Company Overview
My Size, Inc. operates as an omnichannel e-commerce platform dedicated to providing AI-driven software as a service measurement solutions specifically for fashion e-commerce companies within the markets of Israel and Spain. The company functions within the Technology sector, classified under the Software - Application industry, which positions it as a provider of specialized digital infrastructure rather than a traditional retailer. The firm currently employs 13 individuals to deliver its services, reflecting a lean organizational structure typical of early-stage technology ventures. With a market capitalization of $2.06M and annual revenue of $7.51M, the company represents a micro-cap entity with limited scale relative to large-cap competitors. These valuation and revenue figures indicate that My Size, Inc. is in a developmental phase where top-line growth is prioritized over profitability, suggesting the business is still establishing its market footprint and operational efficiency in the niche application software space.
Financial Health
My Size, Inc. reported revenue of $7.51M for the trailing twelve months, yet recorded a net income of $-3,560,000 and an EBITDA of $-3,244,000, revealing a significant gap between top-line generation and bottom-line profitability. This disparity indicates a cost structure characterized by high operating expenses, likely driven by research and development costs or sales and marketing expenditures common in the software application industry. The company generated free cash flow of $-1,847,000, which suggests a burn rate that must be managed carefully to ensure financial flexibility as the firm scales its operations. Analyzing the margins shows a gross margin of 38.7%, which implies a moderate level of efficiency in producing or acquiring the software solution relative to sales revenue. However, the operating margin stands at -52.7% and the profit margin is -47.4%, highlighting substantial overhead costs that are currently outweighing gross profits. On the balance sheet, the company holds $4.49M in cash against $946,000 in debt, resulting in a debt-to-equity ratio of 12.97, which indicates a leveraged position despite the nominal debt load. The current ratio of 2.73 suggests that the company has more than double the current assets necessary to cover its short-term liabilities, pointing to adequate short-term liquidity. Furthermore, the return on equity is -60.6% and the return on assets is -23.7%, metrics that reveal that management has not yet achieved positive returns on the capital invested in the business, a typical characteristic of growth-stage software companies.
Valuation Assessment
The valuation metrics present a complex picture given the company's lack of profitability, with a P/E Ratio (TTM) listed as N/A and a Forward P/E of -0.22. The discrepancy between the trailing and forward P/E ratios, where the forward figure is negative, implies that the market expects earnings to remain negative or for the company to continue operating at a loss in the near term. The price-to-book ratio is 0.31, indicating that the stock trades at a significant discount to its book value, which often occurs when investors price in the risk of a loss-making entity or potential asset liquidation. Alternative valuation measures such as the price-to-sales ratio of 0.27 and an EV/EBITDA of 0.39 suggest that the market is valuing the company primarily on its revenue generation potential rather than current earnings power. The stock has traded between a 52-week high of $3.04 and a 52-week low of $0.50, with the current price sitting at a point that reflects the high volatility inherent in small-cap technology stocks. The beta value of -0.23 indicates that the stock price moves inversely to the broader market, suggesting a low correlation with general market trends and a unique sensitivity to specific sector factors or company-specific developments.
Growth & Income
My Size, Inc. demonstrated robust top-line expansion with a revenue growth rate of 39.9% year-over-year, while earnings growth is listed as N/A due to the company's continued net losses. Since the earnings growth rate is not available as a positive figure, it is evident that earnings are not growing faster than revenue in a traditional sense, as the company has not yet transitioned to profitability. As a non-dividend payer with a dividend yield of N/A and a payout ratio of 0.0%, the company does not distribute cash to shareholders but instead retains all earnings to fund its operations and growth initiatives. This reinvestment strategy is typical for software-as-a-service businesses that prioritize expanding their product offerings and customer base over returning capital to investors. The overall growth and income profile indicates a high-risk, high-potential growth stock that relies entirely on future operational improvements to convert its rapid revenue expansion into sustainable profitability.