One-glance verdict
Undervalued
$20.03 our estimate vs market $4.39
Wall Street consensus: $5.90 (-70.5% lower than our fair-value estimate)
78% below our estimate, below the bear case
Fundamentals snapshot
Agora, Inc.
API · NMS · Technology · Software - Application
Current price
$4.39
52-week range
$3.14 - $5.50
Market cap
$371.17M
Balance sheet
Healthy
-261.39x Concerning
Net cash $242.44M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
1 Risk
2 rewards · 1 risks
- Reward Revenue grew 5.9% last year.
- Reward Free cash flow was positive in 1/10 years.
- Risk Stock trades 331.4% above its 5-year average P/E.
What this company does
Agora, Inc.
Agora, Inc. provides the technology that lets apps and websites have live video, voice, and chat features, like in a video game or a social media app. Most of their money comes from businesses that pay to use this technology on a subscription basis, which means they get money regularly. This is important because it shows Agora has a steady stream of income, making it more predictable for investors.
How the company got here
Agora, Inc. was founded in 2013 and is headquartered in Santa Clara, California. The company was established to address the growing challenges developers faced in creating compatible solutions for hardware and software fragmentation. Agora pioneered the Real-Time Engagement Platform-as-a-Service (RTE-PaaS) model, aiming to empower developers to build innovative products with real-time engagement features. It operates globally under the Agora brand and focuses on the China market under the Shengwang brand. The company has grown to become a leader in its field, providing essential tools for real-time communication.
What it actually does
Agora provides a platform that allows developers to easily add real-time communication features to their applications. Think of it like a toolkit for building apps that need to have live video calls, voice chats, or instant messaging. Instead of developers having to build all this complex technology themselves, Agora offers ready-made pieces (APIs and SDKs) that they can plug into their own software. This helps them create richer user experiences, whether it's for social apps, online gaming, telehealth, or educational platforms. They also offer advanced features like AI-powered tools for more natural conversations.
Agora Brand (Global Market)
The Agora brand serves the global market, offering a comprehensive suite of Real-Time Engagement Platform-as-a-Service (RTE-PaaS) solutions. This includes tools for video calling, voice calling, live streaming, and chat. Developers worldwide use these services to embed interactive features into their applications, enhancing user engagement across various industries like gaming, education, and social networking. Agora also provides extensions such as analytics, interactive whiteboards, and real-time speech-to-text, making it a versatile platform for a wide range of real-time communication needs.
Shengwang Brand (China Market)
The Shengwang brand is specifically focused on the China market, providing similar Real-Time Engagement Platform-as-a-Service (RTE-PaaS) solutions tailored for that region. This allows businesses and developers within China to integrate real-time communication features like video, voice, and chat into their applications. By having a dedicated brand and presence in China, Agora can better address the specific market needs and regulatory landscape of the region, ensuring effective service delivery for its Chinese customers.
Conversational AI
Agora is increasingly focusing on Conversational AI, which involves building intelligent systems that can understand and respond to human language in real-time. This includes tools like their Conversational AI Engine and Convo AI Device Kit. These offerings allow developers to create AI-powered applications that can engage in natural-sounding conversations, recognize speech, and even understand visual cues. This segment is crucial for developing advanced applications like AI agents, smart devices, and interactive customer service tools, pushing the boundaries of human-computer interaction.
What management is betting on now
Agora's management is heavily investing in the expansion of its Conversational AI capabilities, aiming to make real-time engagement more intelligent and human-like. They are focused on developing advanced AI tools and platforms that enable seamless, natural interactions between users and applications, and even between AI agents themselves. This includes enhancing their existing offerings with features like multimodal interaction and visual understanding, and expanding their reach into new markets and industries. The company is also prioritizing global expansion and strengthening its technological infrastructure to ensure ultra-low latency and scalability for its services.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$-16.68M
FY2025 Q4
$25.53M
Revenue
$141.06M
Net income
$9.53M
Diluted EPS
0.02
Operating cash flow
$27.23M
Free cash flow
$25.53M
Fetching…
Sources
Revenue
$133.26M
Net income
$-42.73M
Diluted EPS
-0.11
Operating cash flow
$-14.13M
Free cash flow
$-16.68M
Fetching…
Sources
Is it cheap or expensive?
Fair value $20.03 vs current price $4.39
Wall Street consensus is the average analyst price target: $5.90 (-70.5% lower than our fair-value estimate).
Our most-likely fair value is $20.03 a share — about 356.2% above today's price of $4.39, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $242.4M - more cash than debt. Interest coverage -261.4x.
Net debt
$-242.44M
Interest coverage
-261.39x
Agora, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
API
BASELINE
Agora, Inc.
Total debt $101.40M Interest coverage -261.39x This is the baseline the peer rows are being compared against.
Total debt $533.16M Interest coverage -7.09x Neither company has much profit cushion over interest right now.
Total debt $843.26M Interest coverage 2.05x This peer still has a real interest-payment cushion, while API does not.
Total debt $1.05B Interest coverage 2.00x This peer still has a real interest-payment cushion, while API does not.
What you should know
The case for and against API
2 Rewards
1 Risk
Rewards
-
Revenue grew 5.9% last year.
-
Free cash flow was positive in 1/10 years.
Risks
-
Stock trades 331.4% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
43.90x
Forward P/E
-48.78x
P/B
0.66x
P/S
2.45x
EV/EBITDA
464.21x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
64.5%
Operating margin
-2.4%
Net margin
7.2%
ROE
2.0%
ROA
-0.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.18x
Current ratio
5.11x
Quick ratio
4.81x
Total debt
$101.40M
Total cash
$343.84M
Growth
How the business has been compounding
Revenue TTM
$576.52M
Revenue 5Y CAGR
-4.3%
EPS TTM
0.10
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-52.89M
Free CF TTM
$25.53M
FCF margin
4.4%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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