FiscalNote Holdings, Inc. (NYSE: NOTE)

Sector: Technology Industry: Information Technology Services CIK: 0001823466
Market Cap 20.07 Mn
P/B 0.27
P/E -0.36
P/S 0.20
ROIC (Qtr) 22.20
Div Yield % 0.00
Rev 1y % (Qtr) -23.81
Total Debt (Qtr) 154.94 Mn
Debt/Equity (Qtr) 2.05

About

FiscalNote Holdings, Inc., often recognized by its stock symbol FISN, operates in the technology sector, providing global policy and market intelligence. Established in 2013, FiscalNote leverages advanced technologies such as artificial intelligence (AI), machine learning, and natural language processing to bring clarity to the complex and rapidly changing data on governmental activities. This empowers organizations to better understand and act on the issues that matter to them in a rapidly evolving political, regulatory, and macroeconomic environment. FiscalNote's...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 27.33M provide 2.84x coverage of short-term debt 9.64M, demonstrating strong liquidity position and minimal refinancing risk.
  • Robust tangible asset base of 70.89M provides 134.77x coverage of working capital 526000, indicating strong operational backing.
  • R&D investment of 10.34M represents healthy 0.33x of deferred revenue 31.09M, indicating strong future innovation pipeline.
  • Cash position of 27.33M represents healthy 51.95x of working capital 526000, demonstrating strong operational liquidity.
  • Cash reserves of 27.33M provide comfortable 46.63x coverage of tax obligations 586000, showing strong fiscal management.

Bear case

  • Operating cash flow of (12.51M) barely covers its investment activities of 46.01M, with a coverage ratio of -0.27, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 27.33M provide limited coverage of acquisition spending of 53.58M, which is 0.51x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of (12.51M) provides insufficient coverage of deferred revenue obligations of 31.09M, which is -0.40x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (12.51M) shows concerning coverage of stock compensation expenses of 15.04M, with a -0.83 ratio indicating potential earnings quality issues.
  • Free cash flow of (20.08M) provides weak coverage of capital expenditures of 7.57M, with a -2.65 ratio suggesting additional external financing needs for growth initiatives.

Peer comparison

Companies in the Information Technology Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 IBM International Business Machines Corp 279.99 Bn 35.41 4.28 66.57 Bn
2 ACN Accenture plc 168.17 Bn 22.09 2.38 8.20 Bn
3 INFY Infosys Ltd 74.96 Bn 23.74 3.89 -
4 CTSH Cognizant Technology Solutions Corp 41.45 Bn 19.48 1.99 1.17 Bn
5 FIS Fidelity National Information Services, Inc. 35.21 Bn 231.62 3.36 13.00 Bn
6 WIT Wipro Ltd 29.93 Bn 19.70 2.97 1.95 Bn
7 BR Broadridge Financial Solutions, Inc. 26.38 Bn 28.51 3.74 3.28 Bn
8 LDOS Leidos Holdings, Inc. 23.72 Bn 16.88 1.37 5.23 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.46 1.44
EV to Cash from Ops. EV/CFO -10.10 5.63
EV to Debt EV to Debt 0.82 8.06
EV to EBIT EV/EBIT -3.25 -4.05
EV to EBITDA EV/EBITDA 2.28 -0.52
EV to Free Cash Flow [EV/FCF] EV/FCF -6.29 -1.66
EV to Market Cap EV to Market Cap 6.30 1.35
EV to Revenue EV/Rev 1.23 57.14
Price to Book Value [P/B] P/B 0.27 3.34
Price to Earnings [P/E] P/E -0.36 -5.47
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -0.83
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 0.66
Dividend per Basic Share Div per Share (Qtr) 0.00 0.47
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 6.24
Interest Coverage Int. cover (Qtr) -2.11 -319.17
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 14.52 -253.62
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 3.63 114.15
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 35.23
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -11,114.42 -22.49
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 539.83 -25.03
EBIT Growth (1y) % EBIT 1y % (Qtr) -11,956.04 -82.44
EBT Growth (1y) % EBT 1y % (Qtr) -115.25 97.07
EPS Growth (1y) % EPS 1y % (Qtr) -74.90 147.29
FCF Growth (1y) % FCF 1y % (Qtr) -22.75 -8,638.64
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -14.44 -8.24
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.37 0.78
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.56 0.66
Current Ratio Curr Ratio (Qtr) 1.01 2.12
Debt to Equity Ratio Debt/Equity (Qtr) 2.05 0.88
Interest Cover Ratio Int Coverage (Qtr) -2.11 -319.17
Times Interest Earned Times Interest Earned (Qtr) -2.11 -319.17
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -34.90 -550.76
EBIT Margin % EBIT Margin % (Qtr) -37.93 -775.74
EBT Margin % EBT Margin % (Qtr) -55.93 -827.89
Gross Margin % Gross Margin % (Qtr) 62.70 24.07
Net Profit Margin % Net Margin % (Qtr) -54.30 -830.34