📊 KPEA Key Takeaways
Is Kun Peng International Ltd. (KPEA) a Good Investment?
Kun Peng International is technically insolvent with negative stockholders' equity of -$8.6M, experiencing severe operational deterioration including 30.8% YoY revenue decline and a -169.8% operating margin. The company faces an acute liquidity crisis (0.06x current ratio) with critically low cash reserves of $32.4K, indicating imminent viability concerns and elevated bankruptcy risk.
Kun Peng International’s fundamentals are severely impaired: revenue declined 30.8% YoY and profitability remains deeply negative (operating margin -169.8%, ROA -26.4%), indicating an unprofitable core business. The balance sheet is distressed with negative equity, extreme under-capitalization, and a 0.06x current ratio alongside -44.7x interest coverage, pointing to acute liquidity and solvency risk. A small positive free cash flow is insufficient to offset these structural weaknesses.
Kun Peng International Ltd. Key Strengths (KPEA)
- Positive operating cash flow of $36.4K demonstrates minimal cash generation capability
- Positive free cash flow of $6.0K, though insufficient for debt service
- Gross margin of 34.9% suggests underlying product/service viability despite operational losses
- Positive operating cash flow and small positive FCF
- Reasonable gross margin of 34.9% indicating some unit-level pricing power
- Low capital expenditure requirements
KPEA Stock Risks: Kun Peng International Ltd. Investment Risks
- Negative stockholders' equity of -$8.6M indicates technical insolvency and balance sheet collapse
- Revenue decline of 30.8% YoY reflects deteriorating demand and market position
- Critical liquidity crisis with current ratio of 0.06x—liabilities 16x exceed current assets
- Operating losses of -$296.9K exceed revenue of $174.8K, demonstrating unsustainable cost structure
- Cash reserves of only $32.4K provide inadequate runway for operations and debt obligations
- Unable to cover interest expenses with negative operating income (interest coverage: -44.7x)
- Severe liquidity risk with a 0.06x current ratio
- Negative stockholders' equity and high liabilities indicating potential insolvency risk
- Sustained operating losses and shrinking revenue base
Key Metrics to Watch
- Revenue stabilization and return to growth after 30.8% YoY decline
- Operating margin recovery from -169.8% toward breakeven
- Stockholders' equity restoration from -$8.6M negative position
- Cash burn rate and runway sustainability with $32.4K reserve
- Current ratio improvement from critical 0.06x level toward 1.0x minimum
- Debt restructuring or equity injection activity
- Current ratio
- Operating cash flow
Kun Peng International Ltd. (KPEA) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 3.4% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.
KPEA Profit Margin, ROE & Profitability Analysis
KPEA vs Services Sector: How Kun Peng International Ltd. Compares
How Kun Peng International Ltd. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Kun Peng International Ltd. Stock Overvalued? KPEA Valuation Analysis 2026
Based on fundamental analysis, Kun Peng International Ltd. 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.
Kun Peng International Ltd. Balance Sheet: KPEA Debt, Cash & Liquidity
KPEA Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Kun Peng International Ltd.'s revenue has declined by 63% over the 5-year period, indicating business contraction. The most recent EPS of $-0.01 indicates the company is currently unprofitable.
KPEA Revenue Growth, EPS Growth & YoY Performance
KPEA Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $22.5K | -$192.9K | $0.00 |
| Q1 2026 | $174.8K | -$265.6K | $0.00 |
| Q3 2025 | $107.8K | -$44.9K | $0.00 |
| Q2 2025 | $364.5K | -$192.9K | $0.00 |
| Q1 2025 | $356.5K | -$520.9K | $0.00 |
| Q3 2024 | $460.6K | -$292.5K | $0.00 |
| Q2 2024 | $319.0K | -$577.0K | $0.00 |
| Q1 2024 | $452.1K | -$520.9K | $0.00 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Kun Peng International Ltd. Dividends, Buybacks & Capital Allocation
KPEA SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Kun Peng International Ltd. (CIK: 0001502557)
📋 Recent SEC Filings
❓ Frequently Asked Questions about KPEA
What is the AI rating for KPEA?
Kun Peng International Ltd. (KPEA) has a Combined AI Grade of D from Claude (D) and ChatGPT (D) with 92% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are KPEA's key strengths?
Claude: Positive operating cash flow of $36.4K demonstrates minimal cash generation capability. Positive free cash flow of $6.0K, though insufficient for debt service. ChatGPT: Positive operating cash flow and small positive FCF. Reasonable gross margin of 34.9% indicating some unit-level pricing power.
What are the risks of investing in KPEA?
Claude: Negative stockholders' equity of -$8.6M indicates technical insolvency and balance sheet collapse. Revenue decline of 30.8% YoY reflects deteriorating demand and market position. ChatGPT: Severe liquidity risk with a 0.06x current ratio. Negative stockholders' equity and high liabilities indicating potential insolvency risk.
What is KPEA's revenue and growth?
Kun Peng International Ltd. reported revenue of $174.8K.
Does KPEA pay dividends?
Kun Peng International Ltd. does not currently pay dividends.
Where can I find KPEA SEC filings?
Official SEC filings for Kun Peng International Ltd. (CIK: 0001502557) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is KPEA's EPS?
Kun Peng International Ltd. has a diluted EPS of $0.00.
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 grade reflects both perspectives for balanced insights.
What is KPEA's fundamental grade?
Based on our AI fundamental analysis in June 2026, Kun Peng International Ltd. has a D grade with 92% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is KPEA stock overvalued or undervalued?
Valuation metrics for KPEA: ROE of N/A (sector avg: 16%), net margin of -151.9% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is KPEA's AI grade for 2026?
Our dual AI analysis gives Kun Peng International Ltd. a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is KPEA's free cash flow?
Kun Peng International Ltd.'s operating cash flow is $36.4K, with capital expenditures of $30.4K. FCF margin is 3.4%.
How does KPEA compare to other Services stocks?
Vs Services sector averages: Net margin -151.9% (avg: 10%), ROE N/A (avg: 16%), current ratio 0.06 (avg: 1.5).