SoundHound AI Inc Shows Mixed Performance Ratings

SoundHound AI Inc rates 52% on the Small-Cap Growth Investor model, indicating moderate interest from investors despite weaknesses in profitability and revenue growth criteria.

Date: 17-03-2025

AI Rating: 5

Performance Overview
SOUNDHOUND AI INC has been evaluated through the Small-Cap Growth Investor model, achieving a score of 52%. The analysis indicates mixed results, with notable strengths and weaknesses in various fundamental areas.

Profit Margins and Revenue Growth
The report highlights that SOUNDHOUND AI INC has failed on the profit margin criteria and the 'Fool Ratio' (P/E to growth), signaling potential concerns regarding profitability. However, the company passed the test for comparing sales and EPS growth to the same period last year, suggesting some revenue growth is occurring.

Cash Flow and Debt Ratios
On a positive note, the company has passed tests for consistency in profit margins and cash and cash equivalents, which might indicate some levels of operational efficiency despite failing the cash flow from operations test.

Overall Strengths
Furthermore, SOUNDHOUND AI INC has passed tests for accounts receivable to sales and its long-term debt/equity ratio, which reflects some financial stability and management of debt levels. However, failures in daily dollar volume and insider holdings suggest potential liquidity and confidence issues among insiders.

This comprehensive evaluation indicates that while SOUNDHOUND AI INC shows some positive signs of sales growth, the weaknesses in profitability metrics may negatively impact investor sentiment and stock price stability in the short term.

Stocks: SOUN