BigBear.ai (BBAI) just hit $4.04 per share with 250.59 million shares outstanding for a market cap of $1.012 billion and has net debt of $130.16 million for an enterprise value of $1.143 billion or 7.38X revenue of $154.97 million.
One Stop Systems (OSS) estimates 4Q 2024 revenue of $15 million and projects consistent sustainable revenue growth moving forward. If we simply annualize $15 million to $60 million and apply a multiple of 7.38 it gives OSS an enterprise value of $442.8 million plus $11.47 million in net cash equals a market cap of $454.27 million. OSS has 21.11 million shares outstanding, which gives OSS a fair value of $21.52 per share.
In reality, OSS should trade at much higher multiples than BBAI.
The OSS rugged AI server business in the U.S. for military, defense, and space applications saw 3Q 2024 gross margins of 34.6% vs. BBAI 3Q 2024 gross margins of 25.9%.
OSS is cash flow positive vs. BBAI burning through a lot of cash.
OSS management consistently keeps promises and surpasses estimates vs. BBAI management consistently lying and missing estimates while insiders dump shares.
OSS expects to become profitable in 2025 vs. BBAI unlikely to ever become profitable.
OSS is ramping up revenue organically with no dilution vs. BBAI having severe dilution.
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is meant for informational and educational purposes only and does not provide investment advice.
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