Arbe Robotics (ARBE) AI Stock Analysis

• Market Cap: $145.13M
• Dividend Yield: N/A
• Average Volume (3M): 1.32M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.06
• Revenue Growth: -60.93%
• EPS Growth: 10.46%
• Country: US
• Employees: 138
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Infrastructure
• EPS (TTM): -0.09
• Shares Outstanding: 105,163,185
• 10 Day Avg. Volume: 1,066,748
• 30 Day Avg. Volume: 1,317,694
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 275.44
• Enterprise Value/Gross Profit: -226.22
• Enterprise Value/Ebitda: -3.72
• 1Y Price Target: $1.88
• Price Target Upside: 38.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 41 Neutral
• Price Target: $1.00 ▼(-26.47% Downside)

Arbe Robotics' overall stock score is primarily impacted by its poor financial performance, including declining revenues and high operational losses. Technical indicators also suggest a bearish trend. While the earnings call provided some positive strategic insights, the immediate financial challenges and negative valuation metrics weigh heavily on the overall score.

Positive Factors

Liquidity

ARBE ended the second quarter with $62 million in cash and equivalents, suggesting sufficient liquidity despite an expected annual burn rate of $30 million.

Market Opportunity

There is substantial market opportunity to be captured, as expected demand for new sensors is driven by improved safety features and regulatory demands, with ARBE's competitive position strengthening in imaging radar applications.

Technological Validation

The successful launch of Arbe's LRR615 alongside HiRain, strong engagement of 15 automotive OEMs and collaboration with Nvidia for integration into its Drive AGX platform validate the technology and highlight the differentiation of imaging radar and its potential to improve the safety and reliability of AV systems.

Negative Factors

Competitive Threats

Automakers' sensor decision timelines are significantly delayed, which gives competitors more time to close the gap with ARBE.

OEM Decision Delays

Decisions by OEMs continue to be delayed, however; as such management now expects 4 OEM design-wins within the next 12 months versus previous guidance of securing these wins by the end of 2025.

Revenue Performance

Revenue for the second quarter was reported at $0.3 million, down 33% year-over-year, reflecting the company's pre-production stage and pending decisions from automotive OEMs.

Arbe Robotics Business Overview & Revenue Model

Company Description

Arbe Robotics (ARBE) is a leading provider in the automotive technology sector, specializing in the development of 4D imaging radar solutions for autonomous vehicles. The company's cutting-edge radar technology enhances vehicle safety and performance by providing high-resolution imaging that allows for accurate object detection and tracking, regardless of environmental conditions. Arbe's solutions are designed to meet the demands of advanced driver-assistance systems (ADAS) and autonomous driving, facilitating safer and more efficient transportation.

How the Company Makes Money

Arbe Robotics generates revenue primarily through the sale of its proprietary 4D imaging radar systems to automotive manufacturers and suppliers. The company's key revenue streams include direct sales of radar units and licensing of its technology to partners engaged in developing autonomous and semi-autonomous vehicles. Additionally, Arbe may enter into strategic partnerships with automotive industry leaders to integrate its radar technology into broader vehicle systems, further expanding its market reach and revenue potential. The company's growth is supported by increasing demand for advanced safety features in vehicles and the ongoing shift towards autonomous driving technologies.

Arbe Robotics Financial Statement Overview

Summary

Arbe Robotics faces significant financial challenges, including declining revenues, negative gross profit, and high operational losses. The balance sheet shows high leverage and limited equity, while cash flow constraints highlight liquidity issues. These factors pose substantial risks to financial stability and growth.

Income Statement

Arbe Robotics has been experiencing significant challenges in its income statement. The company has faced declining revenues over recent years, with a notable decrease from $3.5 million in 2022 to $768,000 in 2024. The gross profit has been negative, indicating cost of goods sold exceeds sales revenue. The EBIT and net income margins are also negative, highlighting ongoing operational inefficiencies and high expenses relative to revenue. These factors suggest a difficult path to profitability.

Balance Sheet

Arbe Robotics' balance sheet shows significant leverage with a debt-to-equity ratio that has increased due to a decrease in equity and an increase in debt. The equity ratio is low, indicating a smaller proportion of assets financed by equity. However, the company has maintained a reasonable level of cash and short-term investments, which could provide some financial flexibility. Overall, the balance sheet reflects high financial risk with limited equity buffer.

Cash Flow

The cash flow statement reveals persistent negative operating cash flows, indicating the company is not generating sufficient cash from operations to cover its expenses. Free cash flow is also negative, suggesting cash outflows exceed inflows. The free cash flow to net income ratio is unfavorable, reinforcing the strain on liquidity. These metrics highlight cash management challenges that may hinder growth and stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	671.00K	768.00K	1.47M	3.52M	2.25M	332.00K
Gross Profit	-817.00K	-785.00K	-38.00K	2.23M	809.00K	-8.00K
EBITDA	-49.68M	-49.07M	-46.33M	-47.25M	-32.94M	-14.73M
Net Income	-50.33M	-49.32M	-43.50M	-33.26M	-82.91M	-16.29M
Balance Sheet
Total Assets	85.04M	60.79M	50.48M	60.83M	105.35M	4.41M
Cash, Cash Equivalents and Short-Term Investments	36.39M	24.28M	44.06M	54.57M	100.81M	2.96M
Total Debt	10.73M	32.62M	1.74M	381.00K	4.92M	4.20M
Total Liabilities	19.32M	38.29M	8.39M	12.08M	25.52M	64.56M
Stockholders Equity	65.72M	22.50M	42.09M	48.75M	79.82M	-60.16M
Cash Flow
Free Cash Flow	-30.92M	-33.12M	-33.76M	-41.28M	-27.20M	-15.44M
Operating Cash Flow	-30.56M	-32.50M	-33.51M	-40.36M	-26.42M	-15.29M
Investing Cash Flow	-34.03M	3.99M	-15.25M	-1.32M	-684.00K	9.70M
Financing Cash Flow	66.92M	13.53M	23.20M	-4.94M	125.08M	1.53M

Arbe Robotics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARBE, the sentiment is Positive. The current price of 1.36 is above the 20-day moving average (MA) of 1.31, below the 50-day MA of 1.47, and below the 200-day MA of 1.72, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 49.58 is Neutral, neither overbought nor oversold. The STOCH value of 75.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ARBE.

Arbe Robotics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HPAI	72 Outperform	$149.11M	19.36	56.45%	―	―	―
Sector *	61 Neutral	$36.05B	6.66	-10.10%	1.86%	8.68%	-8.81%
PDYN	46 Neutral	$330.14M	―	-107.11%	―	-50.07%	40.90%
ARQQ	42 Neutral	$453.18M	―	-160.52%	―	-67.43%	87.17%
ARBE	41 Neutral	$145.13M	―	-116.76%	―	-60.93%	10.46%
BKKT	41 Neutral	$191.58M	―	-70.04%	―	111.83%	73.52%
AISP	35 Underperform	$152.53M	―	-98.67%	―	―	―