Arbe Robotics (ARBE) AI Stock Analysis

• Market Cap: $202.96M
• Dividend Yield: N/A
• Average Volume (3M): 1.61M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.99
• Revenue Growth: -46.41%
• EPS Growth: 6.05%
• Country: US
• Employees: 138
• Sector: Technology
• Sector Strength: 89
• Industry: Software - Infrastructure
• EPS (TTM): -0.13
• Shares Outstanding: 105,163,185
• 10 Day Avg. Volume: 1,262,715
• 30 Day Avg. Volume: 1,608,028
• PEG Ratio: 0.08
• Price to Book (P/B): 4.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.66
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 40.78
• Enterprise Value/Gross Profit: -228.99
• Enterprise Value/Ebitda: -0.93
• 1Y Price Target: $2.38
• Price Target Upside: 49.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 48 Neutral
• Price Target: $2.00 ▲(25.79%Upside)

Arbe Robotics' stock score is primarily impacted by its poor financial performance, characterized by declining revenues, high operational losses, and cash flow issues. While technical analysis and earnings call provide some positive indicators, they are insufficient to offset the financial challenges. The valuation underscores the speculative nature of the stock with significant risks involved.

Positive Factors

Diversified Demand

Demand for Arbe's radar chipsets is diversified and although its primary market is automotive, interest is growing.

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.

Technology 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

Financial Performance

ARBE reported 1Q25 results with revenue below our estimate and consensus, and adjusted EBITDA below our estimate.

Guidance and Outlook

ARBE's 2025 guidance for revenue is between $2M-$5M, which is below previous estimates and reflects a disappointing outlook.

OEM Delays

Delays in automakers' deployment of advanced driver-assistance systems have led to longer decision-making times, affecting revenue estimates for 2025 and 2026.

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, with declining revenues, negative gross profit, and persistent operational losses. High leverage and low equity levels increase financial risk.

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

Arbe Robotics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 1.59 is below the 20-day moving average (MA) of 1.64, above the 50-day MA of 1.49, and below the 200-day MA of 1.82, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 66.34 is Neutral, neither overbought nor oversold. The STOCH value of 65.62 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	$162.46M	19.36	56.45%	―	―	―
Sector *	63 Neutral	$32.90B	6.03	-11.70%	1.95%	5.55%	-19.87%
BKKT	50 Neutral	$182.92M	―	-60.94%	―	128.83%	73.67%
ARQQ	49 Neutral	$544.33M	―	-160.52%	―	-67.43%	87.17%
ARBE	48 Neutral	$202.96M	―	-101.60%	―	-46.41%	6.05%
PDYN	47 Neutral	$293.92M	―	-136.41%	―	-16.95%	54.71%
AISP	35 Underperform	$175.78M	―	-98.67%	―	―	―