Gauzy Ltd. (GAUZ) AI Stock Analysis

• Market Cap: $88.84M
• Dividend Yield: N/A
• Average Volume (3M): 37.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.39
• Revenue Growth: 7.87%
• EPS Growth: 50.42%
• Country: US
• Employees: 708
• Sector: General
• Sector Strength: N/A
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.57
• Shares Outstanding: 18,743,137
• 10 Day Avg. Volume: 45,890
• 30 Day Avg. Volume: 37,564
• PEG Ratio: 0.11
• Price to Book (P/B): 3.84
• Price to Sales (P/S): 1.79
• P/FCF Ratio: -4.26
• Enterprise Value/Market Cap: 2.48
• Enterprise Value/Revenue: 2.27
• Enterprise Value/Gross Profit: 8.17
• Enterprise Value/Ebitda: -9.86
• 1Y Price Target: $8.50
• Price Target Upside: 37.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -1.29
• Revenue Forecast (FY): $121.63M

• Rating: 38 Underperform
• Price Target: $5.00 ▼(-19.09% Downside)

Gauzy Ltd.'s overall stock score is primarily impacted by its poor financial performance, including declining revenue and profitability, high leverage, and negative cash flow. Technical analysis further supports a bearish outlook, with the stock trading below key moving averages and showing oversold conditions. Valuation metrics are unfavorable, with a negative P/E ratio and no dividend yield.

Positive Factors

Product Innovation

The launch of the Smart-Vision Camera Monitor System showcases Gauzy's commitment to innovation, enhancing its competitive edge in automotive safety solutions.

Strategic Expansions

A record backlog and strategic expansions indicate strong demand and potential for growth, reinforcing Gauzy's market position in key sectors.

Partnerships

Partnerships with technology leaders like Ambarella enhance product capabilities, strengthening Gauzy's offerings and market competitiveness.

Negative Factors

Declining Revenue

Declining revenue growth poses a challenge to Gauzy's financial health, potentially impacting its ability to invest in new opportunities and innovations.

High Leverage

High leverage increases financial risk, potentially limiting Gauzy's flexibility to navigate economic downturns or invest in growth initiatives.

Negative Cash Flow

Negative cash flow indicates operational challenges, which may hinder Gauzy's ability to sustain operations and fund strategic initiatives long-term.

Gauzy Ltd. Business Overview & Revenue Model

Company Description

Gauzy Ltd. (GAUZ) is a leading technology company specializing in advanced glass solutions and smart glass products. The company operates in the sectors of architectural design, automotive, and electronics, offering innovative products such as switchable glass and liquid crystal films that provide dynamic control over light and privacy. By integrating cutting-edge technology into its offerings, Gauzy aims to enhance user experience and energy efficiency in various applications, including commercial buildings, residential spaces, and vehicles.

How the Company Makes Money

Gauzy generates revenue primarily through the sale of its smart glass products and solutions, which are used in various industries, including architecture, automotive, and consumer electronics. The company has established key partnerships with manufacturers and distributors to expand its market reach and enhance its product offerings. Additionally, Gauzy earns revenue through licensing agreements for its proprietary technologies and by providing value-added services such as installation and customization of its products. The growing demand for energy-efficient and customizable solutions in both commercial and residential markets significantly contributes to the company's earnings.

Gauzy Ltd. Financial Statement Overview

Summary

Gauzy Ltd. faces significant financial challenges, including declining revenue, negative profitability margins, high leverage, and negative cash flow. These issues indicate a need for strategic financial restructuring.

Income Statement

Gauzy Ltd. has experienced declining revenue growth, with a negative growth rate of -4.31% in the TTM period. The company also shows negative profitability margins, including a net profit margin of -50.13% and an EBIT margin of -41.23%, indicating significant operational challenges. Despite a relatively stable gross profit margin of 27.91%, the overall income statement reflects financial instability and a need for strategic improvements.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.21, suggesting a leveraged position that could pose financial risks. The return on equity is negative at -97.09%, indicating that the company is not generating sufficient returns on shareholders' equity. However, the equity ratio is relatively stable, showing that equity still constitutes a significant portion of total assets. Overall, the balance sheet highlights financial leverage concerns and the need for improved equity returns.

Cash Flow

Cash flow analysis shows negative operating cash flow and free cash flow, with a free cash flow growth rate of -17.12% in the TTM period. The operating cash flow to net income ratio is negative, reflecting cash flow challenges. The free cash flow to net income ratio is positive at 1.47, indicating that free cash flow exceeds net income, but the overall cash flow situation remains concerning due to negative cash generation from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	96.81M	103.53M	77.98M	49.03M	7.31M	4.74M
Gross Profit	26.95M	29.74M	16.28M	5.98M	2.02M	1.41M
EBITDA	-22.31M	-34.92M	-59.88M	-28.50M	-16.35M	-11.75M
Net Income	-38.36M	-53.18M	-79.27M	-37.90M	-17.22M	-12.46M
Balance Sheet
Total Assets	136.81M	138.25M	127.94M	109.54M	22.01M	22.53M
Cash, Cash Equivalents and Short-Term Investments	1.24M	5.62M	4.71M	4.70M	1.86M	7.92M
Total Debt	63.28M	48.37M	135.04M	63.44M	9.30M	6.28M
Total Liabilities	118.95M	89.92M	194.30M	101.61M	20.56M	11.39M
Stockholders Equity	17.86M	48.33M	-66.35M	7.93M	1.45M	11.14M
Cash Flow
Free Cash Flow	-31.03M	-43.52M	-41.54M	-33.43M	-14.36M	-11.87M
Operating Cash Flow	-20.11M	-31.91M	-31.11M	-29.75M	-12.63M	-10.64M
Investing Cash Flow	-10.88M	-11.46M	-10.62M	-39.49M	-6.39M	-855.00K
Financing Cash Flow	-31.48M	44.57M	41.69M	71.61M	12.93M	18.83M

Gauzy Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GAUZ, the sentiment is Negative. The current price of 6.18 is above the 20-day moving average (MA) of 5.89, above the 50-day MA of 5.90, and below the 200-day MA of 7.91, indicating a bearish trend. The MACD of -0.36 indicates Positive momentum. The RSI at 29.47 is Positive, neither overbought nor oversold. The STOCH value of 7.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GAUZ.

Gauzy Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AUNA	63 Neutral	$401.15M	6.03	15.04%	―	2.83%	―
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
LOBO	47 Neutral	$10.07M	-2.45	-37.95%	―	―	―
GAUZ	38 Underperform	$88.84M	―	-94.46%	―	7.87%	50.42%
FBLG	38 Underperform	$16.83M	-0.68	-1292.87%	―	―	18.47%

Gauzy Ltd. Corporate Events

Gauzy Ltd. Announces Board Resignation of Michael Donnelly

On September 16, 2025, Gauzy Ltd. announced the resignation of Michael Donnelly from its Board of Directors, effective immediately, due to personal reasons. Donnelly, who played a significant role in Gauzy’s growth and strategy development, expressed his optimism for the company’s future. The company confirmed that his resignation was not due to any disagreements with its operations or policies.

Gauzy Ltd. Reports Q2 2025 Results with Record Backlog and Strategic Expansions

On August 13, 2025, Gauzy Ltd. announced its financial results for the second quarter of 2025, highlighting a record backlog of purchase orders totaling $42.9 million. Despite a decrease in revenues and gross margins compared to the previous year, the company reported a reduced net loss and emphasized its strategic expansions and new product launches, including smart glass solutions for automotive and marine sectors. The company secured $15 million in debt financing to support its operations and reaffirmed its full-year guidance, indicating confidence in future growth and shareholder value.

Gauzy Ltd. Approves Proposals and Announces Board Resignation

On August 7, 2025, Gauzy Ltd. held its annual general meeting of shareholders, where all proposals were approved by the requisite majority vote. Additionally, Danny Allouche, a long-serving board member, resigned from his position for personal reasons, marking a significant change in the company’s board composition.