Motorsport Games Inc. cash flow to debt ratio of 23.18K% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.

Motorsport Games Inc.'s free cash flow has increased -241.84% from $-2.86M last year to $4.06M, signaling increasing performance

Motorsport Games Inc.'s debt to equity ratio is 0.05, which means that the company's assets are healthy financed, signaling financial stability.

Motorsport Games Inc.'s debt has decreased relative to shareholder equity from 0.10 last year to 0.05 today, signaling strengthened financials

Motorsport Games Inc. has a net cash position, so leverage is healthy.

Motorsport Games Inc.'s interest coverage ratio of 313.76 indicates that earnings with good margin can cover interest payments on company debt

Motorsport Games Inc.'s profit margin has increased (-244.24%) in the last year from -31.69% to 45.71%, signaling increasing performance

Motorsport Games Inc.'s short-term assets of $7.59M exceed its short-term liabilities of $3.37M

Motorsport Games Inc.'s return on assets of 44.69% is higher than the 5.00% threshold, indicating efficient asset utilization

Motorsport Games Inc.'s return on equity of 101.28%, is higher than 15.00%, indicating good performance

Motorsport Games Inc.'s operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation

Motorsport Games Inc. had positive net income in only 1 out of 5 years, indicating unstable earnings

Motorsport Games Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Motorsport Games Inc. has a free cash flow yield of 17.26%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Motorsport Games Inc.'s yearly earnings has increased -351.66% since last year from $-2.75M to $6.93M, signaling increasing performance

Motorsport Games Inc.'s yearly revenue has increased 30.05% since last year from $8.69M to $11.30M, signaling increasing performance

ROIC 27.27% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.

Motorsport Games Inc.'s 3-year revenue CAGR of 3.05% is positive, indicating growing revenue over the past 3 years

Motorsport Games Inc. had revenue growth in only 2 out of 5 years, indicating inconsistent revenue performance

Motorsport Games Inc. had positive ROE in only 1 out of 5 years, indicating inconsistent returns on equity

Motorsport Games Inc. is undervalued relative to its fair value price of 10.64 based on Discounted Cash Flow model

Motorsport Games Inc. has an earnings yield of 26.13%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Motorsport Games Inc. is undervalued relative to its fair value price of 4.79 based on EBITDA multiple model

Motorsport Games Inc. has an EV/EBITDA ratio of 2.40x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Motorsport Games Inc. has insufficient data to evaluate this check.

Motorsport Games Inc. had non-positive diluted EPS five years ago; the PEG ratio is not meaningful and the check fails.

Motorsport Games Inc. has a price-to-book ratio of 2.77x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Motorsport Games Inc. has a price-to-sales ratio of 1.75x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue