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SOUNDHOUND AI INC-A (SOUN) Stock Fundamental Analysis

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

10.11  -0.42 (-3.99%)

After market: 10.0728 -0.04 (-0.37%)

Fundamental Rating

4

Overall SOUN gets a fundamental rating of 4 out of 10. We evaluated SOUN against 283 industry peers in the Software industry. While SOUN has a great health rating, there are worries on its profitability. SOUN is valued quite expensively, but it does show have an excellent growth rating.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

SOUN had negative earnings in the past year.
SOUN had a negative operating cash flow in the past year.
SOUN had negative earnings in each of the past 5 years.
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

SOUN has a Return On Assets of -32.09%. This is in the lower half of the industry: SOUN underperforms 74.56% of its industry peers.
Looking at the Return On Equity, with a value of -47.49%, SOUN is doing worse than 67.49% of the companies in the same industry.
Industry RankSector Rank
ROA -32.09%
ROE -47.49%
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

With a Gross Margin value of 44.09%, SOUN is not doing good in the industry: 72.08% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of SOUN has grown nicely.
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 44.09%
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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8

2. Health

2.1 Basic Checks

SOUN does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for SOUN has been increased compared to 1 year ago.
Compared to 5 years ago, SOUN has more shares outstanding
Compared to 1 year ago, SOUN has an improved debt to assets ratio.
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

An Altman-Z score of 10.47 indicates that SOUN is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 10.47, SOUN belongs to the best of the industry, outperforming 86.93% of the companies in the same industry.
There is no outstanding debt for SOUN. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Altman-Z 10.47
ROIC/WACCN/A
WACC11.02%
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

SOUN has a Current Ratio of 4.92. This indicates that SOUN is financially healthy and has no problem in meeting its short term obligations.
SOUN's Current ratio of 4.92 is amongst the best of the industry. SOUN outperforms 86.57% of its industry peers.
A Quick Ratio of 4.92 indicates that SOUN has no problem at all paying its short term obligations.
SOUN's Quick ratio of 4.92 is amongst the best of the industry. SOUN outperforms 86.57% of its industry peers.
Industry RankSector Rank
Current Ratio 4.92
Quick Ratio 4.92
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 -66.67%.
The Revenue has grown by 101.39% in the past year. This is a very strong growth!
Measured over the past years, SOUN shows a very strong growth in Revenue. The Revenue has been growing by 61.63% on average per year.
EPS 1Y (TTM)-66.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%542.86%
Revenue 1Y (TTM)101.39%
Revenue growth 3Y58.68%
Revenue growth 5Y61.63%
Sales Q2Q%151.24%

3.2 Future

The Earnings Per Share is expected to grow by 32.20% on average over the next years. This is a very strong growth
Based on estimates for the next years, SOUN will show a very strong growth in Revenue. The Revenue will grow by 54.57% on average per year.
EPS Next Y110.75%
EPS Next 2Y32.2%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year90.44%
Revenue Next 2Y54.57%
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 -0.5 -1

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1

4. Valuation

4.1 Price/Earnings Ratio

SOUN reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
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 -40 60

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 0.5 -0.5

4.3 Compensation for Growth

SOUN's earnings are expected to grow with 32.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y32.2%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

No dividends for SOUN!.
Industry RankSector Rank
Dividend Yield N/A

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SOUNDHOUND AI INC-A

NASDAQ:SOUN (5/30/2025, 8:00:02 PM)

After market: 10.0728 -0.04 (-0.37%)

10.11

-0.42 (-3.99%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)05-08 2025-05-08/amc
Earnings (Next)08-06 2025-08-06/amc
Inst Owners38.97%
Inst Owner Change26.76%
Ins Owners1.61%
Ins Owner Change-5.35%
Market Cap4.06B
Analysts78.46
Price Target14.64 (44.81%)
Short Float %30.88%
Short Ratio4.08
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)-69.42%
Min EPS beat(2)-596.39%
Max EPS beat(2)457.56%
EPS beat(4)2
Avg EPS beat(4)-35.76%
Min EPS beat(4)-596.39%
Max EPS beat(4)457.56%
EPS beat(8)4
Avg EPS beat(8)-15.86%
EPS beat(12)7
Avg EPS beat(12)-4.86%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-2.74%
Min Revenue beat(2)-6%
Max Revenue beat(2)0.52%
Revenue beat(4)3
Avg Revenue beat(4)0.57%
Min Revenue beat(4)-6%
Max Revenue beat(4)6.87%
Revenue beat(8)6
Avg Revenue beat(8)2.08%
Revenue beat(12)8
Avg Revenue beat(12)3.27%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)13.56%
EPS NQ rev (1m)-25.83%
EPS NQ rev (3m)-30.22%
EPS NY rev (1m)138.86%
EPS NY rev (3m)140.28%
Revenue NQ rev (1m)-10.11%
Revenue NQ rev (3m)-12.58%
Revenue NY rev (1m)-3.91%
Revenue NY rev (3m)-3.46%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 39.73
P/FCF N/A
P/OCF N/A
P/B 10.23
P/tB 31.65
EV/EBITDA N/A
EPS(TTM)-0.55
EYN/A
EPS(NY)-0.23
Fwd EYN/A
FCF(TTM)-0.27
FCFYN/A
OCF(TTM)-0.26
OCFYN/A
SpS0.25
BVpS0.99
TBVpS0.32
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -32.09%
ROE -47.49%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 44.09%
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-Score3
Asset Turnover0.17
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 3.15%
Cap/Sales 0.69%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 4.92
Quick Ratio 4.92
Altman-Z 10.47
F-Score3
WACC11.02%
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)-66.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%542.86%
EPS Next Y110.75%
EPS Next 2Y32.2%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)101.39%
Revenue growth 3Y58.68%
Revenue growth 5Y61.63%
Sales Q2Q%151.24%
Revenue Next Year90.44%
Revenue Next 2Y54.57%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-159.71%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year43.32%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-13.36%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-13.5%
OCF growth 3YN/A
OCF growth 5YN/A