Is Society Pass a good stock of software to own?


Southeast Asian-focused e-commerce company, Society Pass Incorporated (SOPA), which is based at Carson City, Nevada, debuted on the stock exchange on November 9, 2021, going public via a traditional IPO. It raised $ 28.13 million in gross proceeds from the offering.

The company’s shares were 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 high of $ 77.34, which it hit on November 10, due to a Reddit-fueled short squeeze. SOPA’s losses widened in the third quarter. In addition, labor shortages and ongoing supply chain disruptions make the short-term outlook for the company bleak.

Click here to view our Software Industry Report

Here’s what could influence SOPA’s performance over the coming months:

Growth in results does not translate into improved results

For its fiscal third quarter, ended September 30, 2021, SOPA’s total revenue jumped 618.3% year-over-year to $ 83,534. The company’s total assets were $ 11.32 million for the period ended September 30, 2021, compared to $ 7.87 million for the period ended December 31, 2020. However, its gross loss was is widened 773.7% year-on-year to $ 75,902. In addition, its net loss amounted to $ 8.43 million, up 418.1% year-over-year.

Low profitability

In terms of rolling 12-month asset turnover rate, SOPA’s 0.01% is 97.6% lower than the industry average of 0.47%. In addition, the stock’s 12-month gross profit margin, ROTC and ROTA are negative compared to the respective industry averages of 51.66%, 4.58% and 3%.

Stretched evaluation

In terms of 12-month follow-up P / S, SOPA’s 922.21x is significantly higher than the industry average 1.68x. And its front EV / S 2,649.99x is significantly higher than the industry average 2.54x.

POWR ratings reflect grim prospects

SOPA has an overall F rating, which equates to a strong sale in our POWR odds system. POWR scores are calculated by considering 118 separate factors, each factor being weighted to an optimal degree.

Our proprietary scoring system also rates each stock against eight distinct categories. Among these categories, DRI has an F grade for quality, in line with its profitability ratios below those of the industry.

The stock has an F rating for value, which is in line with its higher valuation ratios than the industry.

Beyond what I stated above, we also assigned SOPA ratings for sentiment, stability, growth, and momentum. Get all SOPA assessments here.

SOPA is ranked n ° 155 out of 169 stocks in ranking F Software application industry.

Final result

SOPA is essentially in the development phase and is not yet profitable. And since the stock looks overvalued at the current price point, we believe it is best to avoid it now.

How does Pass Company (SOPA) compare to its peers?

Although SOPA has an overall POWR rating of F, one could consider investing in the following stocks of software – applications with an A (strong buy) rating: Open Text Corporation (OTEX), Progress Software Corporation (PRGS) and Commvault Systems, Inc. (CVLT).

Click here to view 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 is down -73.17%, compared to a 29.59% increase in the benchmark S&P 500 over the same period.

About the Author: Nimesh Jaiswal

Nimesh Jaiswal’s a passionate interest in the analysis and interpretation of 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 he takes while advising investors in his articles. Following…

More resources for actions in this article


About Joel Simmons

Check Also

Matterport: Still too early to hunt (NASDAQ:MTTR)

courtneyk/E+ via Getty Images Matterport (NASDAQ: MTTR) has a bright future in spatial data reshaping …