Why is SoundHound AI, Inc. ?
1
Flat results in Mar 26
- RAW MATERIAL COST(Y) Grown by 17.67% (YoY)
- OPERATING PROFIT(Q) Lowest at USD -51.1 MM
- PRE-TAX PROFIT(Q) Lowest at USD -60.13 MM
2
Risky -
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -24.42%, its profits have fallen by -58.8%
3
Underperformed the market in the last 1 year
- Even though the market (S&P 500) has generated returns of 25.41% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -24.42% returns
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is SoundHound AI, Inc. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
SoundHound AI, Inc.
-24.42%
0.61
81.38%
S&P 500
25.41%
1.92
13.25%
Quality key factors
Factor
Value
Sales Growth (5y)
55.57%
EBIT Growth (5y)
-349.94%
EBIT to Interest (avg)
-10.44
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
-0.61
Sales to Capital Employed (avg)
0.32
Tax Ratio
4.44%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
54.52%
ROCE (avg)
0
ROE (avg)
0
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
5.38
EV to EBIT
-12.48
EV to EBITDA
-15.40
EV to Capital Employed
10.34
EV to Sales
13.31
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-82.85%
ROE (Latest)
-36.60%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
12What is working for the Company
NET SALES(HY)
At USD 99.25 MM has Grown at 55.88%
NET PROFIT(HY)
Higher at USD -97.5 MM
ROCE(HY)
Highest at -39.4%
-13What is not working for the Company
RAW MATERIAL COST(Y)
Grown by 17.67% (YoY
OPERATING PROFIT(Q)
Lowest at USD -51.1 MM
PRE-TAX PROFIT(Q)
Lowest at USD -60.13 MM
NET PROFIT(Q)
Lowest at USD -60.93 MM
Here's what is working for SoundHound AI, Inc.
Net Sales
At USD 99.25 MM has Grown at 55.88%
Year on Year (YoY)MOJO Watch
Near term sales trend is very positive
Net Sales (USD MM)
Here's what is not working for SoundHound AI, Inc.
Pre-Tax Profit
At USD -60.13 MM has Fallen at -41.79%
over average net sales of the previous four periods of USD -42.41 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (USD MM)
Net Profit
At USD -60.93 MM has Fallen at -43.56%
over average net sales of the previous four periods of USD -42.44 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (USD MM)
Operating Profit
Lowest at USD -51.1 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (USD MM)
Pre-Tax Profit
Lowest at USD -60.13 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
Net Profit
Lowest at USD -60.93 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
Raw Material Cost
Grown by 17.67% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales






