RE:Comparing DM to other AI and Healthcare StocksGreat job in pulling this detailed analysis together. DM is a classic mispriced stock by the market...for whatever reasons. This is a great opportunity for new investors like myself to pick up cheap shares....while it last. The spark will come....I have seen this scenario many times before. Think it was Warren Buffett who said he likes to buy mispriced stocks....please don't quote me on this..haha Who knows maybe DM will deliver a very good Christmas present this year.
Investor10X wrote: Should be an interesting few weeks. Q3 financials out this week or next and perhaps more AI news. Should continue the current pace of a $60 million run rate for the year. $60 million x 10x valuation = $600 million/355 million shares outstanding = $1.69 ($600 million/425 million shares fully diluted = $1.41).
DM had already hit $30 million for revenue for the year in Q2, one would think the stock should have at least been priced at half that number which would be a quarter of the $60 million run rate for the year. ($15 million x 10 = $0.42). $15 million would currently be the money the company has in bank when last we heard.
The company is proving out the revenue for the year with clean books, money in the bank, MediCall and an expanding AI sector into various verticals. I think it's fair to look at DM based on a minimum $60 million run rate for the year.
1x valuation = $0.17 (fully diluted = $0.14)
2x valuation = $0.34 (fully diluted = $0.28)
3x valuation = $0.51 (fully diluted = $0.42)
4x valuation = $0.68 (fully diluted = $0.56)
5x valuation = $0.85 (fully diluted = $0.71)
6x valuation = $1.11 (fully diluted = $0.85)
7x valuation = $1.29 (fully diluted = $0.99)
8x valuation = $1.48 (fully diluted = $1.13)
9x valuation = $1.66 (fully diluted = $1.27)
10x valuation = $1.69 (fully diluted = $1.41)
Other companies from health and AI sectors
Empower Clinics - CBDT (Healthcare)
Current share price: $0.335
Market Cap: $112 milion
Q2 revenue: $2.8 million
Currently trading at 3.98x revenue
EPS (-0.24) However, this is due to warrants being exercised - mostly a paper loss, not real cash loss.
Therma Bright - THRM (Healthcare)
Current share price: $0.385
Market Cap: $84 million
Revenue: $3 521 (9 months ended April, 2021)
Currently trading at 24055x revenue (Yes, that is correct, 24 thousand fifty-five times!)
EPS (-0.05)
CoudMD - DOC (Healthcare)
Current share price: $1.36
Market Cap: $316 million
Q2 revenue: $2.8 million
Currently trading at 113x revenue
EPS (-0.12)
Fobi AI - FOBI (AI)
Current share price: $1.53
Market Cap: $220 million
Revenue: $10 016 (9 months ended April, 2021)
Currently trading at 22149x revenue
(Yes, this is also correct based on the most updated infomation I could find on their revenue. I'm sure their revenue is higher now, but there was no information for Q2 on Sedar)
EPS (-0.09)
The next 5 are condsidered the top junior AI companies in an article I found Nov. 4th, 2021
DeepSpatial - DSAI (AI)
Current share price: $0.16
Market Cap: $15 million
Q2 revenue: no revenue, operating at a loss ($1.2 million cash on hand - I used this)
Currently trading at 12.5x cash on hand (i.e. this number should be higher, with no revenue)
EPS (-0.03)
Zoomd Tech - ZOMD (AI)
Current share price: $0.59
Market Cap: $56 million
Q2 revenue: 18 million
Currently trading at 3.1x revenue
EPS (-0.04)
Certive Solutions - CBP (AI)
Current share price: $0.055
Market Cap: $7.89 million
Q2 revenue: $263 836
Currently trading at 30x revenue
EPS (-0.01)
Mobilum Technologies - MBLM (AI)
Current share price: $0.24
Market Cap: $37.53 million
Q2 revenue: Operating at a loss ($6.9 million cash on hand - I'll use the cash on hand)
Currently trading at 5.4x cash on hand (i.e. this number should be far higher, with no revenue)
EPS (-0.12)
Plurilock Security - PLUR (AI)
Current share price: $0.50
Market Cap: $35 million
Q2 revenue: $8.6 million
Currently trading at 4x revenue
EPS (-0.15)
I don't know what else to say. Comparing DM to other AI or healthcare stocks shows that DM is so far undervalued that the stock price has no other direction, but to go up. DM is the only one with a positive EPS and yet based on the revenue alone trades far below the other stocks in valuation. DM also has a clean balance sheet and money in the bank. A number of those stocks are trading far beyond their current revenue stream or at least the most up-to-date revenue I could find on sedar (i.e. THRM and FOBI). And for others where I could not find a revenue number I was generous to use their cash on hand instead.