Razor Labs (RZR) AI Stock Analysis

• Market Cap: 159.45M
• Dividend Yield: N/A
• Average Volume (3M): 28.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.52
• Revenue Growth: 238.35%
• EPS Growth: -0.43%
• Country: IL
• Employees: 41
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -0.39
• Shares Outstanding: 39,360,355
• 10 Day Avg. Volume: 34,929
• 30 Day Avg. Volume: 28,252
• PEG Ratio: 0.82
• Price to Book (P/B): 19.42
• Price to Sales (P/S): 12.57
• P/FCF Ratio: -381.66
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: 384.00 ▲(5.81% Upside)

Razor Labs faces significant challenges with profitability and high leverage, impacting its financial performance score. Technical indicators suggest a bearish trend, and valuation is weak due to negative earnings. These factors collectively result in a low overall stock score.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market presence and product demand, supporting long-term business sustainability and potential for future expansion.

Cash Flow Improvement

Improved free cash flow growth enhances financial flexibility, allowing for reinvestment in business operations and reducing reliance on external financing.

Diversified Revenue Model

A diversified revenue model reduces dependency on any single income stream, providing stability and resilience against market fluctuations.

Negative Factors

High Leverage

High leverage poses financial risks, potentially limiting the company's ability to invest in growth opportunities and increasing vulnerability to economic downturns.

Negative Profitability

Persistent negative profitability indicates operational inefficiencies, which could hinder long-term sustainability and investor confidence.

Negative Operating Cash Flow

Negative operating cash flow suggests challenges in covering operational expenses, which may necessitate additional financing and impact financial health.

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 through a diversified model that includes project-based consulting fees, subscription services for its proprietary software platforms, and ongoing maintenance contracts with clients. The company also engages in strategic partnerships with industry leaders to co-develop AI solutions, which provides additional revenue opportunities through collaborative projects. Furthermore, Razor Labs may capitalize on licensing its technology to other businesses, creating a steady stream of income from intellectual property. The combination of these revenue streams, along with a focus on expanding its client base and enhancing service offerings, contributes significantly to its earnings.

Razor Labs Financial Statement Overview

Summary

Razor Labs exhibits strong revenue growth but faces significant profitability and cash flow challenges. The company is highly leveraged, which poses financial risks. While there are improvements in cash flow, negative margins and high debt levels require strategic adjustments for financial stability.

Income Statement

Razor Labs shows a strong revenue growth rate of 23.62% in the TTM, indicating potential for future expansion. However, the company struggles with profitability, as evidenced by negative net profit, EBIT, and EBITDA margins. The gross profit margin has improved slightly over time, but the persistent losses highlight significant operational challenges.

Balance Sheet

The company's debt-to-equity ratio has improved from previous years but remains relatively high at 1.56 in the TTM, indicating a leveraged position. Return on equity is negative, reflecting ongoing losses. The equity ratio is not explicitly provided, but the high leverage suggests a need for careful financial management to avoid solvency risks.

Cash Flow

Razor Labs has shown a significant improvement in free cash flow growth, with an 84.50% increase in the TTM. However, operating cash flow remains negative, and the operating cash flow to net income ratio is unfavorable. The free cash flow to net income ratio is positive, indicating some ability to generate cash relative to net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.87M	17.22M	5.29M	5.14M	14.20M	22.30M
Gross Profit	12.17M	7.14M	648.00K	1.60M	1.91M	11.23M
EBITDA	-13.84M	-10.81M	-13.70M	-23.32M	-36.45M	1.50M
Net Income	-16.60M	-15.48M	-18.33M	-27.56M	-41.57M	-7.00K
Balance Sheet
Total Assets	55.60M	79.93M	82.82M	71.30M	101.22M	23.48M
Cash, Cash Equivalents and Short-Term Investments	38.22M	55.29M	58.63M	44.52M	71.12M	2.04M
Total Debt	4.89M	18.28M	20.68M	23.23M	22.71M	11.90M
Total Liabilities	52.44M	68.77M	57.23M	28.49M	31.34M	18.86M
Stockholders Equity	3.14M	11.14M	25.57M	42.80M	69.88M	4.61M
Cash Flow
Free Cash Flow	-6.75M	-567.00K	17.11M	-23.98M	-36.43M	1.27M
Operating Cash Flow	-6.51M	-308.00K	17.25M	-23.84M	-32.78M	1.53M
Investing Cash Flow	-15.02M	6.96M	-7.47M	42.34M	-45.22M	812.00K
Financing Cash Flow	-2.83M	-2.83M	-2.38M	-3.17M	105.08M	-1.19M

Razor Labs Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 362.90
• 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 Neutral. The current price of 362.9 is above the 20-day moving average (MA) of 351.35, below the 50-day MA of 387.14, and below the 200-day MA of 454.74, indicating a neutral trend. The MACD of -4.64 indicates Negative momentum. The RSI at 50.93 is Neutral, neither overbought nor oversold. The STOCH value of 54.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
RZR	42 Neutral	159.45M	-9.08	―	―	238.35%	-0.43%