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nLIGHT Inc (LASR)
NASDAQ:LASR
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nLIGHT
(NASDAQ:LASR)
44Neutral
Positive Factors
Aerospace/Defense Sales
Aerospace/Defense sales are expected to grow 25% in 2025, driven by possible equipment orders.
Backlog Growth
NLIGHT ended the year with a backlog of $167 million, which was up 55%.
Negative Factors
Commercial Business Outlook
The Commercial business, however, is another story, with 2024 revenues down 25% and expectations of a further 15-20% revenue decrease or more in 2025.
Revenue and Margins
The top-line was ~9% below expectations, resulting in significantly lower gross margins and a larger-than-expected adj. EBITDA loss.
nLIGHT (LASR) vs. S&P 500 (SPY)
Market Cap
$359.40M
Dividend YieldN/A
Average Volume (3M)426.78K
Price to Earnings (P/E)―
Beta (1Y)1.49
Revenue Growth-5.42%
EPS Growth-40.48%
CountryUS
Employees800
SectorTechnology
Sector Strength51
IndustrySemiconductors
Share Statistics
EPS (TTM)-1.27
Shares Outstanding49,030,980
10 Day Avg. Volume394,417
30 Day Avg. Volume426,780
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.11
Price to Cash Flow (P/CF)-27.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$14.25Price Target Upside96.55% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
nLIGHT Business Overview & Revenue Model
Company DescriptionnLIGHT, Inc. designs, manufactures, and sells semiconductor and fiber lasers for industrial, microfabrication, and aerospace and defense applications. It operates in two segments, Laser Products and Advanced Development. The company also provides fiber amplifiers, and beam combination and control systems for use in high-energy laser systems in directed energy applications. It sells its products through direct sales force in the United States, China, South Korea, and European countries, as well as through various independent sales representatives and distributors in Asia, Europe, and South America. The company was formerly known as nLight Photonics Corporation and changed its name to nLIGHT, Inc. in January 2016. nLIGHT, Inc. was incorporated in 2000 and is headquartered in Camas, Washington.
How the Company Makes MoneynLIGHT makes money through the sale of its laser technology products, which include semiconductor lasers and fiber lasers. These products are sold to a diverse range of industries such as industrial manufacturing, aerospace, and defense, where they are used for precision cutting, welding, and other applications. nLIGHT generates revenue by selling these laser systems directly to manufacturers and through partnerships with system integrators and distributors. Additionally, the company may engage in service and support contracts to provide ongoing maintenance and upgrade services to its customers, further contributing to its revenue streams. Key revenue drivers include technological advancements, expanding applications for laser technology, and strategic partnerships that enhance market reach and product offerings.
nLIGHT Financial Statement Overview
Summary
nLIGHT is experiencing financial difficulties with declining revenues, persistent losses, and negative cash flows. The company's strong equity base provides some financial stability, but profitability and cash flow challenges pose significant risks.Income Statement
nLIGHT's income statement shows a declining revenue trend, with a significant decrease from $242M in 2022 to $198M in 2024. The company has been operating at a loss, with negative EBIT and net profit margins over the years, indicating profitability challenges. Gross profit margin has also declined from 21.0% in 2023 to 16.6% in 2024, reflecting cost pressures or inefficiencies.45
Neutral
Balance Sheet
The balance sheet reflects a strong equity position with an equity ratio of 80.1% in 2024, indicating low leverage and financial stability. However, the company has been facing declining stockholders' equity and total assets over time. The debt-to-equity ratio remains low, suggesting manageable debt levels despite the profitability issues.60
Neutral
Cash Flow
Cash flow analysis shows a negative free cash flow in 2024, with a concerning decrease from $4.75M in 2023 to -$10.29M in 2024. Operating cash flow has also turned negative, indicating potential liquidity challenges. The free cash flow to net income ratio is unfavorable, further highlighting cash flow management issues.35
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 198.55M | 209.92M | 242.06M | 270.15M | 222.79M | Gross Profit |
| 33.02M | 46.11M | 50.82M | 77.31M | 59.36M | EBIT |
| -65.64M | -45.95M | -51.21M | -30.22M | -21.05M | EBITDA |
| -43.75M | -29.92M | -35.54M | -15.16M | -7.36M | Net Income Common Stockholders |
| -60.79M | -41.67M | -54.58M | -29.67M | -20.93M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 100.70M | 112.88M | 108.22M | 146.53M | 102.28M | Total Assets |
| 270.24M | 306.80M | 329.23M | 373.62M | 283.64M | Total Debt |
| 12.13M | 14.16M | 15.61M | 17.68M | 13.05M | Net Debt |
| -53.70M | -39.05M | -42.22M | -128.86M | -89.23M | Total Liabilities |
| 53.81M | 52.38M | 58.39M | 71.48M | 63.73M | Stockholders Equity |
| 216.43M | 254.42M | 270.85M | 302.13M | 219.91M |
| Cash Flow | Free Cash Flow | |||
| -10.29M | 4.75M | -36.26M | -29.00M | -11.31M | Operating Cash Flow |
| -2.36M | 10.09M | -14.54M | -7.44M | 13.04M | Investing Cash Flow |
| 16.69M | -14.10M | -72.38M | -21.85M | -24.54M | Financing Cash Flow |
| -1.30M | -859.00K | -1.31M | 73.74M | -3.77M |
nLIGHT Technical Analysis
Negative
7.25
Price Trends
8.91
Negative
9.91
Negative
10.63
Negative
Market Momentum
-0.53
Negative
39.98
Neutral
60.32
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LASR, the sentiment is Negative. The current price of 7.25 is below the 20-day moving average (MA) of 7.70, below the 50-day MA of 8.91, and below the 200-day MA of 10.63, indicating a bearish trend. The MACD of -0.53 indicates Negative momentum. The RSI at 39.98 is Neutral, neither overbought nor oversold. The STOCH value of 60.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LASR.
nLIGHT Risk Analysis
nLIGHT disclosed 35 risk factors in its most recent earnings report. nLIGHT 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
nLIGHT Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
58 Neutral | $11.04B | 9.83 | -6.56% | 3.16% | 7.59% | -10.43% | |
57 Neutral | $299.05M | ― | -3.36% | ― | -5.30% | 90.66% | |
52 Neutral | $2.33B | ― | -8.18% | ― | -24.10% | -189.99% | |
47 Neutral | $334.48M | ― | -128.47% | ― | -10.77% | -27.51% | |
45 Neutral | $331.52M | ― | -23.22% | ― | 4.84% | 48.52% | |
44 Neutral | $359.40M | ― | -25.82% | ― | -5.42% | -40.48% | |
36 Underperform | $427.72M | ― | -30.69% | ― | -2.91% | 11.28% |
* Technology Sector Average
Performance Comparison
LASR
nLIGHT
7.12
-4.13
-36.71%
WOLF
Wolfspeed
2.16
-23.08
-91.44%
IPGP
IPG Photonics
51.83
-32.54
-38.57%
INDI
indie Semiconductor
1.86
-3.92
-67.82%
NVTS
Navitas Semiconductor
1.73
-2.17
-55.64%
XPER
Xperi Inc
6.53
-3.05
-31.84%
nLIGHT Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -20.15% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong growth and opportunities in the aerospace and defense markets, with significant backlog and contract wins. However, the commercial market faced challenges, and financial metrics showed declines in revenue and gross margins, contributing to a mixed outlook.Highlights
Aerospace and Defense Revenue Growth
Revenue from aerospace and defense grew to more than 60% of total sales by the end of 2024, with a 20% year-over-year increase to a record $110 million.
Backlog Increase
Backlog increased by more than 50% year-over-year in 2024, reaching a record $167 million.
Development of High-Energy Laser Systems
Significant progress on the Healthy 2 program to develop a one-megawatt high-energy laser, with components shipping in the second half of 2024.
New Contract Achievements
A new $25 million contract for an existing long-running missile program was announced, contributing to significant revenue growth in laser sensing markets.
Iron Dome Initiative
The U.S. President signed an executive order for a next-generation missile defense shield, potentially benefiting nLIGHT's directed energy systems.
Lowlights
Commercial Market Challenges
Commercial market revenue declined by 25% year-over-year, attributed to competition from China and muted global manufacturing demand.
Fourth Quarter Revenue Decline
Fourth quarter total revenue was $47.4 million, a decrease of 9% compared to the previous year's fourth quarter.
Gross Margin Impact
Total gross margin in the fourth quarter was 2%, impacted by non-routine charges of approximately $6 million related to inventory reserves.
Adjusted EBITDA Loss
Adjusted EBITDA for the fourth quarter was a loss of $11.3 million, compared to a loss of $3.3 million in the previous year's fourth quarter.
Cash Position Decline
Total cash, cash equivalents, restricted cash, and investments decreased to $100.9 million from $113.1 million at the end of 2023.
Company Guidance
During the earnings call for nLIGHT, Inc., several key metrics were outlined, highlighting the company's performance and future guidance. In 2024, revenue from aerospace and defense constituted over 60% of total sales, with the aerospace and defense markets growing by 20% year-over-year to $110 million. The backlog increased by more than 50% year-over-year to a record $167 million. The company anticipates further growth in 2025, expecting a 25% increase in aerospace and defense revenue. Despite challenges in the commercial markets, with a 25% revenue decline year-over-year, nLIGHT is optimistic about its strategic positioning within the Department of Defense's priorities. The fourth-quarter total revenue was $47.4 million, a decrease of 9% from the previous year, with product revenue at $31.7 million. Total gross margin for the quarter was 2%, impacted by non-routine charges, but adjusted gross margin would have been approximately 15%. The company ended 2024 with $100.9 million in cash, cash equivalents, and investments, and no debt. Looking ahead, nLIGHT expects first-quarter 2025 revenue to range from $45 million to $51 million, with a gross margin between 13% and 17%.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.