📊 NMGX Key Takeaways
Is NMGX a Good Investment? Thesis Analysis
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.
Why Buy 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
NMGX Investment Risks to Consider
- 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
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
NMGX Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
NMGX Profitability Ratios
NMGX vs Default Sector
How Nano Magic Inc. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is NMGX Overvalued or Undervalued?
Based on fundamental analysis, Nano Magic Inc. has mixed fundamental signals relative to the Default 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.
NMGX Balance Sheet & Liquidity
NMGX 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
NMGX Quarterly 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.
NMGX Capital Allocation
NMGX SEC 10-K & 10-Q Filing 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 an AI rating of STRONG SELL with 95% 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.
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).
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 95% 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: 15%), net margin of -162.2% (sector avg: 12%). 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 Default stocks?
Vs Default sector averages: Net margin -162.2% (avg: 12%), ROE N/A (avg: 15%), current ratio 0.54 (avg: 1.8).