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SOUNDHOUND AI INC-A (SOUN) Stock Fundamental Analysis

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

9.74  +0.19 (+1.99%)

After market: 9.65 -0.09 (-0.92%)

Fundamental Rating

3

Taking everything into account, SOUN scores 3 out of 10 in our fundamental rating. SOUN was compared to 283 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 expensive and it does not seem to be growing.


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.
In the past 5 years SOUN always reported negative operating cash flow.
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 -20M -40M -60M -80M -100M

1.2 Ratios

Looking at the Return On Assets, with a value of -22.23%, SOUN is doing worse than 71.02% of the companies in the same industry.
The Return On Equity of SOUN (-37.52%) is worse than 63.96% of its industry peers.
Industry RankSector Rank
ROA -22.23%
ROE -37.52%
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
SOUN Yearly ROA, ROE, ROICSOUN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 0 5K 10K

1.3 Margins

SOUN has a Gross Margin of 60.68%. This is comparable to the rest of the industry: SOUN outperforms 41.70% of its industry peers.
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 60.68%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y11.09%
GM growth 5YN/A
SOUN Yearly Profit, Operating, Gross MarginsSOUN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 0 -200 -400 -600 -800

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5

2. Health

2.1 Basic Checks

SOUN does not have a ROIC to compare to the WACC, probably because it is not profitable.
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.
SOUN Yearly Shares OutstandingSOUN Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 50M 100M 150M 200M 250M
SOUN Yearly Total Debt VS Total AssetsSOUN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 50M 100M 150M

2.2 Solvency

An Altman-Z score of 9.15 indicates that SOUN is not in any danger for bankruptcy at the moment.
SOUN has a better Altman-Z score (9.15) than 82.69% of its industry peers.
SOUN has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
SOUN has a Debt to Equity ratio (0.13) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.13
Debt/FCF N/A
Altman-Z 9.15
ROIC/WACCN/A
WACC14.09%
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 0 50M -50M

2.3 Liquidity

SOUN has a Current Ratio of 2.58. This indicates that SOUN is financially healthy and has no problem in meeting its short term obligations.
SOUN has a better Current ratio (2.58) than 70.32% of its industry peers.
SOUN has a Quick Ratio of 2.58. This indicates that SOUN is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.58, SOUN is doing good in the industry, outperforming 70.67% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.58
Quick Ratio 2.58
SOUN Yearly Current Assets VS Current LiabilitesSOUN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M

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3

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%.
EPS 1Y (TTM)-138.46%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-885.71%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%101.43%

3.2 Future

SOUN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 33.85% yearly.
Based on estimates for the next years, SOUN will show a very strong growth in Revenue. The Revenue will grow by 59.80% on average per year.
EPS Next Y73.31%
EPS Next 2Y33.85%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year97.77%
Revenue Next 2Y59.8%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

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 2019 2020 2021 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.
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

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 33.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y33.85%
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 (3/7/2025, 8:00:02 PM)

After market: 9.65 -0.09 (-0.92%)

9.74

+0.19 (+1.99%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-27 2025-02-27/amc
Earnings (Next)05-07 2025-05-07/amc
Inst Owners38.97%
Inst Owner Change32.59%
Ins Owners1.61%
Ins Owner Change-4.5%
Market Cap3.83B
Analysts80
Price Target14.43 (48.15%)
Short Float %30.54%
Short Ratio1.55
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)-2.1%
Min EPS beat(2)-21.86%
Max EPS beat(2)17.65%
EPS beat(4)2
Avg EPS beat(4)0.03%
Min EPS beat(4)-21.86%
Max EPS beat(4)25.14%
EPS beat(8)4
Avg EPS beat(8)2.55%
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)3.88%
Min Revenue beat(2)0.88%
Max Revenue beat(2)6.87%
Revenue beat(4)3
Avg Revenue beat(4)3.75%
Min Revenue beat(4)-5.27%
Max Revenue beat(4)12.5%
Revenue beat(8)6
Avg Revenue beat(8)3.15%
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)11.86%
PT rev (3m)75.22%
EPS NQ rev (1m)1.21%
EPS NQ rev (3m)2.86%
EPS NY rev (1m)0%
EPS NY rev (3m)1.67%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.11%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.04%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 56.97
P/FCF N/A
P/OCF N/A
P/B 12.95
P/tB 2284.83
EV/EBITDA N/A
EPS(TTM)-0.93
EYN/A
EPS(NY)-0.25
Fwd EYN/A
FCF(TTM)-0.23
FCFYN/A
OCF(TTM)-0.23
OCFYN/A
SpS0.17
BVpS0.75
TBVpS0
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -22.23%
ROE -37.52%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 60.68%
FCFM 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
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 3Y11.09%
GM growth 5YN/A
F-Score3
Asset Turnover0.13
Health
Industry RankSector Rank
Debt/Equity 0.13
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 7.28%
Cap/Sales 0.92%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.58
Quick Ratio 2.58
Altman-Z 9.15
F-Score3
WACC14.09%
ROIC/WACCN/A
Cap/Depr(3y)20.48%
Cap/Depr(5y)41.32%
Cap/Sales(3y)2.71%
Cap/Sales(5y)18.26%
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 Y73.31%
EPS Next 2Y33.85%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%101.43%
Revenue Next Year97.77%
Revenue Next 2Y59.8%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-17.66%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-0.67%
EBIT Next 3Y27.61%
EBIT Next 5YN/A
FCF growth 1Y0.04%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-1.06%
OCF growth 3YN/A
OCF growth 5YN/A