Atomos (AMS) AI Stock Analysis

• Market Cap: $6.08M
• Dividend Yield: N/A
• Average Volume (3M): 2.35M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.40
• Revenue Growth: -6.41%
• EPS Growth: 46.53%
• Country: AU
• Employees: 70
• Sector: Technology
• Sector Strength: 63
• Industry: Consumer Electronics
• EPS (TTM): -0.02
• Shares Outstanding: 1,215,018,400
• 10 Day Avg. Volume: 1,608,566
• 30 Day Avg. Volume: 2,345,341
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.22
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Atomos Ltd. is struggling with significant financial challenges, including declining revenues and increased financial leverage. Technical analysis indicators are unavailable, and valuation metrics are poor, with a negative P/E ratio and no dividend yield. These factors suggest a high-risk stock with limited appeal to investors at this time.

Atomos Business Overview & Revenue Model

Company Description

Atomos Ltd. (AMS) is a technology company that specializes in the design and manufacture of high-quality video and audio monitoring and recording equipment for the film and video production industry. The company operates primarily within the media technology sector, offering cutting-edge solutions that enhance the production quality and workflow efficiency for content creators, filmmakers, and broadcasters. Atomos is renowned for its innovation in creating portable and user-friendly products that integrate seamlessly with professional cameras, providing advanced features such as HDR monitoring, ProRes and Avid DNx recording, and multi-camera synchronization.

How the Company Makes Money

Atomos Ltd. generates revenue through the sale of its video and audio monitoring and recording equipment. The company's primary revenue streams include direct sales to consumers and businesses within the film and video production industry, as well as distribution through a network of authorized resellers and retailers globally. Atomos also engages in strategic partnerships with camera manufacturers and other technology companies to enhance product compatibility and expand its market reach. Additionally, the company may offer software updates and accessories, which provide additional revenue opportunities. These factors, along with a commitment to innovation and product development, contribute significantly to Atomos's earnings.

Atomos Financial Statement Overview

Summary

Atomos Ltd. faces considerable financial challenges, including declining revenues, persistent losses, and increased leverage. While gross profit margins have improved, the company's profitability and cash flow management require substantial improvement. The balance sheet's weakened equity position and high leverage pose additional risks, necessitating strategic initiatives to stabilize the financial outlook.

Income Statement

Atomos Ltd.'s income statement shows a concerning trend with declining revenues from 2022 to 2024 and persistent negative net income. Gross profit margin has improved from 2023 to 2024, yet both EBIT and EBITDA margins remain negative, indicating operational inefficiencies. Overall, the firm struggles with profitability and revenue growth, requiring strategic adjustments.

Balance Sheet

The company's balance sheet reflects a weakened equity position, with stockholders' equity decreasing significantly from 2023 to 2024. The debt-to-equity ratio has worsened, highlighting increased leverage and financial risk. Furthermore, the equity ratio has declined, suggesting reduced financial stability.

Cash Flow

Cash flow analysis reveals a significant decline in operating cash flow from 2021 to 2024, with negative free cash flow indicating cash burn. The free cash flow to net income ratio is poor, signaling ineffective cash generation relative to losses. Despite financing activities providing liquidity, sustainable cash flow management remains a challenge.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
35.72M	42.76M	81.97M	78.61M	44.74M
	Gross Profit
11.20M	4.71M	32.66M	37.44M	16.10M
	EBIT
-19.58M	-28.64M	-6.54M	4.09M	-13.39M
	EBITDA
-18.51M	-56.09M	-4.94M	8.18M	-16.20M
	Net Income Common Stockholders
-22.36M	-61.06M	-6.05M	4.22M	-22.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.90M	2.94M	5.00M	25.98M	18.77M
	Total Assets
24.96M	37.17M	108.75M	91.20M	79.58M
	Total Debt
5.17M	9.54M	18.35M	3.19M	9.53M
	Net Debt
2.27M	6.59M	13.35M	-22.79M	-9.23M
	Total Liabilities
22.61M	27.41M	54.51M	27.48M	22.17M
	Stockholders Equity
2.35M	9.77M	54.24M	63.71M	57.41M
Cash Flow		Free Cash Flow
-9.16M	-5.68M	-32.38M	7.85M	-20.07M
	Operating Cash Flow
-9.12M	-2.56M	-26.45M	9.82M	-13.69M
	Investing Cash Flow
-41.00K	-4.92M	-5.95M	-1.96M	-12.00M
	Financing Cash Flow
9.14M	5.34M	11.41M	-788.00K	39.37M

Atomos Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AD8	63 Neutral	$514.32M	155.81	1.98%	―	-13.88%	-80.31%
Sector *	59 Neutral	$10.73B	10.11	-6.65%	3.02%	7.41%	-11.17%
BTH	55 Neutral	$176.66M	―	-33.75%	―	-11.19%	-174.51%
ALC	52 Neutral	AU$112.81M	―	-5.63%	―	-11.96%	7.50%
BRN	34 Underperform	$541.09M	―	-133.28%	―	72.47%	20.08%
AMS	33 Underperform	$6.08M	―	-363.56%	―	-6.41%	46.53%

Atomos Corporate Events

Atomos Secures $13.7 Million Debt Facility to Propel Growth

Atomos Limited has secured a $13.7 million debt facility with Monreii Pty Ltd, owned by its Executive Director, Peter Barber, to support its financial strategy and reach cashflow positivity by FY26. This facility, chosen for its minimal shareholder dilution and quick execution, will repay existing loans and support new product launches expected to boost sales in the coming quarters, positioning Atomos for improved financial health and shareholder value.

Atomos Limited Releases Interim Financial Statements for H2 2024

Atomos Limited has released its interim financial statements for the half-year ended 31 December 2024. The report provides insights into the company’s financial performance over the six-month period, highlighting key figures and changes in financial position. This release is crucial for stakeholders as it offers a detailed view of Atomos Limited’s financial health and operational efficiency, which can influence investor confidence and market positioning.

Atomos Limited Reports Q2 FY25 Growth Amidst Market Challenges

Atomos Limited reported a 7% increase in Q2 FY25 sales, driven largely by its Shinobi II product, despite a drop in gross profit margins due to discounting in response to competitive pressures. The company is undergoing restructuring with a focus on cost management and new product development aimed at engaging price-conscious consumers. While maintaining revenue levels, Atomos is working on expanding its low-end product suite to bolster sales, and expects its cost adjustments to reflect in the latter half of FY25. The funding review is underway with commitments from major shareholders, ensuring financial stability as the company navigates a challenging market environment.