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SOUNDHOUND AI INC-A (SOUN) Stock Fundamental Analysis

NASDAQ:SOUN - Nasdaq - US8361001071 - Common Stock - Currency: USD

9.19  -0.2 (-2.13%)

After market: 9.14 -0.05 (-0.54%)

Fundamental Rating

4

Taking everything into account, SOUN scores 4 out of 10 in our fundamental rating. SOUN was compared to 283 industry peers in the Software industry. SOUN has a great financial health rating, but its profitability evaluates not so good. SOUN is valued quite expensive, but it does show an excellent growth.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

In the past year SOUN has reported negative net income.
SOUN had a negative operating cash flow in the past year.
In the past 5 years SOUN always reported negative net income.
SOUN had a negative operating cash flow in each of the past 5 years.
SOUN Yearly Net Income VS EBIT VS OCF VS FCFSOUN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 2024 -100M -200M -300M

1.2 Ratios

Looking at the Return On Assets, with a value of -63.38%, SOUN is doing worse than 83.75% of the companies in the same industry.
SOUN's Return On Equity of -192.22% is on the low side compared to the rest of the industry. SOUN is outperformed by 79.15% of its industry peers.
Industry RankSector Rank
ROA -63.38%
ROE -192.22%
ROIC N/A
ROA(3y)-143.77%
ROA(5y)-142.98%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
SOUN Yearly ROA, ROE, ROICSOUN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 2024 0 5K 10K

1.3 Margins

SOUN's Gross Margin of 48.86% is on the low side compared to the rest of the industry. SOUN is outperformed by 67.84% of its industry peers.
SOUN's Gross Margin has improved in the last couple of years.
The Profit Margin and Operating Margin are not available for SOUN so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 48.86%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-10.84%
GM growth 5Y3.48%
SOUN Yearly Profit, Operating, Gross MarginsSOUN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 0 -200 -400 -600 -800

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7

2. Health

2.1 Basic Checks

SOUN does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, SOUN has more shares outstanding
Compared to 5 years ago, SOUN has more shares outstanding
The debt/assets ratio for SOUN has been reduced compared to a year ago.
SOUN Yearly Shares OutstandingSOUN Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 2024 100M 200M 300M
SOUN Yearly Total Debt VS Total AssetsSOUN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M

2.2 Solvency

SOUN has an Altman-Z score of 2.22. This is not the best score and indicates that SOUN is in the grey zone with still only limited risk for bankruptcy at the moment.
SOUN has a Altman-Z score of 2.22. This is comparable to the rest of the industry: SOUN outperforms 54.77% of its industry peers.
SOUN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Altman-Z 2.22
ROIC/WACCN/A
WACC10.8%
SOUN Yearly LT Debt VS Equity VS FCFSOUN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 2024 0 50M -50M 100M -100M 150M

2.3 Liquidity

A Current Ratio of 3.77 indicates that SOUN has no problem at all paying its short term obligations.
SOUN has a better Current ratio (3.77) than 78.80% of its industry peers.
SOUN has a Quick Ratio of 3.77. This indicates that SOUN is financially healthy and has no problem in meeting its short term obligations.
SOUN's Quick ratio of 3.77 is fine compared to the rest of the industry. SOUN outperforms 78.80% of its industry peers.
Industry RankSector Rank
Current Ratio 3.77
Quick Ratio 3.77
SOUN Yearly Current Assets VS Current LiabilitesSOUN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M

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7

3. Growth

3.1 Past

SOUN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -138.46%.
SOUN shows a strong growth in Revenue. In the last year, the Revenue has grown by 84.62%.
SOUN shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 61.63% yearly.
EPS 1Y (TTM)-138.46%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-885.71%
Revenue 1Y (TTM)84.62%
Revenue growth 3Y58.68%
Revenue growth 5Y61.63%
Sales Q2Q%101.45%

3.2 Future

The Earnings Per Share is expected to grow by 35.28% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 60.19% on average over the next years. This is a very strong growth
EPS Next Y72.34%
EPS Next 2Y35.28%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year98.19%
Revenue Next 2Y60.19%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
SOUN Yearly Revenue VS EstimatesSOUN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 50M 100M 150M 200M
SOUN Yearly EPS VS EstimatesSOUN Yearly EPS VS EstimatesYearly EPS VS Estimates 2022 2023 2024 2025 2026 -0.5 -1

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1

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for SOUN. In the last year negative earnings were reported.
Also next year SOUN is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE N/A
Fwd PE N/A
SOUN Price Earnings VS Forward Price EarningsSOUN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20 40

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
SOUN Per share dataSOUN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 0.2 -0.2 0.4 -0.4 -0.6 -0.8

4.3 Compensation for Growth

A more expensive valuation may be justified as SOUN's earnings are expected to grow with 35.28% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y35.28%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

SOUN does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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SOUNDHOUND AI INC-A

NASDAQ:SOUN (5/5/2025, 6:11:07 PM)

After market: 9.14 -0.05 (-0.54%)

9.19

-0.2 (-2.13%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-27 2025-02-27/amc
Earnings (Next)05-08 2025-05-08/amc
Inst Owners38.97%
Inst Owner Change1.36%
Ins Owners1.61%
Ins Owner Change-5.5%
Market Cap3.68B
Analysts78.46
Price Target14.64 (59.3%)
Short Float %33.23%
Short Ratio3.51
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-289.37%
Min EPS beat(2)-596.39%
Max EPS beat(2)17.65%
EPS beat(4)2
Avg EPS beat(4)-143.86%
Min EPS beat(4)-596.39%
Max EPS beat(4)25.14%
EPS beat(8)3
Avg EPS beat(8)-73.47%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)3.7%
Min Revenue beat(2)0.52%
Max Revenue beat(2)6.87%
Revenue beat(4)4
Avg Revenue beat(4)5.19%
Min Revenue beat(4)0.52%
Max Revenue beat(4)12.5%
Revenue beat(8)6
Avg Revenue beat(8)2.55%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-1.47%
PT rev (3m)13.56%
EPS NQ rev (1m)1.16%
EPS NQ rev (3m)-1.19%
EPS NY rev (1m)0.17%
EPS NY rev (3m)-3.63%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)-11.45%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)0.47%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 43.47
P/FCF N/A
P/OCF N/A
P/B 20.16
P/tB N/A
EV/EBITDA N/A
EPS(TTM)-0.93
EYN/A
EPS(NY)-0.26
Fwd EYN/A
FCF(TTM)-0.27
FCFYN/A
OCF(TTM)-0.27
OCFYN/A
SpS0.21
BVpS0.46
TBVpS-0.23
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -63.38%
ROE -192.22%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 48.86%
FCFM N/A
ROA(3y)-143.77%
ROA(5y)-142.98%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-10.84%
GM growth 5Y3.48%
F-Score2
Asset Turnover0.15
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 3.99%
Cap/Sales 0.76%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 3.77
Quick Ratio 3.77
Altman-Z 2.22
F-Score2
WACC10.8%
ROIC/WACCN/A
Cap/Depr(3y)17.95%
Cap/Depr(5y)20.25%
Cap/Sales(3y)1.96%
Cap/Sales(5y)5.1%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-138.46%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-885.71%
EPS Next Y72.34%
EPS Next 2Y35.28%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)84.62%
Revenue growth 3Y58.68%
Revenue growth 5Y61.63%
Sales Q2Q%101.45%
Revenue Next Year98.19%
Revenue Next 2Y60.19%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-432.94%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year54.75%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-59.51%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-59.49%
OCF growth 3YN/A
OCF growth 5YN/A