Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Is Society Pass a Good Software Stock to Own? By: StockNews.com December 30, 2021 at 07:12 AM EST Software company Society Pass (SOPA) has been making several positive, operational moves, but its losses widened in the third quarter. So, let’s discuss if it is wise to bet on the stock now. Read on.Southeast Asia-focused e-commerce company Society Pass Incorporated (SOPA), which is based in Carson City, Nev., made its stock market debut on Nov. 9, 2021, going public via a traditional IPO. It raised $28.13 million in gross proceeds from the offering. The company’s stock was recently added to the Russell 2000 index. And over the past month, the stock has gained 38.5% in price to close yesterday’s trading session at $13.74.However, SOPA is currently trading 82.2% below its all-time $77.34 price high, which it hit on Nov. 10, due to a Reddit-fueled short squeeze. SOPA’s losses widened in the third quarter. Furthermore, ongoing labor shortages and supply chain disruption make the company’s near-term prospects look bleak.Click here to check out our Software Industry ReportHere is what could influence SOPA’s performance in the upcoming months:Top Line Growth Does Not Translate into Bottom Line ImprovementFor its fiscal third quarter, ended September 30, 2021, SOPA’s total revenue surged 618.3% year-over-year to $83,534. The company’s total assets came in at $11.32 million for the period ended September 30, 2021, versus $7.87 million for the period ended December 31, 2020. However, its gross loss widened 773.7% year-over-year to $75,902. Also, its net loss came in at $8.43 million, up 418.1% year-over-year.Poor ProfitabilityIn terms of trailing-12-month asset turnover ratio, SOPA’s 0.01% is 97.6% lower than the 0.47% industry average. Furthermore, the stock’s trailing-12-month gross profit margin, ROTC, and ROTA are negative compared to the 51.66%, 4.58%, and 3% respective industry averages.Stretched ValuationIn terms of trailing-12-month P/S, SOPA’s 922.21x is significantly higher than the 1.68x industry average. And its 2,649.99x forward EV/S is significantly higher than the 2.54x industry average.POWR Ratings Reflect Bleak ProspectsSOPA has an overall F rating, which equates to a Strong Sell in our POWR Ratings system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree. Our proprietary rating system also evaluates each stock based on eight distinct categories. Among these categories, DRI has an F grade for Quality, in sync with its lower-than-industry profitability ratios.The stock has an F grade for Value, which is in sync with its higher-than-industry valuation ratios.Beyond what I have stated above, we have also given SOPA grades for Sentiment, Stability, Growth, and Momentum. Get all the SOPA ratings here.SOPA is ranked #155 of 169 stocks in the F-rated Software - Application industry.Bottom LineSOPA is essentially in its development stage and has yet to turn profitable. And since the stock looks overvalued at the current price level, we think it is best to avoid it now.How Does Society Pass (SOPA) Stack Up Against its Peers?While SOPA has an overall POWR Rating of F, one might want to consider investing in the following Software - Application stocks with an A (Strong Buy) rating: Open Text Corporation (OTEX), Progress Software Corporation (PRGS), and Commvault Systems, Inc. (CVLT).Click here to check out our Software Industry Report SOPA shares were trading at $12.96 per share on Thursday morning, down $0.78 (-5.68%). Year-to-date, SOPA has declined -73.17%, versus a 29.59% rise in the benchmark S&P 500 index during the same period.About the Author: Nimesh JaiswalNimesh Jaiswal's fervent interest in analyzing and interpreting financial data led him to a career as a financial analyst and journalist. The importance of financial statements in driving a stock’s price is the key approach that he follows while advising investors in his articles.More...The post Is Society Pass a Good Software Stock to Own? appeared first on StockNews.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Is Society Pass a Good Software Stock to Own? By: StockNews.com December 30, 2021 at 07:12 AM EST Software company Society Pass (SOPA) has been making several positive, operational moves, but its losses widened in the third quarter. So, let’s discuss if it is wise to bet on the stock now. Read on.Southeast Asia-focused e-commerce company Society Pass Incorporated (SOPA), which is based in Carson City, Nev., made its stock market debut on Nov. 9, 2021, going public via a traditional IPO. It raised $28.13 million in gross proceeds from the offering. The company’s stock was recently added to the Russell 2000 index. And over the past month, the stock has gained 38.5% in price to close yesterday’s trading session at $13.74.However, SOPA is currently trading 82.2% below its all-time $77.34 price high, which it hit on Nov. 10, due to a Reddit-fueled short squeeze. SOPA’s losses widened in the third quarter. Furthermore, ongoing labor shortages and supply chain disruption make the company’s near-term prospects look bleak.Click here to check out our Software Industry ReportHere is what could influence SOPA’s performance in the upcoming months:Top Line Growth Does Not Translate into Bottom Line ImprovementFor its fiscal third quarter, ended September 30, 2021, SOPA’s total revenue surged 618.3% year-over-year to $83,534. The company’s total assets came in at $11.32 million for the period ended September 30, 2021, versus $7.87 million for the period ended December 31, 2020. However, its gross loss widened 773.7% year-over-year to $75,902. Also, its net loss came in at $8.43 million, up 418.1% year-over-year.Poor ProfitabilityIn terms of trailing-12-month asset turnover ratio, SOPA’s 0.01% is 97.6% lower than the 0.47% industry average. Furthermore, the stock’s trailing-12-month gross profit margin, ROTC, and ROTA are negative compared to the 51.66%, 4.58%, and 3% respective industry averages.Stretched ValuationIn terms of trailing-12-month P/S, SOPA’s 922.21x is significantly higher than the 1.68x industry average. And its 2,649.99x forward EV/S is significantly higher than the 2.54x industry average.POWR Ratings Reflect Bleak ProspectsSOPA has an overall F rating, which equates to a Strong Sell in our POWR Ratings system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree. Our proprietary rating system also evaluates each stock based on eight distinct categories. Among these categories, DRI has an F grade for Quality, in sync with its lower-than-industry profitability ratios.The stock has an F grade for Value, which is in sync with its higher-than-industry valuation ratios.Beyond what I have stated above, we have also given SOPA grades for Sentiment, Stability, Growth, and Momentum. Get all the SOPA ratings here.SOPA is ranked #155 of 169 stocks in the F-rated Software - Application industry.Bottom LineSOPA is essentially in its development stage and has yet to turn profitable. And since the stock looks overvalued at the current price level, we think it is best to avoid it now.How Does Society Pass (SOPA) Stack Up Against its Peers?While SOPA has an overall POWR Rating of F, one might want to consider investing in the following Software - Application stocks with an A (Strong Buy) rating: Open Text Corporation (OTEX), Progress Software Corporation (PRGS), and Commvault Systems, Inc. (CVLT).Click here to check out our Software Industry Report SOPA shares were trading at $12.96 per share on Thursday morning, down $0.78 (-5.68%). Year-to-date, SOPA has declined -73.17%, versus a 29.59% rise in the benchmark S&P 500 index during the same period.About the Author: Nimesh JaiswalNimesh Jaiswal's fervent interest in analyzing and interpreting financial data led him to a career as a financial analyst and journalist. The importance of financial statements in driving a stock’s price is the key approach that he follows while advising investors in his articles.More...The post Is Society Pass a Good Software Stock to Own? appeared first on StockNews.com