The company's 18.38% year-over-year revenue decline and narrow 18.52% gross margin suggest significant vulnerability to shifts in consumer spending.
| Metric | Oct'24 | Oct'23 | Oct'22 |
|---|
| Sales/Revenue | 21.43M | 26.26M | 28.16M |
| Revenue Growth % | -18.38% | -6.76% | - |
| Cost of Goods Sold | 17.46M | 22.05M | 23.52M |
| COGS % of Revenue | 81.48% | 83.96% | 83.51% |
| Gross Profit | 3.97M | 4.21M | 4.64M |
| Gross Margin % | 18.52% | 16.04% | 16.49% |
| Gross Profit Growth % | -5.72% | -9.3% | - |
| Operating Expenses | 1.77M | 1.8M | 1.5M |
| OpEx % of Revenue | 8.24% | 6.86% | 5.34% |
| Selling, General & Admin | 1.21M | 1.06M | 1.01M |
| SG&A % of Revenue | 5.63% | 4.04% | 3.58% |
| Research & Development | 559.05K | 740.8K | 496.25K |
| R&D % of Revenue | 2.61% | 2.82% | 1.76% |
| Other Operating Expenses | 0 | 0 | 0 |
| Operating Income | 2.2M | 2.41M | 3.14M |
| Operating Margin % | 10.28% | 9.17% | 11.15% |
| Operating Income Growth % | -8.5% | -23.28% | - |
| EBITDA | 2.41M | 2.62M | 3.34M |
| EBITDA Margin % | 11.26% | 9.98% | 11.86% |
| EBITDA Growth % | -7.94% | -21.53% | - |
| D&A (Non-Cash Add-back) | 209.43K | 212.98K | 201.5K |
| EBIT | 2.3M | 2.36M | 3.19M |
| Net Interest Income | -150.79K | -68.41K | -79.3K |
| Interest Income | 548 | 1.16K | 739 |
| Interest Expense | 151.34K | 69.57K | 80.04K |
| Other Income/Expense | -54.52K | -123.15K | -26.92K |
| Pretax Income | 2.15M | 2.29M | 3.11M |
| Pretax Margin % | 10.03% | 8.7% | 11.05% |
| Income Tax | 269K | 307.44K | 559.88K |
| Effective Tax Rate % | 12.51% | 13.45% | 17.99% |
| Net Income | 1.81M | 1.91M | 2.45M |
| Net Margin % | 8.46% | 7.27% | 8.71% |
| Net Income Growth % | -5.03% | -22.18% | - |
| Net Income (Continuing) | 1.88M | 1.98M | 2.55M |
| Discontinued Operations | 0 | 0 | 0 |
| Minority Interest | 312.48K | 244.99K | 175.98K |
| EPS (Diluted) | 0.11 | 0.11 | 0.14 |
| EPS Growth % | 0% | -21.43% | - |
| EPS (Basic) | 0.11 | 0.11 | 0.14 |
| Diluted Shares Outstanding | 17M | 17M | 17M |
| Basic Shares Outstanding | 17M | 17M | 17M |
| Dividend Payout Ratio | - | - | - |
Geopolitical and tariff exposure
As reported in recent financial disclosures, MAMK experienced a significant 18.38% year-over-year revenue decline, suggesting that the company's transactional, print-on-demand model is currently struggling to maintain its competitive positioning within the highly discretionary global apparel and accessories market during this period of reduced consumer spending.
The double-digit revenue contraction indicates that the company's reliance on individual, non-recurring orders may be failing to capture sufficient volume to offset rising customer acquisition costs. Investors should monitor whether this trend reflects a structural loss of market share or a temporary cyclical downturn in the personalized gift segment.
According to the company's latest financial data, the 18.52% gross margin highlights a narrow profitability profile that leaves little room for error, particularly given the high variable cost structure inherent in the firm's batch-printing and textile manufacturing operations for customized consumer goods.
This margin profile suggests that despite claims of proprietary software integration, the company lacks significant pricing power and remains highly sensitive to fluctuations in raw material and international shipping costs. The current margin level warrants investigation into whether the firm can achieve economies of scale or if it is permanently tethered to commodity-like pricing pressures.
Based on the provided figures, the 10.28% operating margin indicates a lean corporate structure, yet the lack of significant scaling suggests that the company is currently unable to leverage its proprietary ERP and EMS systems to drive meaningful efficiency gains amidst the ongoing revenue decline.
The inability to expand operating margins while revenue contracts implies that fixed costs remain a burden on the bottom line. Analysts should evaluate whether management can successfully reduce overhead or if the current cost structure is too rigid to support the business through a prolonged period of top-line weakness.
As indicated by the financial snapshot, the company's 8.46% net margin appears precarious, as it relies on a delicate balance of cost control that may be unsustainable if the firm is forced to increase marketing spend to reverse its recent 18.38% revenue decline.
Short-term profitability may be masking underlying operational vulnerabilities, particularly if the company is deferring necessary R&D or maintenance to preserve cash. Investors should be wary of the potential for margin compression if the firm's export-led price advantage is eroded by future regulatory changes or increased tariff burdens.
Quick answers to the most common questions about buying MAMK stock.
For fiscal year 2024, MaxsMaking Inc. Class A Ordinary Shares (MAMK) reported total revenue of $21.4M. This represents a 23.9% decline compared to $28.2M in 2022.
MaxsMaking Inc. Class A Ordinary Shares (MAMK) is profitable, generating $1.8M in net income for the fiscal year ending 2024 with a net profit margin of 8.5%.
MaxsMaking Inc. Class A Ordinary Shares (MAMK) reported an operating income of $2.2M, resulting in an operating profit margin of 10.3%. This margin reflects the operational efficiency of the business before interest and taxes.
MaxsMaking Inc. Class A Ordinary Shares (MAMK) generated $4.0M in gross profit for the year, representing a gross profit margin of 18.5%. This demonstrates the company's core pricing power and production efficiency.