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BrainChip Holdings

ASX:BRN
Snowflake Description

High growth potential with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BRN
ASX
A$49M
Market Cap
  1. Home
  2. AU
  3. Software
Company description

BrainChip Holdings Limited provides software and hardware solutions for artificial intelligence and machine learning applications in North America and Europe. The last earnings update was 29 days ago. More info.


Add to Portfolio Compare Print
  • BrainChip Holdings has significant price volatility in the past 3 months.
BRN Share Price and Events
7 Day Returns
4.4%
ASX:BRN
1.9%
AU Software
1.7%
AU Market
1 Year Returns
-65.2%
ASX:BRN
37.9%
AU Software
5.9%
AU Market
BRN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
BrainChip Holdings (BRN) 4.4% -21.7% -52.5% -65.2% -69.7% -
AU Software 1.9% 5.7% 19.3% 37.9% 89.7% 112.3%
AU Market 1.7% 4% 8.6% 5.9% 21.4% 7.4%
1 Year Return vs Industry and Market
  • BRN underperformed the Software industry which returned 37.9% over the past year.
  • BRN underperformed the Market in Australia which returned 5.9% over the past year.
Price Volatility
BRN
Industry
5yr Volatility vs Market

Value

 Is BrainChip Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of BrainChip Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for BrainChip Holdings.

ASX:BRN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.8%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:BRN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Software Unlevered Beta Simply Wall St/ S&P Global 1.14
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.137 (1 + (1- 30%) (0%))
1.092
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.09
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (1.092 * 5.96%)
8.82%

Discounted Cash Flow Calculation for ASX:BRN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for BrainChip Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:BRN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.82%)
2019 0.90 Analyst x1 0.83
2020 1.20 Analyst x1 1.01
2021 4.20 Analyst x1 3.26
2022 7.28 Est @ 73.4% 5.19
2023 11.07 Est @ 52.07% 7.26
2024 15.19 Est @ 37.14% 9.15
2025 19.24 Est @ 26.69% 10.65
2026 22.97 Est @ 19.38% 11.68
2027 26.25 Est @ 14.26% 12.27
2028 29.05 Est @ 10.67% 12.48
Present value of next 10 years cash flows $73.78
ASX:BRN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $29.05 × (1 + 2.31%) ÷ (8.82% – 2.31%)
$456.76
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $456.76 ÷ (1 + 8.82%)10
$196.18
ASX:BRN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $73.78 + $196.18
$269.96
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $269.96 / 1,049.88
$0.26
ASX:BRN Discount to Share Price
Calculation Result
Exchange Rate USD/AUD
(Reporting currency to currency of ASX:BRN)
1.424
Value per Share
(AUD)
= Value per Share in USD x Exchange Rate (USD/AUD)
= $0.26 x 1.424
A$0.37
Value per share (AUD) From above. A$0.37
Current discount Discount to share price of A$0.05
= -1 x (A$0.05 - A$0.37) / A$0.37
87.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price BrainChip Holdings is available for.
Intrinsic value
>50%
Share price is A$0.047 vs Future cash flow value of A$0.36613
Current Discount Checks
For BrainChip Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • BrainChip Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • BrainChip Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for BrainChip Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are BrainChip Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:BRN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $-0.02
ASX:BRN Share Price ** ASX (2019-04-24) in AUD A$0.05
ASX:BRN Share Price converted to USD reporting currency Exchange rate (AUD/ USD) 0.702 $0.03
Australia Software Industry PE Ratio Median Figure of 19 Publicly-Listed Software Companies 36.99x
Australia Market PE Ratio Median Figure of 543 Publicly-Listed Companies 16.28x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of BrainChip Holdings.

ASX:BRN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:BRN Share Price ÷ EPS (both in USD)

= 0.03 ÷ -0.02

-2.01x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • BrainChip Holdings is loss making, we can't compare its value to the AU Software industry average.
  • BrainChip Holdings is loss making, we can't compare the value of its earnings to the Australia market.
Price based on expected Growth
Does BrainChip Holdings's expected growth come at a high price?
Raw Data
ASX:BRN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -2.01x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
92.5%per year
Australia Software Industry PEG Ratio Median Figure of 13 Publicly-Listed Software Companies 2.75x
Australia Market PEG Ratio Median Figure of 359 Publicly-Listed Companies 1.36x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for BrainChip Holdings, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on BrainChip Holdings's assets?
Raw Data
ASX:BRN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $0.01
ASX:BRN Share Price * ASX (2019-04-24) in AUD A$0.05
ASX:BRN Share Price converted to USD reporting currency Exchange rate (AUD/ USD) 0.702 $0.03
Australia Software Industry PB Ratio Median Figure of 100 Publicly-Listed Software Companies 3.67x
Australia Market PB Ratio Median Figure of 1,676 Publicly-Listed Companies 1.66x
ASX:BRN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:BRN Share Price ÷ Book Value per Share (both in USD)

= 0.03 ÷ 0.01

3.9x

* Primary Listing of BrainChip Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • BrainChip Holdings is overvalued based on assets compared to the AU Software industry average.
X
Value checks
We assess BrainChip Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. BrainChip Holdings has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is BrainChip Holdings expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
92.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is BrainChip Holdings expected to grow at an attractive rate?
  • BrainChip Holdings's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • BrainChip Holdings's earnings growth is expected to exceed the Australia market average.
  • BrainChip Holdings's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:BRN Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:BRN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 92.5%
ASX:BRN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 45.1%
Australia Software Industry Earnings Growth Rate Market Cap Weighted Average 33.7%
Australia Software Industry Revenue Growth Rate Market Cap Weighted Average 17.9%
Australia Market Earnings Growth Rate Market Cap Weighted Average 6.8%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:BRN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:BRN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 8 3 1
2021-12-31 5 4 2 1
2020-12-31 3 1 1 1
2019-12-31 2 1 0 1
ASX:BRN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 1 -7 -17
2018-09-30 1 -16
2018-06-30 1 -7 -16
2018-03-31 0 -6 -15
2017-12-31 0 -6 -14
2017-06-30 0 -5 -10
2017-03-31 0 -4 -7
2016-12-31 0 -3 -5
2016-06-30 0 -3 -28
2016-03-31 0 -28

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • BrainChip Holdings's earnings are expected to grow significantly at over 20% yearly.
  • BrainChip Holdings's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:BRN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from BrainChip Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:BRN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 0.00 0.00 0.00 1.00
2021-12-31 0.00 0.00 0.00 1.00
2020-12-31 0.00 0.00 0.00 1.00
2019-12-31 0.00 0.00 0.00 1.00
ASX:BRN Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 -0.02
2018-09-30 -0.02
2018-06-30 -0.02
2018-03-31 -0.02
2017-12-31 -0.02
2017-06-30 -0.01
2017-03-31 -0.01
2016-12-31 -0.01
2016-06-30 -0.05
2016-03-31 -0.04

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • BrainChip Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess BrainChip Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
BrainChip Holdings has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has BrainChip Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare BrainChip Holdings's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • BrainChip Holdings does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare BrainChip Holdings's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare BrainChip Holdings's 1-year growth to the AU Software industry average as it is not currently profitable.
Earnings and Revenue History
BrainChip Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from BrainChip Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:BRN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 0.95 -16.52 13.63 3.16
2018-09-30 0.79 -16.48 14.26 2.70
2018-06-30 0.64 -16.43 14.83 1.18
2018-03-31 0.46 -15.12 13.38 1.17
2017-12-31 0.27 -13.80 11.99 2.21
2017-06-30 0.28 -9.52 7.63 1.69
2017-03-31 0.21 -7.18 5.57 1.28
2016-12-31 0.15 -4.85 3.52 0.87
2016-06-30 0.01 -28.35 3.77 0.75
2016-03-31 0.01 -27.78 3.67 0.57
2015-12-31 0.01 -27.30 3.30 0.39
2014-12-31 -0.36 0.36

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if BrainChip Holdings has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if BrainChip Holdings has efficiently used its assets last year compared to the AU Software industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if BrainChip Holdings improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess BrainChip Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
BrainChip Holdings has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is BrainChip Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up BrainChip Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • BrainChip Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • BrainChip Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of BrainChip Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • BrainChip Holdings has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from BrainChip Holdings Company Filings, last reported 3 months ago.

ASX:BRN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 8.88 0.00 7.54
2018-09-30 8.88 0.00 7.54
2018-06-30 14.26 0.00 11.89
2018-03-31 14.26 0.00 11.89
2017-12-31 18.07 0.00 16.05
2017-06-30 6.84 0.00 4.52
2017-03-31 6.84 0.00 4.52
2016-12-31 5.27 0.00 3.59
2016-06-30 2.78 0.00 2.90
2016-03-31 2.78 0.00 2.90
2015-12-31 1.74 0.00 1.39
2014-12-31 -0.34 0.35 0.03
  • BrainChip Holdings has no debt.
  • BrainChip Holdings currently has no debt however we can't compare to 5 years ago as we have no data for that period.
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.

  • BrainChip Holdings has less than a year of cash runway based on current free cash flow.
  • BrainChip Holdings has less than a year of cash runway if free cash flow continues to grow at historical rates of 45.2% each year.
X
Financial health checks
We assess BrainChip Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. BrainChip Holdings has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from BrainChip Holdings dividends. Estimated to be 0% next year.
If you bought A$2,000 of BrainChip Holdings shares you are expected to receive A$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate BrainChip Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate BrainChip Holdings's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:BRN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
Australia Software Industry Average Dividend Yield Market Cap Weighted Average of 13 Stocks 1.3%
Australia Market Average Dividend Yield Market Cap Weighted Average of 417 Stocks 4.2%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.5%
Australia Bottom 25% Dividend Yield 25th Percentile 2.5%
Australia Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:BRN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 0.00 1.00
2021-12-31 0.00 1.00
2020-12-31 0.00 1.00
2019-12-31 0.00 1.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as BrainChip Holdings has not reported any payouts.
  • Unable to verify if BrainChip Holdings's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of BrainChip Holdings's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as BrainChip Holdings has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of BrainChip Holdings's dividends in 3 years as they are not expected to pay a notable one for Australia.
X
Income/ dividend checks
We assess BrainChip Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.5%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can BrainChip Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. BrainChip Holdings has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of BrainChip Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Lou DiNardo
COMPENSATION $2,260,346
AGE 58
TENURE AS CEO 2.6 years
CEO Bio

Mr. Louis DiNardo, also known as Lou, BA, has been Chief Executive Officer and President of BrainChip Holdings Limited since September 30, 2016. He served as an Executive Chairman of BrainChip Holdings Limited since 2018 until February 11, 2019. Mr. DiNardo served as Interim Chairman of the Board of BrainChip Holdings Limited since May 1, 2018 until 2018. Mr. DiNardo served as the Chief Executive Officer, President and Director of Exar Corp. since January 3, 2012 until October 20, 2015. Mr. DiNardo served as a Partner of CrossLink Capital, Inc., and joined in it in January 2008 in the energy technologies and computing and semiconductors practices and is a part of the venture capital team. He served as the President of Integration Associates, Inc. and served as its Co-Chairman. Prior to Crosslink, he served as a General Partner in the CleanTech practice at VantagePoint Venture Partners and was a Senior Advisor. He served as Director at VantagePoint Capital Partners. Mr. DiNardo joined VantagePoint in 2007 and focused on cleantech sector. He served as the Managing Director at VantagePoint and was a Member of the Semiconductor Practice Group. Prior to this, he served as the President, Chief Operating Officer and Chief Executive Officer of Intersil Corporation since January 2006. Prior to that, he served as an Executive Vice President and General Manager at Intersil Corporation from July 2004 to January 2006. He served as the President, Chief Executive Officer and Co-Chairman at Xicor Inc. from November 2000 to July 2004. He was involved in Sales, Marketing and Operations within the semiconductor industry for over 20 years. Prior to Xicor, he served as a Vice President and General Manager of Mixed-Signal Products at Linear Technology Corporation. During his 13 years at the company, he held a variety of positions including the Vice President of Marketing, Director of North American Distribution and Area Sales Manager. He began his career in the semiconductor industry at Analog Devices Corporation where he worked for eight years and was involved primarily in Field Sales and Applications. He has over 25 years of experience as a successful semiconductor executive and venture investor. He served as an Executive Chairman of SoloPower Systems, Inc. He has been a Director of SiFlare, Inc. since June 2008. He served as an Independent Director at Quantum Corporation since 2013. He serves on the Boards of Plato Networks and SlicX, Inc. He has been an Executive Director of BrainChip Holdings Limited since December 09, 2016. He served as Director of SynapSense Corporation. He served as a Director of Integration Associates, Inc. since August 2004, Crest Semiconductors, Inc. since June 2008 and Chipx, Inc. since July 25, 2006;. He served as a Director of Xicor Inc. from November 2000 to June 2004. He holds a B.A. from Ursinus College.

CEO Compensation
  • Lou's compensation has increased whilst company is loss making.
  • Lou's remuneration is higher than average for companies of similar size in Australia.
Management Team Tenure

Average tenure and age of the BrainChip Holdings management team in years:

0.5
Average Tenure
54
Average Age
  • The average tenure for the BrainChip Holdings management team is less than 2 years, this suggests a new team.
Management Team

Lou DiNardo

TITLE
President
COMPENSATION
$2M
AGE
58
TENURE
2.6 yrs

Peter Van der Made

TITLE
Founder & CTO
COMPENSATION
$307K

Bob Beachler

TITLE
Senior Vice President of Marketing & Business Development
COMPENSATION
$2M
AGE
54
TENURE
2.1 yrs

Anil Mankar

TITLE
Chief Development Officer
COMPENSATION
$318K
AGE
62

Ryan Benton

TITLE
Consultant
COMPENSATION
$719K
AGE
47
TENURE
0.6 yrs

Ken Scarince

TITLE
VP of Finance & Controller
TENURE
0.1 yrs

Roger Levinson

TITLE
Chief Operating Officer
AGE
54
TENURE
0.1 yrs

Kim Clark

TITLE
Company Secretary
AGE
49
TENURE
0.3 yrs
Board of Directors Tenure

Average tenure and age of the BrainChip Holdings board of directors in years:

2.9
Average Tenure
60
Average Age
  • The average tenure for the BrainChip Holdings board of directors is less than 3 years, this suggests a new board.
Board of Directors

Stephe Wilks

TITLE
Non-Executive Chairman
AGE
55
TENURE
0.2 yrs

Lou DiNardo

TITLE
President
COMPENSATION
$2M
AGE
58
TENURE
2.3 yrs

Manny Hernandez

TITLE
Non-Executive Director
COMPENSATION
$233K
AGE
62
TENURE
1.8 yrs

Adam Osseiran

TITLE
Non-Executive Director
COMPENSATION
$261K
TENURE
3.6 yrs

Nicholas Spitzer

TITLE
Member of Advisory Board
TENURE
3.5 yrs

Jeff Krichmar

TITLE
Member of Advisory Board
TENURE
3.5 yrs

Gert Cauwenberghs

TITLE
Member of Advisory Board
TENURE
3.4 yrs

Steve Liebeskind

TITLE
Non-Executive Director
AGE
63
TENURE
0.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
11. Apr 19 Sell Metals X Limited Company 21. Feb 19 10. Apr 19 -11,930,960 A$0.06 A$-752,441
X
Management checks
We assess BrainChip Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. BrainChip Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Investors Who Bought BrainChip Holdings (ASX:BRN) Shares Three Years Ago Are Now Down 66%

Long term BrainChip Holdings Limited (ASX:BRN) shareholders know that all too well, since the share price is down considerably over three years. … Check out our latest analysis for BrainChip Holdings. … Investors will be hoping that BrainChip Holdings can make progress and gain better traction for the business, before it runs low on cash.

Simply Wall St -

Does BrainChip Holdings Limited's (ASX:BRN) CEO Pay Compare Well With Peers?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Lou DiNardo's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that BrainChip Holdings Limited has a market cap of AU$72m, and is paying total annual CEO compensation of US$2.3m.

Simply Wall St -

Breakeven On The Horizon For BrainChip Holdings Limited (ASX:BRN)

BrainChip Holdings Limited's (ASX:BRN):. … BrainChip Holdings Limited provides software and hardware solutions for artificial intelligence and machine learning applications in North America and Europe. … The company’s loss has recently broadened since it announced a -US$13.8m loss in the full financial year, compared to the latest trailing-twelve-month loss of -US$16.4m, moving it further away from breakeven?

Simply Wall St -

Do Institutions Own BrainChip Holdings Limited (ASX:BRN) Shares?

If you want to know who really controls BrainChip Holdings Limited (ASX:BRN), then you'll have to look at the makeup of its share registry. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … BrainChip Holdings is not a large company by global standards.

Simply Wall St -

Does The BrainChip Holdings Limited (ASX:BRN) Share Price Fall With The Market?

Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.

Simply Wall St -

BrainChip Holdings Limited's (ASX:BRN) Profit Outlook

BrainChip Holdings Limited provides software and hardware solutions for artificial intelligence and machine learning applications in North America and Europe. … The company’s loss has recently broadened since it announced a -US$14m loss in the full financial year, compared to the latest trailing-twelve-month loss of -US$16m, moving it further away from breakeven. … See our latest analysis for BrainChip Holdings

Simply Wall St -

What Kind Of Risk Should You Expect For BrainChip Holdings Limited (ASX:BRN)?

The second risk is market-wide, which arises from investing in the stock market. … A widely-used metric to measure a stock's market risk is beta, and the broad market index represents a beta value of one. … Any stock with a beta of greater than one is considered more volatile than the market, and those with a beta less than one is generally less volatile.

Simply Wall St -

Should You Buy BrainChip Holdings Limited (ASX:BRN) Now?

saw significant share price volatility over the past couple of months on the ASX, rising to the highs of A$0.18 and falling to the lows of A$0.12. … A question to answer is whether BrainChip Holdings's current trading price of A$0.12 reflective of the actual value of the? … Let’s take a look at BrainChip Holdings’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

BrainChip Holdings Limited (ASX:BRN): Are Analysts Optimistic?

BrainChip Holdings Limited's (ASX:BRN):. … BrainChip Holdings Limited provides software and hardware solutions for artificial intelligence and machine learning applications in North America and Europe. … Check out our latest analysis for BrainChip Holdings

Simply Wall St -

High Growth ASX Stocks For The Day

BRN is expected to deliver an extremely high earnings growth over the next couple of years of 56.15%, bolstered by a significant revenue which is expected to more than double. … PME is expected to deliver a buoyant earnings growth over the next couple of years of 36.36%, bolstered by an equally impressive revenue growth of 55.70%. … ASX:WAF Future Profit Mar 21st 18 For more financially robust companies with high growth potential to enhance your portfolio, explore this interactive list of fast growing companies.

Simply Wall St -

Company Info

Description

BrainChip Holdings Limited provides software and hardware solutions for artificial intelligence and machine learning applications in North America and Europe. It offers Spiking Neuron Adaptive Processor that has ability to learn autonomously, evolve, and associate information like the human brain. The company’s technology is used in various applications, such as speech and speaker recognition, and extraction of speech and sound from a noisy background environment, as well as visual image recognition, robotics, and autonomous learning machines used in exploration and unmanned vehicles; and Internet of things and smartphone technology applications. BrainChip Holdings Limited was incorporated in 2011 and is based in Sydney, Australia.

Details
Name: BrainChip Holdings Limited
BRN
Exchange: ASX
Founded: 2011
A$49,344,525
1,049,883,519
Website: http://www.brainchipinc.com
Address: BrainChip Holdings Limited
225 George Street,
Level 12,
Sydney,
New South Wales, 2000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX BRN Common Stock Australian Securities Exchange AU AUD 13. May 2015
DB 24Y Common Stock Deutsche Boerse AG DE EUR 13. May 2015
CHIA BRN Common Stock Chi-X Australia AU AUD 13. May 2015
Number of employees
Current staff
Staff numbers
33
BrainChip Holdings employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/25 10:34
End of day share price update: 2019/04/24 00:00
Last estimates confirmation: 2019/03/01
Last earnings filing: 2019/03/27
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.