One-glance verdict
Not enough data
Fair value unavailable
Not enough cash-flow history to value this one with our method.
Fundamentals snapshot
Neonode Inc.
NEON · NCM · Technology · Electronic Components
Current price
$0.92
52-week range
$0.72 - $3.94
Market cap
$15.46M
Balance sheet
Healthy
491.40x Strong cushion
Net cash $20.27M. 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 49.0% last year.
- Reward Returns 46.8% on equity, ahead of 83% of its peers.
- Risk Operating margin compressed from -93.2% to -486.6% over 3 years.
What this company does
Neonode Inc.
Neonode creates technology that lets devices "see" and react to touch, gestures, and objects, like a car's infotainment screen that you can control without touching it. The company primarily makes money from licensing (charging other companies a fee to use its patented technology) to manufacturers in the automotive and office equipment industries. This is important because if their technology becomes a standard feature in many cars or printers, it could provide a steady and growing source of income.
How the company got here
Founded in Sweden in 2001, Neonode started by making some of the world's first touchscreen mobile phones. After the company declared bankruptcy in 2008, it was restarted with a new focus on licensing (the business of selling the rights to use its technology to other companies) its patented touch technology. This technology was used in devices like Sony's e-readers. Over time, the company has shifted its focus again, now concentrating on advanced technologies for cars and other applications.
What it actually does
Neonode develops and sells the rights to two main types of technology. One allows for touch and even "contactless touch" on screens and surfaces, where you can interact without physically touching the screen. The other is a sophisticated camera-based software that can recognize and track people and objects, which is especially useful in cars for monitoring the driver's attention. Instead of manufacturing the final products themselves, they license their technology to other companies who then build it into their own products, like cars, printers, and self-service kiosks.
Licensing: zForce®
This is Neonode's original core technology that uses infrared light to create a touch-sensitive area on or even above a surface. Think of it as an invisible grid of light beams; when your finger or an object breaks the beams, the system knows exactly where you're pointing. Companies pay Neonode a license fee to use this zForce® technology in their products, which have included e-readers, printers, and automotive infotainment systems. While this has been a major part of the business, the company now considers it a "legacy" area and is focusing more on newer technology.
Licensing: MultiSensing®
This is Neonode's newer and more advanced technology, which it sees as its main area for future growth. MultiSensing® is a software platform that uses cameras and artificial intelligence to understand what's happening in a scene, like inside a car. For example, it can monitor a driver to detect drowsiness or if they are distracted by their phone to improve safety. Automotive companies license this software to build driver and in-cabin monitoring systems into their vehicles.
What management is betting on now
The company's leadership is now almost entirely focused on licensing its MultiSensing® technology to the automotive industry. They made a strategic decision to phase out their business of selling physical sensor modules and are concentrating resources on selling software licenses. Management believes that the growing demand for driver and in-cabin safety features in cars, driven by regulations and the move toward self-driving vehicles, creates a large opportunity. Their goal is to get their technology integrated into more vehicles by partnering with major car manufacturers and their suppliers.
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 Q3
$-1.29M
FY2024 Q4
$-1.16M
FY2025 Q1
$-1.40M
FY2025 Q2
$-1.77M
FY2025 Q3
$-1.60M
FY2025 Q4
$-5.62M
FY2026 Q1
$-2.12M
FY2026 Q2
$-1.90M
Revenue
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Net income
$-2.11M
Diluted EPS
—
Operating cash flow
$-1.90M
Free cash flow
$-1.90M
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Sources
Revenue
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Net income
$-1.86M
Diluted EPS
—
Operating cash flow
$-2.11M
Free cash flow
$-2.12M
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Sources
Revenue
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Net income
$-2.09M
Diluted EPS
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Operating cash flow
$-5.62M
Free cash flow
$-5.62M
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Sources
Revenue
—
Net income
$14.18M
Diluted EPS
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Operating cash flow
$-1.53M
Free cash flow
$-1.60M
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Sources
Revenue
$599.00K
Net income
$-1.87M
Diluted EPS
-0.11
Operating cash flow
$-1.75M
Free cash flow
$-1.77M
Fetching…
Sources
Revenue
$513.00K
Net income
$-1.73M
Diluted EPS
-0.10
Operating cash flow
$-1.36M
Free cash flow
$-1.40M
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Sources
Revenue
$2.09M
Net income
$-1.60M
Diluted EPS
-0.09
Operating cash flow
$-1.16M
Free cash flow
$-1.16M
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Sources
Revenue
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Net income
$-1.09M
Diluted EPS
-0.07
Operating cash flow
$-1.29M
Free cash flow
$-1.29M
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Sources
Is it cheap or expensive?
Fair value — vs current price $0.92
We couldn't calculate a fair value right now.
Is it drowning in debt?
Healthy
Net cash $20.3M - more cash than debt. Interest coverage 491.4x.
Net debt
$-20.27M
Interest coverage
491.40x
Neonode Inc.'s profit covers its interest bill about 491.4 times over. which is stronger than every peer shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
NEON
BASELINE
Neonode Inc.
Total debt $1.05M Interest coverage 491.40x This is the baseline the peer rows are being compared against.
Total debt $45.45M Interest coverage -3.74x -100% vs NEON This peer has almost no interest-payment cushion compared with NEON.
Total debt $2.53M Interest coverage -1,162.27x -100% vs NEON This peer has almost no interest-payment cushion compared with NEON.
What you should know
The case for and against NEON
2 Rewards
1 Risk
Rewards
-
Revenue grew 49.0% last year.
-
Returns 46.8% on equity, ahead of 83% of its peers.
Risks
-
Operating margin compressed from -93.2% to -486.6% over 3 years.
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)
1.92x
Forward P/E
-2.42x
P/B
0.74x
P/S
7.57x
EV/EBITDA
0.39x
PEG ratio
0.37x
Profitability
How much profit each dollar creates
Gross margin
98.8%
Operating margin
-486.6%
Net margin
397.8%
ROE
46.8%
ROA
-39.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.05x
Current ratio
10.86x
Quick ratio
10.55x
Total debt
$1.05M
Total cash
$21.32M
Growth
How the business has been compounding
Revenue TTM
$4.63M
Revenue 5Y CAGR
-15.1%
EPS TTM
0.48
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-11.15M
Free CF TTM
$-10.35M
FCF margin
-223.4%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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