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Stock Analysis & ValuationFreight Technologies, Inc. (FRGT)

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$1.26
Sector Valuation Confidence Level
Low
Valuation methodValue, $Upside, %
Artificial intelligence (AI)395.6731302
Intrinsic value (DCF)2.1873
Graham-Dodd Methodn/a
Graham Formula65.155071

Strategic Investment Analysis

Company Overview

Freight Technologies, Inc. (NASDAQ: FRGT) is a cutting-edge transportation logistics technology platform specializing in B2B cross-border shipping within the NAFTA region. Leveraging AI and machine learning, its flagship product, Fr8App, serves as a digital freight marketplace that enhances efficiency through live pricing, real-time tracking, and advanced matching algorithms. Headquartered in The Woodlands, Texas, the company operates in the high-growth software-as-a-service (SaaS) logistics sector, addressing inefficiencies in freight matching and capacity utilization. Formerly known as Hudson Capital Inc., Freight Technologies rebranded in 2022 to reflect its tech-driven logistics focus. With a market cap of ~$6.1M, FRGT targets the $1.6T global freight market, offering solutions like transportation management and fleet optimization. Its asset-light model and focus on cross-border trade between the U.S., Canada, and Mexico position it uniquely in a fragmented industry ripe for digital disruption.

Investment Summary

Freight Technologies presents a high-risk, high-reward opportunity in the digital freight brokerage space. The company’s AI-driven platform (Fr8App) addresses critical pain points in cross-border logistics, a niche with growth potential given NAFTA trade volumes. However, FRGT’s financials reveal significant challenges: a $5.6M net loss (FY 2023), negative operating cash flow (-$4.2M), and limited liquidity ($204K cash). Its micro-cap status (~$6.1M) and beta of 1.025 indicate volatility. While revenue grew to $13.7M, profitability remains elusive, and the $3.3M debt load adds risk. Investors should weigh its first-mover advantage in tech-enabled NAFTA freight against execution risks and competition from established players. Suitable for speculative investors with a long-term horizon.

Competitive Analysis

Freight Technologies competes in the digital freight brokerage segment, where its Fr8App platform differentiates through AI-powered cross-border optimization for the NAFTA region. Unlike traditional brokers, FRGT’s tech stack automates pricing and matching, reducing empty miles and improving carrier utilization—a key advantage in a low-margin industry. However, its scale is dwarfed by incumbents like C.H. Robinson (global TMS networks) and Uber Freight (backed by Uber’s tech infrastructure). FRGT’s focus on U.S.-Mexico lanes is strategic (Mexico is the U.S.’s top trade partner), but it lacks the brand recognition and capital of rivals. Its asset-light model avoids fleet costs but limits control over service quality. The company’s proprietary algorithms and real-time tracking are competitive strengths, but adoption hinges on overcoming fragmentation in SME shippers. With negative EPS (-$6.14) and limited marketing spend, FRGT risks being outpaced by better-funded competitors expanding into cross-border tech solutions.

Major Competitors

  • C.H. Robinson Worldwide (CHRW): The largest global freight broker with a vast carrier network and mature TMS platform. Strengths include scale ($22B revenue), multi-modal capabilities, and established shipper relationships. Weaknesses: legacy tech stack and lower automation vs. digital-native peers like FRGT. Less specialized in cross-border AI solutions.
  • Uber Freight (UBER): Uber’s freight division leverages its ride-hailing tech for real-time matching. Strengths: brand recognition, massive R&D budget, and seamless digital experience. Weaknesses: focus on domestic U.S. over NAFTA lanes, where FRGT has deeper expertise. Uber’s scale could threaten FRGT if it expands cross-border tech.
  • XPO Logistics (XPO): Asset-heavy 3PL with a growing digital brokerage arm. Strengths: owned fleet for reliability and end-to-end control. Weaknesses: higher overhead costs vs. FRGT’s asset-light model. XPO’s tech investments (like XPO Connect) compete directly with Fr8App’s marketplace features.
  • Knight-Swift Transportation (KNX): Asset-based truckload carrier with brokerage operations. Strengths: fleet capacity and established customer base. Weaknesses: less agile in digital adoption; brokerage is secondary to core trucking. FRGT’s AI tools offer superior efficiency for spot-market freight.
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