Sound Group (SOGP) AI Stock Analysis

• Market Cap: $26.15M
• Dividend Yield: N/A
• Average Volume (3M): 1.29M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.14
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 563
• Sector: Communication Services
• Sector Strength: 87
• Industry: Internet Content & Information
• EPS (TTM): -3.23
• Shares Outstanding: 3,779,499
• 10 Day Avg. Volume: 363,521
• 30 Day Avg. Volume: 1,288,113
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• 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

• Rating: 49 Neutral
• Price Target: $4.50 ▼(-15.09%Downside)

Sound Group's financial challenges are the most significant factor impacting its score, with declining revenues and negative cash flows. While technical analysis shows strong momentum, the risk of being overbought tempers this strength. The lack of valuation data further weighs on the overall assessment.

Sound Group Business Overview & Revenue Model

Company Description

Sound Group Inc. operates as an audio-centric social and entertainment company. It focuses on building audio platform to connect and communicate. The company, through its product portfolio and in-house technologies, caters to user interest in audio entertainment and social networking. The company was formerly known as LIZHI INC. and changed its name to Sound Group Inc. in January 2024. Sound Group Inc. was founded in 2010 and is based in Singapore.

How the Company Makes Money

Sound Group (SOGP) generates revenue through multiple streams. Firstly, the company earns income from the sale of its audio equipment products, which are distributed through retail partners and direct-to-consumer channels. Additionally, SOGP offers consulting services to businesses, providing customized acoustic solutions that enhance sound quality in various environments. Another significant revenue stream is their collaboration with automotive manufacturers, where SOGP supplies integrated sound systems for vehicles. Furthermore, partnerships with consumer electronics firms for co-branded audio products contribute to its earnings. The company's strategic alliances and continuous investment in research and development play a crucial role in maintaining its competitive edge and expanding its market reach.

Sound Group Financial Statement Overview

Summary

Sound Group is encountering significant financial difficulties characterized by declining revenues, persistent losses, and negative cash flows. While the company maintains low leverage, its equity position is weakening. The financial performance indicates a need for strategic restructuring to enhance profitability and cash flow generation.

Income Statement

Sound Group's revenue has been fluctuating with a decline in the most recent year. The company has consistently reported negative EBIT and EBITDA margins over the last few years, indicating operating challenges. The gross profit margin has been relatively stable, but the net profit margin remains negative, reflecting ongoing profitability issues.

Balance Sheet

The debt-to-equity ratio has remained low, suggesting limited leverage, which is a positive aspect. However, the company's equity ratio has declined over the years, indicating a weakened equity position. The overall balance sheet shows a decreasing trend in stockholders' equity, which could pose risks.

Cash Flow

Sound Group's operating cash flow has been negative in recent years, impacting its ability to generate free cash flow. The free cash flow to net income ratio is poor due to continuous net losses, indicating cash flow management challenges. The cash flow position is concerning and reflects the need for improved operational performance.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.03B	2.07B	2.19B	2.12B	1.50B
Gross Profit	556.86M	585.38M	716.35M	617.01M	368.23M
EBITDA	-48.47M	-101.41M	123.00M	-92.73M	-47.98M
Net Income	-69.58M	-126.65M	86.52M	-127.25M	-82.18M
Balance Sheet
Total Assets	521.44M	566.57M	776.34M	642.89M	463.82M
Cash, Cash Equivalents and Short-Term Investments	441.86M	494.96M	679.54M	533.29M	388.48M
Total Debt	19.85M	14.29M	100.33M	100.00M	43.80M
Total Liabilities	307.13M	276.56M	383.67M	388.03M	294.63M
Stockholders Equity	235.29M	299.48M	392.68M	254.85M	169.19M
Cash Flow
Free Cash Flow	-38.64M	-124.27M	124.43M	-61.36M	16.99M
Operating Cash Flow	-26.47M	-117.05M	136.27M	-40.43M	40.00M
Investing Cash Flow	-11.97M	105.65M	-122.78M	52.10M	-94.56M
Financing Cash Flow	-2.99M	-71.67M	4.77M	212.68M	298.05M

Sound Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SOGP, the sentiment is Positive. The current price of 5.3 is above the 20-day moving average (MA) of 2.93, above the 50-day MA of 2.05, and above the 200-day MA of 2.02, indicating a bullish trend. The MACD of 0.94 indicates Negative momentum. The RSI at 74.44 is Negative, neither overbought nor oversold. The STOCH value of 87.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SOGP.

Sound Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$41.01B	-0.64	-14.21%	3.80%	2.39%	-73.52%
DLPN	52 Neutral	$12.40M	―	-98.74%	―	0.31%	27.47%
SOGP	49 Neutral	$26.15M	―		―	―	―
EDUC	43 Neutral	$11.42M	―	-12.24%	―	-33.00%	-1052.42%
BBGI	40 Neutral	$7.57M	3.37	-5.85%	―	-3.65%	89.15%
ONFO	40 Underperform	$5.02M	―	-44.44%	―	65.97%	70.28%
KUKE	38 Underperform	$15.27M	―	-218.47%	―	-36.94%	15.41%