Windar Photonics (WPHO) AI Stock Analysis

• Market Cap: £41.92M
• Dividend Yield: N/A
• Average Volume (3M): 94.16K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.45
• Revenue Growth: -14.81%
• EPS Growth: -1362.50%
• Country: UK
• Employees: 29
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): N/A
• Shares Outstanding: 96,367,830
• 10 Day Avg. Volume: 137,233
• 30 Day Avg. Volume: 94,163
• PEG Ratio: -0.20
• Price to Book (P/B): 5.27
• Price to Sales (P/S): 12.65
• P/FCF Ratio: -14.45
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 39 Underperform
• Price Target: 43.00p ▲(4.88% Upside)

Windar Photonics' overall stock score is primarily impacted by its weak financial performance and bearish technical indicators. The company's negative valuation metrics further contribute to the low score. While recent corporate events show positive strategic moves, they are not sufficient to offset the significant financial and technical challenges.

Positive Factors

Product Innovation

The focus on innovative lidar systems positions Windar Photonics as a leader in optimizing wind turbine operations, enhancing long-term competitiveness.

Market Expansion

Collaborations with industry leaders and research institutions expand market reach and support product development, fostering sustainable growth.

Financial Stability

Increased cash reserves and equity enhance financial stability, providing a buffer against market volatility and supporting strategic investments.

Negative Factors

Revenue Decline

Inconsistent revenue growth poses challenges to financial performance, potentially affecting the company's ability to invest in growth initiatives.

Profitability Challenges

Ongoing operational inefficiencies and negative profit margins highlight the need for cost management and efficiency improvements to achieve profitability.

Debt Reliance

Reliance on debt financing could strain financial resources and limit flexibility, posing risks if not managed effectively in the long term.

Windar Photonics Business Overview & Revenue Model

Company Description

Windar Photonics PLC, through its subsidiaries, develops and sells light detection and ranging sensors, and associated products for use on electricity generating wind turbines in Europe, China, and rest of Asia. It offers WindEYE and WindVISION sensors, which measure wind speed by scanning a laser beam ahead of the wind turbines. The company also provides WindTIMIZER that works as a mediator between the WindEYE and the wind turbine controller; and retrofit control system. The company was incorporated in 2014 and is based in London, the United Kingdom.

How the Company Makes Money

Windar Photonics generates revenue primarily through the sale of its lidar systems and associated services to wind farm operators and developers. The company's revenue model includes direct sales of hardware, as well as ongoing revenue from maintenance and support contracts. Additionally, Windar may engage in partnerships with other renewable energy companies and research institutions to develop bespoke solutions, which can also contribute to its earnings. The increasing global demand for renewable energy solutions and the need for more efficient wind energy generation present significant opportunities for revenue growth through both new customer acquisition and expansion within existing markets.

Windar Photonics Financial Statement Overview

Summary

Windar Photonics faces significant financial headwinds with inconsistent revenue growth and negative profit margins. Despite improvements in cash reserves and equity, operational inefficiencies and reliance on debt financing pose ongoing challenges.

Income Statement

Windar Photonics has shown inconsistent revenue growth with a significant decline from 2023 to 2024. The company maintained a gross profit margin, but negative EBIT and net profit margins highlight ongoing operational inefficiencies and profitability challenges.

Balance Sheet

The balance sheet reflects a strong cash position and increased equity in 2024, indicating improved financial stability. However, the company has a high debt-to-equity ratio, suggesting reliance on debt financing, which could pose risks if not managed properly.

Cash Flow

Negative free cash flow and operating cash flow indicate liquidity challenges. Despite substantial financing cash inflows in 2024, the cash generated is not sufficient to cover operational needs, which is a concern for sustainable operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.98M	4.56M	4.77M	1.85M	551.53K	1.33M
Gross Profit	2.86M	2.57M	2.41M	946.61K	446.21K	701.37K
EBITDA	-942.25K	-707.76K	67.19K	-968.08K	-981.14K	-1.16M
Net Income	-1.34M	-906.19K	-182.52K	-1.08M	-1.13M	-1.34M
Balance Sheet
Total Assets	13.09M	15.64M	3.60M	4.29M	3.41M	3.44M
Cash, Cash Equivalents and Short-Term Investments	6.03M	7.07M	152.18K	1.40M	40.55K	626.36K
Total Debt	1.19M	1.43M	1.88M	1.85M	1.74M	1.74M
Total Liabilities	2.79M	4.69M	3.34M	3.95M	4.17M	3.00M
Stockholders Equity	10.31M	10.95M	264.92K	341.12K	-757.38K	441.38K
Cash Flow
Free Cash Flow	-2.09M	-3.99M	-1.13M	-470.99K	-1.05M	-1.04M
Operating Cash Flow	-1.62M	-3.14M	-380.18K	-363.54K	-394.10K	-1.04M
Investing Cash Flow	-889.56K	-820.62K	-582.97K	-283.98K	-243.91K	-299.10K
Financing Cash Flow	5.79M	10.89M	-288.35K	2.01M	28.83K	1.20M

Windar Photonics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 41.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:WPHO, the sentiment is Negative. The current price of 41 is below the 20-day moving average (MA) of 45.26, below the 50-day MA of 51.08, and below the 200-day MA of 52.16, indicating a bearish trend. The MACD of -2.86 indicates Negative momentum. The RSI at 25.45 is Positive, neither overbought nor oversold. The STOCH value of 69.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:WPHO.

Windar Photonics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KMK	76 Outperform	£56.99M	14.58	7.39%	―	36.61%	―
SDI	70 Neutral	£86.38M	18.95	9.34%	―	7.36%	31.93%
SOLI	68 Neutral	£90.93M	37.56	3.88%	1.56%	8.75%	-54.73%
GHH	67 Neutral	£165.92M	44.25	3.13%	2.16%	10.66%	21.19%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
XAR	56 Neutral	£78.07M	-7.46	-16.64%	―	-7.35%	-222.10%
WPHO	39 Underperform	£41.92M	-35.04	-17.36%	―	-14.81%	-1362.50%

Windar Photonics Corporate Events

Windar Photonics Sees Revenue Growth and Expands Market Reach in H1 2025

Windar Photonics reported an 18% increase in revenue for the first half of 2025, reaching €2.7 million, driven by expanding demand and strategic investments in marketing and manufacturing capacity. Despite facing currency headwinds and initial uncertainty due to North American import tariffs, the company secured significant contracts and expanded its market presence in North America and Asia. The company moved to a new manufacturing facility in Copenhagen, increasing production capacity fivefold, and is poised for further growth with a strong sales pipeline and the upcoming launch of the Nexus TPM module. Windar’s strategic focus on turbine optimization and monitoring solutions is expected to enhance its market position and drive long-term growth.

Windar Photonics Strengthens Sales Team with Key Appointments

Windar Photonics has appointed Martin McLarnon as Vice President of Sales for the Americas, following Birol Yosul’s appointment as VP of Sales for Europe. These strategic hires are part of the company’s expansion efforts in key markets. McLarnon brings over 15 years of renewable energy experience, which is expected to bolster Windar’s growth in the American market. The company will showcase its solutions at the Husum Wind 2025 expo, highlighting its Nexus OS software and the upcoming Turbine Performance Monitoring module.