Freight Technologies, Inc. (FRGT) Analysis

This report is auto-generated by an AI stock research platform for informational purposes only. The content is for general information and research reference, and does not constitute financial advice. Data may lag or be incomplete. Always conduct your own research and consult qualified professionals before making any financial decisions. # [Qiltrack AI] Freight Technologies Inc (FRGT) 3-Minute Overview > **💡 One-Sentence Summary** > > Simply put, FRGT is a tiny logistics-tech company trying to reinvent itself from a low-margin freight broker into an AI/software story—but right now the business still looks financially fragile. > **📍 Basic Profile** > > Market Cap **$1.46 million** · Logistics & Transportation · NASDAQ NMS - GLOBAL MARKET · Price **$0.51** > **⚡ 3 Things You Should Know** > > 1. 💸 Business model under pressure: FRGT’s gross margin is only **9.23%** and net margin is **-37.62%**, which tells you the legacy freight operation is not generating enough economics to support the company as-is. > > 2. 🔄 Big strategic pivot underway: Management is pushing hard toward AI-powered customs/compliance and software products, and even exploring a sale of its brokerage unit—so this is less a “steady transport stock” and more a high-risk transformation bet. > > 3. ⚠️ Market is skeptical for a reason: The stock sits at **$0.51**, basically at its **52-week low of $0.50** and massively below the **$22.60** high, which usually means investors are worried about execution, funding, or dilution rather than just near-term noise. > **🎯 Quick Health Check** > > | Dimension | Rating | Details | > |-----------|--------|---------| > | Profitability | Weak👎 | Net margin -37.62%, deeply loss-making | > | Growth Rate | [Data unavailable] | 3-year revenue growth unavailable; 5-year revenue growth 58.65% | > | Financial Health | Tight🧡 | Current ratio 0.95, debt/equity 1.17 | > | Valuation | Cheap | P/B 0.72x, P/S 0.10x, but no PE due to losses | --- ## 📋 Layer 2: 2-Minute Deep Dive #### 📊 How Does This Company Make Money? **Business Model in One Sentence:** Logistics and freight services plus emerging software tools sold to shippers, carriers, customs operators, and trade participants, making money through freight brokerage/services and potentially SaaS-like platform revenue. **Revenue Breakdown:** | Business | Share | Trend | Comment | |----------|-------|-------|---------| | Freight brokerage / logistics services | [Data unavailable] | ↓ | Legacy business appears lower-margin and may be deemphasized or sold | | AI/software and customs compliance tools | [Data unavailable] | ↑ | Strategic focus is clearly shifting here, but monetization scale is still unclear | **Profitability Metrics:** | Metric | Value | Ranking | Interpretation | |--------|-------|---------|----------------| | Gross Margin | 9.23% | Below Average | Very thin margin for a company trying to fund a tech transition | | Net Margin | -37.62% | Below Average | It is losing a lot of money relative to sales | | ROE | -59.65% | Average | Negative returns show shareholder capital is not being used profitably right now | --- #### 📈 How's the Growth? **Growth Assessment:** Transitioning / Hard to judge cleanly | Metric | Latest | vs Last Year | Trend | |--------|--------|--------------|-------| | Revenue Growth | [Data unavailable] | [Data unavailable] | [Data unavailable] | | Profit Growth | [Data unavailable] | [Data unavailable] | [Data unavailable] | **Growth Quality:** > What’s interesting is that FRGT’s story is no longer just about freight volume growth. Management is trying to shift the market narrative toward AI and software, including customs compliance tools and a software-first model. Basically, if growth comes, investors will want it to be from recurring software revenue rather than low-margin brokerage volume. The problem is we don’t yet have enough structured financial data here to confirm that this pivot is showing up in the numbers. --- #### 💰 Financial Health Check **One Sentence:** Think of it like a small business with unstable earnings, limited short-term liquidity, and not much room for mistakes. | Metric | Value | Safe Zone | Assessment | |--------|-------|-----------|------------| | Debt Ratio | 116.56% | <60% safe | 🚨Dangerous | | Current Ratio | 0.95 | >1.5 healthy | ⚠️Tight | | Cash Flow | Negative (cash flow/share -2.03) | >0 | 🚨Negative | --- #### 🏷️ Is It Expensive Now? **Price Position (based on 52-week range):** - 52-Week Low: $0.50 - 52-Week High: $22.60 - Current: $0.51, **very close to low** | Position Range | Cheap Zone | Fair Zone | Pricey Zone | |----------------|------------|-----------|-------------| | Criteria | 0-33% | 33-66% | 66-100% | | **Current** | ●(0.03% position) | | | **Valuation Comparison:** | Comparison | Current | Reference | Assessment | |------------|---------|-----------|------------| | vs Own History | PE [Data unavailable] | 5-year avg [Data unavailable] | [Data unavailable] | | vs Peers | P/S 0.10x | Industry avg [Data unavailable] | Looks optically cheap, but likely reflects distress/risk | **What the Current Valuation is Betting On:** > In other words, the market is not paying up for the AI pivot yet. At this price, investors seem to be assuming either the turnaround fails, the software business remains too small, or the company may need more capital and dilute shareholders before the new strategy proves itself. --- #### 📰 Any Recent News? | Date | Event | Impact | |------|-------|--------| | 2026-04-07 | Launched DODA Smart, an AI-powered customs compliance platform for Mexican trade operators | Positive: supports the software-first narrative and could improve mix if adoption follows | | 2026-04-02 | Announced strategic update and explored sale of brokerage business | Mixed: potentially smart strategic refocus, but also signals the current model may not be working | | 2026-03-19 | Released pro forma statements for JAK Solar acquisition | Neutral/Mixed: shows corporate activity, but also adds complexity to an already hard-to-analyze small-cap story | --- ## 📊 Layer 3: Want More? 3-Minute Complete Analysis #### I. Detailed Financial Data **Profitability Trends:** | Metric | This Year | Last Year | Year Before | 3-Year Trend | |--------|-----------|-----------|-------------|--------------| | Gross Margin | 9.23% | [Data unavailable] | [Data unavailable] | [Data unavailable] | | Net Margin | -37.62% | [Data unavailable] | [Data unavailable] | [Data unavailable] | | ROE | -59.65% | [Data unavailable] | [Data unavailable] | [Data unavailable] | **Growth Trends:** | Metric | This Year | Last Year | Year Before | 3-Year Trend | |--------|-----------|-----------|-------------|--------------| | Revenue Growth | [Data unavailable] | [Data unavailable] | [Data unavailable] | [Data unavailable] | | Profit Growth | [Data unavailable] | [Data unavailable] | [Data unavailable] | [Data unavailable] | | EPS Growth | [Data unavailable] | [Data unavailable] | [Data unavailable] | [Data unavailable] | --- #### II. Earnings Track Record **Last 4 Quarters vs Expectations:** | Quarter | EPS Expected | EPS Actual | Surprise | |---------|--------------|------------|----------| | [Most Recent] | [Data unavailable] | [Data unavailable] | [Data unavailable] | | | | | | | | | | | | | | | | **Earnings Trend Interpretation:** We don’t have earnings history in the structured data, which matters here because for a company in transition, the difference between “losses narrowing” and “losses widening” is a big deal. Without that, it’s harder to tell whether the AI pivot is improving operating performance or just improving the story. --- #### III. What the Market Thinks **Analyst Ratings:** | Rating | Count | Percentage | |--------|-------|------------| | Strong Buy/Buy | 6 firms | 85.7% | | Hold | 1 firm | 14.3% | | Sell | 0 firms | 0% | **Target Price:** [Data unavailable] ~ [Data unavailable] (Median [Data unavailable]) **vs Current Price:** [Data unavailable] **Insider Activity:** Net [Data unavailable] in past 3 months > No insider transaction data was provided. For a micro-cap turnaround like this, insider buying would usually be a reassuring signal; without it, you can’t use management conviction as a support point. --- #### IV. Key Risk Alerts **3 Risks to Watch:** 1. **Liquidity risk:** Current ratio is below 1 and cash flow is negative → If this continues, it could lead to financing pressure or shareholder dilution. 2. **Execution risk:** The company is pivoting from brokerage to AI/software while possibly selling legacy operations → If the transition stumbles, revenue could shrink before software revenue is ready to replace it. 3. **Micro-cap volatility risk:** A roughly **$1.46 million** market cap and stock price near the 52-week low make this highly speculative → If sentiment worsens, the stock could move violently on low volume or financing headlines. --- ### 🎬 Summary & Next Steps > **📝 Three-Sentence Summary** > > **What it is:** FRGT is a very small logistics company trying to become an AI/software-led cross-border trade platform. > > **Key strength:** The strategic direction makes sense on paper—software and customs compliance should be structurally better businesses than thin-margin freight brokerage. > > **Key risk:** The company’s current financial position is weak enough that the balance sheet and execution risk may matter more than the product story. --- > **🔍 Want to Learn More?** > > • Want to know if this company has a strong moat? → Try【Buffett Mode】for deeper analysis > > • Want to check for hidden landmines? → Try【Muddy Mode】for risk screening > > • Is this a growth stock? Want to calculate if it's worth the bet? → Try【Musk Mode】for analysis