Knightscope, Inc. (NASDAQ: KSCP)

Sector: Industrials Industry: Security & Protection Services CIK: 0001600983
Market Cap 28.45 Mn
P/B 1.06
P/E -0.96
P/S 2.45
ROIC (Qtr) -103.90
Div Yield % 0.00
Rev 1y % (Qtr) 23.51
Total Debt (Qtr) 7.37 Mn
Debt/Equity (Qtr) 0.27
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About

Knightscope, Inc. (KSCP) operates in the technology industry, with a focus on enhancing public safety through its innovative security solutions. The company's offerings include Autonomous Security Robots (ASRs) and Emergency Communication Devices (ECDs), which are designed to deter, detect, and report security incidents. Knightscope's business activities are centered around providing advanced security technology to a variety of environments, including convention centers, casinos, resorts, college campuses, corporate campuses, and public spaces....

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Investment thesis

Bull case

  • Healthy cash reserves of 20.39M provide 47.97x coverage of short-term debt 425000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 30.18M provides 4.09x coverage of total debt 7.37M, indicating robust asset backing and low credit risk.
  • Tangible assets of 30.18M provide exceptional 21.32x coverage of deferred revenue 1.42M, showing strong service capability backing.
  • Operating cash flow of (24.81M) fully covers other non-current liabilities (1.33M) by 18.68x, showing strong long-term stability.
  • Tangible assets of 30.18M provide robust 7.43x coverage of other current liabilities 4.06M, indicating strong asset backing.

Bear case

  • Investment activities of (2.59M) provide weak support for R&D spending of 10.08M, which is -0.26x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (24.81M) provides insufficient coverage of deferred revenue obligations of 1.42M, which is -17.52x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (24.81M) shows concerning coverage of stock compensation expenses of 1.57M, with a -15.82 ratio indicating potential earnings quality issues.
  • Free cash flow of (27.40M) provides weak coverage of capital expenditures of 2.59M, with a -10.58 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (29.54M) show weak coverage of depreciation charges of 2.66M, with a -11.10 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Security & Protection Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ALLE Allegion plc 14.00 Bn 21.75 3.44 1.98 Bn
2 MSA MSA Safety Inc 7.99 Bn 374.33 5.71 0.63 Bn
3 BCO Brinks Co 6.24 Bn 112.89 1.74 4.32 Bn
4 BRC Brady Corp 4.99 Bn 38.51 4.29 0.18 Bn
5 ADT ADT Inc. 4.95 Bn -9.23 1.68 7.81 Bn
6 CXW CoreCivic, Inc. 2.04 Bn 18.69 0.98 1.04 Bn
7 GEO Geo Group Inc 2.02 Bn 8.48 0.80 1.63 Bn
8 NSSC Napco Security Technologies, Inc 1.57 Bn 33.18 8.19 0.01 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.67 1.53
EV to Cash from Ops. EV/CFO -1.11 15.25
EV to Debt EV to Debt 3.75 44.60
EV to EBIT EV/EBIT -0.94 8.47
EV to EBITDA EV/EBITDA -1.03 14.35
EV to Free Cash Flow [EV/FCF] EV/FCF -1.01 28.03
EV to Market Cap EV to Market Cap 0.97 0.95
EV to Revenue EV/Rev 2.38 2.53
Price to Book Value [P/B] P/B 1.06 3.48
Price to Earnings [P/E] P/E -0.96 32.21
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 106.48
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 25.28
Dividend per Basic Share Div per Share (Qtr) 0.00 0.36
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 7.91
Interest Coverage Int. cover (Qtr) -151.47 -11.72
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 35.56 -7.19
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 284.63 23.04
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -3.73
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 4.38 35.26
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 2.84 87.34
EBIT Growth (1y) % EBIT 1y % (Qtr) 4.38 29.11
EBT Growth (1y) % EBT 1y % (Qtr) 5.01 41.98
EPS Growth (1y) % EPS 1y % (Qtr) 71.68 37.27
FCF Growth (1y) % FCF 1y % (Qtr) -0.03 -41.16
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 5.18 7.42
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.28 0.71
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.05
Cash Ratio Cash Ratio (Qtr) 2.86 1.61
Current Ratio Curr Ratio (Qtr) 3.62 3.37
Debt to Equity Ratio Debt/Equity (Qtr) 0.27 1.13
Interest Cover Ratio Int Coverage (Qtr) -151.47 -11.72
Times Interest Earned Times Interest Earned (Qtr) -151.47 -11.72
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -231.50 -5.57
EBIT Margin % EBIT Margin % (Qtr) -254.41 -15.45
EBT Margin % EBT Margin % (Qtr) -256.09 -14.45
Gross Margin % Gross Margin % (Qtr) -35.80 38.13
Net Profit Margin % Net Margin % (Qtr) -256.10 -16.17