authID, based in Denver, Colorado, specializes in secure mobile and biometric identity solutions, employing 22 staff since its IPO on February 3, 2015. Its Verified platform offers rapid biometric identity verification and authentication to prevent cybercrime.
Based on our analysis, authID has been rated as overvalued with a score of 1 out of 5 stars. Several key financial ratios indicate significant challenges that contribute to this rating.
The net profit margin for authID stands at -10,195.17%, which reflects the company's struggle to generate profit relative to its revenue. This figure is substantially worse than the sector average of -18.55%, suggesting that authID is incurring significantly higher losses compared to its peers.
Additionally, the return on equity (ROE) for authID is reported at -147.00%, indicating that the company is not generating any positive returns for its shareholders. This figure is concerning when juxtaposed with the sector average of -25.15%, highlighting a severe underperformance in leveraging shareholder equity for profit generation.
Furthermore, the return on assets (ROA) for authID is -125.88%, which measures how effectively the company is using its assets to generate earnings. This performance is markedly worse than the sector average of -14.10%, suggesting inefficiencies in asset utilization that could deter potential investors.
In summary, authID's financial ratios reveal a company facing significant operational difficulties, which are reflected in its overvalued rating. The substantial discrepancies between authID and sector averages across these key metrics warrant caution for potential investors.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
📡️ Information Technology
Overvalued
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