SOUNDHOUND AI INC Sees Mixed Results in Fundamental Report

SOUNDHOUND AI INC receives a mixed rating of 45% from the Small-Cap Growth Investor model. The analysis highlights weaknesses in profit margins, sales, and cash flow, while showing positive indicators in sales and cash holdings.

Date: 07-03-2025

AI Rating: 4

SOUNDHOUND AI INC Review

SOUNDHOUND AI INC (SOUN) has been evaluated within the context of the Small-Cap Growth Investor model, yielding a rating of 45% based on the firm's fundamentals and valuation. A rating above 80% typically suggests interest, while above 90% indicates strong interest, thus suggesting room for growth.

Profit Margins

The report indicates a FAIL in profit margin, which can be a concern for investors as low profit margins can indicate operational inefficiencies and a challenge in maintaining profitability.

Sales Growth and EPS

Furthermore, the report shows a FAIL in sales and EPS growth compared to the previous year. Consistent sales growth is crucial for investors, and a failure in this area can negatively impact investor sentiment and stock prices.

Cash Flow from Operations

The FAIL in cash flow from operations is particularly alarming. Investors often look for positive cash flow as it is a vital indicator of a company's financial health and its ability to sustain operations and invest for future growth.

Insider Holdings and Debt Ratios

Insider holdings have also received a FAIL, which might signal a lack of confidence among insiders about the company's future prospects. The long-term debt/equity ratio also received a FAIL, indicating higher leverage which can pose a financial risk.

Positive Indicators

Despite these challenges, there are some positives, including passing criteria in areas such as relative strength, cash and cash equivalents, accounts receivable to sales, and average shares outstanding. These factors suggest some degree of stability and liquidity which can be attractive to investors.

Overall, the report presents a mixed view of SOUNDHOUND AI INC (SOUN), highlighting critical areas needing improvement that could affect stock performance moving forward.

Stocks: SOUN