Algorhythm Holdings (RIME) AI Stock Analysis

• Market Cap: $5.34M
• Dividend Yield: N/A
• Average Volume (3M): 180.93K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.16
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 27
• Sector: Technology
• Sector Strength: 43
• Industry: Consumer Electronics
• EPS (TTM): N/A
• Shares Outstanding: 2,381,799
• 10 Day Avg. Volume: 125,892
• 30 Day Avg. Volume: 180,927
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.40
• Price to Cash Flow (P/CF): -0.20
• 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

Algorhythm Holdings is currently facing significant financial challenges, including declining revenues and negative earnings, which are reflected in its low financial performance score. The technical analysis further indicates weak market momentum, as the stock is trading below all major moving averages. Valuation assessment is hindered by a lack of key metrics such as P/E ratio and dividend yield, contributing to uncertainty in the company's market valuation. Overall, the combination of these factors results in a low overall stock score, highlighting the need for strategic improvements to enhance financial stability and investor confidence.

Algorhythm Holdings Business Overview & Revenue Model

Company Description

Algorhythm Holdings (RIME) is a technology company specializing in the development and implementation of advanced algorithmic solutions across various industries. The company operates primarily in the sectors of finance, healthcare, and logistics, offering a range of services that include predictive analytics, data management, and optimization software. Its core products are designed to enhance operational efficiency, decision-making processes, and strategic planning for its clients.

How the Company Makes Money

Algorhythm Holdings generates revenue through a diversified model that includes subscription fees for its software-as-a-service (SaaS) platforms, customized enterprise solutions, and consultancy services. Key revenue streams include licensing agreements with organizations that integrate its algorithms into their own systems, as well as ongoing service contracts for maintenance and updates. The company also partners with major industry players to co-develop specialized applications, which contributes to its earnings through joint ventures and shared revenue opportunities.

Algorhythm Holdings Financial Statement Overview

Summary

Algorhythm Holdings demonstrates financial struggles with declining revenue and profit margins, coupled with negative earnings. The balance sheet shows reasonable leverage but declining equity levels. Cash flow generation is inconsistent, pointing to operational challenges. Improvement in cost management and revenue generation is critical for financial stability and growth.

Income Statement

Algorhythm Holdings has faced a decline in revenue over the recent periods, with a notable drop in Total Revenue from $47.5M in 2022 to $38.9M in 2023. The Gross Profit Margin has also decreased, indicating challenges in cost management or pricing power. The company has consistently reported negative EBIT and Net Income, showing operational inefficiencies. These factors highlight a weak financial performance with potential room for improvement.

Balance Sheet

The Balance Sheet reflects a moderate financial position with a Debt-to-Equity Ratio of 0.53 in 2023, indicating manageable leverage. However, the company's Stockholders' Equity has decreased over the years, pointing to a reduction in retained earnings or increased liabilities. The Equity Ratio is decent at around 27%, suggesting a stable asset structure despite financial pressures.

Cash Flow

Cash flow analysis shows inconsistent Free Cash Flow, highlighting volatility in cash generation. The Operating Cash Flow to Net Income Ratio is positive, but variable, indicating challenges in converting income into cash. The Free Cash Flow has improved recently but remains low, reflecting ongoing capital expenditure requirements and operational pressure.

Breakdown
TTM	Dec 2023	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
15.49M	38.93M	39.30M	47.51M	45.80M	38.50M
	Gross Profit
3.20M	8.25M	9.21M	10.81M	12.30M	8.18M
	EBIT
-7.18M	-8.19M	-3.70M	69.00K	1.43M	-3.24M
	EBITDA
-6.78M	-7.81M	-2.18M	1.11M	3.40M	-2.98M
	Net Income Common Stockholders
-7.29M	-8.53M	-4.64M	230.00K	2.17M	-2.86M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.65M	6.70M	2.90M	2.29M	396.58K	345.20K
	Total Assets
9.63M	27.71M	16.65M	22.67M	16.76M	16.60M
	Total Debt
2.50M	4.01M	735.65K	4.42M	3.42M	1.81M
	Net Debt
847.00K	-2.69M	-2.16M	2.13M	3.03M	1.46M
	Total Liabilities
7.03M	20.14M	6.32M	12.63M	8.85M	10.91M
	Stockholders Equity
2.60M	7.58M	10.33M	10.04M	7.91M	5.69M
Cash Flow		Free Cash Flow
-7.14M	457.33K	-574.00K	-2.13M	-30.14K	-72.78K
	Operating Cash Flow
-7.07M	548.00K	-330.00K	-2.01M	171.02K	444.76K
	Investing Cash Flow
-53.00K	-18.67K	-244.00K	-118.00K	-201.16K	-517.55K
	Financing Cash Flow
1.04M	4.55M	1.18M	4.02M	81.52K	206.57K

Algorhythm Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RIME, the sentiment is Neutral. The current price of 2.51 is above the 20-day moving average (MA) of 2.28, below the 50-day MA of 3.02, and below the 200-day MA of 71.17, indicating a neutral trend. The MACD of -0.60 indicates Negative momentum. The RSI at 35.00 is Neutral, neither overbought nor oversold. The STOCH value of 17.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RIME.

Algorhythm Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZS	73 Outperform	$29.74B	―	-1.21%	―	27.77%	89.39%
OKTA	69 Neutral	$17.41B	1,568.77	0.46%	―	15.33%	―
DDOG	66 Neutral	$32.38B	171.24	7.75%	―	26.12%	274.50%
Sector *	57 Neutral	$20.94B	10.43	-13.41%	2.52%	4.53%	-23.34%
RIME	45 Neutral	$5.34M	―	-112.57%	―	―	―

Algorhythm Holdings Corporate Events

Algorhythm Holdings Modifies Agreements and Shareholder Quorum

Algorhythm Holdings, Inc. has terminated its loan agreement with Oxford Commercial Finance, requiring a $40,000 early termination fee, and amended its by-laws to reduce the quorum for shareholder meetings to 33.3%. This move could impact how decisions are made within the company, affecting investors and stakeholders interested in corporate governance dynamics.