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Arbe Robotics Ltd. (ARBE)
:ARBE
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Arbe Robotics
(NASDAQ:ARBE)
39Underperform
Positive Factors
Financial Stability
The company is sufficiently capitalized into 2027 when the business should be cash flow positive.
Market Opportunity
Despite slow progress, there is substantial market opportunity for ARBE due to expected demand for new sensors driven by improved safety features and regulatory demands.
Strategic Partnerships
ARBE's partner HiRain accelerated the development of a 4D/imaging radar-based advanced driver assistance system (ADAS) solution, which benefits ARBE as the leading provider.
Negative Factors
Competition and Market Position
Automakers' sensor decision timelines are significantly delayed, which gives competitors more time to close the gap with ARBE.
Revenue Challenges
There is a long road to generating significant revenue for Arbe Robotics Ltd.
Stock Rating Downgrade
Ongoing customer decision delays have led to a downgrade in the stock rating to Hold.
Arbe Robotics (ARBE) vs. S&P 500 (SPY)
Market Cap
$106.21M
Dividend YieldN/A
Average Volume (3M)3.41M
Price to Earnings (P/E)―
Beta (1Y)1.63
Revenue Growth-47.76%
EPS Growth-1.39%
CountryUS
Employees138
SectorTechnology
Sector Strength39
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.62
Shares Outstanding105,163,185
10 Day Avg. Volume1,782,306
30 Day Avg. Volume3,409,635
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)69.18
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$2.38Price Target Upside124.53% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Arbe Robotics Business Overview & Revenue Model
Company DescriptionArbe Robotics Ltd., a semiconductor company, provides 4D imaging radar solutions for tier 1 automotive suppliers and automotive manufacturers in Israel and the United States. It offers 4D imaging radar chipset solutions that address the core issues that have caused autonomous vehicle and autopilot accidents, such as detecting stationary objects, identifying vulnerable road users, and eliminating false alarms without radar ambiguities. The company was founded in 2015 and is headquartered in Tel Aviv-Yafo, Israel.
How the Company Makes MoneyArbe Robotics generates revenue primarily through the sale of its advanced radar systems to automotive manufacturers and suppliers. The company's key revenue streams include direct sales of radar units, licensing of its proprietary radar technology, and potential service agreements related to system integration and support. Arbe Robotics may also engage in strategic partnerships with automotive and technology companies to further integrate its solutions into broader autonomous vehicle platforms, contributing to its revenue. Additionally, the company might leverage research and development grants or government funding initiatives aimed at advancing autonomous and driver-assistance technologies.
Arbe Robotics Financial Statement Overview
Summary
Arbe Robotics faces significant financial challenges with declining revenues, negative profitability metrics, and high leverage. Income Statement Score: 45 due to revenue decline and negative margins. Balance Sheet Score: 55 reflecting a high debt-to-equity ratio. Cash Flow Score: 50 indicating liquidity issues, despite some improvement in free cash flow.Income Statement
Arbe Robotics has shown volatility in its income statement metrics. The company experienced a significant revenue decline from 2022 to TTM (Trailing-Twelve-Months) with a negative gross profit margin indicating production costs exceeding revenue. The net profit margin is also negative, highlighting ongoing profitability challenges. EBIT and EBITDA margins have remained negative, reflecting operational inefficiencies.45
Neutral
Balance Sheet
The balance sheet reflects a high debt-to-equity ratio due to substantial liabilities compared to equity, which could pose financial risks. Return on equity is deeply negative, indicating that the company is not generating profit from shareholders' investments. Equity ratio has decreased over time, signaling reduced financial stability.55
Neutral
Cash Flow
Arbe Robotics' cash flow statement reveals a concerning trend with negative operating and free cash flow, suggesting liquidity issues and insufficient cash generation from operations. However, some improvement in free cash flow is noted in TTM compared to previous periods. The operating cash flow to net income ratio remains negative, indicating challenges in converting income into cash.50
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.02M | 1.47M | 3.52M | 2.25M | 332.00K | 0.00 | Gross Profit |
| -765.00K | -38.00K | 2.23M | 809.00K | -8.00K | -237.00K | EBIT |
| -48.92M | -46.88M | -47.73M | -33.28M | -14.96M | -25.13M | EBITDA |
| -48.34M | -46.33M | -47.25M | -32.94M | -14.73M | -24.89M | Net Income Common Stockholders |
| -46.41M | -43.50M | -33.26M | -82.91M | -16.29M | -26.08M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 17.03M | 44.06M | 54.57M | 100.81M | 2.96M | 16.96M | Total Assets |
| 0.00 | 50.48M | 60.83M | 105.35M | 4.41M | 17.88M | Total Debt |
| 0.00 | 1.74M | 381.00K | 4.92M | 4.20M | 4.10M | Net Debt |
| 17.03M | -26.84M | -53.79M | -95.89M | 1.34M | -2.90M | Total Liabilities |
| 0.00 | 8.39M | 12.08M | 25.52M | 64.56M | 8.96M | Stockholders Equity |
| 8.92M | 42.09M | 48.75M | 79.82M | -60.16M | 8.92M |
| Cash Flow | Free Cash Flow | ||||
| -29.92M | -33.76M | -41.28M | -27.20M | -15.44M | -22.79M | Operating Cash Flow |
| -29.53M | -33.51M | -40.36M | -26.42M | -15.29M | -22.56M | Investing Cash Flow |
| 25.21M | -15.25M | -1.32M | -684.00K | 9.70M | -8.54M | Financing Cash Flow |
| -252.00K | 23.20M | -4.94M | 125.08M | 1.53M | 35.55M |
Arbe Robotics Technical Analysis
Negative
1.06
Price Trends
1.90
Negative
2.01
Negative
2.00
Negative
Market Momentum
-0.24
Negative
27.17
Positive
10.33
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARBE, the sentiment is Negative. The current price of 1.06 is below the 20-day moving average (MA) of 1.19, below the 50-day MA of 1.90, and below the 200-day MA of 2.00, indicating a bearish trend. The MACD of -0.24 indicates Negative momentum. The RSI at 27.17 is Positive, neither overbought nor oversold. The STOCH value of 10.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ARBE.
Arbe Robotics Risk Analysis
Arbe Robotics disclosed 69 risk factors in its most recent earnings report. Arbe Robotics reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Arbe Robotics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
57 Neutral | $20.94B | 10.43 | -13.41% | 2.52% | 4.53% | -23.34% | |
56 Neutral | $469.91M | ― | -53.83% | ― | 33.41% | 81.07% | |
53 Neutral | $397.22M | ― | -92.90% | ― | 110.23% | 12.96% | |
49 Neutral | $291.56M | ― | -134.07% | ― | -35.31% | -2.18% | |
43 Neutral | $221.27M | ― | 146.24% | ― | 8.05% | 58.44% | |
40 Underperform | $123.30M | ― | -81.61% | ― | 16.25% | 32.95% | |
39 Underperform | $106.21M | ― | -152.72% | ― | -47.76% | -1.39% |
* Technology Sector Average
Performance Comparison
ARBE
Arbe Robotics
1.01
-1.02
-50.25%
MVIS
Microvision
1.15
-0.50
-30.30%
LAZR
Luminar Technologies
5.00
-25.15
-83.42%
AEVA
Aeva Technologies
7.31
3.14
75.30%
INVZ
Innoviz Technologies
0.57
-0.91
-61.49%
OUST
Ouster
8.09
-1.90
-19.02%
Arbe Robotics Earnings Call Summary
Earnings Call Date: Mar 5, 2025 | % Change Since: -36.14% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Arbe Robotics' strategic collaborations and successful fundraising efforts, which bolster its market position and financial stability. However, significant challenges remain, including declining revenues, increased losses, and low gross margins. The mixed results show progress in strategic partnerships, yet financial metrics indicate areas of concern.Highlights
Collaboration with NVIDIA
Arbe Robotics announced a collaboration with NVIDIA to revolutionize vehicle safety and autonomy, integrating their high-resolution radar with NVIDIA's in-vehicle computing platform.
Strategic Partnerships and Agreements
Arbe has formed strategic partnerships with Zenseact and Sensrad for 4D high-resolution imaging radar, and secured a $7.3 million framework agreement with Tianyi Transportation Technology in China.
Successful Fundraising
Arbe raised nearly $17 million through various fundraising initiatives, including a $33 million underwriting registered direct offering and conversion of convertible bonds.
Strong Financial Position
Arbe reported a strong balance sheet with $24.6 million in cash as of December 31, 2024, and an additional $54.5 million raised in January 2025, providing robust financial stability.
Lowlights
Decline in Revenue
Total revenue for Q4 2024 was $0.1 million, down from $0.35 million in Q4 2023. Full year revenue for 2024 was $0.8 million, a decrease from $1.5 million in 2023.
Increased Operating Loss
Operating loss for Q4 2024 increased to $12.8 million from $12.1 million in Q4 2023. The full year operating loss was $49.7 million, up from $46.9 million in 2023.
Net Loss Expansion
Net loss for Q4 2024 was $12.2 million, compared to $9.3 million in Q4 2023. The full year net loss for 2024 was $49.3 million, rising from $43.5 million in 2023.
Low Gross Margins
Gross margin loss for Q4 2024 was similar to Q4 2023 at $0.2 million loss. The full year 2024 gross margin was a $0.8 million loss, compared to a $0 gross margin in 2023.
Company Guidance
During the Arbe Robotics Fourth Quarter and Full Year 2024 Financial Results Conference Call, the company outlined its financial performance and future guidance. Total revenue for the fourth quarter was reported at $0.1 million, with full-year 2024 revenue at $0.8 million, indicating a decrease from the previous year. Operating expenses for the year totaled $48.9 million, with a net loss of $49.3 million for 2024. The company projected 2025 revenue to range between $2 million and $5 million, expecting a significant uptick towards the year's end due to key projects maturing. Adjusted EBITDA for 2025 is forecasted to be between a $29 million loss to a $35 million loss. Arbe highlighted its robust cash position, with post-fundraising cash reserves above $70 million, supporting its growth initiatives and continued advancements in radar technology. The company aims to secure four design-ins with automakers in 2025, leveraging its collaborations with major partners like NVIDIA and its advancements in the non-automotive market.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.