SOUNDHOUND AI INC-A (SOUN)
US8361001071 - Common Stock
We assign a fundamental rating of 3 out of 10 to SOUN. SOUN was compared to 276 industry peers in the Software industry. The financial health of SOUN is average, but there are quite some concerns on its profitability. SOUN is valued quite expensive, but it does show an excellent growth.
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.
In the past 5 years SOUN always reported negative operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -60.69%, SOUN is doing worse than 85.04% of the companies in the same industry.
With a Return On Equity value of -325.59%, SOUN is not doing good in the industry: 85.40% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -60.69% | ||
| ROE | -325.59% | ||
| ROIC | N/A |
ROA(3y)-176.53%
ROA(5y)-150.4%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
SOUN's Gross Margin of 75.35% is fine compared to the rest of the industry. SOUN outperforms 69.34% of its industry peers.
SOUN's Gross Margin has improved in the last couple of years.
SOUN does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 75.35% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y11.09%
GM growth 5YN/A
2. Health
2.1 Basic Checks
SOUN does not have a ROIC to compare to the WACC, probably because it is not profitable.
SOUN has more shares outstanding than it did 1 year ago.
The debt/assets ratio for SOUN has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.78, we must say that SOUN is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.78, SOUN is not doing good in the industry: 65.33% of the companies in the same industry are doing better.
SOUN has a Debt/Equity ratio of 2.99. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.99, SOUN is not doing good in the industry: 83.21% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.99 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.78 |
ROIC/WACCN/A
WACC10.36%
2.3 Liquidity
A Current Ratio of 4.69 indicates that SOUN has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.69, SOUN belongs to the top of the industry, outperforming 86.86% of the companies in the same industry.
SOUN has a Quick Ratio of 4.69. This indicates that SOUN is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 4.69, SOUN belongs to the best of the industry, outperforming 86.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.69 | ||
| Quick Ratio | 4.69 |
3. Growth
3.1 Past
SOUN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.10%, which is quite impressive.
The Revenue has grown by 47.36% 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 52.18% on average per year.
EPS 1Y (TTM)38.1%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q53.33%
Revenue 1Y (TTM)47.36%
Revenue growth 3Y52.18%
Revenue growth 5YN/A
Revenue growth Q2Q80.48%
3.2 Future
SOUN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.21% yearly.
SOUN is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 48.69% yearly.
EPS Next Y22.41%
EPS Next 2Y20.21%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year49.5%
Revenue Next 2Y48.69%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
SOUN reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for SOUN. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A more expensive valuation may be justified as SOUN's earnings are expected to grow with 20.21% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y20.21%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for SOUN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SOUNDHOUND AI INC-A
NASDAQ:SOUN (5/2/2024, 10:58:06 AM)
4.5615
+0.15 (+3.44%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.41B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -60.69% | ||
| ROE | -325.59% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 75.35% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.99 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.69 | ||
| Quick Ratio | 4.69 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)38.1%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y22.41%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)47.36%
Revenue growth 3Y52.18%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y