Amesite Inc., an artificial intelligence driven platform and course designer, provides online products in the United States. The company uses machine learning to offer a mass customized experience to learners. Its customers include businesses, universities and colleges, K-12 schools, and non-profit organizations. The company was incorporated in 2017 and is headquartered in Detroit, Michigan.

Amesite Inc.

Technology

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

AMST reported revenue of USD 0mn in the last 12 months, down 4% from FY24. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS fell 23% from FY24 to USD -1.36.

The stock's performance has been mixed in the past six months, with growth following a decline. There is no clear price trend compared to its global peers from the same sector and industry (as shown above). The stock has outperformed this peer group by 32ppts over past six months and grown 35ppts faster in the past month. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is 'fair'.

Historically, AMST has reported very poor net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled -4693.3%, a growth from -5384.1% in FY24. 

Amesite Inc. reported a return on equity (RoE) of -159.9% in the last 12 months, up from -164.9% in FY24. 

Another important profitability metric, return on assets (RoA), amounted to -130.3% in the last 12 months, an increase from -138.6% in FY24. 

In the last 12 months, the return on capital employed (RoCE) grew to -159.9%, below the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -15.4 in the past several years. This ratio implies a fragile shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

AMST has very poor trading liquidity. The average private investor can sell his common position in the stock in a single trading day. Liquidity is very unstable and is average on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. The stock has a tiny market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is high. Among the negative credit factors, we point to slow historical revenue growth, negligible return on capital, excessive margin volatility, and inadequate interest coverage. We note robust profitability and an favourable capital structure, among the positive credit factors. 

In highly turbulent market conditions, AMST is exceptionally volatile. In other words, the stock will be among the worst-performers in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be critical. 

In normal market circumstances, AMST is exceptionally volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change quite unpredictably. The stock's losses on its worst days (less than 1-5% of the time) will range from critical to immense. 

Based on key historical and expected multiples, the stock is fairly valued relative to its peers. In particular, the stock is 'cheap' on EV/EBITDA. 

Amesite Inc.

$ 2.97

1

Amesite Inc.

$ 2.97

1

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

$ 2.97

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