapid margin improvement and cost restructuring, dilution or financial distress risk is high.
Why Buy Nano Magic Inc. Stock? NMGX Key Strengths
- Revenue growth of 8% YoY demonstrates modest top-line expansion
- Modest balance sheet liabilities ($2.4M) limit near-term default cascades
- Presence in stable coating and engraving sector
- Modest YoY revenue growth (+8%)
- Low capex needs (~$17K)
- Minimal long‑term debt ($54.9K)
NMGX Stock Risks: Nano Magic Inc. Investment Risks
- Negative stockholders' equity of -$144.9K indicates technical insolvency
- Critical liquidity crisis: $38.7K cash with -$1.6M operating cash burn (3-week runway)
- Severely deteriorating profitability with net losses worsening 35.9% YoY despite revenue growth
- Current ratio of 0.54x unable to cover short-term obligations; quick ratio of 0.17x is critically low
- Unsustainable unit economics: 2.6% gross margin, -162.2% net margin indicating structural losses
- Zero insider buying in past 90 days despite existential financial stress
- Negative equity and weak liquidity create going‑concern risk
- Extremely low gross margin drives persistent operating losses
- Heavy cash burn with minimal cash, likely requiring external financing/dilution
Key Metrics to Watch
- Monthly operating cash burn rate and remaining cash balance
- Gross margin trend and absolute gross profit dollars
- Quarterly revenue sustainability and customer concentration
- Stockholders' equity trajectory toward insolvency threshold
- Gross margin (%)
- Operating cash flow (TTM)
Nano Magic Inc. (NMGX) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
NMGX Profit Margin, ROE & Profitability Analysis
NMGX vs Services Sector: How Nano Magic Inc. Compares
How Nano Magic Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Nano Magic Inc. Stock Overvalued? NMGX Valuation Analysis 2026
Based on fundamental analysis, Nano Magic Inc. has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Nano Magic Inc. Balance Sheet: NMGX Debt, Cash & Liquidity
NMGX Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Nano Magic Inc.'s revenue has declined by 38% over the 5-year period, indicating business contraction. The most recent EPS of $-0.21 indicates the company is currently unprofitable.
NMGX Revenue Growth, EPS Growth & YoY Performance
NMGX Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2024 | $640.3K | -$699.7K | $-0.06 |
| Q2 2024 | $616.6K | -$650.9K | $-0.06 |
| Q1 2024 | $580.1K | -$653.0K | $-0.06 |
| Q3 2023 | $658.2K | -$542.6K | $-0.05 |
| Q2 2023 | $493.8K | $307.1K | $0.03 |
| Q1 2023 | $519.1K | -$653.0K | $-0.06 |
| Q3 2022 | $545.5K | -$542.6K | $-0.05 |
| Q2 2022 | $493.8K | -$103.2K | $-0.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Nano Magic Inc. Dividends, Buybacks & Capital Allocation
NMGX SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Nano Magic Inc. (CIK: 0000891417)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NMGX
What is the AI rating for NMGX?
Nano Magic Inc. (NMGX) has a Combined AI Rating of STRONG SELL from Claude (STRONG SELL) and ChatGPT (STRONG SELL) with 92% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are NMGX's key strengths?
Claude: Revenue growth of 8% YoY demonstrates modest top-line expansion. Modest balance sheet liabilities ($2.4M) limit near-term default cascades. ChatGPT: Modest YoY revenue growth (+8%). Low capex needs (~$17K).
What are the risks of investing in NMGX?
Claude: Negative stockholders' equity of -$144.9K indicates technical insolvency. Critical liquidity crisis: $38.7K cash with -$1.6M operating cash burn (3-week runway). ChatGPT: Negative equity and weak liquidity create going‑concern risk. Extremely low gross margin drives persistent operating losses.
What is NMGX's revenue and growth?
Nano Magic Inc. reported revenue of $1.8M.
Does NMGX pay dividends?
Nano Magic Inc. does not currently pay dividends.
Where can I find NMGX SEC filings?
Official SEC filings for Nano Magic Inc. (CIK: 0000891417) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NMGX's EPS?
Nano Magic Inc. has a diluted EPS of $-0.20.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is NMGX a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Nano Magic Inc. has a STRONG SELL rating with 92% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is NMGX stock overvalued or undervalued?
Valuation metrics for NMGX: ROE of N/A (sector avg: 16%), net margin of -162.2% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy NMGX stock in 2026?
Our dual AI analysis gives Nano Magic Inc. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is NMGX's free cash flow?
Nano Magic Inc.'s operating cash flow is $-1.6M, with capital expenditures of $17.0K. FCF margin is -89.9%.
How does NMGX compare to other Services stocks?
Vs Services sector averages: Net margin -162.2% (avg: 10%), ROE N/A (avg: 16%), current ratio 0.54 (avg: 1.5).