Aurora Innovation (AUR) AI Stock Analysis

• Market Cap: $10.80B
• Dividend Yield: N/A
• Average Volume (3M): 13.59M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.60
• Revenue Growth: N/A
• EPS Growth: 24.41%
• Country: US
• Employees: 1,800
• Sector: Technology
• Sector Strength: 46
• Industry: Information Technology Services
• EPS (TTM): -0.46
• Shares Outstanding: 1,416,790,900
• 10 Day Avg. Volume: 15,168,138
• 30 Day Avg. Volume: 13,585,208
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -22.20
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $9.63
• Price Target Upside: 57.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

Aurora Innovation's overall stock score is primarily impacted by severe financial challenges, including no revenue and ongoing losses. While the technical analysis suggests mixed market sentiment, the earnings call provided a more optimistic outlook with strategic partnerships and progress towards a commercial launch. Nevertheless, valuation metrics highlight significant profitability concerns, leading to a cautious overall assessment.

Positive Factors

Earnings Growth Potential

The April rollout of commercial driverless operation is a key milestone for Aurora Innovation and is expected to unlock a long runway of earnings growth.

Innovation and Technology

Aurora Innovation is positioned at the forefront of autonomous trucking with arguably the most sophisticated on-highway, Class 8 autonomous solution among peers.

Market Opportunity

AUR is winning share in a $1 trillion market generating revenue on a per-mile driven basis while solving for industry pain points allowing for faster, cheaper transportation of goods.

Negative Factors

Commercial Launch Risks

There is still some risk that the commercial launch date for Aurora's autonomous services could slip, though management has minimized this risk to a short timeframe.

Revenue Concerns

Aurora did not recognize revenue during the quarter as it is currently early stage and pre-revenue.

Aurora Innovation Business Overview & Revenue Model

Company Description

Aurora Innovation, Inc. operates as a self-driving technology company in the United States. It focuses on developing Aurora Driver, a platform that brings a suite of self-driving hardware, software, and data services together to adapt and interoperate passenger vehicles, light commercial vehicles, and trucks. The company was founded in 2017 and is headquartered in Pittsburgh, Pennsylvania.

How the Company Makes Money

Aurora Innovation makes money through partnerships and collaborations with automotive manufacturers and logistics companies to integrate its autonomous driving technology into their vehicles. The company licenses its Aurora Driver platform to these partners, who use it to enhance the capabilities of their fleets. Revenue is also generated through pilot programs, where Aurora collaborates with clients to test and refine its technology in real-world scenarios. Additionally, significant partnerships with companies in the transportation sector contribute to its earnings by providing access to extensive data and operational insights that further enhance the development and deployment of its autonomous systems.

Aurora Innovation Financial Statement Overview

Summary

Aurora Innovation's financial performance is heavily challenged with no revenue and significant losses. The income statement shows consistent negative EBIT and a net loss of $748 million in 2024. Despite a strong equity position on the balance sheet, the negative cash flow and reliance on financing activities underline financial instability.

Income Statement

Aurora Innovation's income statement reveals significant challenges with no revenue reported in 2023 and 2024, following a sharp decline from previous years. The company has been consistently operating at a loss with negative EBIT and EBITDA figures, and a net loss of $748 million in 2024. This indicates severe profitability issues and an inability to generate revenue, which are critical concerns for financial health.

Balance Sheet

The balance sheet shows a strong equity position with stockholders' equity of $1.875 billion in 2024, indicating financial stability. The debt-to-equity ratio remains low, suggesting limited leverage, which is positive. However, the equity ratio is declining due to decreasing total assets, and the company has been unable to generate significant revenue to support asset growth.

Cash Flow

Cash flow analysis indicates negative free cash flow of $645 million in 2024, worsening from previous years. Operating cash flow remains negative, reflecting ongoing operational difficulties. The company has been reliant on financing activities to support cash flow, highlighting potential sustainability concerns if this trend continues without revenue improvements.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	68.00M	82.54M	0.00
	Gross Profit
0.00	-716.00M	18.00M	-614.46M	-17.23M
	EBIT
-786.00M	-835.00M	262.00M	-730.66M	-218.12M
	EBITDA
-786.00M	-748.00M	-716.00M	-718.95M	-197.22M
	Net Income Common Stockholders
-748.00M	-796.00M	-2.71B	-755.45M	-214.45M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.22B	1.20B	1.10B	1.61B	387.35M
	Total Assets
2.14B	2.23B	2.00B	3.69B	618.88M
	Total Debt
121.00M	122.00M	136.00M	146.82M	103.83M
	Net Debt
-90.00M	-379.00M	-126.00M	-1.46B	-283.51M
	Total Liabilities
263.00M	250.00M	217.00M	348.38M	895.46M
	Stockholders Equity
1.88B	1.99B	1.78B	3.34B	-276.58M
Cash Flow		Free Cash Flow
-645.00M	-613.00M	-523.00M	-611.34M	-198.57M
	Operating Cash Flow
-611.00M	-598.00M	-508.00M	-563.29M	-191.88M
	Investing Cash Flow
-172.00M	8.00M	-852.00M	249.88M	343.29M
	Financing Cash Flow
492.00M	831.00M	11.00M	1.54B	1.45M

Aurora Innovation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AUR, the sentiment is Neutral. The current price of 6.11 is below the 20-day moving average (MA) of 6.57, below the 50-day MA of 7.04, and above the 200-day MA of 5.87, indicating a neutral trend. The MACD of -0.28 indicates Positive momentum. The RSI at 45.01 is Neutral, neither overbought nor oversold. The STOCH value of 61.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AUR.

Aurora Innovation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BSY	81 Outperform	$13.07B	59.67	24.39%	0.58%	10.15%	-28.62%
MANH	75 Outperform	$9.93B	46.54	75.64%	―	12.23%	24.66%
MNDY	75 Outperform	$12.50B	407.14	3.51%	―	33.21%	―
AKAM	67 Neutral	$10.73B	22.51	10.66%	―	4.70%	-7.33%
Sector *	58 Neutral	$10.03B	9.97	-6.85%	3.09%	7.50%	-11.51%
AUR	47 Neutral	$10.80B	―	-38.76%	―	―	24.41%
SAIL	46 Neutral	$9.51B	―	-11.15%	―	23.16%	-9.81%

Aurora Innovation Corporate Events

Aurora Innovation Announces Board Changes

Aurora Innovation, Inc. announced the resignation of Dara Khosrowshahi from its Board of Directors, effective December 31, 2024, as he aims to focus on his role as CEO of Uber Technologies. Shailen Bhatt has been appointed as a new director, bringing extensive experience in transportation and infrastructure, and will serve until the company’s 2026 Annual Meeting of Stockholders.