Neonode Inc.
Neonode Inc. Fundamental Analysis
Neonode Inc. (NEON) shows moderate financial fundamentals with a PE ratio of 2.77, profit margin of 4.12%, and ROE of 43.16%. The company generates $0.0B in annual revenue with weak year-over-year growth of -33.66%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 18.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NEON's fundamental strength across five key dimensions:
Efficiency Score
ExcellentNEON demonstrates superior asset utilization.
Valuation Score
ExcellentNEON trades at attractive valuation levels.
Growth Score
WeakNEON faces weak or negative growth trends.
Financial Health Score
ExcellentNEON maintains a strong and stable balance sheet.
Profitability Score
WeakNEON struggles to sustain strong margins.
Key Financial Metrics
Is NEON Expensive or Cheap?
P/E Ratio
NEON trades at 2.77 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NEON's PEG of -0.75 indicates potential undervaluation.
Price to Book
The market values Neonode Inc. at 0.95 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.16 times EBITDA. This is generally considered low.
How Well Does NEON Make Money?
Net Profit Margin
For every $100 in sales, Neonode Inc. keeps $4.12 as profit after all expenses.
Operating Margin
Core operations generate -3.92 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $43.16 in profit for every $100 of shareholder equity.
ROA
Neonode Inc. generates $31.59 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Neonode Inc. generates limited operating cash flow of $-10.25M, signaling weaker underlying cash strength.
Free Cash Flow
Neonode Inc. generates weak or negative free cash flow of $-10.34M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.62 in free cash annually.
FCF Yield
NEON converts -44.03% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
2.77
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.75
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.95
vs 25 benchmark
P/S Ratio
Price to sales ratio
11.39
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
12.05
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.43
vs 25 benchmark
ROA
Return on assets percentage
0.32
vs 25 benchmark
ROCE
Return on capital employed
-0.33
vs 25 benchmark
How NEON Stacks Against Its Sector Peers
| Metric | NEON Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 2.77 | 33.94 | Better (Cheaper) |
| ROE | 43.16% | 1002.00% | Weak |
| Net Margin | 411.88% | -48794.00% (disorted) | Strong |
| Debt/Equity | 0.02 | 0.44 | Strong (Low Leverage) |
| Current Ratio | 12.05 | 5.74 | Strong Liquidity |
| ROA | 31.59% | -288341.00% (disorted) | Strong |
NEON outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Neonode Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-79.49%
Industry Style: Growth, Innovation, High Beta
DecliningEPS CAGR
190.19%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
-6.10%
Industry Style: Growth, Innovation, High Beta
Declining