Versus Systems (VS) AI Stock Analysis

• Market Cap: $10.10M
• Dividend Yield: N/A
• Average Volume (3M): 22.08K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.88
• Revenue Growth: -78.87%
• EPS Growth: 85.62%
• Country: US
• Employees: 5
• Sector: Technology
• Sector Strength: 77
• Industry: Software - Application
• EPS (TTM): -1.54
• Shares Outstanding: 4,901,677
• 10 Day Avg. Volume: 14,269
• 30 Day Avg. Volume: 22,076
• PEG Ratio: -0.12
• Price to Book (P/B): 3.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.03
• Enterprise Value/Market Cap: 0.71
• Enterprise Value/Revenue: 14.65
• Enterprise Value/Gross Profit: 34.93
• Enterprise Value/Ebitda: -0.39
• 1Y Price Target: $2.00
• Price Target Upside: -1.96% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

Versus Systems faces significant financial challenges with negative profitability and cash flow difficulties. The lack of debt is a positive, but persistent losses and declining revenues are major concerns. Technical indicators suggest no clear trend and higher volatility. From a valuation perspective, the negative P/E ratio highlights overvaluation issues. Overall, the stock shows significant risk with limited positive indicators.

Positive Factors

Licensing Agreement

The licensing agreement with Aspis Cyber Technologies provides needed visibility on '25 revenue and signals a return to growth.

Management Changes

Previously announced management changes and a new licensing agreement announced in October should give investors reason for some optimism as the business moves into 2025.

Negative Factors

Capital Requirements

The company is likely to require additional capital to fund operations in 2025.

Challenging Balance Sheet

Potential investors are likely kept at arm's length due to the challenging balance sheet position.

Revenue Decline

Revenue of just $3,848 in 3Q24 was a step down from already depressed 2Q24 levels and also represents a decline from the year-ago period.

Versus Systems Business Overview & Revenue Model

Company Description

Versus Systems Inc. develops and operates a business-to-business software platform in the United States and Canada. The company operates eXtreme Engagement Online, a platform that allows live event producers, professional sports franchises, video game publishers and developers, live event producers, and professional sports franchises, as well as other interactive media content creators, to offer in-game prizing and rewards based on the completion of in-content challenges alongside other user engagement tools. It primarily sells its access to platform and service offerings through its direct sales organization. Versus Systems Inc. is headquartered in Vancouver, Canada.

How the Company Makes Money

Versus Systems generates revenue through licensing its engagement and rewards platform to businesses and content creators. The company partners with brands, media companies, and content creators who integrate Versus' technology into their products and services to drive user engagement. Versus Systems earns money through a combination of setup fees, licensing fees, and revenue-sharing agreements based on user interactions and engagement metrics. Significant partnerships with media companies and brands contribute to its earnings by expanding its reach and the adoption of its platform across different sectors and events.

Versus Systems Financial Statement Overview

Summary

Versus Systems is facing significant financial challenges, with negative profitability and cash flow difficulties. Despite having no debt, the company suffers from persistent losses and declining revenues, posing substantial risks. Improvements in cash flow management and revenue growth are crucial for future stability.

Income Statement

Versus Systems has experienced inconsistent revenue growth, with a significant decline in 2024 compared to previous years. The gross profit margin for 2024 is 29.7%, but the company is struggling with negative net income, resulting in a net profit margin of -7057.4%. The EBIT and EBITDA margins are also negative, indicating operational challenges and inefficiencies.

Balance Sheet

The company has a strong equity position with no debt in 2024, giving it a debt-to-equity ratio of 0. The equity ratio is 323.4%, suggesting a robust capital structure. However, the return on equity is negative due to consistent net losses, indicating a lack of profitability.

Cash Flow

Free cash flow remains negative, although there is an improvement in operating cash flow in 2024 compared to 2023. The operating cash flow to net income ratio is negative, highlighting cash flow challenges despite financing activities providing some liquidity.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
231.33K	57.29K	271.17K	1.11M	768.65K	1.46M
	Gross Profit
206.28K	17.01K	168.10K	-19.13T	-9.18K	-1.71T
	EBIT
-4.21M	-4.54M	-10.75M	-22.06M	-15.48M	―
	EBITDA
-4.22M	-4.54M	-8.04M	-17.86M	-17.33M	-5.66M
	Net Income Common Stockholders
-3.50M	-4.04M	-10.51M	-29.61M	-18.00M	―
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.89M	3.07M	4.69M	1.18M	1.68M	2.33M
	Total Assets
3.36M	3.54M	4.88M	8.80M	18.54M	5.59M
	Total Debt
0.00	0.00	0.00	2.73M	3.15M	5.27M
	Net Debt
-2.89M	-3.07M	-4.69M	1.55M	1.48M	2.94M
	Total Liabilities
179.03K	26.29K	321.48K	3.32M	4.54M	6.75M
	Stockholders Equity
10.74M	11.43M	11.94M	11.86M	22.62M	4.76M
Cash Flow		Free Cash Flow
-3.18M	-4.97M	-5.54M	-11.69M	-15.32M	―
	Operating Cash Flow
-3.18M	-4.97M	-5.52M	-9.15M	-12.89M	―
	Investing Cash Flow
0.00	0.00	-14.51K	-2.54M	-2.51M	―
	Financing Cash Flow
3.28M	3.28M	9.05M	11.19M	14.80M	7.20M

Versus Systems Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VS, the sentiment is Positive. The current price of 2.04 is above the 20-day moving average (MA) of 2.02, below the 50-day MA of 2.05, and above the 200-day MA of 1.88, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 51.58 is Neutral, neither overbought nor oversold. The STOCH value of 52.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VS.

Versus Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$11.59B	10.34	-7.15%	2.94%	7.49%	-10.88%
VERB	54 Neutral	$8.96M	―	-66.08%	―	3125.00%	98.06%
VS	39 Underperform	$10.10M	―	-34.07%	―	-78.87%	85.62%

Versus Systems Corporate Events

Versus Systems Appoints Aric Spitulnik to Board

Versus Systems, Inc. has appointed Aric Spitulnik to its board of directors, where he will play a key role by chairing the audit committee and serving on the compensation and corporate governance committees. This strategic move is significant for those keeping an eye on the company’s governance and financial oversight.