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Gauzy Ltd. (GAUZ)
NASDAQ:GAUZ
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Gauzy Ltd.
(NASDAQ:GAUZ)
44Neutral
Positive Factors
Backlog and Revenue Visibility
Gauzy exited 3Q24 with a record backlog of $38.3 million, providing visibility into future revenue.
Business Expansion
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.
Labor Capacity
Additional labor was approved by the French works councils to add a 2nd shift and the management team does not anticipate future delivery shortfalls.
Negative Factors
Labor Availability
Labor availability in aero cockpit shading impacted revenue by approximately $4 million and gross profit by approximately $1 million, delaying the EBITDA breakeven target.
Price Target Reduction
Lowering Price Target to $18 from $24: Given Softer Auto and European Backdrop, Peer Group Multiple Compression.
Revenue Shortfall
Gauzy preannounced a soft 3Q, with revenue approximately $4 million below our estimate.
Gauzy Ltd. (GAUZ) vs. S&P 500 (SPY)
Market Cap
N/A
Dividend YieldN/A
Average Volume (3M)51.69K
Price to Earnings (P/E)―
Beta (1Y)0.47
Revenue Growth32.76%
EPS Growth31.94%
CountryUS
Employees708
SectorGeneral
Sector StrengthN/A
IndustryIndustrial Conglomerates
Share Statistics
EPS (TTM)-0.58
Shares Outstanding18,720,287
10 Day Avg. Volume31,453
30 Day Avg. Volume51,686
Financial Highlights & Ratios
PEG Ratio-0.33
Price to Book (P/B)3.73
Price to Sales (P/S)0.00
P/FCF Ratio-4.16
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$12.67Price Target Upside30.48% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Gauzy Ltd. Business Overview & Revenue Model
Company DescriptionGauzy is a global leader in vision and light control solutions for the automotive, aeronautics, architecture, and safety technology industries. Its core capabilities start with world-class research and development which leads to the manufacturing and marketing of surfaces, systems and solutions that are smart and multifunctional for the spaces we spend our time in most. From glass that switches between transparent and opaque on an aircraft, automobile or building to transparent displays for digital signage and communications, to ADAS technologies for safer roads, Gauzy is there, changing the world through the control and manipulation of light.
How the Company Makes MoneyGauzy Ltd. generates revenue through the sale of its smart glass and liquid crystal-based products. The company collaborates with manufacturers and integrators in the automotive and architectural industries to incorporate its technology into vehicles and building projects. Additionally, Gauzy earns revenue from licensing its technology to other companies and providing related support services. Strategic partnerships with key industry players enhance its market reach, while ongoing innovation in smart materials helps maintain its competitive edge in the industry.
Gauzy Ltd. Financial Statement Overview
Summary
Gauzy Ltd. shows strong revenue growth but faces significant challenges with profitability and cash flow management. The company is highly leveraged and continues to report negative earnings, posing financial risks despite improvements in balance sheet stability.Income Statement
Gauzy Ltd. has shown significant revenue growth, with a dramatic increase from $4.7 million in 2020 to $103.5 million in 2024. Despite this growth, the company has consistently recorded negative net income, with a net profit margin deeply in the red. Gross profit margins have improved slightly over the years but remain under pressure due to high operational costs, as evidenced by negative EBIT and EBITDA margins.45
Neutral
Balance Sheet
The debt-to-equity ratio improved significantly in 2024 as stockholders' equity turned positive, but the company remains highly leveraged with total debt exceeding equity. The equity ratio has improved but is still low, indicating financial instability. Return on equity remains negative due to persistent net losses.40
Negative
Cash Flow
Gauzy Ltd. has struggled with negative operating cash flow over the years, and free cash flow remains negative. The operating cash flow to net income ratio indicates operational inefficiencies, and the free cash flow to net income ratio suggests poor cash conversion. Despite some improvement in free cash flow, the growth rate remains negative.38
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 103.53M | 77.98M | 49.03M | 7.31M | 4.74M | Gross Profit |
| 29.74M | 16.28M | 5.98M | 2.02M | 1.41M | EBIT |
| -30.76M | -31.25M | -29.79M | -14.29M | -10.72M | EBITDA |
| -34.92M | -59.88M | -28.50M | -16.35M | -10.32M | Net Income Common Stockholders |
| -53.18M | -79.27M | -37.90M | -17.22M | -12.46M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 5.62M | 4.71M | 4.70M | 1.86M | 7.92M | Total Assets |
| 138.25M | 127.94M | 109.54M | 22.01M | 22.53M | Total Debt |
| 48.37M | 135.04M | 63.44M | 12.30M | 6.28M | Net Debt |
| 42.76M | 130.33M | 58.75M | 10.44M | -1.64M | Total Liabilities |
| 89.92M | 194.30M | 101.61M | 20.56M | 11.39M | Stockholders Equity |
| 48.33M | -66.35M | 7.93M | 1.45M | 11.14M |
| Cash Flow | Free Cash Flow | |||
| -43.52M | -41.54M | -33.43M | -14.36M | -11.87M | Operating Cash Flow |
| -31.91M | -31.11M | -29.75M | -12.63M | -10.64M | Investing Cash Flow |
| -11.46M | -10.62M | -39.49M | -6.39M | -855.00K | Financing Cash Flow |
| 44.57M | 41.69M | 71.61M | 12.93M | 18.83M |
Gauzy Ltd. Technical Analysis
Negative
9.71
Price Trends
9.19
Negative
9.92
Negative
9.59
Negative
Market Momentum
0.08
Positive
44.52
Neutral
34.66
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 9.71 is above the 20-day moving average (MA) of 9.62, above the 50-day MA of 9.19, and above the 200-day MA of 9.59, indicating a bearish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 44.52 is Neutral, neither overbought nor oversold. The STOCH value of 34.66 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.
8.96
-6.78
-43.07%
FBLG
FibroBiologics, Inc.
0.84
-10.46
-92.57%
LOBO
Lobo EV Technologies Ltd.
1.23
-1.61
-56.69%
AUNA
Auna S.A. Class A
6.89
-1.75
-20.25%
INTJ
Intelligent Group Ltd
0.66
-0.38
-36.54%
LEGT
Legato Merger Corp. III
10.62
0.52
5.15%
Gauzy Ltd. Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q3-2024)
| % Change Since: 0.00%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with strong revenue growth, significant new contracts, and a focus on profitability. However, there were challenges in the Aeronautics division and a decline in gross margin.Q3-2024 Updates
Positive Updates
Strong Revenue Growth
Gauzy reported a 24.6% increase in total revenue for Q3 2024 and a 29.2% increase year-to-date compared to the same period in 2023.
Significant Contracts and Partnerships
Gauzy announced new business with major companies like Ferrari, Yutong, and a major international airline. Ferrari selected Gauzy for an 8-year contract, and Ford Trucks signed a 10-year serial production agreement.
Safety Tech Division Growth
The Safety Tech division saw a 68% increase in revenue due to strong demand for ADAS Smart Vision 2, with Yutong increasing orders by 250% year-over-year.
Architecture and Automotive Division Developments
The Architecture division achieved a 21% revenue increase, while the Automotive division secured a 9-year contract to deliver products to 50,000 cars annually starting in 2025.
Positive EBITDA Outlook
Gauzy is on track to reach EBITDA breakeven in Q4 2024, reflecting a focus on profitability.
Negative Updates
Aeronautics Revenue Decline
The Aeronautics division experienced a 7.6% decrease in revenue due to shipment delays caused by labor constraints.
Gross Margin Decline
Gross margin fell to 23.9% in Q3 2024 from 26.8% in the prior year due to a lower mix of high-margin aeronautics revenue.
Net Loss
Gauzy reported a net loss of $5.5 million for Q3 2024, compared to a net loss of $21.3 million in the prior year period.
Company Guidance
In the Q3 2024 earnings call for Gauzy Limited, the executives provided optimistic guidance for the upcoming quarters, highlighting key metrics and strategic initiatives. They reported a 24.6% increase in total revenue for the third quarter, reaching $23.3 million, and a year-to-date growth of 29.2% compared to the same period in 2023. The company anticipates strong demand across its four business divisions, particularly noting a 68.1% revenue increase in the Safety Tech division due to robust ADAS Smart Vision orders. Despite a slight decline in Aeronautics revenue attributed to shipment delays, they expect to resolve these with a new second shift in France. The company reiterated its commitment to reaching EBITDA breakeven by year-end and highlighted several strategic contracts, including a nine-year automotive deal and ongoing significant partnerships with global brands like Ferrari and Yutong. Additionally, Gauzy aims to achieve gross margins in the second half of the year that are higher than the first half, reflecting increased operating leverage and a strategic focus on profitability.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.