Aether Holdings, Inc. (NASDAQ: ATHR)

Sector: Technology Industry: Software - Application CIK: 0002026353
Market Cap 56.37 Mn
P/B 16.73
P/E -13.69
P/S 41.30
ROIC (Qtr) -108.02
Div Yield % 0.00
Rev 1y % (Qtr) -4.47
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00
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About

Investment thesis

Bull case

  • Tangible assets of 3.43M provide exceptional 9.52x coverage of deferred revenue 360292, showing strong service capability backing.
  • Operating cash flow of (4.32M) fully covers other non-current liabilities (360292) by 11.99x, showing strong long-term stability.
  • Cash reserves of 1.80M provide ample 199.85x coverage of acquisition spending 9000, enabling strategic growth opportunities.
  • Tangible assets of 3.43M provide robust 6.87x coverage of other current liabilities 499066, indicating strong asset backing.
  • R&D investment of 110447 represents healthy 0.31x of deferred revenue 360292, indicating strong future innovation pipeline.

Bear case

  • Investment activities of (1.85M) provide weak support for R&D spending of 110447, which is -16.77x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (4.32M) provides insufficient coverage of deferred revenue obligations of 360292, which is -11.99x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (4.32M) shows concerning coverage of stock compensation expenses of 14778, with a -292.35 ratio indicating potential earnings quality issues.
  • Free cash flow of (5.76M) provides weak coverage of capital expenditures of 1.44M, with a -4.01 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (4.32M) provides minimal -815.47x coverage of tax expenses of 5298, suggesting potential tax planning inefficiencies or unsustainable tax positions.

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 12.97 2.08
EV to Cash from Ops. EV/CFO -12.03 11.38
EV to Debt EV to Debt 0.00 47.67
EV to EBIT EV/EBIT -12.64 6.78
EV to EBITDA EV/EBITDA -12.22 7.15
EV to Free Cash Flow [EV/FCF] EV/FCF -9.03 14.44
EV to Market Cap EV to Market Cap 0.92 -8.88
EV to Revenue EV/Rev 38.06 4.04
Price to Book Value [P/B] P/B 16.73 3.65
Price to Earnings [P/E] P/E -13.69 -117.75
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -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 Interest Coverage 0.00 -43.57
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -222.46
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 356.85 281.53
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.78
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -264.12 -327.55
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -276.77 30.09
EBIT Growth (1y) % EBIT 1y % (Qtr) -263.65 -213.00
EBT Growth (1y) % EBT 1y % (Qtr) -263.65 -86.84
EPS Growth (1y) % EPS 1y % (Qtr) -200.00 108.58
FCF Growth (1y) % FCF 1y % (Qtr) -557.73 6.29
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 1.33 94.58
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.34 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 2.82 3.78
Current Ratio Curr Ratio (Qtr) 3.38 8.27
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.14
Interest Cover Ratio Interest Cover Ratio 0.00 -43.57
Times Interest Earned Times Interest Earned 0.00 -43.57
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -300.60 -105.03
EBIT Margin % EBIT Margin % (Qtr) -301.17 -130.16
EBT Margin % EBT Margin % (Qtr) -301.17 -121.17
Gross Margin % Gross Margin % (Qtr) 73.50 58.37
Net Profit Margin % Net Margin % (Qtr) -301.60 -126.13