authID Inc. (AUID) Stock Analysis and Metrics

Sector: Technology Industry: Software - Infrastructure CIK: 0001534154

P/B 1.31

P/E -0.63

P/S 6.35

Market Cap 11.65 Mn

ROIC (Qtr) -171.41

Div Yield % 0.00

Rev 1y % (Qtr) -142.64

Total Debt (Qtr) 0.00

Debt/Equity (Qtr) 0.00

About

AuthID Inc., known by its ticker symbol AUID, operates in the technology industry, specifically in the field of biometric identity verification. The company's primary business activities involve the development and marketing of a cloud-based platform that utilizes facial biometrics to authenticate user identities, thereby eliminating the need for traditional passwords. The company's main offerings include its biometric identity verification platform, which employs facial biometrics to confirm a user's identity; biometric identity authentication,...

AuthID Inc., known by its ticker symbol AUID, operates in the technology industry, specifically in the field of biometric identity verification. The company's primary business activities involve the development and marketing of a cloud-based platform that utilizes facial biometrics to authenticate user identities, thereby eliminating the need for traditional passwords.

The company's main offerings include its biometric identity verification platform, which employs facial biometrics to confirm a user's identity; biometric identity authentication, enabling users to authenticate their identity using facial biometrics; account access and recovery, facilitating users to regain access to their accounts via facial biometrics; and FIDO Passkey Binding, which allows users to link their biometrically verified identity to FIDO2 passkeys.

AuthID holds a significant position within the identity verification and authentication market, competing with other providers of similar solutions. The company's competitive advantages are derived from its patented technology, ease of integration, and high-speed processing capabilities.

The company's customer base spans various industries, including financial services, e-commerce, healthcare, and government agencies. AuthID's platform is designed to offer a seamless user experience, prioritizing speed, accuracy, and ease of use.

In terms of its growth strategy, AuthID is concentrating on expanding its customer base, expediting onboarding and usage within its existing customer base, strategically cultivating its partner network, and innovating and enhancing its platform. The company is also examining potential acquisition opportunities to bolster its technology capabilities and accelerate growth.

AuthID's research and development team plays a crucial role in designing, developing, testing, and ensuring the quality of its platform and any new technologies, features, integrations, and improvements. The company safeguards its proprietary technology through a combination of patents, trademarks, copyrights, trade secrets, and contractual provisions.

In terms of governmental regulations, AuthID's activities and operations are subject to licensing restrictions and other regulations, including export controls and security regulations. The company is also required to comply with data protection legislation in various countries, which may necessitate registration of its databases with governmental authorities and additional disclosure and consent requirements.

AuthID's human capital comprises approximately 22 employees located in the United States and Colombia, along with outsourced service providers. The company's subsidiaries include four U.S. subsidiaries, one subsidiary in Colombia, and one subsidiary in the United Kingdom.

In essence, AuthID Inc. specializes in providing a patented, biometric identity platform for verifying and authenticating user identities. The company's primary products and services encompass its biometric identity verification platform, biometric identity authentication, account access and recovery, and FIDO Passkey Binding. AuthID's customer base consists of major brands and organizations across various industries, and the company is dedicated to driving new customer growth, accelerating onboarding and usage within its customer base, strategically developing its partner network, and innovating and advancing its platform.

Stock Price Chart

Analysis

Pros

Tangible assets of 6.41M provide exceptional 12.05x coverage of deferred revenue 531580, showing strong service capability backing.
Operating cash flow of (14.94M) fully covers other non-current liabilities (531580) by 28.10x, showing strong long-term stability.
Tangible assets of 6.41M provide robust 11.85x coverage of other current liabilities 540664, indicating strong asset backing.
R&D investment of 7.79M represents healthy 14.66x of deferred revenue 531580, indicating strong future innovation pipeline.
Strong cash position of 4.90M provides 9.06x coverage of other current liabilities 540664, indicating excellent liquidity.

Cons

Investment activities of (49910) provide weak support for R&D spending of 7.79M, which is -0.01x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
Operating cash flow of (14.94M) provides insufficient coverage of deferred revenue obligations of 531580, which is -28.10x, raising concerns about future service delivery capabilities.
The company's operating cash flow of (14.94M) shows concerning coverage of stock compensation expenses of 3.19M, with a -4.68 ratio indicating potential earnings quality issues.
Free cash flow of (14.99M) provides weak coverage of capital expenditures of 49910, with a -300.24 ratio suggesting additional external financing needs for growth initiatives.
Operating earnings of (18.46M) show weak coverage of depreciation charges of 124340, with a -148.50 ratio indicating high capital intensity and potential reinvestment needs.

Peer Comparison

Companies in the Software - Infrastructure

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	MSFT	Microsoft Corp	3,542.10 Bn	33.76	12.06	60.56 Bn
2	ORCL	Oracle Corp	533.93 Bn	34.61	8.75	124.39 Bn
3	PLTR	Palantir Technologies Inc.	437.56 Bn	399.47	112.31	0.24 Bn
4	PANW	Palo Alto Networks Inc	125.16 Bn	112.03	13.10	0.35 Bn
5	CRWD	CrowdStrike Holdings, Inc.	120.85 Bn	-384.67	26.47	0.82 Bn
6	SNPS	Synopsys Inc	71.69 Bn	35.89	11.14	15.14 Bn
7	NET	Cloudflare, Inc.	67.84 Bn	-658.43	33.70	3.50 Bn
8	FTNT	Fortinet, Inc.	63.33 Bn	33.80	9.66	1.00 Bn

Industry Comparisons

Current Valuation

Metric	Value	Industry
EV to Assets	0.31	2.56
EV to Cash from Ops.	-0.22	38.32
EV to Debt	0.00	-11.37
EV to EBIT	-0.18	-12.79
EV to EBITDA	-0.18	7.72
EV to Free Cash Flow [EV/FCF]	-0.22	24.22
EV to Market Cap	0.29	0.58
EV to Revenue	1.82	-35.00
Price to Book Value [P/B]	1.31	3.74
Price to Earnings [P/E]	-0.63	-18.61

Dividend Metrics

Metric	Value	Industry
Dividend Coverage Ratio	0.00	-0.30
Dividend Payout Ratio %	0.00	2.69
Dividend per Basic Share	0.00	0.10
FCF Dividend Payout Ratio %	0.00	1.67
Interest Coverage	-670.14	-13.15

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	-183.89	-404.11
Cash and Equivalents Growth (1y) %	-58.19	226.02
Dividend Growth (1y) %	0.00	-0.27
EBIAT Growth (1y) %	-43.64	31.15
EBITDA Growth (1y) %	-42.46	49.02
EBIT Growth (1y) %	-43.64	25.85
EBT Growth (1y) %	-43.30	17.82
EPS Growth (1y) %	-38.74	70.69
FCF Growth (1y) %	-40.79	295.45
Gross Profit Growth (1y) %	141.81	49.96

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.17	0.68
Cash Payout Ratio	0.00	0.02
Cash Ratio	2.70	1.21
Current Ratio	3.53	2.57
Debt to Equity Ratio	0.00	-0.93
Interest Cover Ratio	-670.14	-13.15
Times Interest Earned	-670.14	-13.15

Profitability

Metric	Value	Industry
EBITDA Margin %	-999.80	-544.82
EBIT Margin %	-1,006.53	-197.78
EBT Margin %	-1,008.03	-602.74
Gross Margin %	100.00	52.06
Net Profit Margin %	-1,008.00	-605.52

authID Inc. (NASDAQ: AUID)