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BRN

BrainChip HoldingsASX:BRN Stock Report

Market Cap

AU$754.0m

7D

14.1%

1Y

20.3%

Updated

20 Oct, 2021

Data

Company Financials
BRN fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance0/6
Financial Health6/6
Dividends0/6

BRN Overview

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

Price History & Performance

Summary of all time highs, changes and price drops for BrainChip Holdings
Historical stock prices
Current Share PriceAU$0.45
52 Week HighAU$0.30
52 Week LowAU$0.77
Beta1.93
1 Month Change3.49%
3 Month Change-6.32%
1 Year Change20.27%
3 Year Change270.83%
5 Year Change102.27%
Change since IPO93.48%

Recent News & Updates

Sep 01
We Think BrainChip Holdings (ASX:BRN) Can Afford To Drive Business Growth

We Think BrainChip Holdings (ASX:BRN) Can Afford To Drive Business Growth

Just because a business does not make any money, does not mean that the stock will go down. For example, although...

Shareholder Returns

BRNAU SoftwareAU Market
7D14.1%5.5%1.7%
1Y20.3%25.0%20.2%

Return vs Industry: BRN underperformed the Australian Software industry which returned 25% over the past year.

Return vs Market: BRN matched the Australian Market which returned 20.2% over the past year.

Price Volatility

Is BRN's price volatile compared to industry and market?
BRN volatility
BRN Beta1.93
Industry Beta0.84
Market Beta1

Stable Share Price: BRN is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: BRN's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
201142Peter Van der Madehttps://brainchipinc.com

BrainChip Holdings Ltd develops software and hardware accelerated solutions for artificial intelligence (AI) and machine learning applications in North America, Europe, the Middle East, and Asia. It offers Akida Development Environment, a machine learning framework for creating, training, and testing neural networks, as well as supporting the development of systems for edge AI on its Akida event domain neural processor; and Akida Neuromorphic Processor to provide a ultra-low power and fast AI Edge Network for vision, audio, olfactory, and smart transducer applications. The company also provides Akida Neuromorphic System-on-Chip, an integrated solution for Edge AI device and systems.

BrainChip Holdings Fundamentals Summary

How do BrainChip Holdings's earnings and revenue compare to its market cap?
BRN fundamental statistics
Market CapUS$563.74m
Earnings (TTM)-US$29.26m
Revenue (TTM)US$874.98k

652.4x

P/S Ratio

-19.3x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BRN income statement (TTM)
RevenueUS$874.98k
Cost of RevenueUS$193.18k
Gross ProfitUS$681.80k
ExpensesUS$29.94m
Earnings-US$29.26m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.017
Gross Margin77.92%
Net Profit Margin-3,344.33%
Debt/Equity Ratio0%

How did BRN perform over the long term?

See historical performance and comparison

Valuation

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

29.21x

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 Australian 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 (29.2x) compared to the AU Software industry average (5.2x).


Future Growth

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

41.2%

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.


Past Performance

How has BrainChip Holdings performed over the past 5 years?

-13.5%

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, and losses have increased over the past 5 years at a rate of 13.5% 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 (37.5%).


Return on Equity

High ROE: BRN has a negative Return on Equity (-151.56%), as it is currently unprofitable.


Financial Health

How is BrainChip Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: BRN's short term assets ($20.5M) exceed its short term liabilities ($2.9M).

Long Term Liabilities: BRN's short term assets ($20.5M) exceed its long term liabilities ($302.2K).


Debt to Equity History and Analysis

Debt Level: BRN is debt free.

Reducing Debt: BRN had no debt 5 years ago.


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 sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: BRN has sufficient cash runway for 1.2 years if free cash flow continues to reduce at historical rates of 21.7% each year.


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?

1.9yrs

Average management tenure


CEO

Peter Van der Made

0.58

Tenure

US$340,547

Compensation

Mr. Peter AJ Van der Made serves as Chief Executive Officer at BrainChip Holdings Ltd since March 2021. He served as an Interim Chief Executive Officer at BrainChip Holdings Ltd since March 15, 2021. He ha...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD340.55K) is below average for companies of similar size in the Australian market ($USD735.69K).

Compensation vs Earnings: Peter's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: BRN's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: BRN's board of directors are not considered experienced ( 1.8 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: BRN insiders have only sold shares 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 5.5%.


Top Shareholders

Company Information

BrainChip Holdings Ltd's 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$753.998m
  • Shares outstanding: 1.69b
  • Website: https://brainchipinc.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/20 15:33
End of Day Share Price2021/10/20 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.