| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 47.33 | 1104 |
| Intrinsic value (DCF) | 354.61 | 8923 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
TROOPS, Inc. (NASDAQ: TROO) is a Hong Kong-based fintech and financial services company specializing in money lending, digital financial marketplaces, and SaaS solutions. Operating primarily in Hong Kong and Australia, the company provides mortgage, personal, and corporate loans while also developing an online financial marketplace that connects users with financial institutions via its mobile app. TROOPS leverages API-driven fintech solutions to streamline financial transactions and offers SaaS, app development, and consulting services. Additionally, the company engages in real estate investment and property management. Formerly known as SGOCO Group, Ltd., TROOPS rebranded in 2021 to reflect its shift toward fintech and digital financial services. With a market cap of approximately $73 million, TROOPS operates at the intersection of financial services and technology, positioning itself in the competitive fintech landscape. Despite its niche focus, the company faces challenges in scaling profitability amid regulatory and competitive pressures in the Asia-Pacific financial sector.
TROOPS, Inc. presents a high-risk, high-reward investment opportunity due to its dual focus on fintech innovation and traditional lending. While the company operates in the growing fintech sector, its financials reveal persistent losses (net income of -$13.4M in the latest period) and negative EPS (-$0.13). The stock’s high beta (2.461) indicates significant volatility, likely tied to its small-cap status and exposure to emerging fintech markets. Positive aspects include $5.17M in cash reserves, manageable debt ($26K), and $1.96M in operating cash flow, suggesting some liquidity. However, the lack of profitability and dividend payouts may deter conservative investors. TROOPS’ success hinges on its ability to scale its digital marketplace and SaaS offerings while navigating regulatory hurdles in Hong Kong and Australia.
TROOPS competes in the crowded fintech and digital lending space, where differentiation is critical. Its competitive advantage lies in its hybrid model combining traditional lending with API-driven fintech solutions, allowing it to serve both institutional and retail clients. The company’s mobile app and marketplace could gain traction by simplifying loan origination and financial connectivity in Asia-Pacific markets. However, TROOPS lacks the scale of established fintech players and faces stiff competition from larger digital lenders and SaaS providers. Its real estate investments add diversification but may divert resources from core fintech growth. The company’s niche focus on Hong Kong and Australia limits its addressable market compared to global competitors. While its low debt is a strength, TROOPS must improve profitability to sustain operations and invest in technology. Regulatory risks in Hong Kong’s financial sector further complicate its positioning. To succeed, TROOPS must leverage its API infrastructure to form partnerships with regional banks and fintechs while controlling costs.