SOPHiA GENETICS SA (NASDAQ: SOPH)

Sector: Healthcare Industry: Health Information Services CIK: 0001840706
Market Cap 351.46 Mn
P/B 5.79
P/E -4.69
P/S 4.80
ROIC (Qtr) -54.54
Div Yield % 0.00
Rev 1y % (Qtr) 22.77
Total Debt (Qtr) 63.37 Mn
Debt/Equity (Qtr) 1.04

About

SOPHiA GENETICS SA, known by its stock symbol SOPH, is a company that operates in the healthcare industry, specifically as a cloud-native software technology firm. The company aims to establish data-driven medicine as the standard of care and for life sciences research. SOPHiA GENETICS was founded in 2011 with the mission to provide equal access to knowledge and capabilities by democratizing data-driven medicine. The company's primary product is the SOPHiA DDM Platform, a global, cloud-native software platform that standardizes, computes, and analyzes...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 81.61M provide 31.28x coverage of short-term debt 2.61M, demonstrating strong liquidity position and minimal refinancing risk.
  • Tangible assets of 128.78M provide exceptional 12.83x coverage of deferred revenue 10.04M, showing strong service capability backing.
  • Operating cash flow of (38.08M) fully covers other non-current liabilities (4.96M) by 7.68x, showing strong long-term stability.
  • Operating cash flow of (38.08M) provides strong 810.13x coverage of operating expenses (47000), showing operational efficiency.
  • Tangible assets of 128.78M provide robust 4.56x coverage of other current liabilities 28.26M, indicating strong asset backing.

Bear case

  • Investment activities of (7.11M) provide weak support for R&D spending of 34.82M, which is -0.20x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (38.08M) provides insufficient coverage of deferred revenue obligations of 10.04M, which is -3.79x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (38.08M) shows concerning coverage of stock compensation expenses of 17.41M, with a -2.19 ratio indicating potential earnings quality issues.
  • Free cash flow of (38.37M) provides weak coverage of capital expenditures of 293000, with a -130.95 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (38.08M) provides minimal -15.09x coverage of tax expenses of 2.52M, suggesting potential tax planning inefficiencies or unsustainable tax positions.

Peer comparison

Companies in the Health Information Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 TEM Tempus AI, Inc. 45.63 Bn -223.83 41.29 1.34 Bn
2 GEHC GE HealthCare Technologies Inc. 38.75 Bn 19.85 2.19 10.28 Bn
3 VEEV Veeva Systems Inc 37.30 Bn 43.36 12.11 0.09 Bn
4 DOCS Doximity, Inc. 7.81 Bn 30.87 12.57 0.01 Bn
5 BTSG BrightSpring Health Services, Inc. 7.70 Bn 59.42 0.62 2.70 Bn
6 HQY Healthequity, Inc. 7.32 Bn 38.14 5.67 1.03 Bn
7 WAY Waystar Holding Corp. 5.00 Bn 44.97 4.81 1.25 Bn
8 PRVA Privia Health Group, Inc. 2.79 Bn 153.67 1.37 0.01 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.96 2.77
EV to Cash from Ops. EV/CFO -8.42 -10.86
EV to Debt EV to Debt 5.06 161.93
EV to EBIT EV/EBIT -4.65 -106.48
EV to EBITDA EV/EBITDA -5.30 4.22
EV to Free Cash Flow [EV/FCF] EV/FCF -8.35 7.46
EV to Market Cap EV to Market Cap 0.91 -14.93
EV to Revenue EV/Rev 4.37 1.76
Price to Book Value [P/B] P/B 5.79 10.57
Price to Earnings [P/E] P/E -4.69 147.14
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -8.65
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 5.00
Dividend per Basic Share Div per Share (Qtr) 0.00 0.04
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 4.57
Interest Coverage Int. cover (Qtr) -19.34 -584.72
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 6.09 -24.09
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -14.80 172.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -1.05
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -1.84 -17.73
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -1.13 39.85
EBIT Growth (1y) % EBIT 1y % (Qtr) 0.73 -38.83
EBT Growth (1y) % EBT 1y % (Qtr) -2.37 -4.52
EPS Growth (1y) % EPS 1y % (Qtr) -2.75 2.60
FCF Growth (1y) % FCF 1y % (Qtr) 17.16 -48.57
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 13.16 5.49
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.45 0.66
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 2.21 1.87
Current Ratio Curr Ratio (Qtr) 2.80 3.27
Debt to Equity Ratio Debt/Equity (Qtr) 1.04 -0.43
Interest Cover Ratio Int Coverage (Qtr) -19.34 -584.72
Times Interest Earned Times Interest Earned (Qtr) -19.34 -584.72
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -81.20 -435.80
EBIT Margin % EBIT Margin % (Qtr) -93.99 -464.70
EBT Margin % EBT Margin % (Qtr) -98.85 -461.74
Gross Margin % Gross Margin % (Qtr) 67.50 44.03
Net Profit Margin % Net Margin % (Qtr) -102.30 -468.01