Xperi Inc. (NYSE: XPER)

Sector: Technology Industry: Software - Application CIK: 0001788999
Market Cap 265.86 Mn
P/B 0.63
P/E 38.19
P/S 0.59
ROIC (Qtr) -41.86
Div Yield % 0.82
Rev 1y % (Qtr) -16.00
Total Debt (Qtr) 63.50 Mn
Debt/Equity (Qtr) 0.15

About

Xperi Inc., a prominent player in the entertainment industry, operates under the ticker symbol XPER. The company specializes in providing innovative solutions that significantly improve the user experience for millions of consumers across the globe. Xperi's main business activities encompass Pay-TV, Consumer Electronics, Connected Car, and Media Platform. Xperi's primary business operations involve delivering an array of User Experience (UX) solutions to Pay-TV operators worldwide, enhancing home and on-the-go entertainment experiences in Consumer...

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Price action

Investment thesis

Bull case

  • Strong tangible asset base of 491.95M provides 7.75x coverage of total debt 63.50M, indicating robust asset backing and low credit risk.
  • Tangible assets of 491.95M provide exceptional 14.32x coverage of deferred revenue 34.34M, showing strong service capability backing.
  • Robust tangible asset base of 491.95M provides 3.07x coverage of working capital 160.03M, indicating strong operational backing.
  • Operating cash flow of (3.39M) fully covers other non-current liabilities (3.11M) by 1.09x, showing strong long-term stability.
  • Tangible assets of 491.95M provide robust 5.13x coverage of other current liabilities 95.95M, indicating strong asset backing.

Bear case

  • Operating cash flow of (3.39M) barely covers its investment activities of 49.08M, with a coverage ratio of -0.07, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 49.08M provide weak support for R&D spending of 141.42M, which is 0.35x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 96.78M provide limited coverage of acquisition spending of 68M, which is 1.42x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of (3.39M) provides insufficient coverage of deferred revenue obligations of 34.34M, which is -0.10x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (3.39M) shows concerning coverage of stock compensation expenses of 47.30M, with a -0.07 ratio indicating potential earnings quality issues.

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 0.37 2.65
EV to Cash from Ops. EV/CFO -69.39 13.37
EV to Debt EV to Debt 3.70 57.69
EV to EBIT EV/EBIT 12.43 19.12
EV to EBITDA EV/EBITDA 35.21 15.00
EV to Free Cash Flow [EV/FCF] EV/FCF -10.55 14.69
EV to Market Cap EV to Market Cap 0.88 -92.28
EV to Revenue EV/Rev 0.52 4.60
Price to Book Value [P/B] P/B 0.63 4.26
Price to Earnings [P/E] P/E 38.19 -136.90
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -3.95
Dividend Payout Ratio % Div Payout % (Qtr) 31.20 4.25
Dividend per Basic Share Div per Share (Qtr) 0.05 0.15
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) -10.40 2.52
Interest Coverage Int. cover (Qtr) 6.29 -52.32
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -19.53 -259.78
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 33.15 9,763.58
Dividend Growth (1y) % Div 1y % (Qtr) -75.00 1.61
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 110.16 -263.15
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 115.78 56.46
EBIT Growth (1y) % EBIT 1y % (Qtr) 127.01 -225.15
EBT Growth (1y) % EBT 1y % (Qtr) 121.78 -86.10
EPS Growth (1y) % EPS 1y % (Qtr) 108.42 123.84
FCF Growth (1y) % FCF 1y % (Qtr) 56.94 -36.82
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -14.05 95.08
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.72 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.86 3.75
Current Ratio Curr Ratio (Qtr) 2.42 8.16
Debt to Equity Ratio Debt/Equity (Qtr) 0.15 0.17
Interest Cover Ratio Int Coverage (Qtr) 6.29 -52.32
Times Interest Earned Times Interest Earned (Qtr) 6.29 -52.32
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 15.20 -100.06
EBIT Margin % EBIT Margin % (Qtr) 4.17 -164.24
EBT Margin % EBT Margin % (Qtr) 3.50 -116.94
Gross Margin % Gross Margin % (Qtr) 73.60 58.20
Net Profit Margin % Net Margin % (Qtr) 1.50 -121.65