SoundThinking (SSTI) Stock Analysis & Winston Score

SoundThinking makes software and sensor technology that helps police departments detect and locate gunshots in real time. Its main product, ShotSpotter, uses microphones placed around a city to pinpoint where a gun was fired and alert officers within seconds. The company sells primarily to local governments and law enforcement agencies across the United States.

SoundThinking earns most of its revenue through multi-year subscription contracts with cities, which provides somewhat predictable recurring income. It operates mainly in the U.S., with a small number of international deployments, and its installed sensor networks create switching costs that make it harder for cities to change providers. However, the company is currently unprofitable, and its biggest risk is contract cancellations — several major cities have ended or debated ending their ShotSpotter agreements due to concerns about cost and effectiveness, which puts pressure on revenue growth.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-14.7% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-350.0% YoY

YoY Growth Rate

Earnings declining

Insider Activity

46.1%ownership

↑ Rising

Insiders increasing their stake — aligned with shareholders

Cash Position

Cash flow positive

$14M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

SoundThinking's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

46.6%

Healthy — 46.6% gross margin

Operating Margin

-26.1%

Losing money on operations — -26.1%

ROCE

-8.7%

Weak — -8.7% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY

-4.8%

Shrinking sales (-4.8% YoY)

EPS YoY

N/A

Data not available

EPS Consistency

0/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

N/A

—

Data not available

FCF Margin

4.8%

Thin free cash flow (4.8%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

0.07

Conservative — low debt load (0.07)

Interest Cover

N/A

Data not available

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Valuation

P/E Ratio (TTM)

N/M

no trend

Negative earnings — P/E not meaningful

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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