Audioeye Inc (NASDAQ: AEYE)

Sector: Technology Industry: Software - Application CIK: 0001362190
Market Cap 114.84 Mn
P/B 20.32
P/E -32.69
P/S 2.90
ROIC (Qtr) -18.68
Div Yield % 0.00
Rev 1y % (Qtr) 14.59
Total Debt (Qtr) 13.23 Mn
Debt/Equity (Qtr) 2.34

About

AudioEye Inc., a prominent player in the digital accessibility solutions industry, operates under the ticker symbol AEYE. The company specializes in providing software-as-a-service (SaaS) solutions aimed at enhancing website accessibility for businesses of all scales. Leveraging its patented technology, AudioEye assists in reducing barriers for individuals with disabilities, thereby expanding access and enhancing user experience for a wider audience. The core of AudioEye's operations revolves around the sale of subscriptions for its SaaS accessibility...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 4.55M provide 8.30x coverage of short-term debt 548000, demonstrating strong liquidity position and minimal refinancing risk.
  • R&D investment of 4.85M represents healthy 0.65x of deferred revenue 7.47M, indicating strong future innovation pipeline.
  • Strong R&D investment of 4.85M at 2.57x of capex 1.89M shows balanced investment in innovation and infrastructure.
  • R&D investment of 4.85M represents significant 0.77x of receivables 6.34M, indicating innovation-driven growth.
  • Cash position of 4.55M fully covers payables of 3.87M by 1.17x, showing strong vendor relationship management.

Bear case

  • Operating cash flow of 2.79M barely covers its investment activities of (6.14M), with a coverage ratio of -0.45, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (6.14M) provide weak support for R&D spending of 4.85M, which is -1.26x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 4.55M provide limited coverage of acquisition spending of (4.18M), which is -1.09x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 2.79M provides insufficient coverage of deferred revenue obligations of 7.47M, which is 0.37x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of 2.79M shows concerning coverage of stock compensation expenses of 5.05M, with a 0.55 ratio indicating potential earnings quality issues.

Peer comparison

Companies in the Software - Application
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SAP Sap Se 288.31 Bn 34.60 6.72 10.73 Bn
2 CRM Salesforce, Inc. 248.32 Bn 34.38 6.16 11.14 Bn
3 SHOP Shopify Inc. 212.27 Bn 119.19 19.85 1.12 Bn
4 INTU Intuit Inc. 180.73 Bn 43.89 9.30 6.78 Bn
5 UBER Uber Technologies, Inc 178.38 Bn 10.72 3.60 12.19 Bn
6 NOW ServiceNow, Inc. 146.98 Bn 84.91 11.60 2.40 Bn
7 ADBE Adobe Inc. 144.48 Bn 20.77 6.23 6.64 Bn
8 ADP Automatic Data Processing Inc 108.20 Bn 26.16 5.18 9.77 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 3.98 2.65
EV to Cash from Ops. EV/CFO 43.53 13.37
EV to Debt EV to Debt 9.17 57.69
EV to EBIT EV/EBIT -46.86 19.12
EV to EBITDA EV/EBITDA -717.29 15.00
EV to Free Cash Flow [EV/FCF] EV/FCF 135.14 14.69
EV to Market Cap EV to Market Cap 1.06 -92.28
EV to Revenue EV/Rev 3.07 4.60
Price to Book Value [P/B] P/B 20.32 4.26
Price to Earnings [P/E] P/E -32.69 -136.90
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -3.95
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.25
Dividend per Basic Share Div per Share (Qtr) 0.00 0.15
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.52
Interest Coverage Int. cover (Qtr) -2.79 -52.32
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 3.72 -259.78
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -16.94 9,763.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.61
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 0.96 -263.15
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -1,636.36 56.46
EBIT Growth (1y) % EBIT 1y % (Qtr) 0.96 -225.15
EBT Growth (1y) % EBT 1y % (Qtr) -6.49 -86.10
EPS Growth (1y) % EPS 1y % (Qtr) -7.41 123.84
FCF Growth (1y) % FCF 1y % (Qtr) -13.58 -36.82
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 18.17 95.08
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.30 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.38 3.75
Current Ratio Curr Ratio (Qtr) 1.00 8.16
Debt to Equity Ratio Debt/Equity (Qtr) 2.34 0.17
Interest Cover Ratio Int Coverage (Qtr) -2.79 -52.32
Times Interest Earned Times Interest Earned (Qtr) -2.79 -52.32
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 2.40 -100.06
EBIT Margin % EBIT Margin % (Qtr) -6.54 -164.24
EBT Margin % EBT Margin % (Qtr) -8.88 -116.94
Gross Margin % Gross Margin % (Qtr) 78.60 58.20
Net Profit Margin % Net Margin % (Qtr) -8.90 -121.65