SoundHound Return On Equity vs. Cash And Equivalents

SOUNW Stock  USD 4.21  0.41  10.79%   
Based on the measurements of profitability obtained from SoundHound's financial statements, SoundHound AI may not be well positioned to generate adequate gross income at the present time. It has a very high chance of underperforming in January. Profitability indicators assess SoundHound's ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
(3.16)
Current Value
(3.00)
Quarterly Volatility
1.95378599
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, SoundHound's Price To Sales Ratio is fairly stable compared to the past year. Days Sales Outstanding is likely to climb to 130.96 in 2024, whereas Operating Cash Flow Sales Ratio is likely to drop (1.56) in 2024. At this time, SoundHound's Accumulated Other Comprehensive Income is fairly stable compared to the past year. Income Tax Expense is likely to climb to about 4.1 M in 2024, whereas Income Before Tax is likely to drop (89.3 M) in 2024.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.50.7535
Way Down
Slightly volatile
For SoundHound profitability analysis, we use financial ratios and fundamental drivers that measure the ability of SoundHound to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well SoundHound AI utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between SoundHound's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of SoundHound AI over time as well as its relative position and ranking within its peers.
  

SoundHound's Revenue Breakdown by Earning Segment

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Is Application Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of SoundHound. If investors know SoundHound will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about SoundHound listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(6.57)
Revenue Per Share
0.219
Quarterly Revenue Growth
0.891
Return On Assets
(0.18)
Return On Equity
(0.68)
The market value of SoundHound AI is measured differently than its book value, which is the value of SoundHound that is recorded on the company's balance sheet. Investors also form their own opinion of SoundHound's value that differs from its market value or its book value, called intrinsic value, which is SoundHound's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because SoundHound's market value can be influenced by many factors that don't directly affect SoundHound's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between SoundHound's value and its price as these two are different measures arrived at by different means. Investors typically determine if SoundHound is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, SoundHound's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

SoundHound AI Cash And Equivalents vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining SoundHound's current stock value. Our valuation model uses many indicators to compare SoundHound value to that of its competitors to determine the firm's financial worth.
SoundHound AI is rated second in return on equity category among its peers. It is rated third in cash and equivalents category among its peers . At this time, SoundHound's Return On Equity is fairly stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value SoundHound by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

SoundHound Cash And Equivalents vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

SoundHound

Return On Equity

 = 

Net Income

Total Equity

 = 
-0.68
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.

SoundHound

Cash

 = 

Bank Deposits

+

Liquidities

 = 
21.63 M
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).

SoundHound Cash And Equivalents Comparison

SoundHound is currently under evaluation in cash and equivalents category among its peers.

SoundHound Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in SoundHound, profitability is also one of the essential criteria for including it into their portfolios because, without profit, SoundHound will eventually generate negative long term returns. The profitability progress is the general direction of SoundHound's change in net profit over the period of time. It can combine multiple indicators of SoundHound, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income179.1 K188.1 K
Operating Income-68.6 M-72 M
Income Before Tax-85 M-89.3 M
Total Other Income Expense Net-16.4 M-15.6 M
Net Loss-88.9 M-93.4 M
Income Tax Expense3.9 M4.1 M
Net Interest Income-11 M-11.6 M
Interest Income2.2 M2.4 M
Net Loss-100.5 M-105.5 M
Net Loss(0.39)(0.41)
Income Quality 0.77  0.60 
Net Income Per E B T 1.05  0.82 

SoundHound Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on SoundHound. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of SoundHound position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the SoundHound's important profitability drivers and their relationship over time.

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Our tools can tell you how much better you can do entering a position in SoundHound without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Use Investing Themes to Complement your SoundHound position

In addition to having SoundHound in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Moderate Funds
Moderate Funds Theme
Funds or Etfs that combine stocks, bonds and money market instruments to get modest capital appreciation over time. The Moderate Funds theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Moderate Funds Theme or any other thematic opportunities.
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Additional Tools for SoundHound Stock Analysis

When running SoundHound's price analysis, check to measure SoundHound's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy SoundHound is operating at the current time. Most of SoundHound's value examination focuses on studying past and present price action to predict the probability of SoundHound's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move SoundHound's price. Additionally, you may evaluate how the addition of SoundHound to your portfolios can decrease your overall portfolio volatility.