Sonim Technologies (SONM) AI Stock Analysis

• Market Cap: $12.33M
• Dividend Yield: N/A
• Average Volume (3M): 46.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.07
• Revenue Growth: -45.61%
• EPS Growth: -5957.43%
• Country: US
• Employees: 67
• Sector: Technology
• Sector Strength: 45
• Industry: Hardware & Equipment
• EPS (TTM): -2.92
• Shares Outstanding: 5,872,548
• 10 Day Avg. Volume: 10,938
• 30 Day Avg. Volume: 46,535
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.18
• Price to Cash Flow (P/CF): -6.10
• 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

Sonim Technologies scores low due to significant financial challenges, including declining revenues and persistent losses. The absence of debt provides some stability, but the company's poor financial performance and negative valuation metrics weigh heavily on its overall score. Technical analysis offers little optimism, suggesting a neutral to slightly bearish outlook. Improvement in operational efficiency and revenue growth are crucial for financial health.

Sonim Technologies Business Overview & Revenue Model

Company Description

Sonim Technologies (SONM) is a leading provider in the mobile technology sector, specializing in ultra-rugged mobile devices designed for use in demanding and hazardous environments. The company focuses on creating robust, durable, and reliable communication solutions for industries such as public safety, construction, and transportation. Sonim's core products include rugged smartphones, feature phones, and industrial-grade accessories, all engineered to withstand extreme conditions while providing essential communication capabilities.

How the Company Makes Money

Sonim Technologies generates revenue primarily through the sale of its rugged mobile devices and accessories. The company's key revenue streams include direct sales to enterprise customers in sectors like public safety, construction, and transportation, as well as distribution through carrier partners and resellers. Sonim also benefits from strategic partnerships with network operators, which help expand its market reach and customer base. Additionally, the company may offer software services and support contracts, providing ongoing revenue beyond initial hardware sales. These elements, combined with a focus on high-margin, niche markets, contribute significantly to Sonim's earnings.

Sonim Technologies Financial Statement Overview

Summary

Sonim Technologies faces significant financial challenges, with declining revenues, persistent losses, and negative cash flows. While the absence of debt provides some stability, the company must address its operational inefficiencies and explore avenues for revenue growth to improve its financial health.

Income Statement

Sonim Technologies has experienced declining revenue over the years, with a significant decrease in revenue in the TTM (Trailing-Twelve-Months) compared to the previous year. Gross profit margin and net profit margin are negative, highlighting ongoing unprofitability challenges. Despite a prior period of positive EBIT and EBITDA, the TTM figures have returned to losses, indicating operational inefficiencies.

Balance Sheet

The company maintains a positive equity position with no current debt, which is a positive sign of financial stability. However, the return on equity (ROE) is negative due to continued net losses, and the equity ratio has decreased over time, reflecting a shrinking asset base relative to equity.

Cash Flow

Operating cash flow remains negative, pointing to challenges in generating cash from operations. Free cash flow is also negative, reflecting cash outflows exceeding cash inflows. The company relies on financing activities to cover cash shortfalls, which may not be sustainable long-term.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
56.74M	93.63M	69.83M	54.57M	63.99M	116.25M
	Gross Profit
15.22M	19.32M	11.62M	6.41M	15.21M	34.51M
	EBIT
-12.79M	513.00K	-14.29M	-38.00M	-27.71M	-21.64M
	EBITDA
-10.40M	2.50M	-13.15M	-36.33M	-26.97M	-19.40M
	Net Income Common Stockholders
-13.39M	-90.00K	-14.09M	-38.63M	-29.93M	-25.83M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.40M	9.40M	13.21M	11.23M	22.14M	11.30M
	Total Assets
56.04M	56.04M	53.69M	41.09M	50.31M	55.46M
	Total Debt
55.00K	55.00K	213.00K	214.00K	362.00K	10.18M
	Net Debt
-9.34M	-9.34M	-13.00M	-11.02M	-21.78M	-1.11M
	Total Liabilities
33.67M	33.67M	33.64M	22.46M	21.90M	29.93M
	Stockholders Equity
22.37M	22.37M	20.05M	18.63M	28.41M	25.52M
Cash Flow		Free Cash Flow
-4.55M	-4.09M	-12.37M	-38.52M	-10.57M	-34.88M
	Operating Cash Flow
-4.33M	-4.05M	-12.36M	-38.48M	-10.56M	-33.52M
	Investing Cash Flow
-218.00K	-36.00K	-8.00K	-46.00K	-11.00K	-1.36M
	Financing Cash Flow
3.81M	272.00K	14.35M	27.61M	21.41M	33.13M

Sonim Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SONM, the sentiment is Negative. The current price of 2.19 is below the 20-day moving average (MA) of 2.30, below the 50-day MA of 2.79, and below the 200-day MA of 3.71, indicating a bearish trend. The MACD of -0.20 indicates Negative momentum. The RSI at 39.11 is Neutral, neither overbought nor oversold. The STOCH value of 64.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SONM.

Sonim Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UCL	62 Neutral	$45.31M	10.79	20.94%	―	4.73%	16.29%
Sector *	58 Neutral	$21.35B	9.96	-19.72%	2.38%	5.03%	-22.83%
VSAT	54 Neutral	$1.25B	―	-8.49%	―	19.02%	76.67%
SATX	47 Neutral	$98.38M	―	50.55%	―	―	―
INFN	45 Neutral	$1.57B	―	-90.26%	―	-12.12%	-469.62%
CMBM	41 Neutral	$18.36M	―	-112.88%	―	-34.89%	-579.83%
SONM	40 Underperform	$12.33M	―	-69.62%	―	-45.61%	-5957.43%