CXApp Inc. (NASDAQ: CXAI)

Sector: Technology Industry: Software - Application CIK: 0001820875
Market Cap 6.85 Mn
P/B 0.45
P/E -0.58
P/S 1.31
ROIC (Qtr) -66.99
Div Yield % 0.00
Rev 1y % (Qtr) -41.28
Total Debt (Qtr) 6.86 Mn
Debt/Equity (Qtr) 0.45

About

CXApp Inc., known by its stock symbol CXAI, operates in the dynamic and expanding industry of digital workplaces. The company specializes in providing a software-as-a-service (SaaS) platform that delivers a seamless business journey for employees, partners, customers, and visitors through artificial intelligence (AI) and customer experience (CX) integration. CXApp's primary business activities involve distributing a mobile app to all employees within an organization, offering a range of workplace experience solutions. This suite includes an enterprise...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 5.09M provide 18.57x coverage of short-term debt 274000, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of (9.45M) fully covers other non-current liabilities (1.57M) by 6.01x, showing strong long-term stability.
  • R&D investment of 6.64M represents healthy 4.22x of deferred revenue 1.57M, indicating strong future innovation pipeline.
  • Robust R&D investment of 6.64M at 0.66x of SG&A 10.03M demonstrates strong commitment to innovation and future growth.
  • Cash position of 5.09M provides strong 3.23x coverage of deferred revenue 1.57M, ensuring service delivery capability.

Bear case

  • Investment activities of (21000) provide weak support for R&D spending of 6.64M, which is -0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (9.45M) provides insufficient coverage of deferred revenue obligations of 1.57M, which is -6.01x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (9.45M) shows concerning coverage of stock compensation expenses of 2.74M, with a -3.45 ratio indicating potential earnings quality issues.
  • Free cash flow of (9.47M) provides weak coverage of capital expenditures of 21000, with a -450.81 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (11.21M) show weak coverage of depreciation charges of 3.16M, with a -3.55 ratio indicating high capital intensity and potential reinvestment needs.

Geographical Breakdown of Revenue (2024)

Product and 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 281.21 Bn 33.75 6.55 10.73 Bn
2 CRM Salesforce, Inc. 248.88 Bn 34.46 6.17 11.14 Bn
3 SHOP Shopify Inc. 217.18 Bn 121.94 20.30 1.12 Bn
4 UBER Uber Technologies, Inc 182.87 Bn 10.99 3.69 12.19 Bn
5 INTU Intuit Inc. 182.36 Bn 44.28 9.38 6.78 Bn
6 NOW ServiceNow, Inc. 151.53 Bn 87.54 11.96 2.40 Bn
7 ADBE Adobe Inc. 146.69 Bn 21.08 6.33 6.64 Bn
8 ADP Automatic Data Processing Inc 108.05 Bn 26.12 5.17 9.77 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.35 2.68
EV to Cash from Ops. EV/CFO -1.05 13.34
EV to Debt EV to Debt 1.45 57.60
EV to EBIT EV/EBIT -0.89 19.20
EV to EBITDA EV/EBITDA -0.85 15.11
EV to Free Cash Flow [EV/FCF] EV/FCF -1.05 14.78
EV to Market Cap EV to Market Cap 1.45 -93.16
EV to Revenue EV/Rev 1.91 4.63
Price to Book Value [P/B] P/B 0.45 4.29
Price to Earnings [P/E] P/E -0.58 -132.44
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 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) -13.92 -52.32
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 47.50 -259.78
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 0.12 9,763.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.61
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 79.20 -263.15
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 75.39 56.46
EBIT Growth (1y) % EBIT 1y % (Qtr) 79.41 -225.15
EBT Growth (1y) % EBT 1y % (Qtr) 78.43 -86.10
EPS Growth (1y) % EPS 1y % (Qtr) 86.12 123.84
FCF Growth (1y) % FCF 1y % (Qtr) -11.40 -36.82
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -21.71 95.08
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.18 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.76 3.75
Current Ratio Curr Ratio (Qtr) 0.89 8.16
Debt to Equity Ratio Debt/Equity (Qtr) 0.45 0.17
Interest Cover Ratio Int Coverage (Qtr) -13.92 -52.32
Times Interest Earned Times Interest Earned (Qtr) -13.92 -52.32
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -154.20 -100.06
EBIT Margin % EBIT Margin % (Qtr) -214.59 -164.24
EBT Margin % EBT Margin % (Qtr) -230.01 -116.94
Gross Margin % Gross Margin % (Qtr) 87.00 58.20
Net Profit Margin % Net Margin % (Qtr) -227.70 -121.65