Panoramica dell'azienda
Creative Realities, Inc. operates as a provider of digital marketing technology and solutions, serving both the United States market and international territories. The firm specializes in delivering digital signage and media solutions designed to enhance communications across a wide-ranging variety of out-of-home environments. This business model positions the entity within the Technology sector, specifically under the Software - Application industry classification, which implies a reliance on intellectual property, proprietary software development, and continuous technological innovation to maintain competitive relevance. The company currently commands a market capitalization of $36.40M and generated annual revenue of $44.32M TTM, employing a workforce of 146 individuals. These valuation and revenue figures indicate that the organization operates as a mid-sized enterprise within its niche, possessing a capitalization that reflects its current operational scale rather than established industry dominance, while the revenue base suggests a significant but potentially volatile revenue stream typical of technology firms in the digital signage space.
Salute finanziaria
The company reported a revenue of $44.32M TTM alongside a net income of $-9,149,000, revealing a substantial gap between top-line generation and bottom-line profitability that highlights a challenging cost structure where expenses significantly outpace earnings. This negative net income is further compounded by an EBITDA of $1.25M, indicating that while operating cash generation before interest and taxes remains slightly positive, the overall profitability is eroded by non-operating factors or significant depreciation charges. The firm's free cash flow stands at $-12,534,875, a figure that signals a lack of immediate financial flexibility and suggests that capital expenditures or working capital requirements are draining liquidity faster than operations can replenish it. Margin analysis shows a gross margin of 43.1%, which indicates healthy pricing power on core products, contrasted sharply by an operating margin of -7.5% and a profit margin of -20.6% that reflect high overhead costs or significant other income/expense items impacting the final result. Regarding balance sheet leverage, total cash of $314,000 is heavily outweighed by total debt of $23.97M, resulting in a debt-to-equity ratio of 109.49 that characterizes the company as highly leveraged and sensitive to interest rate fluctuations. Liquidity is constrained by a current ratio of 1.03, which suggests that current assets barely cover current liabilities, leaving little buffer for unexpected short-term obligations. Finally, the return on equity is -36.5% and the return on assets is -3.5%, metrics that reveal that management has been ineffective at generating positive returns on the shareholders' capital and the asset base, a common characteristic for growth-stage companies that are currently burning cash to achieve future market penetration.
Valutazione del valore
Valuation metrics present a complex picture, with a trailing P/E ratio listed as N/A due to the lack of recent earnings, while the forward P/E is 16.48, implying that the market is pricing in a significant turnaround or substantial future earnings growth to justify the current stock price. The price-to-book ratio of 1.66 indicates that the market is valuing the company at a 66% premium over its book value, suggesting investors anticipate future growth potential that exceeds the company's current tangible asset base. Alternative valuation multiples include a price-to-sales ratio of 0.82 and an EV/EBITDA of 48.15; the high EV/EBITDA multiple relative to the low price-to-sales suggests that the market is willing to pay a steep premium for earnings that are currently suppressed by losses, whereas the sub-one price-to-sales ratio highlights the revenue-driven nature of the valuation in the absence of profitability. Price action over the last year has seen the stock trade between a 52-week high of $4.00 and a 52-week low of $1.28, meaning the current valuation sits within this historical range and reflects significant volatility. The stock exhibits a beta of 1.44, indicating that its price volatility is approximately 44% higher than that of the broader market, which aligns with the high-risk profile associated with its leveraged balance sheet and unprofitable status.
Growth & Income
The revenue growth rate year-over-year is -27.0%, while the earnings growth rate is N/A, indicating that the company is currently contracting rather than expanding its revenue base. In the absence of earnings growth data, the contraction in revenue suggests a challenging market environment or a loss of market share, and since there are no earnings to grow, the company is not outperforming in terms of profitability expansion. As a non-dividend payer, the company does not distribute a dividend yield or maintain a payout ratio, instead opting to reinvest its limited earnings or existing capital reserves into operations, research, and development to fuel future growth rather than returning cash to shareholders. This reinvestment strategy is typical for technology firms in distress or early growth phases, where survival and market positioning take precedence over income generation. The overall growth and income profile is characterized by negative revenue momentum, significant cash burn, and a lack of dividend distribution, presenting a high-risk scenario where the company relies on external financing or future operational improvements to reverse its current negative trajectory.