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BRN

BrainChip Holdings ASX:BRN Stock Report

Last Price

AU$0.84

Market Cap

AU$1.5b

7D

-7.1%

1Y

116.7%

Updated

28 Sep, 2022

Data

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

BRN Stock Overview

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

BrainChip Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for BrainChip Holdings
Historical stock prices
Current Share PriceAU$0.84
52 Week HighAU$2.34
52 Week LowAU$0.36
Beta1.53
1 Month Change-3.98%
3 Month Change5.63%
1 Year Change116.67%
3 Year Change1,777.78%
5 Year Change397.06%
Change since IPO267.39%

Recent News & Updates

Apr 07
We're Hopeful That BrainChip Holdings (ASX:BRN) Will Use Its Cash Wisely

We're Hopeful That BrainChip Holdings (ASX:BRN) Will Use Its Cash Wisely

There's no doubt that money can be made by owning shares of unprofitable businesses. For example, although...

Shareholder Returns

BRNAU SoftwareAU Market
7D-7.1%-3.5%-3.3%
1Y116.7%-24.3%-10.6%

Return vs Industry: BRN exceeded the Australian Software industry which returned -24.3% over the past year.

Return vs Market: BRN exceeded the Australian Market which returned -10.6% over the past year.

Price Volatility

Is BRN's price volatile compared to industry and market?
BRN volatility
BRN Average Weekly Movement11.4%
Software Industry Average Movement10.9%
Market Average Movement9.6%
10% most volatile stocks in AU Market16.7%
10% least volatile stocks in AU Market4.3%

Stable Share Price: BRN is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: BRN's weekly volatility (11%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
201163Sean Hehirhttps://brainchipinc.com

BrainChip Holdings Ltd develops software and hardware accelerated solutions for artificial intelligence (AI) and machine learning applications in North America, Oceania, Europe, the Middle East, and Asia. The company offers Akida Neuromorphic Processor to provide ultra-low power and fast AI Edge Network for vision, audio, olfactory, and smart transducer applications; and 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. 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 CapAU$1.53b
Earnings (TTM)-AU$30.95m
Revenue (TTM)AU$8.77m

166.0x

P/S Ratio

-47.0x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BRN income statement (TTM)
RevenueUS$5.65m
Cost of RevenueUS$544.78k
Gross ProfitUS$5.11m
Other ExpensesUS$25.05m
Earnings-US$19.94m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.012
Gross Margin90.36%
Net Profit Margin-352.77%
Debt/Equity Ratio0%

How did BRN perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is BRN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Book vs Peers

  • Price-To-Book vs Industry

  • Price-To-Book vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BRN?

Other financial metrics that can be useful for relative valuation.

BRN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue170x
Enterprise Value/EBITDA-49.3x
PEG Ration/a

Price to Book Ratio vs Peers

How does BRN's PB Ratio compare to its peers?

BRN PB Ratio vs Peers
The above table shows the PB ratio for BRN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPBEstimated GrowthMarket Cap
Peer Average8.9x
360 Life360
2.6x52.7%AU$898.1m
OCL Objective
19.9x23.1%AU$1.3b
NEA Nearmap
8.2x78.2%AU$1.0b
IRE Iress
4.2x18.5%AU$2.0b
BRN BrainChip Holdings
30xn/aAU$1.5b

Price-To-Book vs Peers: BRN is expensive based on its Price-To-Book Ratio (30x) compared to the peer average (8.9x).


Price to Earnings Ratio vs Industry

How does BRN's PE Ratio compare vs other companies in the AU Software Industry?

Price-To-Book vs Industry: BRN is expensive based on its Price-To-Book Ratio (30x) compared to the Australian Software industry average (2.9x)


Price to Book Ratio vs Fair Ratio

What is BRN's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BRN PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio30x
Fair PB Ration/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate BRN's Price-To-Book Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of BRN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate BRN's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate BRN's fair value for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


30.7%

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.


Discover growth companies

  • Examine BrainChip Holdings's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  • BrainChip Holdings competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has BrainChip Holdings performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-14.9%

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 14.9% 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 (-10.7%).


Return on Equity

High ROE: BRN has a negative Return on Equity (-63.8%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is BrainChip Holdings's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: BRN's short term assets ($32.5M) exceed its short term liabilities ($2.4M).

Long Term Liabilities: BRN's short term assets ($32.5M) exceed its long term liabilities ($1.8M).


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 1.5 years if free cash flow continues to reduce at historical rates of 20.4% each year.


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

BrainChip Holdings Dividend Yield vs Market
How does BrainChip Holdings dividend yield compare to the market?
SegmentDividend Yield
Company (BrainChip Holdings)n/a
Market Bottom 25% (AU)2.8%
Market Top 25% (AU)7.2%
Industry Average (Software)1.0%
Analyst forecast in 3 Years (BrainChip Holdings)n/a

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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as BRN has not reported any payouts.


Discover strong dividend paying companies

Management

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

3.5yrs

Average management tenure


CEO

Sean Hehir

0.83yr

Tenure

US$470,474

Compensation

Mr. Sean Hehir serves as Chief Executive Officer and Managing Director at BrainChip Holdings Ltd since November 14, 2021. He is Executive Director of BrainChip Holdings Ltd since November 29, 2021. Mr. Heh...


CEO Compensation Analysis

Sean Hehir's Compensation vs BrainChip Holdings Earnings
How has Sean Hehir's remuneration changed compared to BrainChip Holdings's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

-US$20m

Mar 31 2022n/an/a

-US$20m

Dec 31 2021US$470kUS$42k

-US$21m

Compensation vs Market: Sean's total compensation ($USD470.47K) is below average for companies of similar size in the Australian market ($USD1.09M).

Compensation vs Earnings: Insufficient data to compare Sean's compensation with company performance.


Leadership Team

Experienced Management: BRN's management team is considered experienced (3.5 years average tenure).


Board Members

Experienced Board: BRN's board of directors are not considered experienced ( 1.6 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

ASX:BRN Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
01 Sep 22SellAU$210,450Antonio VianaIndividual230,000AU$0.92
08 Jun 22SellAU$3,637,307Peter Van der MadeIndividual3,500,000AU$1.04

Ownership Breakdown

What is the ownership structure of BRN?
Owner TypeNumber of SharesOwnership Percentage
Private Companies6,800,0000.4%
Institutions102,113,1425.9%
Individual Insiders305,453,86617.8%
General Public1,304,995,13675.9%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 24.03% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
9.12%
Peter Van der Made
156,805,508$132.5m-2.18%no data
6.41%
Anil Mankar
110,211,503$93.1m0%no data
2%
BlackRock, Inc.
34,396,072$29.1m0.06%no data
1.2%
The Vanguard Group, Inc.
20,662,287$17.5m3.9%no data
0.69%
Louis DiNardo
11,779,362$10.0m0%no data
0.58%
LDA Capital Limited
10,000,000$8.5m0%no data
0.49%
GWL Investment Management Ltd.
8,438,806$7.1m-0.55%0.02%
0.47%
Paul Hunter
8,000,000$6.8m0%no data
0.43%
Universal-Investment-Gesellschaft Mit BeschrÄNkter Haftung
7,400,000$6.3m0%0.04%
0.4%
Adam Osseiran
6,843,172$5.8m0%no data
0.4%
Nerona Pte Ltd
6,800,000$5.7m0%no data
0.34%
Jeffrey Wilton
5,800,000$4.9m0%no data
0.34%
State Street Global Advisors, Inc.
5,778,946$4.9m2.29%no data
0.32%
David Evans
5,555,555$4.7m0%no data
0.28%
BetaShares Capital Limited
4,848,721$4.1m3.39%0.03%
0.1%
Geneon Vermögensmanagement GmbH
1,800,000$1.5m0%4.31%
0.1%
First Trust Advisors LP
1,716,633$1.5m1.44%no data
0.099%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
1,696,459$1.4m-0.03%no data
0.056%
Renta 4 Gestora SGIIC S.A.
969,762$819.4k0%0.07%
0.051%
Geode Capital Management, LLC
882,870$746.0k0.65%no data
0.05%
Credit Suisse Asset Management (Switzerland)
858,915$725.8k14.05%no data
0.041%
UBS Asset Management
699,240$590.9k0%no data
0.027%
KLP Kapitalforvaltning AS
464,713$392.7k0%no data
0.025%
Antonio Viana
436,666$369.0k-34.5%no data
0.019%
Goldman Sachs Asset Management, L.P.
326,399$275.8k1.46%no data

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
  • Implied Market Cap: AU$1.530b
  • Shares outstanding: 1.72b
  • Website: https://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
BRCH.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDMay 2015
24YDB (Deutsche Boerse AG)YesCommon StockDEEURMay 2015
BCHP.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDNov 2021

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/28 00:00
End of Day Share Price2022/09/28 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.