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Sonim Technologies (SONM)
:SONM

Sonim Technologies (SONM) AI Stock Analysis

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Sonim Technologies

(NASDAQ:SONM)

37Underperform
Sonim Technologies is dealing with significant financial instability, characterized by declining revenues, negative profitability, and a weakened balance sheet. The technical indicators suggest ongoing downward pressure on the stock price, while valuation metrics show a lack of attractiveness due to negative earnings. Immediate improvements in financial performance are necessary to enhance the stock's prospects.

Sonim Technologies (SONM) vs. S&P 500 (SPY)

Sonim Technologies Business Overview & Revenue Model

Company DescriptionSonim Technologies, Inc. provides ruggedized mobile phones and accessories for task workers. The company offers ruggedized mobile phones, such as Sonim XP8, Sonim XP5s, Sonim XP3, and Sonim XP3plus based on the Android platform that are capable of attaching to public and private wireless networks; industrial-grade accessories, including remote speaker microphones, multi-bay charging accessories, and in-vehicle hands-free voice communications solutions; and cloud-based software and application services. It sells its mobile phones and accessories primarily to wireless carriers in the United States and Canada; and sells ruggedized phones, barcode scanners, and accessories through distribution channels in North America, South America, and Europe. The company serves transportation and logistics, construction, manufacturing, facilities management, energy and utility, and public sectors. The company was formerly known as NaviSpin.com, Inc. and changed its name to Sonim Technologies, Inc. in December 2001. Sonim Technologies, Inc. was incorporated in 1999 and is based in Austin, Texas.
How the Company Makes MoneySonim Technologies makes money primarily through the sale of its rugged mobile devices and accessories. The company's revenue streams are driven by direct sales to enterprises, indirect sales through distribution partners, and strategic partnerships with network carriers who offer Sonim's devices to their customers. Additionally, Sonim generates revenue from providing extended warranty services, support, and repair services for their devices. Significant partnerships with major carriers and industrial clients contribute to the company's earnings by expanding its market reach and customer base.

Sonim Technologies Financial Statement Overview

Summary
Sonim Technologies is facing severe financial challenges, with declining revenues, negative profitability, and weakened balance sheet strength. Despite some financing activities, the negative cash flows suggest ongoing liquidity constraints. The company must address these issues to stabilize its financial performance and return to growth.
Income Statement
Sonim Technologies has experienced significant revenue decline, with a substantial drop from $93.63 million in 2023 to $50.92 million in 2024. The gross profit margin has decreased to 19.48% from 20.64% the previous year. Additionally, the company continues to face negative net profit margins and EBIT margins, indicating ongoing profitability challenges.
Balance Sheet
20
The balance sheet reveals a concerning situation with negative stockholders' equity of $5.7 million in 2024, indicating potential financial distress. The company has no outstanding debt, which reduces leverage risks, but the negative equity and dwindling asset base highlight financial instability. The equity ratio has turned negative due to accumulated losses.
Cash Flow
Operating cash flow remains negative at -$8.49 million in 2024, and free cash flow is also negative, reflecting cash management issues. The absence of significant capital expenditure suggests limited reinvestment in growth. However, the company has managed some financing cash flow, which provides temporary liquidity relief.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
50.92M93.63M69.83M54.57M63.99M
Gross Profit
2.54M19.32M11.62M6.41M15.21M
EBIT
-33.64M513.00K-14.29M-38.00M-27.71M
EBITDA
-29.84M2.50M-13.15M-36.33M-26.97M
Net Income Common Stockholders
-33.65M-90.00K-14.09M-38.63M-29.93M
Balance SheetCash, Cash Equivalents and Short-Term Investments
5.34M9.40M13.21M11.23M22.14M
Total Assets
39.74M56.04M53.69M41.09M50.31M
Total Debt
0.0055.00K213.00K214.00K362.00K
Net Debt
-5.34M-9.34M-13.00M-11.02M-21.78M
Total Liabilities
45.44M33.67M33.64M22.46M21.90M
Stockholders Equity
-5.70M22.37M20.05M18.63M28.41M
Cash FlowFree Cash Flow
-8.49M-4.09M-12.37M-38.52M-10.57M
Operating Cash Flow
-8.49M-4.05M-12.36M-38.48M-10.56M
Investing Cash Flow
-214.00K-36.00K-8.00K-46.00K-11.00K
Financing Cash Flow
4.65M272.00K14.35M27.61M21.41M

Sonim Technologies Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.45
Price Trends
50DMA
1.94
Negative
100DMA
2.53
Negative
200DMA
2.81
Negative
Market Momentum
MACD
-0.14
Negative
RSI
40.62
Neutral
STOCH
22.13
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 1.45 is below the 20-day moving average (MA) of 1.51, below the 50-day MA of 1.94, and below the 200-day MA of 2.81, indicating a bearish trend. The MACD of -0.14 indicates Negative momentum. The RSI at 40.62 is Neutral, neither overbought nor oversold. The STOCH value of 22.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SONM.

Sonim Technologies Risk Analysis

Sonim Technologies disclosed 56 risk factors in its most recent earnings report. Sonim Technologies reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Sonim Technologies Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
60
Neutral
$11.81M-30.13%18.05%39.97%
60
Neutral
$10.78B10.47-6.71%2.99%7.58%-12.08%
MOMOB
47
Neutral
$11.62M-137.03%47.05%-22.31%
46
Neutral
$15.04M-27.21%-39.13%-1501.28%
41
Neutral
$12.75M-112.88%-34.89%-579.83%
37
Underperform
$3.11M-370.85%41.25%90.28%
37
Underperform
$13.33M-403.74%-37.74%-79666.67%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SONM
Sonim Technologies
1.37
-4.42
-76.34%
CLRO
Clearone Communications
0.57
-0.39
-40.63%
CMBM
Cambium Networks
0.44
-3.72
-89.42%
SYTA
Siyata Mobile
1.00
-438.20
-99.77%
MOB
Mobilicom Ltd. ADR
1.80
0.78
76.47%
SYNX
Silynxcom Ltd.
1.85
-1.05
-36.21%

Sonim Technologies Corporate Events

M&A TransactionsBusiness Operations and Strategy
Sonim Technologies Approves Stockholder Rights Agreement
Neutral
Apr 21, 2025

On April 21, 2025, Sonim Technologies‘ board approved a stockholder rights agreement to protect against unsolicited acquisition attempts, specifically in response to a proposal from Orbic North America. This agreement aims to ensure that stockholders receive full value for their investments and provides the board time to evaluate strategic alternatives. Additionally, on April 17, 2025, the company accelerated the vesting of restricted stock units for 81 employees, including key executives, to promote retention and incentivize performance.

Spark’s Take on SONM Stock

According to Spark, TipRanks’ AI Analyst, SONM is a Underperform.

Sonim Technologies is currently facing significant financial difficulties, as evidenced by declining revenues, negative profitability, and cash flow issues. The technical indicators reinforce the negative outlook with a clear downtrend, while the valuation metrics highlight the lack of attractiveness due to ongoing losses. These factors collectively suggest that the stock is struggling and may require substantial improvements in financial health and performance to regain investor confidence.

To see Spark’s full report on SONM stock, click here.

Executive/Board ChangesBusiness Operations and Strategy
Sonim Technologies Amends CFO Employment Agreement
Neutral
Apr 16, 2025

On April 15, 2025, Sonim Technologies, Inc. amended the employment agreement with its CFO, Clay Crolius, to redefine ‘Change in Control’ and enhance severance provisions. The amendment extends the protection period post-Change in Control to 12 months and increases severance benefits, including a guaranteed pro-rated bonus of at least 20% of Crolius’s annual salary, reflecting a strategic move to secure leadership stability during potential company transitions.

Spark’s Take on SONM Stock

According to Spark, TipRanks’ AI Analyst, SONM is a Underperform.

Sonim Technologies faces significant challenges with declining revenues and negative profitability, reflected in a low financial performance score. The technical analysis indicates a bearish trend with no signs of recovery, and the valuation highlights unprofitability with a negative P/E ratio. There are no recent earnings call insights or corporate events to alter this outlook.

To see Spark’s full report on SONM stock, click here.

Executive/Board ChangesBusiness Operations and Strategy
Sonim Technologies Strengthens Governance with Board Expansion
Neutral
Apr 3, 2025

On April 2, 2025, Sonim Technologies amended the employment agreement of its CEO, Peter Liu, to redefine ‘Change in Control’ and enhance severance benefits, reflecting strategic adjustments in leadership terms. Additionally, on April 3, 2025, the company expanded its Special Committee of the Board of Directors by adding a third independent director, Jack Steenstra, indicating a move towards strengthening governance.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.