Firefly Neuroscience, Inc. (NASDAQ: AIFF)

Sector: Technology Industry: Software - Application CIK: 0000803578
Market Cap 7.28 Mn
P/B 0.75
P/E -0.28
P/S 9.30
ROIC (Qtr) -90.00
Div Yield % 0.00
Rev 1y % (Qtr) 1,075.76
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00
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About

WaveDancer, Inc. (WAVD) is a seasoned player in the information technology consulting and systems engineering industry, with a rich history dating back to 1979. The company has significantly evolved over the years, with the acquisition of Tellenger, Inc. in 2021 adding competencies in web-based solutions, software development, and data analytics. WaveDancer's main business activities revolve around providing IT consulting and software development services, with a particular focus on modernization, cybersecurity, and cloud solutions. WaveDancer...

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Investment thesis

Bull case

  • Tangible assets of 6.33M provide exceptional 23.55x coverage of deferred revenue 269000, showing strong service capability backing.
  • Operating cash flow of (7.61M) fully covers other non-current liabilities (238000) by 31.96x, showing strong long-term stability.
  • Strong free cash flow of (8.06M) provides 3.23x coverage of acquisition spending (2.50M), indicating disciplined M&A strategy.
  • Tangible assets of 6.33M provide robust 7.07x coverage of other current liabilities 896000, indicating strong asset backing.
  • Strong cash position of 4.33M provides 4.83x coverage of other current liabilities 896000, indicating excellent liquidity.

Bear case

  • Investment activities of (2.54M) provide weak support for R&D spending of 1.46M, which is -1.74x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 4.33M provide limited coverage of acquisition spending of (2.50M), which is -1.73x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of (7.61M) provides insufficient coverage of deferred revenue obligations of 269000, which is -28.28x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (7.61M) shows concerning coverage of stock compensation expenses of 700000, with a -10.87 ratio indicating potential earnings quality issues.
  • High receivables of 184000 relative to inventory of 80000 (2.30 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.

Product and Service Breakdown of Revenue (2024)

Timing of Transfer of Good or Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Software - Application
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SAP Sap Se 235.43 Bn 27.31 5.44 9.50 Bn
2 SHOP Shopify Inc. 147.12 Bn 119.52 12.73 0.19 Bn
3 UBER Uber Technologies, Inc 147.10 Bn 14.63 2.83 12.08 Bn
4 CRM Salesforce, Inc. 122.20 Bn 594.48 15.45 11.14 Bn
5 INTU Intuit Inc. 113.93 Bn 178.01 32.63 6.78 Bn
6 ADBE Adobe Inc. 111.00 Bn 15.57 4.67 6.65 Bn
7 NOW ServiceNow, Inc. 109.54 Bn 62.67 8.25 2.40 Bn
8 ADP Automatic Data Processing Inc 86.44 Bn 20.41 4.07 4.37 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.11 2.08
EV to Cash from Ops. EV/CFO -0.18 11.38
EV to Debt EV to Debt 0.00 47.67
EV to EBIT EV/EBIT -0.07 6.78
EV to EBITDA EV/EBITDA -0.14 7.15
EV to Free Cash Flow [EV/FCF] EV/FCF -0.17 14.44
EV to Market Cap EV to Market Cap 0.19 -8.88
EV to Revenue EV/Rev 1.75 4.04
Price to Book Value [P/B] P/B 0.75 3.65
Price to Earnings [P/E] P/E -0.28 -117.75
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -5.80 -4.05
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.38
Dividend per Basic Share Div per Share (Qtr) 0.00 0.15
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.48
Interest Coverage Int. cover (Qtr) -112.88 -43.57
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.44 -222.46
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 251.63 281.53
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.78
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -172.35 -327.55
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -17.55 30.09
EBIT Growth (1y) % EBIT 1y % (Qtr) -172.31 -213.00
EBT Growth (1y) % EBT 1y % (Qtr) -173.27 -86.84
EPS Growth (1y) % EPS 1y % (Qtr) -183.77 108.58
FCF Growth (1y) % FCF 1y % (Qtr) -36.57 6.29
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 597.30 94.58
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.06 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 1.59 3.78
Current Ratio Curr Ratio (Qtr) 2.00 8.27
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.14
Interest Cover Ratio Int Coverage (Qtr) -112.88 -43.57
Times Interest Earned Times Interest Earned (Qtr) -112.88 -43.57
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -2,658.50 -105.03
EBIT Margin % EBIT Margin % (Qtr) -2,681.35 -130.16
EBT Margin % EBT Margin % (Qtr) -2,705.11 -121.17
Gross Margin % Gross Margin % (Qtr) 65.90 58.37
Net Profit Margin % Net Margin % (Qtr) -3,269.10 -126.13