Charming Medical Limited Class A (MCTA) AI Stock Analysis
MCTA AI stock analysis summary
AI ResearchCharming Medical Limited Class A (MCTA) provides beauty, wellness, and postpartum services in Hong Kong. For FY2026, revenue fell 22.7% to $4.8M as the company posted a net loss of -$22,648. The stock trades at a trailing price-to-earnings ratio of 419.4x with an enterprise value of $502.7M.
- Market cap
- $445.6M
- Revenue (TTM)
- $4.8M
- P/E
- 419.4x
- 1Y return
- — S&P 500 16.8%
- Avg. target
- —
Bull case
- Revenue expanded at a 3-year compound annual growth rate of 10.8% from FY2023 to FY2026.
- Gross margin remained relatively strong at 62.6% in FY2026 despite the annual revenue drop.
- The company maintains solid short-term liquidity with a current ratio of 1.89 as of March 31, 2026.
Bear case
- Revenue contracted 22.7% in FY2026 to $4.8M, generating a net loss of -$22,648.
- Free cash flow turned negative at -$1.6M in FY2026 due to an operating cash outflow of -$1.2M.
- Valuation multiples are elevated, including a trailing P/E of 419.4x and an EV-to-EBITDA of 292.3x.
What Charming Medical does
Charming Medical Limited, through its subsidiaries, provides beauty and wellness services and products in Hong Kong. Its offerings include postpartum and wellness services such as womb-warming therapy, agarwood moxibustion therapy, traditional Chinese medicine (TCM) inspired prenatal massage, Indonesian traditional abdominal binding, and pelvic detox therapy. The company also operates wellness centers offering TCM-inspired women's wellness, facial, lactation, hip, and breast care therapies, as well as head and eye care services like hair follicle therapy and scalp cleansing. Additionally, Charming Medical sells home care products, including herbal uterine care patches, intimate wash, and hair care extracts, alongside consultancy and franchise activities.
Growth and profitability
Charming Medical increased revenue from $3.5M in FY2023 to $6.0M in FY2024 and $6.2M in FY2025, reflecting a 3-year revenue compound annual growth rate of 10.8%. However, FY2026 revenue fell 22.7% to $4.8M, while operating margin compressed to 2.7% from 22.3% in FY2025. Gross margin decreased to 62.6% in FY2026 from 67.2% in FY2025, resulting in a net loss of -$22,648 compared to net income of $1.2M in FY2025. For the latest quarter ended March 31, 2026, quarterly revenue fell 18.9% year-over-year, and quarterly earnings fell 93.8% year-over-year.
Balance sheet and cash flow
As of March 31, 2026, Charming Medical held $4.7M in cash and short-term investments, with total assets of $9.9M and shareholders' equity of $5.2M. The company reported a current ratio of 1.89. For FY2026, operating cash flow turned negative at -$1.2M, down from $425,888 in FY2025, leading to free cash flow of -$1.6M. Capital expenditures for FY2026 were $339,560.
Valuation and performance
Charming Medical trades at an enterprise value of $502.7M and a market capitalization of $445.6M. The stock trades at a trailing price-to-earnings ratio of 419.4x, well above the 24.6x median of its US-listed Healthcare peers. Its price-to-sales ratio stands at 92.7x compared to the peer median of 4.1x, and its EV-to-EBITDA ratio is 292.3x versus the peer median of 12.0x. As of October 16, 2026, the stock's year-to-date return was 0.0%, compared to the S&P 500's 1-year return of 16.8%.
What analysts expect
Charming Medical has no Wall Street analyst price targets, recommendations, or earnings estimates reported. The company closed at $29.36 on October 16, 2026, within its 52-week trading range of $4.30 to $31.70. Insiders control 68.2% of the company's shares, while institutional ownership stands at 0.3%, and short interest represents 11.9% of the float.
Key risks and what to watch
- Quarterly revenue fell 18.9% year-over-year in the period ended March 31, 2026, showing ongoing top-line weakness.
- The company experienced a cash burn in FY2026 with negative free cash flow of -$1.6M relative to its $4.7M cash reserve.
- Ownership is concentrated, with insiders holding 68.2% and institutions holding only 0.3% of shares.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this MCTA AI stock analysis
This page is an AI-written research summary of Charming Medical Limited Class A (MCTA). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: MCTA income statement, MCTA balance sheet, MCTA key metrics, MCTA chart. See the MCTA stock overview for the latest quote and news.
MCTA AI stock analysis FAQ
What services does Charming Medical provide?
Charming Medical provides beauty, wellness, and postpartum services and products in Hong Kong, including traditional Chinese medicine inspired therapies, pelvic care, facial treatments, and scalp care.
Does Charming Medical pay a dividend?
No, Charming Medical does not pay a dividend.
What was Charming Medical's revenue for FY2026?
In FY2026, Charming Medical reported revenue of $4.8M, which represented a 22.7% decline from the previous year.
How does Charming Medical's valuation compare to its peer group?
Charming Medical trades at a trailing P/E of 419.4x and a price-to-sales ratio of 92.7x, compared to the median of its US-listed Healthcare peers of 24.6x and 4.1x, respectively.