ASX:BRN

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BrainChip Holdings

Executive Summary

BrainChip Holdings Ltd develops software and hardware accelerated solutions for artificial intelligence and machine learning applications in North America, Europe, the Middle East, and Asia. More Details


Snowflake Analysis

Adequate balance sheet with weak fundamentals.

Share Price & News

How has BrainChip Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BRN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-44.4%

BRN

-3.4%

AU Software

-0.1%

AU Market


1 Year Return

775.0%

BRN

7.7%

AU Software

-12.0%

AU Market

Return vs Industry: BRN exceeded the Australian Software industry which returned 11.5% over the past year.

Return vs Market: BRN exceeded the Australian Market which returned -10.5% over the past year.


Shareholder returns

BRNIndustryMarket
7 Day-44.4%-3.4%-0.1%
30 Day95.3%2.5%-2.9%
90 Day333.0%9.8%1.1%
1 Year775.0%775.0%8.5%7.7%-8.7%-12.0%
3 Year143.6%133.3%120.0%111.4%17.7%2.6%
5 Year109.0%100.0%157.2%137.2%44.5%14.1%

Price Volatility Vs. Market

How volatile is BrainChip Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is BrainChip Holdings undervalued compared to its fair value and its price relative to the market?

76.71x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate BRN's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate BRN's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: BRN is unprofitable, so we can't compare its PE Ratio to the AU Software industry average.

PE vs Market: BRN is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BRN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BRN is overvalued based on its PB Ratio (76.7x) compared to the AU Software industry average (5.6x).


Next Steps

Future Growth

How is BrainChip Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

31.6%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as BrainChip Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has BrainChip Holdings performed over the past 5 years?

14.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BRN is currently unprofitable.

Growing Profit Margin: BRN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BRN is unprofitable, but has reduced losses over the past 5 years at a rate of 14.6% per year.

Accelerating Growth: Unable to compare BRN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BRN is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (21%).


Return on Equity

High ROE: BRN has a negative Return on Equity (-232%), as it is currently unprofitable.


Next Steps

Financial Health

How is BrainChip Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: BRN's short term assets ($5.7M) exceed its short term liabilities ($1.2M).

Long Term Liabilities: BRN's short term assets ($5.7M) exceed its long term liabilities ($680.4K).


Debt to Equity History and Analysis

Debt Level: BRN's debt to equity ratio (7%) is considered satisfactory.

Reducing Debt: BRN's debt to equity ratio has reduced from 24.6% to 7% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: BRN has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: BRN has less than a year of cash runway if free cash flow continues to reduce at historical rates of 28.5% each year


Next Steps

Dividend

What is BrainChip Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate BRN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate BRN's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BRN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BRN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BRN's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.6yrs

Average management tenure


CEO

Lou DiNardo (60 yo)

4yrs

Tenure

US$1,193,748

Compensation

Mr. Louis DiNardo, also known as Lou, BA, has been Chief Executive Officer and President of BrainChip Holdings Limited since September 30, 2016 and its Managing Director. He served as an Executive Chairman ...


CEO Compensation Analysis

Compensation vs Market: Lou's total compensation ($USD1.19M) is above average for companies of similar size in the Australian market ($USD746.53K).

Compensation vs Earnings: Lou's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Louis DiNardo
President4yrsUS$1.19m0.75%
$ 4.9m
Peter Van der Made
Founder0.67yrUS$312.42k11.27%
$ 74.0m
Anil Mankar
Co Founder & Chief Development Officerno dataUS$321.35k7.79%
$ 51.2m
Ken Scarince
VP of Finance & Controller1.5yrsUS$620.52kno data
Rob Telson
Vice President of Worldwide Sales0.083yrno datano data
Kim Clark
Company Secretary1.75yrsno datano data

1.6yrs

Average Tenure

60yo

Average Age

Experienced Management: BRN's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Louis DiNardo
President4yrsUS$1.19m0.75%
$ 4.9m
Peter Van der Made
Founder0.67yrUS$312.42k11.27%
$ 74.0m
Emmanuel Hernandez
Interim Independent Chairman of the Board0.67yrUS$271.43kno data
Steven Liebeskind
Non-Executive Director2.33yrsUS$78.88k0.74%
$ 4.9m
Barry Marshall
Member of Scientific Advisory Board0.17yrno datano data
Gert Cauwenberghs
Member of Advisory Board4.83yrsno datano data
Christa Steele
Non-Executive Directorno datano datano data
Adam Osseiran
Chairman of Scientific Advisory Board0.67yrUS$148.76k0.60%
$ 3.9m
Nicholas Spitzer
Member of Advisory Board4.92yrsno datano data
Jeffrey Krichmar
Member of Advisory Board4.92yrsno datano data
Simon Thorpe
Member of Scientific Advisory Board0.33yrno datano data

1.5yrs

Average Tenure

62yo

Average Age

Experienced Board: BRN's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 24.1%.


Top Shareholders

Company Information

BrainChip Holdings Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BrainChip Holdings Ltd
  • Ticker: BRN
  • Exchange: ASX
  • Founded: 2011
  • Industry: Application Software
  • Sector: Software
  • Market Cap: AU$657.023m
  • Shares outstanding: 1.56b
  • Website: https://www.brainchipinc.com

Number of Employees


Location

  • BrainChip Holdings Ltd
  • 225 George Street
  • Level 12
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BRNASX (Australian Securities Exchange)YesCommon StockAUAUDMay 2015
BRNCHIA (Chi-X Australia)YesCommon StockAUAUDMay 2015
24YDB (Deutsche Boerse AG)YesCommon StockDEEURMay 2015

Biography

BrainChip Holdings Ltd develops software and hardware accelerated solutions for artificial intelligence and machine learning applications in North America, Europe, the Middle East, and Asia. It offers Akid ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/17 19:02
End of Day Share Price2020/09/17 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.