MicroAlgo Inc. Class A Ordinary Shares (MLGO)

FairStock Score: 56/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I start with the business and the numbers. MicroAlgo is a 71-employee software-infrastructure firm selling algorithm optimization and advertising services, mostly in China. It is small: market cap was $42.3M at the close on 2026-10-13. The reported record is mixed. In fiscal year 2021, ended 2021-12-31, revenue was $82.0M and net income was $8.6M. In fiscal year 2022, ended 2022-12-31, revenue rose to $87.1M, but net income swung to a loss of $7.0M. In fiscal first quarter 2023, the quarter ended 2023-03-31, revenue was $17.8M and net loss was $1.3M, compared with fiscal first quarter 2022, the quarter ended 2022-03-31, revenue of $23.4M and net income of $888,357. That is not a healthy trend. The balance sheet looks lightly levered: D/E is 0.01, and Altman Z-Score is 2.34, a FairStock calculation. At the close on 2026-10-13, the FairStock P/B is 0.10, so investors are paying a dime for each dollar of book value. That catches a Graham investor's eye. But a low P/B with a negative ROE of -6.10%, ROCE of 0.08%, and a Piotroski F-Score of 1/9 warns that book value may not be productive or may be eroding. The Lynch category is TURNAROUND — loss in the latest year after earlier profits — which fits. Turnarounds are difficult; they need proof, not hope. Revenue growth from fiscal year 2021 to fiscal year 2022 was modest, and fiscal first quarter 2023 revenue fell year over year. With a FairStock P/E of -1.46, there are no earnings to value. The FairStock score is 56/100. I would want to see a return to profit and stable revenue before calling this a margin-of-safety bargain.

In plain English: MicroAlgo sells software algorithms and advertising services, mostly in China. The business has been weak lately: it lost money in fiscal year 2022 after making a profit in fiscal year 2021, and it lost money again in the fiscal first quarter of 2023. The stock price looks very low compared with the company's book value, but the company is not currently earning money, so cheapness may be a warning rather than a bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2023 10-Q (period ended 2023-03-31) · fiscal Q3 2022 10-Q (period ended 2022-09-30) · fiscal Q2 2022 10-Q (period ended 2022-06-30) · fiscal Q1 2022 10-Q (period ended 2022-03-31) · FY2022 10-K (period ended 2022-12-31) · FY2021 10-K (period ended 2021-12-31) · FY2020 10-K (period ended 2020-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer