Clear Secure (YOU), which was listed on the stock exchange on June 30, 2021, saw a nearly 30% increase in its price. The stock is now in decline. So, considering the company’s poor fundamentals and profitability, is it worth adding the stock to one’s portfolio? Let’s find out.Biometric security company Clear Secure Inc. (YOU), which is headquartered in New York City, made its stock market debut on June 30, 2021, and gained nearly 30% in early trading on its first day. The company has established itself as a pioneer in biometric security services by providing a secure identification platform, a multi-layered infrastructure consisting of a front-end–including enrollment, verification–and a strong, secure, and scalable back-end.

However, YOU’s shares have plummeted 41.3% in price over the past three months and 42.5% over the past month to close yesterday’s trading session at $26.30. Although the company has made substantial progress since switching to biometric screening to take advantage of increased travel restrictions due to the COVID-19 pandemics, the financials still don’t reflect these benefits.

Due to its uncertain prospects, YOU currently trades at a premium valuation. The stock’s forward EV/Sales is 6.54x. This is 56.1% more than the industry average of 4.13x. Your forward price/sales of 7.88x is 95.3% more than the industry average at 4.03x. The stock could see further declines due to YOU’s poor profitability and the 7.88x forward Price/Sales.

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