Company Overview
SOBR Safe, Inc. operates as a hardware and software company dedicated to providing non-invasive technologies for monitoring and identifying the presence of alcohol within the North American market. The enterprise offers specific solutions such as SOBRcheck and SOBRsure, which facilitate non-invasive alcohol monitoring and detection alongside biometric identity verification services. This technology-focused entity functions within the Technology sector, specifically classified under the Scientific & Technical Instruments industry, indicating its reliance on specialized equipment and software development rather than traditional manufacturing. The company's current scale is defined by a market capitalization of $1.30M, annual revenue of $364,164, and an employee count of 14. These valuation and revenue figures suggest that SOBR Safe, Inc. is a small-cap micro-cap entity with a relatively modest operational footprint compared to large-cap peers in the broader technology space. The limited revenue base relative to the market cap implies that the stock price is significantly influenced by investor sentiment rather than current cash flow generation, a common characteristic for early-stage or high-growth technology firms with specialized niche applications.
Financial Health
The company reported revenue of $364,164 for the trailing twelve months, yet recorded a net income of $-8,382,583 and an EBITDA of $-8,101,875. The substantial negative gap between the positive revenue figure and the deeply negative net income reveals a cost structure characterized by significant non-operating expenses or one-time charges that far outweigh operational profitability. Free cash flow stands at $-4,290,149, indicating that the company is currently burning cash, which limits its financial flexibility to fund operations without external capital injections or dilution. Profitability metrics are stark, with a gross margin of 27.9%, an operating margin of -2043.4%, and a profit margin of 0.0%, suggesting that while core product sales retain value, the overall business model has not yet achieved operational break-even or is facing severe overhead pressures. The balance sheet presents a complex picture with $4.73M in cash against $344,058 in debt, resulting in a debt-to-equity ratio of 5.76, which technically indicates a leveraged position despite the high cash balance, as the equity base is negative due to accumulated losses. However, the current ratio of 4.27 suggests strong short-term liquidity, meaning the company holds sufficient current assets to cover its current liabilities with a wide safety margin. Return on Equity is -206.1% and Return on Assets is -100.7%, metrics that reveal management has not yet generated positive returns on the capital deployed or shareholders' equity, reflecting the aggressive spending or early-stage nature of the business.
Valuation Assessment
Valuation multiples for SOBR Safe, Inc. show a P/E Ratio (TTM) of 0.00 and a Forward P/E of -2.09, a discrepancy driven by the massive losses that make traditional earnings-based valuation impossible and imply negative expected earnings trajectory for the foreseeable future. The price-to-book ratio is 0.17, indicating that the market values the company at a fraction of its book value, which often occurs when market capitalization is low relative to assets or when intangible value is not fully captured on the balance sheet. Alternative metrics such as the price-to-sales ratio of 3.58 and an EV/EBITDA of 0.42 provide different perspectives, suggesting the market is pricing the revenue potential heavily while acknowledging the lack of earnings power. Price metrics show a 52-week high of $7.70 and a 52-week low of $0.61, and based on the low market cap and high volatility, the current price sits in a range where it is trading significantly below the 52-week high while maintaining distance from the low, reflecting high speculative risk. The beta value is 0.17, which indicates that the stock's price volatility is substantially lower than the broader market, a rare characteristic for a micro-cap stock that may stem from low trading volume or limited analyst coverage.
Growth & Income
The company demonstrates revenue growth of 136.1% year-over-year, while earnings growth is listed as N/A due to the lack of prior period comparables or consistent profitability. The divergence between high revenue growth and the absence of earnings growth implies that top-line expansion is not yet translating into bottom-line profit, a typical phase for technology companies investing heavily in research and development or market penetration. Regarding income, the company does not pay a dividend, evidenced by a dividend yield of N/A and a payout ratio of 0.0%, meaning the company reinvests all available earnings back into the business rather than distributing cash to shareholders. This reinvestment strategy supports the overall growth profile, although the negative returns on equity and assets currently limit the efficiency of that reinvestment. The overall growth and income profile is defined by rapid revenue expansion coupled with significant cash burn and no current income distribution, positioning the asset as a pure growth play dependent on future profitability realization.