SOUNDHOUND AI INC Scores 45% Based on Guru Strategies

SOUNDHOUND AI INC receives a 45% rating based on its fundamentals. While it passes some criteria, key weaknesses in profit margin and growth metrics could impact investor confidence and stock price.

Date: 20-02-2025

AI Rating: 4

Financial Overview
SOUNDHOUND AI INC (SOUN) shows a mixed performance according to the analysis conducted. With a rating of 45%, the stock is classified as a mid-cap value stock in the Computer Services sector. However, this score indicates weaknesses in several critical areas.

Profit Margins
The report indicates that the profit margin for SOUNDHOUND AI INC has failed to meet expectations. This could suggest that the company is not efficiently converting revenue into profit, a key indicator for potential investors.

Comparison of Sales and EPS Growth
The analysis states that the company has failed to compare sales and earnings per share (EPS) growth to the same period last year. A lack of growth in these areas can negatively influence investor perceptions and affect stock prices as well.

Cash Flow and Debt Management
Cash flow from operations has also received a failing mark, which raises concerns over liquidity and the ability to fund ongoing operations. Additionally, a high long-term debt/equity ratio signals potential financial instability, further complicating the company’s attractiveness in the stock market.

Positive Indicators
Despite the shortcomings, SOUNDHOUND AI INC has passed the criteria for relative strength, average shares outstanding, sales, cash and cash equivalents, and accounts receivable to sales. These positive indicators could provide some reassurance for investors, suggesting that while there are significant challenges, certain aspects of the company's performance are stable.

In summary, while SOUNDHOUND AI INC shows potential through some positive metrics, serious weaknesses in profit margins and cash flow pose risks that could negatively impact the stock price and overall investor sentiment.

Stocks: SOUN