Logo image of SOUN

SOUNDHOUND AI INC-A (SOUN) Stock Fundamental Analysis

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

15.71  +1.47 (+10.32%)

Premarket: 16.1998 +0.49 (+3.12%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to SOUN. SOUN was compared to 284 industry peers in the Software industry. While SOUN seems to be doing ok healthwise, there are quite some concerns on its profitability. SOUN shows excellent growth, but is valued quite expensive already.


Dividend Valuation Growth Profitability Health

Quickly go to:

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 -20M -40M -60M -80M -100M

1.2 Ratios

SOUN has a worse Return On Assets (-22.23%) than 73.29% of its industry peers.
SOUN has a Return On Equity of -37.52%. This is in the lower half of the industry: SOUN underperforms 64.62% 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's Gross Margin of 60.68% is on the low side compared to the rest of the industry. SOUN is outperformed by 60.65% 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

More info and screens

5

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.
SOUN has a better debt/assets ratio than last year.
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 14.96 indicates that SOUN is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 14.96, SOUN belongs to the best of the industry, outperforming 90.25% of the companies in the same industry.
A Debt/Equity ratio of 0.13 indicates that SOUN is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.13, SOUN perfoms like the industry average, outperforming 48.01% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.13
Debt/FCF N/A
Altman-Z 14.96
ROIC/WACCN/A
WACC11.05%
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 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 Current ratio of 2.58. This is in the better half of the industry: SOUN outperforms 70.76% of its industry peers.
A Quick Ratio of 2.58 indicates that SOUN has no problem at all paying its short term obligations.
SOUN has a Quick ratio of 2.58. This is in the better half of the industry: SOUN outperforms 71.12% of its industry peers.
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

More info and screens

7

3. Growth

3.1 Past

SOUN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 34.04%, which is quite impressive.
Looking at the last year, SOUN shows a very strong growth in Revenue. The Revenue has grown by 76.05%.
SOUN shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 52.18% yearly.
EPS 1Y (TTM)34.04%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%33.33%
Revenue 1Y (TTM)76.05%
Revenue growth 3Y52.18%
Revenue growth 5YN/A
Sales Q2Q%89.13%

3.2 Future

Based on estimates for the next years, SOUN will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.55% on average per year.
Based on estimates for the next years, SOUN will show a very strong growth in Revenue. The Revenue will grow by 63.15% on average per year.
EPS Next Y2.71%
EPS Next 2Y16.77%
EPS Next 3Y14.55%
EPS Next 5YN/A
Revenue Next Year80.43%
Revenue Next 2Y88.63%
Revenue Next 3Y63.15%
Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better 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 2019 2020 2021 2022 2023 2024 2025 2026 -0.5 -1

More info and screens

0

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 50 -50

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 0.6 0.8

4.3 Compensation for Growth

A more expensive valuation may be justified as SOUN's earnings are expected to grow with 14.55% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y16.77%
EPS Next 3Y14.55%

More info and screens

0

5. Dividend

5.1 Amount

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

More info and screens

SOUNDHOUND AI INC-A

NASDAQ:SOUN (2/4/2025, 8:08:37 PM)

Premarket: 16.1998 +0.49 (+3.12%)

15.71

+1.47 (+10.32%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-12 2024-11-12/amc
Earnings (Next)N/A N/A
Inst Owners27.6%
Inst Owner Change1.46%
Ins Owners1.9%
Ins Owner Change-4.72%
Market Cap5.81B
Analysts83.08
Price Target12.9 (-17.89%)
Short Float %30.49%
Short Ratio1.27
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)29.2%
PT rev (3m)62.39%
EPS NQ rev (1m)1.67%
EPS NQ rev (3m)-96.66%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.95%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)31.79%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.58%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 86.32
P/FCF N/A
P/OCF N/A
P/B 19.63
P/tB 3461.72
EV/EBITDA N/A
EPS(TTM)-0.31
EYN/A
EPS(NY)-0.25
Fwd EYN/A
FCF(TTM)-0.24
FCFYN/A
OCF(TTM)-0.24
OCFYN/A
SpS0.18
BVpS0.8
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 14.96
F-Score3
WACC11.05%
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)34.04%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%33.33%
EPS Next Y2.71%
EPS Next 2Y16.77%
EPS Next 3Y14.55%
EPS Next 5YN/A
Revenue 1Y (TTM)76.05%
Revenue growth 3Y52.18%
Revenue growth 5YN/A
Sales Q2Q%89.13%
Revenue Next Year80.43%
Revenue Next 2Y88.63%
Revenue Next 3Y63.15%
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