Foresight (FRSX) AI Stock Analysis

• Market Cap: ₪19.37M
• Dividend Yield: N/A
• Average Volume (3M): 267.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.22
• Revenue Growth: -13.19%
• EPS Growth: 57.46%
• Country: IL
• Employees: 81
• Sector: Technology
• Sector Strength: 88
• Industry: Auto - Parts
• EPS (TTM): -3.70
• Shares Outstanding: 206,090,320
• 10 Day Avg. Volume: 188,815
• 30 Day Avg. Volume: 267,397
• PEG Ratio: 0.04
• Price to Book (P/B): 4.31
• Price to Sales (P/S): 59.98
• P/FCF Ratio: -2.35
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -0.08
• Revenue Forecast (FY): ₪9.00M

• Rating: 44 Neutral
• Price Target: 11.00 ▼(-28.57% Downside)
• Action: Reiterated Date: 01/30/26
• Date: Action: Reiterated 01/30/26

The score is weighed down primarily by weak financial performance (ongoing losses, declining revenue, and negative free cash flow) and a strongly bearish technical setup (price below all key moving averages with negative MACD). Valuation is not supportive because the negative P/E reflects losses and there is no dividend yield.

Positive Factors

Strategic partnership with SoftBank

A validated collaboration with SoftBank in Japan provides durable commercial validation and a channel to tailor V2X solutions for a major telecom/tech partner. That can accelerate market entry, product refinement, and licensing opportunities across markets over months to years.

High gross profit margin

A ~60% gross margin implies the company’s core sensing/perception offerings have strong unit-level economics. If revenue recovers, these margins support scalable profitability and reinvestment in R&D, making long-term margin sustainability plausible with higher volumes.

Manageable leverage

Low debt relative to equity preserves financial flexibility, allowing Foresight to fund continued R&D, pilots, and strategic partnerships without heavy interest burden. This reduces insolvency risk and gives runway to pursue commercialization in auto markets.

Negative Factors

Persistent losses and negative margins

Ongoing operating losses and negative EBIT/EBITDA margins erode equity and limit the firm’s ability to self-fund growth. Without sustained margin turnarounds, profitability depends on scaling revenue or continued external funding, a structural risk for long-term viability.

Negative free cash flow

Negative free cash flow forces dependence on external financing, increasing dilution risk and constraining strategic options. In capital-intensive automotive deployments, persistent cash burn can delay commercialization and reduce bargaining power with OEMs and partners.

Declining revenue and weakening balance sheet

A meaningful revenue decline and shrinking assets/equity reduce scale and credibility with OEMs. In the ADAS market, scale drives certification, supply contracts, and R&D amortization; continued shrinkage hampers the company’s ability to compete over the medium term.

Foresight Business Overview & Revenue Model

Company Description

Foresight Autonomous Holdings Ltd., a technology company, engages in the design, development, and commercialization of sensor systems for the automotive industry in Israel and internationally. The company develops in-line-of-sight vision solutions and beyond-line-of-site accident-prevention solutions. It offers QuadSight automotive vision solution, a four-camera multi-spectral vision solution that combines two sets of stereoscopic infrared and visible-light cameras for obstacle detection; DynamiCal, an automatic calibration software solution to ensure that stereo cameras remain calibrated to create accurate and continuous 3D depth perception; and ScaleCam, a separated stereo camera solution. The company also provides Percept3D, a 3D point cloud solution that provides 3D raw data for obstacle detection, terrain analysis, and autonomous vehicle sensor fusion; and Mono2Stereo, a solution that enhances existing vision sensor systems by using software-based algorithms to create a 3D perception stereo vision solution. Its solutions are also used in defense, autonomous vehicles, and heavy industrial equipment markets. In addition, it offers Eye-Net Protect, a cellular-based V2X solution that provides real-time pre-collision alerts to road users, such as pedestrians, cyclists, scooter drivers, etc. by using smartphones. It has a strategic cooperation agreement with FLIR Systems, Inc. to develop, market, and distribute the QuadSight vision system; and a strategic partnership agreement with Knorr-Bremse for light rail vehicle systems. The company was formerly known as Asia Development (A.D.B.M.) Ltd. and changed its name to Foresight Autonomous Holdings Ltd. in January 2016. Foresight Autonomous Holdings Ltd. was founded in 2015 and is headquartered in Ness Ziona, Israel.

How the Company Makes Money

Foresight generates revenue primarily through the sale of its software solutions and subscription services. The company offers various pricing models, including one-time licensing fees and recurring subscription fees for ongoing access to its platforms. Key revenue streams include direct sales to enterprise clients, partnerships with technology providers for integrated solutions, and consulting services that help clients implement and optimize their use of Foresight's products. Additionally, strategic partnerships with industry leaders enhance Foresight's market reach and can lead to revenue-sharing opportunities, further contributing to the company's earnings.

Foresight Financial Statement Overview

Summary

Overall financial profile is weak: revenue declined ~12.25% YoY and net income remains negative with negative EBIT/EBITDA margins. Balance sheet leverage is manageable (debt-to-equity ~0.26), but equity and assets are decreasing and ROE is negative. Cash flow is pressured with negative free cash flow and reliance on financing.

Income Statement

Foresight continues to face significant challenges on the income statement front, highlighted by negative net income and declining revenue. The gross profit margin for 2024 is approximately 60.55%, but the company experienced a revenue decline of 12.25% compared to the previous year. The EBIT and EBITDA margins are both negative, reflecting ongoing losses, which is a major concern for profitability and sustainability.

Balance Sheet

The balance sheet shows a weakening position with decreasing total assets and stockholders' equity. The debt-to-equity ratio stands at approximately 0.26, indicating manageable leverage. However, the return on equity is negative due to persistent losses. The equity ratio remains relatively stable, suggesting some degree of financial stability despite ongoing challenges.

Cash Flow

Cash flow analysis reveals a negative free cash flow, although there is a slight improvement in operating cash flow relative to net income. The company continues to rely on financing activities to support cash flow needs. The free cash flow to net income ratio is negative, indicating cash flow pressures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	460.00K	436.00K	497.00K	550.00K	120.00K	0.00
Gross Profit	276.00K	264.00K	354.00K	298.00K	53.00K	0.00
EBITDA	-12.44M	-12.48M	-16.03M	-17.24M	-15.79M	-12.58M
Net Income	-12.20M	-11.14M	-18.41M	-21.68M	-15.04M	-15.14M
Balance Sheet
Total Assets	8.55M	9.74M	19.31M	32.89M	53.48M	49.97M
Cash, Cash Equivalents and Short-Term Investments	6.37M	7.15M	16.11M	26.39M	45.60M	43.98M
Total Debt	1.56M	1.56M	1.63M	2.00M	2.73M	1.28M
Total Liabilities	2.92M	3.02M	3.31M	4.11M	4.85M	2.88M
Stockholders Equity	5.93M	6.07M	15.39M	28.33M	48.41M	47.02M
Cash Flow
Free Cash Flow	-11.26M	-11.12M	-15.05M	-17.37M	-12.36M	-11.54M
Operating Cash Flow	-11.23M	-11.05M	-14.93M	-17.06M	-12.13M	-11.49M
Investing Cash Flow	-35.00K	1.78M	7.09M	8.98M	-12.58M	85.00K
Financing Cash Flow	3.24M	903.00K	4.18M	0.00	14.16M	45.28M

Foresight Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:FRSX, the sentiment is Negative. The current price of 15.4 is above the 20-day moving average (MA) of 9.92, above the 50-day MA of 12.65, and below the 200-day MA of 28.74, indicating a bearish trend. The MACD of -1.06 indicates Negative momentum. The RSI at 36.03 is Neutral, neither overbought nor oversold. The STOCH value of 17.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:FRSX.

Foresight Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
RZR	48 Neutral	₪259.81M	-15.61	―	―	238.35%	-0.43%
FRSX	44 Neutral	₪19.37M	-0.15	―	―	-13.19%	57.46%
PHTM	42 Neutral	₪59.81M	-3.73	―	―	14.39%	-1797.14%
NRGN	40 Underperform	₪34.22M	-2.78	―	―	-23.68%	31.97%