Company Overview
Creative Realities, Inc. operates as a technology provider specializing in digital marketing technology and solutions across the United States and international markets. The company focuses on delivering digital signage and media solutions designed to enhance communications within a wide-ranging variety of out-of-home environments. This enterprise functions within the Technology sector, specifically classified under the Software - Application industry, which positions it as a provider of scalable digital infrastructure for advertising and information display. The company's current market capitalization stands at $34.82M, supported by a trailing twelve-month revenue of $44.32M and an operational workforce of 146 employees. These valuation and revenue figures indicate that Creative Realities, Inc. operates as a mid-sized technology entity with a relatively small employee base relative to its revenue generation, suggesting a potentially high degree of automation or a focused service delivery model within the software application landscape.
Financial Health
The company reported a trailing twelve-month revenue of $44.32M alongside a net income of $-9,149,000, while generating an EBITDA of $1.25M. The significant gap between the positive revenue of $44.32M and the substantial net loss of $9.149M reveals a cost structure where operating expenses and taxes exceed earnings before interest and taxes, indicating heavy burn rates or high overhead costs that are not fully covered by gross profits. Free cash flow for the period was $-12,534,875, which signifies a negative cash generation capability that limits the company's immediate financial flexibility and reliance on external capital sources to fund operations. The gross margin stands at 43.1%, suggesting that the company retains a moderate portion of revenue after direct costs, yet this is insufficient to cover broader operational expenditures. The operating margin is -7.5% and the profit margin is -20.6%, indicating that the company is losing money on every dollar of sales at the operational level and on a net basis, respectively. On the balance sheet, the company holds $314,000 in cash against $23.97M in debt, resulting in a debt-to-equity ratio of 109.49, which characterizes the balance sheet as highly leveraged and reliant on debt financing. The current ratio is 1.03, indicating that the company's current assets barely cover its current liabilities, pointing to tight short-term liquidity conditions with minimal buffer against unexpected outflows. Return on Equity is -36.5% and Return on Assets is -3.5%, metrics that reveal management is currently destroying shareholder value and utilizing assets inefficiently to generate returns.
Valuation Assessment
The trailing P/E ratio is N/A due to the net loss, whereas the forward P/E is 15.76, implying that the market prices in a significant expected turnaround in earnings trajectory over the coming twelve months. The price-to-book ratio is 1.59, indicating that the market values the company at a premium of 59% over its net asset book value despite the negative earnings history. The price-to-sales ratio is 0.79, and the EV/EBITDA is 46.89, suggesting that investors are valuing the company based on revenue multiples and future earnings potential rather than current profitability, often seen in turnaround situations. The 52-week high is $4.00 and the 52-week low is $1.28, providing a trading range of $2.72. The current price sits between these extremes, reflecting the market's fluctuating assessment of the company's turnaround prospects and risk profile. The beta value is 1.48, which means the stock exhibits higher volatility than the broader market, moving 48% more aggressively than the market average during periods of price instability.
Growth & Income
Revenue growth year-over-year is -27.0%, while earnings growth year-over-year is N/A due to the negative earnings base. The contraction in revenue indicates a shrinking market share or declining demand, and since earnings are already negative, the earnings growth metric is not applicable in a traditional sense. The company does not pay dividends, as evidenced by a dividend yield of N/A and a payout ratio of 0.0%, meaning the company reinvests its limited free cash flow, if any, or seeks external financing to sustain operations rather than returning capital to shareholders. The overall growth and income profile is characterized by significant revenue decline and a complete absence of dividend income, presenting a high-risk scenario typical of distressed technology firms attempting to stabilize operations.