Versus Systems Inc. (NASDAQ: VS)

Sector: Technology Industry: Software - Application CIK: 0001701963
Market Cap 4.05 Mn
P/B 0.36
P/E -3.02
P/S 1.86
ROIC (Qtr) -17.60
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00

About

Versus Systems Inc. (VS), a company operating in the interactive media, live-events, and in-venue advertising industries, is a business-to-business software company that offers a suite of proprietary software tools designed to drive user engagement through gamification and rewards. The company's mission is to revolutionize the way customers interact with businesses through live events, games, apps, and streaming content. Versus Systems offers three primary software products: XEO, Filter Fan Cam, and Winfinite. XEO is an in-venue main-board work...

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Price action

Investment thesis

Bull case

  • Cash reserves of 1.41M provide robust 566.10x coverage of current liabilities 2483, indicating strong short-term solvency.
  • Cash position of 1.41M represents healthy 0.51x of working capital 2.77M, demonstrating strong operational liquidity.
  • Tangible assets of 2.77M provide robust 1116.66x coverage of current liabilities 2483, showing strong asset backing.
  • Strong tangible asset base of 2.77M provides 9.24x coverage of intangibles 300000, indicating robust asset quality.
  • Cash position of 1.41M fully covers payables of 2483 by 566.10x, showing strong vendor relationship management.

Bear case

  • Investment activities of 0 provide weak support for R&D spending of 154780, which is 0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (2.20M) shows concerning coverage of stock compensation expenses of 408952, with a -5.38 ratio indicating potential earnings quality issues.
  • Operating cash flow of (2.20M) provides minimal -85.23x coverage of tax expenses of 25822, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Retained earnings of (140.30M) provide limited buffer against comprehensive income items of 442640, which is -316.97x, indicating elevated exposure to market risks.
  • Free cash flow of (2.20M) represents just -0.88x of debt issuance 2.50M, suggesting concerning reliance on leverage rather than internal cash generation for growth.

Peer comparison

Companies in the Software - Application
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SAP Sap Se 288.31 Bn 34.60 6.72 10.73 Bn
2 CRM Salesforce, Inc. 248.32 Bn 34.38 6.16 11.14 Bn
3 SHOP Shopify Inc. 212.27 Bn 119.19 19.85 1.12 Bn
4 INTU Intuit Inc. 180.73 Bn 43.89 9.30 6.78 Bn
5 UBER Uber Technologies, Inc 178.38 Bn 10.72 3.60 12.19 Bn
6 NOW ServiceNow, Inc. 146.98 Bn 84.91 11.60 2.40 Bn
7 ADBE Adobe Inc. 144.48 Bn 20.77 6.23 6.64 Bn
8 ADP Automatic Data Processing Inc 108.20 Bn 26.16 5.18 9.77 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.77 2.65
EV to Cash from Ops. EV/CFO -1.08 13.37
EV to Debt EV to Debt 0.00 57.69
EV to EBIT EV/EBIT -1.80 19.12
EV to EBITDA EV/EBITDA -1.18 15.00
EV to Free Cash Flow [EV/FCF] EV/FCF -1.08 14.69
EV to Market Cap EV to Market Cap 0.58 -92.28
EV to Revenue EV/Rev 1.09 4.60
Price to Book Value [P/B] P/B 0.36 4.26
Price to Earnings [P/E] P/E -3.02 -136.90
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) 0.00 -52.32
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 -259.78
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 198.28 9,763.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.61
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 82.70 -263.15
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 76.38 56.46
EBIT Growth (1y) % EBIT 1y % (Qtr) 83.03 -225.15
EBT Growth (1y) % EBT 1y % (Qtr) 83.03 -86.10
EPS Growth (1y) % EPS 1y % (Qtr) 90.97 123.84
FCF Growth (1y) % FCF 1y % (Qtr) 59.85 -36.82
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 7,720.45 95.08
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.71 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 566.10 3.75
Current Ratio Curr Ratio (Qtr) 1,116.66 8.16
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.17
Interest Cover Ratio Int Coverage (Qtr) 0.00 -52.32
Times Interest Earned Times Interest Earned (Qtr) 0.00 -52.32
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -60.30 -100.06
EBIT Margin % EBIT Margin % (Qtr) -60.26 -164.24
EBT Margin % EBT Margin % (Qtr) -60.26 -116.94
Gross Margin % Gross Margin % (Qtr) 99.20 58.20
Net Profit Margin % Net Margin % (Qtr) -61.40 -121.65