BrainChip Holdings Ltd
BrainChip Holdings Ltd Fundamental Analysis
BrainChip Holdings Ltd (BCHPY) shows moderate financial fundamentals with a PE ratio of -10.65, profit margin of -10.85%, and ROE of -89.13%. The company generates $0.0B in annual revenue with strong year-over-year growth of 71.55%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -853.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BCHPY's fundamental strength across five key dimensions:
Efficiency Score
WeakBCHPY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentBCHPY trades at attractive valuation levels.
Growth Score
ExcellentBCHPY delivers strong and consistent growth momentum.
Financial Health Score
ExcellentBCHPY maintains a strong and stable balance sheet.
Profitability Score
WeakBCHPY struggles to sustain strong margins.
Key Financial Metrics
Is BCHPY Expensive or Cheap?
P/E Ratio
BCHPY trades at -10.65 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, BCHPY's PEG of -0.97 indicates potential undervaluation.
Price to Book
The market values BrainChip Holdings Ltd at 7.10 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -13.18 times EBITDA. This is generally considered low.
How Well Does BCHPY Make Money?
Net Profit Margin
For every $100 in sales, BrainChip Holdings Ltd keeps $-10.85 as profit after all expenses.
Operating Margin
Core operations generate -10.45 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-89.13 in profit for every $100 of shareholder equity.
ROA
BrainChip Holdings Ltd generates $-59.95 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
BrainChip Holdings Ltd generates limited operating cash flow of $-16.27M, signaling weaker underlying cash strength.
Free Cash Flow
BrainChip Holdings Ltd generates weak or negative free cash flow of $-18.39M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.33 in free cash annually.
FCF Yield
BCHPY converts -7.60% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-10.65
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.97
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.10
vs 25 benchmark
P/S Ratio
Price to sales ratio
121.72
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
11.40
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.89
vs 25 benchmark
ROA
Return on assets percentage
-0.60
vs 25 benchmark
ROCE
Return on capital employed
-0.63
vs 25 benchmark
How BCHPY Stacks Against Its Sector Peers
| Metric | BCHPY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -10.65 | 33.61 | Better (Cheaper) |
| ROE | -89.13% | 1020.00% | Weak |
| Net Margin | -1084.76% | -56528.00% (disorted) | Weak |
| Debt/Equity | 0.03 | 0.45 | Strong (Low Leverage) |
| Current Ratio | 11.40 | 5.65 | Strong Liquidity |
| ROA | -59.95% | -291484.00% (disorted) | Weak |
BCHPY outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews BrainChip Holdings Ltd's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
214.52%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
-29.00%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
-5.39%
Industry Style: Growth, Innovation, High Beta
Declining