Deep Value: cash covers more than 100% of the stock price

This company holds roughly $394M in cash and investments — more than its entire stock-market value, based on its latest quarterly filing. You're paying very little for the actual business. Sometimes that's a genuine bargain or a takeover target, sometimes it's cheap for a reason. Not a buy signal on its own — always ask why it's this cheap.

Agora

API

Software - Application · Technology

Price

$4.36

+0.04 (+0.93%)

Market Cap

$392.9M

Exchange

NASDAQ

Winston Score

Winston is serious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Mixed

Growth

Good

Cash Flow

Good

Stability

Good

Valuation

Good

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Share count falling — buybacks

−10.3% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 110.2M (2021) → 98.9M (2025)

Winston Score History

The full picture

Agora is a Chinese technology company that provides the building blocks developers need to add live video, voice, and interactive features into apps. Its tools — called real-time engagement APIs — let other companies embed things like video calls, live streaming, and chat without building that technology from scratch. Customers include app developers and businesses across education, social media, gaming, and healthcare.

Agora makes money by charging customers based on how many minutes of audio or video are used through its platform, a usage-based pricing model. It operates primarily in China but also serves customers globally, and its developer-focused platform creates some stickiness once companies build their apps around its tools. The main risk is intense competition from larger cloud providers like Alibaba and Tencent, as well as ongoing pressure from US-China regulatory tensions that could affect its ability to operate across both markets.

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

+18.2% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+62.5% YoY

YoY Growth Rate

Strong earnings growth

R&D Spend

$55M/ year

↓ Declining (-31% vs prior year)

39.3% of revenue

2.6x the sector average (15%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

32.8%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Runway

5+ years

Quarterly Free Cash Flow

↓ Burn rate worsening

$394M cash & investments at current burn rate

Growth context

Agora is growing revenue at 18% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

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

Profit per sale

Gross Margin

63.7%

Premium pricing power — 63.7% gross margin

Profit after running costs

Operating Margin

-3.8%

Losing money on operations — -3.8%

Return on the money invested

ROCE

-1.0%

Weak — -1.0% return on capital

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

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Growth

Sales growth

Sales YoY

+13.7%

Fast-growing sales (+13.7% YoY)

Profit growth

EPS YoY

N/A

Data not available

How steady the profit is

EPS Consistency

7/8 quarters

Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash

Cash Conversion

123%

Turns 123% of profit into real cash

Spare cash per sale

FCF Margin

-12.6%

Burning cash (-12.6%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns

Debt / Equity

0.18

Conservative — low debt load (0.18)

Covers its interest

Interest Cover

N/A

Data not available

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Valuation

Price vs profit

P/E Ratio (TTM)

35.2x

Pricey — P/E 35.2

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year

P/E vs Forward

+3.8

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (35.2 → 31.4)

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Dividends

Not applicable for this business.

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