Razor Labs (RZR) AI Stock Analysis

• Market Cap: 182.67M
• Dividend Yield: N/A
• Average Volume (3M): 29.70K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.73
• Revenue Growth: 238.35%
• EPS Growth: -0.43%
• Country: IL
• Employees: 41
• Sector: Technology
• Sector Strength: 85
• Industry: Software - Infrastructure
• EPS (TTM): -0.39
• Shares Outstanding: 39,360,355
• 10 Day Avg. Volume: 28,880
• 30 Day Avg. Volume: 29,704
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 433.00
• Price Target Upside: -2.48% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 45 Neutral
• Price Target: 433.00 ▼(-2.48% Downside)

Razor Labs' overall stock score is primarily impacted by its challenging financial performance, characterized by declining revenues and persistent losses. The technical analysis indicates a bearish trend, and the valuation is unattractive due to a negative P/E ratio and no dividend yield. These factors collectively contribute to a low stock score.

Positive Factors

Business Model Strength

The company's focus on AI and SaaS models provides a scalable revenue stream, leveraging recurring fees and strategic partnerships, which can drive long-term growth.

Leverage Management

Improved leverage management indicates better financial discipline, potentially enhancing financial stability and reducing risk over time.

Industry Focus

Focusing on AI for industrial sectors positions the company to capitalize on growing demand for efficiency and productivity solutions, supporting long-term market relevance.

Negative Factors

Revenue Decline

Declining revenue trends signal challenges in market penetration and customer retention, potentially impacting future growth and profitability.

Profitability Challenges

Persistent negative margins indicate operational inefficiencies and challenges in achieving profitability, which could hinder long-term financial health.

Cash Flow Volatility

Volatile cash flows suggest difficulties in sustaining operations and funding growth initiatives, posing risks to liquidity and financial stability.

Razor Labs Business Overview & Revenue Model

Company Description

Razor Labs operates in the artificial intelligence (AI) industry in Israel. It offers DataMind, an industrial optimization platform to take manufacturing process into a virtual world; and AI pipeline, a video analytics platform to chain together various AI applications into one solution that fit corporate objectives. The company is based in Tel Aviv, Israel.

How the Company Makes Money

Razor Labs generates revenue primarily through the sale and subscription of its AI-driven solutions and platforms to industrial clients. The company offers software-as-a-service (SaaS) models where clients pay recurring fees to access and utilize their AI tools. Additionally, Razor Labs engages in custom AI solution development for specific industrial needs, which can involve one-time project fees or long-term service contracts. Key revenue streams also include strategic partnerships with industry players, which may involve revenue sharing or joint ventures to co-develop AI technologies tailored to specific industrial applications.

Razor Labs Financial Statement Overview

Summary

Razor Labs faces significant financial challenges with declining revenues, persistent losses, and inconsistent cash flows. Despite slight improvements in leverage, the company's profitability and cash generation capabilities remain concerning.

Income Statement

Razor Labs has shown a volatile revenue trend with a significant decline in recent years. The gross profit margin is weak, and the company is experiencing negative net and EBIT margins, indicating substantial operational challenges. The company has been unable to maintain profitability, as evidenced by consecutive years of negative net income.

Balance Sheet

The company's debt-to-equity ratio has improved slightly, indicating better leverage management. However, the return on equity remains negative due to persistent losses. The equity ratio has decreased over time, suggesting a declining asset base relative to equity. Overall, the balance sheet reflects mixed stability and potential liquidity concerns.

Cash Flow

Razor Labs has faced difficulties in maintaining positive operating cash flow, and free cash flow has been inconsistent. The operating cash flow to net income ratio is volatile, reflecting inconsistent cash generation relative to reported losses. These challenges highlight potential liquidity issues and the need for improved cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.24M	17.22M	5.29M	5.14M	14.20M	22.30M
Gross Profit	2.15M	7.14M	648.00K	1.60M	1.91M	11.23M
EBITDA	-15.09M	-10.81M	-13.70M	-23.32M	-40.95M	1.50M
Net Income	-16.52M	-15.48M	-18.33M	-27.56M	-41.57M	-7.00K
Balance Sheet
Total Assets	73.26M	79.93M	82.82M	71.30M	101.22M	23.48M
Cash, Cash Equivalents and Short-Term Investments	48.47M	55.29M	58.63M	44.52M	71.12M	2.04M
Total Debt	15.82M	18.28M	20.68M	23.23M	22.71M	11.90M
Total Liabilities	54.62M	68.77M	57.23M	28.49M	31.34M	18.86M
Stockholders Equity	18.62M	11.14M	25.57M	42.80M	69.88M	4.61M
Cash Flow
Free Cash Flow	12.99M	-567.00K	17.11M	-23.98M	-36.43M	1.27M
Operating Cash Flow	13.05M	-308.00K	17.25M	-23.84M	-32.78M	1.53M
Investing Cash Flow	-3.91M	6.96M	-7.47M	42.34M	-45.22M	812.00K
Financing Cash Flow	-3.01M	-2.83M	-2.38M	-3.17M	105.08M	-1.19M

Razor Labs Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 444.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:RZR, the sentiment is Negative. The current price of 444 is below the 20-day moving average (MA) of 457.93, below the 50-day MA of 465.54, and below the 200-day MA of 488.70, indicating a bearish trend. The MACD of -4.93 indicates Negative momentum. The RSI at 44.22 is Neutral, neither overbought nor oversold. The STOCH value of 63.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:RZR.

Razor Labs Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$36.58B	11.16	-10.43%	1.86%	8.71%	-7.09%
RZR	45 Neutral	182.67M	―		―	238.35%	-0.43%
ORAD	―	106.37M	11.59		―	―	―
SADE	―	119.13M	141.58		―	―	―
CLAB	―	84.09M	29.69		―	―	―
UTRN	―	110.11M	75.92		―	―	―