Latest Ratios: P/E Ratio -7.4x · EV/EBITDA 46.5x · ROE -13.0%. (2015–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $71M | $102M | $166M | $317M | $417M | $344M | $442M | $302M | $330M | $87M | — |
| Enterprise Value | $61M | $93M | $159M | $321M | $410M | $331M | $427M | $278M | $319M | $68M | — |
| P/E Ratio → | -7.39 | — | — | — | 65.06 | — | 377.00 | 170.00 | — | — | — |
| P/S Ratio | 0.68 | 0.98 | 1.63 | 3.42 | 5.14 | 5.91 | 9.67 | 7.41 | 9.48 | 3.66 | — |
| P/B Ratio | 0.97 | 1.42 | 2.29 | 4.24 | 6.84 | 10.17 | 12.89 | 11.09 | 19.22 | 7.16 | — |
| P/FCF | 14.63 | 21.13 | 10.51 | 58.11 | 329.94 | 178.80 | 62.48 | 34.39 | — | — | — |
| P/OCF | 7.62 | 11.01 | 7.47 | 28.98 | 34.20 | 35.01 | 39.45 | 22.06 | — | 25.71 | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.89 | 1.56 | 3.46 | 5.06 | 5.69 | 9.34 | 6.82 | 9.19 | 2.84 | — |
| EV / EBITDA | 46.51 | 70.51 | 71.79 | 34.17 | 24.17 | 119.88 | 62.09 | 42.29 | 236.71 | — | — |
| EV / EBIT | — | — | — | — | — | — | 279.72 | 158.30 | — | — | — |
| EV / FCF | — | 19.11 | 10.06 | 58.81 | 324.35 | 171.93 | 60.35 | 31.67 | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 54.4% | 54.4% | 57.3% | 57.0% | 57.8% | 55.9% | 59.5% | 59.7% | 55.3% | 48.8% | 38.4% |
| Operating Margin | -8.2% | -8.2% | -7.7% | -1.3% | 9.6% | -7.0% | 2.8% | 3.9% | -7.4% | -18.2% | -32.1% |
| Net Profit Margin | -9.0% | -9.0% | -9.0% | -2.9% | 7.9% | -7.6% | 2.7% | 4.4% | -7.8% | -42.0% | -44.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -13.0% | -13.0% | -12.5% | -4.0% | 13.5% | -13.0% | 4.0% | 8.1% | -18.6% | -82.1% | — |
| ROA | -6.9% | -6.9% | -6.6% | -2.1% | 6.5% | -6.4% | 1.9% | 3.3% | -6.5% | -38.2% | -44.7% |
| ROIC | -10.0% | -10.0% | -8.2% | -1.4% | 15.6% | -15.3% | 8.6% | 23.4% | -27.8% | — | — |
| ROCE | -10.7% | -10.7% | -9.7% | -1.6% | 14.5% | -11.1% | 4.1% | 6.9% | -15.4% | -54.6% | -172.4% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.08 | 0.08 | 0.08 | 0.13 | 0.06 | 0.07 | 0.03 | 0.02 | — | — | — |
| Debt / EBITDA | 4.57 | 4.57 | 2.73 | 1.01 | 0.20 | 0.88 | 0.14 | 0.09 | — | — | — |
| Net Debt / Equity | — | -0.14 | -0.10 | 0.05 | -0.12 | -0.39 | -0.44 | -0.88 | -0.60 | -1.61 | — |
| Net Debt / EBITDA | -7.46 | -7.46 | -3.22 | 0.40 | -0.42 | -4.79 | -2.19 | -3.64 | -7.57 | — | — |
| Debt / FCF | — | -2.02 | -0.45 | 0.70 | -5.59 | -6.87 | -2.13 | -2.73 | — | — | — |
| Interest Coverage | -488.84 | -488.84 | -48.49 | -30.54 | — | — | — | — | -31.32 | -3.89 | -3.78 |
Net cash position: cash ($16M) exceeds total debt ($6M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.85 | 0.85 | 0.78 | 0.65 | 0.83 | 0.99 | 1.01 | 1.24 | 0.94 | 1.15 | 0.45 |
| Quick Ratio | 0.85 | 0.85 | 0.78 | 0.65 | 0.83 | 0.99 | 1.01 | 1.24 | 0.89 | 1.11 | 0.42 |
| Cash Ratio | 0.28 | 0.28 | 0.24 | 0.10 | 0.20 | 0.45 | 0.52 | 0.76 | 0.35 | 0.92 | 0.25 |
| Asset Turnover | — | 0.77 | 0.75 | 0.66 | 0.66 | 0.80 | 0.69 | 0.67 | 0.74 | 0.66 | 0.96 |
| Inventory Turnover | — | — | — | — | — | — | — | — | 10.21 | 15.49 | 18.65 |
| Days Sales Outstanding | — | 100.15 | 91.09 | 120.86 | 139.49 | 101.26 | 103.12 | 124.34 | 160.34 | 60.33 | 56.73 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | 1.5% | — | 0.3% | 0.6% | — | — | — |
| FCF Yield | 6.8% | 4.7% | 9.5% | 1.7% | 0.3% | 0.6% | 1.6% | 2.9% | — | — | — |
| Buyback Yield | 4.2% | 2.9% | 3.6% | 1.8% | 0.7% | 1.0% | 0.4% | 2.2% | 0.0% | 0.0% | — |
| Total Shareholder Yield | 4.2% | 2.9% | 3.6% | 1.8% | 0.7% | 1.0% | 0.4% | 2.2% | 0.0% | 0.0% | — |
| Shares Outstanding | — | $13M | $13M | $12M | $12M | $12M | $12M | $12M | $11M | $6M | $6M |
Includes 30+ ratios · 11 years · Updated daily
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Quick answers to the most common questions about buying SSTI stock.
SoundThinking, Inc.'s current P/E ratio is -7.4x. The historical average is 117.5x.
SoundThinking, Inc.'s current EV/EBITDA is 46.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 50.8x.
SoundThinking, Inc.'s return on equity (ROE) is -13.0%. The historical average is -13.1%.
Based on historical data, SoundThinking, Inc. is trading at a P/E of -7.4x. Compare with industry peers and growth rates for a complete picture.
SoundThinking, Inc. has 54.4% gross margin and -8.2% operating margin.
SoundThinking, Inc.'s Debt/EBITDA ratio is 4.6x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Municipal contract concentration risk
Metrics are mathematically derived from official filings.
Valuation Disconnects From Operational Reality
As reported in recent financial filings, SoundThinking trades at an EV/EBITDA multiple of 73.55, which appears disconnected from its negative growth trajectory and suggests that the market may be pricing in speculative long-term optionality rather than the current reality of its contracting municipal software business model.
The elevated EV/EBITDA multiple relative to the company's lack of profitability indicates that investors are likely valuing the firm as a high-growth SaaS entity despite the stagnant revenue performance. This valuation gap warrants caution, as the current pricing implies a significant future margin expansion that remains unsupported by the company's recent operational performance.
Capital Efficiency Remains Structurally Impaired
Based on the company's reported figures, ROIC has deteriorated to -7.9% in 2026Q1, reflecting a persistent inability to generate positive returns on invested capital as the firm struggles to scale its hardware-intensive acoustic sensor network while simultaneously absorbing the costs of its recent software-focused acquisitions.
The consistent decline in ROIC over the last ten quarters suggests that the company's capital allocation strategy is failing to create shareholder value. Investors should monitor whether the shift toward software-only tools like CaseBuilder can eventually reverse this trend, or if the underlying cost structure of the physical infrastructure will continue to drag down overall returns.
Working Capital Cycles Signal Inefficiency
According to quarterly financial statements, SoundThinking's DSO has fluctuated significantly, reaching 94 days in 2026Q1, which highlights the inherent difficulty in collecting payments from municipal clients and suggests that the company lacks the leverage to optimize its cash conversion cycle effectively within its current business model.
The extended collection periods are indicative of the bureaucratic nature of municipal contracting, which creates a structural drag on liquidity. This inefficiency forces the company to rely more heavily on its balance sheet to fund operations, further complicating the path to sustainable free cash flow generation.
Misapplication of SaaS Valuation Metrics
As evidenced by the company's financial data, the common practice of applying pure-play SaaS valuation multiples to SoundThinking obscures the reality that its business model is fundamentally constrained by the high maintenance costs of its physical sensor mesh, which is not present in traditional software-only firms.
Analysts frequently misapply standard SaaS metrics like EV/Sales without adjusting for the hardware-as-a-service reality, leading to an overestimation of the company's potential margin profile. A more appropriate approach would involve evaluating the company as a hybrid utility-software provider, focusing on the unit economics of sensor deployment rather than just recurring revenue growth.