Clearone Inc (NASDAQ: CLRO)

Sector: Technology Industry: Communication Equipment CIK: 0000840715
Market Cap 8.80 Mn
P/B 2.54
P/E -0.38
P/S 1.22
ROIC (Qtr) -91.85
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 566,000.00
Debt/Equity (Qtr) 0.16

About

ClearOne Inc., a prominent player in the conferencing, collaboration, and network streaming solutions market, is known for its rich history of innovation and product development. The company, which operates under the ticker symbol CLRO, was established in Utah in 1983 and reincorporated in Delaware in 2018. ClearOne's headquarters are in Salt Lake City, Utah, with additional locations in Gainesville, Florida; Zaragoza, Spain; Chennai, India; and Dubai, United Arab Emirates. ClearOne's primary business activities revolve around the design, development,...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 764000 provide 3.50x coverage of short-term debt 218000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 9.47M provides 16.74x coverage of total debt 566000, indicating robust asset backing and low credit risk.
  • Cash reserves of 764000 exceed inventory value of 392000 by 1.95x, indicating strong liquidity and inventory management.
  • Robust R&D investment of 2.81M at 0.34x of SG&A 8.22M demonstrates strong commitment to innovation and future growth.
  • Strong R&D investment of 2.81M at 60.98x of capex 46000 shows balanced investment in innovation and infrastructure.

Bear case

  • Operating cash flow of (6.11M) barely covers its investment activities of 1.25M, with a coverage ratio of -4.87, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 1.25M provide weak support for R&D spending of 2.81M, which is 0.45x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (6.11M) shows concerning coverage of stock compensation expenses of 91000, with a -67.14 ratio indicating potential earnings quality issues.
  • Free cash flow of (6.16M) provides weak coverage of capital expenditures of 46000, with a -133.83 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (23.15M) show weak coverage of depreciation charges of 455000, with a -50.87 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Communication Equipment
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 CSCO Cisco Systems, Inc. 306.02 Bn 29.63 5.30 28.09 Bn
2 MSI Motorola Solutions, Inc. 63.92 Bn 30.21 5.65 9.81 Bn
3 HPE Hewlett Packard Enterprise Co 35.43 Bn -600.50 1.03 22.37 Bn
4 UI Ubiquiti Inc. 33.47 Bn 42.27 12.14 0.17 Bn
5 CIEN Ciena Corp 33.16 Bn 268.82 6.95 1.58 Bn
6 LITE Lumentum Holdings Inc. 25.28 Bn 224.75 13.73 3.28 Bn
7 ASTS AST SpaceMobile, Inc. 19.88 Bn -65.43 1,072.82 0.72 Bn
8 ZBRA Zebra Technologies Corp 12.46 Bn 24.33 2.37 2.32 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.99 2.22
EV to Cash from Ops. EV/CFO -1.54 10.78
EV to Debt EV to Debt 16.60 25.00
EV to EBIT EV/EBIT -0.41 32.18
EV to EBITDA EV/EBITDA -0.96 10.60
EV to Free Cash Flow [EV/FCF] EV/FCF -1.53 -3.32
EV to Market Cap EV to Market Cap 1.07 1.17
EV to Revenue EV/Rev 1.31 27.87
Price to Book Value [P/B] P/B 2.54 5.35
Price to Earnings [P/E] P/E -0.38 2.67
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 0.91
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -25.01
Dividend per Basic Share Div per Share (Qtr) 0.00 0.22
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 4.46
Interest Coverage Int. cover (Qtr) -361.66 -12.93
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 70.89 -73.93
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -54.66 463.06
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 1.39
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -468.56 204.95
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -40.60 -1.04
EBIT Growth (1y) % EBIT 1y % (Qtr) -528.63 238.24
EBT Growth (1y) % EBT 1y % (Qtr) -523.76 173.82
EPS Growth (1y) % EPS 1y % (Qtr) -419.62 8.68
FCF Growth (1y) % FCF 1y % (Qtr) -393.27 20.80
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -72.07 41.66
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.76 0.76
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 0.20 1.20
Current Ratio Curr Ratio (Qtr) 2.29 2.69
Debt to Equity Ratio Debt/Equity (Qtr) 0.16 0.43
Interest Cover Ratio Int Coverage (Qtr) -361.66 -12.93
Times Interest Earned Times Interest Earned (Qtr) -361.66 -12.93
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -315.80 -40.66
EBIT Margin % EBIT Margin % (Qtr) -322.14 -52.32
EBT Margin % EBT Margin % (Qtr) -323.03 -59.46
Gross Margin % Gross Margin % (Qtr) 10.40 39.35
Net Profit Margin % Net Margin % (Qtr) -324.90 -60.72