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SOUNDHOUND AI INC-A (SOUN) Stock Fundamental Analysis

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

9.57  +0.15 (+1.59%)

After market: 9.53 -0.04 (-0.42%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to SOUN. SOUN was compared to 284 industry peers in the Software industry. While SOUN has a great health rating, there are worries on its profitability. 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.
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 74.65% of its industry peers.
With a Return On Equity value of -47.49%, SOUN is not doing good in the industry: 66.90% of the companies in the same industry are doing better.
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: 71.48% of the companies in the same industry are doing better.
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 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.
SOUN has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SOUN has more shares outstanding
SOUN has a better debt/assets ratio than last year.
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 9.79. This indicates that SOUN is financially healthy and has little risk of bankruptcy at the moment.
SOUN has a better Altman-Z score (9.79) than 84.51% of its industry peers.
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 9.79
ROIC/WACCN/A
WACC9.05%
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.
Looking at the Current ratio, with a value of 4.92, SOUN belongs to the top of the industry, outperforming 86.97% of the companies in the same industry.
SOUN has a Quick Ratio of 4.92. This indicates that SOUN is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of SOUN (4.92) is better than 86.97% 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

The earnings per share for SOUN have decreased strongly by -66.67% in the last year.
SOUN shows a strong growth in Revenue. In the last year, the Revenue has grown by 101.39%.
The Revenue has been growing by 61.63% on average over the past years. This is a very strong growth!
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

SOUN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.20% yearly.
SOUN is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 55.47% yearly.
EPS Next Y110.97%
EPS Next 2Y32.2%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year90.29%
Revenue Next 2Y55.47%
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.
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.
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 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

A more expensive valuation may be justified as SOUN's earnings are expected to grow with 32.20% in the coming years.
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

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

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SOUNDHOUND AI INC-A

NASDAQ:SOUN (6/20/2025, 8:00:02 PM)

After market: 9.53 -0.04 (-0.42%)

9.57

+0.15 (+1.59%)

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 Owners44.74%
Inst Owner Change26.76%
Ins Owners0.78%
Ins Owner Change-3.49%
Market Cap3.84B
Analysts78.57
Price Target12.05 (25.91%)
Short Float %31.94%
Short Ratio3.9
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)-17.72%
PT rev (3m)-16.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-24.44%
EPS NY rev (1m)2.04%
EPS NY rev (3m)141.1%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-10.38%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-3.78%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 37.61
P/FCF N/A
P/OCF N/A
P/B 9.68
P/tB 29.96
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 9.79
F-Score3
WACC9.05%
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 Y110.97%
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 Year90.29%
Revenue Next 2Y55.47%
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