SoundThinking, Inc.
$7.60
+0.41%SoundThinking, Inc., a public safety technology company, provides data-driven solutions and strategic advisory services for law enforcement, security teams, and civic leadership. Its SafetySmart platform that includes data-driven tools comprising ShotSpotter, an outdoor gunshot detection, location, and alerting system; CrimeTracer, a law enforcement search engine that enables investigators to search through criminal justice records from across jurisdictions to generate tactical leads and solve cases; CaseBuilder, an investigative management system for tracking, reporting, and collaborating on cases; ResourceRouter, a software that directs deployment of patrol and community anti-violence resources; PlateRanger powered by Rekor, an advanced license plate recognition (ALPR) and vehicle identification solution; and SafePointe, an artificial intelligence-based weapons detection system. The company also offers ShotSpotter for Campus and ShotSpotter for Corporate, to universities, corporate campuses, and key infrastructure centers to mitigate risk and enhance security by notifying authorities of outdoor gunfire incidents and save critical minutes for first responders to arrive. It sells its solutions through its direct sales teams. The company was formerly known as ShotSpotter, Inc. and changed its name to SoundThinking, Inc. in April 2023. SoundThinking, Inc. was founded in 1996 and is headquartered in Fremont, California.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -10.3).
Valuation inputs: P/E -10.3, earnings yield N/A, momentum +0.4%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -13.1%, ROIC -9.8%).
Profitability stack: net margin -9.0%, ROE -13.1%, ROIC -9.8%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +46.8%, momentum +0.4%, net margin -9.0%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
SoundThinking, Inc. Market vs Earnings Trajectory
Loading price and EPS data...
SoundThinking, Inc. Fair Value Envelope
SoundThinking, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Operating losses indicate the core business is unprofitable. Requires restructuring or revenue growth.
Net Profit Margin
Net losses indicate the company is burning cash. Sustainability depends on path to profitability.
Profitability Insight
Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.
SoundThinking, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
CapEx Intensity
Capital-intensive operations require significant reinvestment. Monitor whether CapEx is maintenance or growth-oriented.
FCF Growth Trend
Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.
Working Capital Impact
Significant working capital drain. Growth may be consuming cash through inventory buildup or receivables extension—monitor closely.
Cash Flow Quality Insight
Deteriorating cash generation: Both declining FCF and weak conversion rate signal fundamental challenges. Investigate margin pressure, rising costs, or working capital issues.
SoundThinking, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Warning: Liquidity concerns. Current assets may not be sufficient to cover short-term obligations.
Debt-to-Equity Ratio
Balanced capital structure with moderate leverage. Equity exceeds debt, suggesting healthy financial stability.
Working Capital
Negative working capital indicates short-term liabilities exceed short-term assets—potential liquidity stress.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
Financial Health Insight
Negative working capital but strong cash position suggests an efficient operating model (common in retail/subscription businesses) rather than financial distress.
SoundThinking, Inc. Street Expectations Map
Wall Street analysts project that SSTI stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 10.00, with estimates ranging from a low of 10.00 to a high of 10.00.
The consensus 1-year price target stands at 10.00, with estimates ranging from a low of 10.00 to a high of 10.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.
Analyst Conviction
Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.
Market Sentiment Insight
Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.
SoundThinking, Inc. Insider Positioning
During the last 12 months, insiders have purchased $5.01M and sold $455K worth of SSTI shares, resulting in $4.55M of net buying activity.
3 Months
0
0.00
0
0.00
+0
+$0
3-6 Months
715.9K
5.01M
0
0.00
+5.0M
+$5.01M
6-9 Months
0
0.00
2.8K
16.72K
-17K
-$17K
9-12 Months
0
0.00
37.1K
438.22K
-438K
-$438K
Top Buyers
Veradace Partners Lp
10 Percent Owner
$5.01M
Top Sellers
Clark Ralph A.
Director, Officer: President And Ceo
$381K
Golzadeh Nasim
Officer: See Remarks
$74K
Insider Activity Analysis
Net Insider Sentiment
Strong bullish signal with $4.55M net buying. Insiders are aggressively accumulating shares, suggesting significant confidence in future prospects.
Buy/Sell Ratio
Exceptional buy/sell ratio. Buying dramatically outweighs selling—one of the strongest possible insider signals.
Insider Participation
2 insider sellers vs. 1 buyers. More insiders selling than buying suggests cautious or negative sentiment.
No Dividend Yield Data
SSTI has not reported any dividend yield values in the available annual periods.
ssti Dividend History
Learning Layer
Related Guides
Build conviction on SSTI by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.