SoundHound Operating Margin vs. Return On Asset

SOUNW Stock  USD 3.37  0.36  11.96%   
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 December. Profitability indicators assess SoundHound's ability to earn profits and add value for shareholders.

SoundHound Operating Profit Margin

(1.57)

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 Return On Asset vs. Operating Margin 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 fourth in operating margin category among its peers. It also is rated fourth in return on asset category among its peers . At this time, SoundHound's Operating Profit Margin 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 Return On Asset vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

SoundHound

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
(1.40) %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

SoundHound

Return On Asset

 = 

Net Income

Total Assets

 = 
-0.18
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

SoundHound Return On Asset Comparison

SoundHound is currently under evaluation in return on asset 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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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.