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Gauzy Ltd. (GAUZ)
NASDAQ:GAUZ
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Gauzy Ltd.
(NASDAQ:GAUZ)
Rating:42Neutral
Price Target:
$6.00
▼(-13.29%Downside)
Positive Factors
Order Backlog
Gauzy exited with a record backlog of $38.3 million, providing strong future revenue visibility.
Partnerships and Contracts
Management noted ramping business with Yutong, the first time this bus OEM was announced as well as an award with a European auto OEM for an EV platform to ramp with annual volumes at approximately 50,000.
Revenue Growth
Yutong bus OEM up 250% year over year and Ford Class 8 truck ADAS ramp on track.
Negative Factors
Labor Challenges
Labor availability in aero cockpit shading impacted revenue by approximately $4 million and gross profit by approximately $1 million, delaying the EBITDA breakeven target.
Gauzy Ltd. (GAUZ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
N/A
Dividend YieldN/A
Average Volume (3M)367.07K
Price to Earnings (P/E)―
Beta (1Y)0.22
Revenue Growth18.63%
EPS Growth30.17%
CountryUS
Employees708
SectorGeneral
Sector StrengthN/A
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)-0.58
Shares Outstanding18,733,936
10 Day Avg. Volume1,034,029
30 Day Avg. Volume367,069
Financial Highlights & Ratios
PEG Ratio-0.87
Price to Book (P/B)3.26
Price to Sales (P/S)0.00
P/FCF Ratio-3.39
Enterprise Value/Market CapN/A
Enterprise Value/Revenue0.44
Enterprise Value/Gross Profit6.12
Enterprise Value/Ebitda-1.11
Forecast
1Y Price Target
$12.00Price Target Upside73.41% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Gauzy Ltd. Business Overview & Revenue Model
Company DescriptionGauzy Ltd. (GAUZ) is a technology company specializing in the development and manufacture of smart glass and light control technologies. The company operates in the smart materials sector, focusing on products that enhance privacy, energy efficiency, and user experience across various industries including automotive, architecture, and consumer electronics. Gauzy's core offerings include innovative liquid crystal and SPD (Suspended Particle Device) film technologies that allow glass to change its transparency or color on demand.
How the Company Makes MoneyGauzy Ltd. generates revenue through the sale of its smart glass products and light control technologies to a diverse clientele in the automotive, architectural, and consumer electronics sectors. The company's revenue streams primarily consist of product sales, licensing agreements, and collaborative partnerships with manufacturers and distributors. Gauzy collaborates with industry leaders to integrate its light control solutions into their products, enhancing their value propositions. Additionally, the company benefits from long-term contracts and strategic alliances that provide stable income and expand its market reach. Significant factors contributing to Gauzy's earnings include its ability to innovate and adapt its technologies to meet the specific needs of its partners and customers.
Gauzy Ltd. Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q1-2025)
| % Change Since: -28.73%|
Next Earnings Date:Aug 13, 2025
Earnings Call Sentiment Neutral
Gauzy demonstrated resilience with significant business milestones and an improved gross margin. However, the company faced a decline in quarterly revenue and continued to report negative adjusted EBITDA and free cash flow. Despite these challenges, the outlook for 2025 remains positive with strong purchase order backlog and favorable guidance.Q1-2025 Updates
Positive Updates
Expanded Purchase Order Backlog
Backlog of purchase orders increased from below $31 million at year-end 2024 to almost $36 million at the end of March 2025, indicating strong demand for Gauzy's products.
Significant Business Milestones
Air France KLM Group selected Gauzy's shading system for Boeing 777, Mercedes-Benz implemented Smart Glass technologies in 75% of the glazing in the Vision V show car, and Cadillac Celestiq EV with SPD sunroof commenced production.
Improved Gross Margin
Gross margin increased to 25.6% from 25.1% in the prior year period, showing a 50 basis points expansion due to operational efficiencies.
Positive Revenue Guidance for 2025
Revenue expected to be in the range of $130 million to $140 million, representing more than 30% growth at the midpoint compared to 2024.
New Debt Facility
Secured a new $10 million debt facility with Mizrahi, with favorable terms including a 370 basis point interest rate reduction.
Negative Updates
Decrease in Quarterly Revenue
First quarter 2025 revenues were $22.4 million, a drop from $24.7 million in the prior year period.
Negative Adjusted EBITDA
Adjusted EBITDA was negative $5.5 million, compared to negative $4.8 million in the prior year quarter.
Revenue Decline in Aero and Architecture Segments
Aero revenue decreased by 24.6% and Architecture revenue decreased by 8.2% compared to the prior year quarter.
Free Cash Flow Remains Negative
Free cash flow was negative $2.3 million compared to negative $8.4 million in the prior year quarter.
Company Guidance
During the Gauzy Limited First Quarter 2025 Earnings Conference Call, management reaffirmed its 2025 guidance, projecting revenue between $130 million to $140 million, representing over 30% growth at the midpoint compared to 2024. The company reported first-quarter revenues of $22.4 million, a decrease from $24.7 million in the prior year, with growth in the Automotive and Safety Tech segments offset by timing shifts in Aero and Architecture deliveries. Gross margin improved to 25.6% from 25.1%, while operating expenses decreased by 9% to $14.4 million. The backlog of purchase orders grew from below $31 million at year-end 2024 to nearly $36 million by the end of March 2025, indicating strong demand. Gauzy also secured the first $10 million of a planned $20 million debt financing, which will enhance liquidity and support full-year goals, including achieving positive adjusted EBITDA.Gauzy Ltd. Financial Statement Overview
Summary
Gauzy Ltd. faces significant financial challenges with consistent losses, high leverage, and negative cash flows. Despite revenue growth, operational inefficiencies and financial instability are major concerns. The reliance on external financing highlights liquidity pressures.Income Statement
Gauzy Ltd. exhibits a challenging financial performance with consistent losses. The TTM data shows a negative gross profit margin of 27.9% and worsening net profit margin of -50.1%. The revenue growth rate has significantly slowed, indicating potential issues in market expansion or product competitiveness. Despite some revenue growth, operational inefficiencies and high costs are evident, as reflected in negative EBIT and EBITDA margins.42
Neutral
Balance Sheet
The balance sheet reveals high leverage with a debt-to-equity ratio of approximately 1.21 for TTM. This, coupled with a negative equity position in previous periods, indicates financial risk. The equity ratio has improved to 28.9%, suggesting some stabilization, but the overall financial health remains weak due to high liabilities and reliance on debt financing.38
Negative
Cash Flow
The cash flow analysis shows a negative free cash flow and a concerning trend of operating cash flow deficits. The free cash flow to net income ratio is unfavorable, and the operating cash flow to net income ratio indicates inefficiencies. However, consistent financing cash flows suggest efforts to maintain liquidity, although sustainability remains uncertain.45
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 101.17M | 103.53M | 77.98M | 49.03M | 7.31M | 4.74M |
| Gross Profit | 28.24M | 29.74M | 16.28M | 5.98M | 2.02M | 1.41M |
| EBITDA | -34.46M | -34.92M | -59.88M | -28.50M | -16.35M | -10.32M |
| Net Income | -50.71M | -53.18M | -79.27M | -37.90M | -17.22M | -12.46M |
Balance Sheet | ||||||
| Total Assets | 134.56M | 138.25M | 127.94M | 109.54M | 22.01M | 22.53M |
| Cash, Cash Equivalents and Short-Term Investments | 1.18M | 5.62M | 4.71M | 4.70M | 1.86M | 7.92M |
| Total Debt | 47.13M | 48.37M | 135.04M | 63.44M | 12.30M | 6.28M |
| Total Liabilities | 95.66M | 89.92M | 194.30M | 101.61M | 20.56M | 11.39M |
| Stockholders Equity | 38.90M | 48.33M | -66.35M | 7.93M | 1.45M | 11.14M |
Cash Flow | ||||||
| Free Cash Flow | -37.45M | -43.52M | -41.54M | -33.43M | -14.36M | -11.87M |
| Operating Cash Flow | -25.53M | -31.91M | -31.11M | -29.75M | -12.63M | -10.64M |
| Investing Cash Flow | -11.75M | -11.46M | -10.62M | -39.49M | -6.39M | -855.00K |
| Financing Cash Flow | 36.08M | 44.57M | 41.69M | 71.61M | 12.93M | 18.83M |
Gauzy Ltd. Technical Analysis
Negative
6.92
Price Trends
8.22
Negative
8.77
Negative
9.15
Negative
Market Momentum
-0.51
Positive
42.92
Neutral
71.40
Neutral
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 6.92 is below the 20-day moving average (MA) of 7.53, below the 50-day MA of 8.22, and below the 200-day MA of 9.15, indicating a bearish trend. The MACD of -0.51 indicates Positive momentum. The RSI at 42.92 is Neutral, neither overbought nor oversold. The STOCH value of 71.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GAUZ.
Gauzy Ltd. Risk Analysis
Gauzy Ltd. disclosed 74 risk factors in its most recent earnings report. Gauzy Ltd. 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
Gauzy Ltd. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Performance Comparison
GAUZ
Gauzy Ltd.
6.92
-3.67
-34.66%
FBLG
FibroBiologics, Inc.
0.67
-4.19
-86.21%
LOBO
Lobo EV Technologies Ltd.
0.54
-1.84
-77.31%
AUNA
Auna S.A. Class A
6.35
-2.32
-26.76%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.