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. Market expects EPS to reach USD 1.32 in FY25.

Over the last six months, the stock performance has varied, with an increase following a drop. The stock's price trend wasn't definitive when matched against its global counterparts from the same sector and industry (as depicted above). Within the past six months, its performance has trailed this peer group's by 16ppts and its growth accelerated by 14ppts in the past month. This is equally valid for peers from the same country and industry. Given the stock's valuation versus its peers, its total price movement is neither favourable nor unfavourable.

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. 

In the last 12 months, the return on capital employed (RoCE) grew to -159.9%, below the peers. The consensus estimate for FY25 for RoCE is -373.2%, again behind the peers. 

Amesite Inc. reported a return on equity (RoE) of -159.9% in the last 12 months, up from -164.9% in FY24. The market consensus projects an RoE of -371.7% in FY25, again behind its peers. 

Another important profitability metric, return on assets (RoA), amounted to -130.3% in the last 12 months, an increase from -138.6% in FY24. The market analysts predict that RoA will be -217.0% in FY25, again weaker than its peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -14.9 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 remains mildly favourable 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. 

Considering past and projected metrics, the stock is 'cheaper' than its peers. Specifically, the stock is 'cheap' on P/E, undervalued on EV/EBITD. 

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Amesite Inc.

$ 2.93

3

Amesite Inc.

$ 2.93

3

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Risk factor

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$ 2.93

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