Why has MLGO's EPS remained stagnant in recent years?

The EPS of MicroAlgo (MLGO) has not shown significant growth over the past three years, and in fact, it has experienced a decline. The company's EPS was $2.19 in 2021, -$1.7 in 2022, and -$8.28 in 2023.

1. Financial Restructuring: MLGO's EPS has been negatively impacted by its financial restructuring efforts. The company issued new shares at a discounted price of $0.8 each to satisfy existing obligations under a convertible bond agreement. This dilution of shares reduced the EPS as the company's earnings were spread over more diluted shares.
2. Investment in Quantum Computing: The company's focus on quantum computing and algorithmic solutions has led to significant investments. These investments may have temporarily depressed earnings as the company allocates resources to research and development, which does not immediately translate to increased EPS.

In conclusion, MicroAlgo's EPS has remained stagnant and even declined due to financial restructuring and investment in quantum computing, which have prioritized long-term growth over short-term earnings.

MLGO Diluted EPS (FY) YoY, Diluted EPS (FY)