Innovative Eyewear, Inc. (LUCY) AI Stock Analysis

• Market Cap: $9.93M
• Dividend Yield: N/A
• Average Volume (3M): 4.06M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.72
• Revenue Growth: 41.99%
• EPS Growth: 47.51%
• Country: US
• Employees: 11
• Sector: Healthcare
• Sector Strength: 40
• Industry: Medical - Instruments & Supplies
• EPS (TTM): -6.77
• Shares Outstanding: 4,574,602
• 10 Day Avg. Volume: 385,820
• 30 Day Avg. Volume: 4,056,110
• PEG Ratio: <0.01
• Price to Book (P/B): <0.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: >-0.01
• Enterprise Value/Market Cap: -529.02
• Enterprise Value/Revenue: -11.40
• Enterprise Value/Gross Profit: -23.79
• Enterprise Value/Ebitda: 16.26
• 1Y Price Target: $7.00
• Price Target Upside: 228.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 35 Underperform
• Price Target: ―

Innovative Eyewear, Inc. receives a low stock score due to significant operational challenges, weak technical indicators, and unfavorable valuation metrics. The primary concerns are the company's inability to turn revenue growth into profitability, reliance on financing activities, and negative market momentum. These factors overshadow the positive aspect of a strong equity position, making it a high-risk investment at this time.

Positive Factors

Financial Performance

Gross margin significantly expanded to a record high, driven by lower cost of frames and an improvement in product mix.

Market Demand

Management noted greater than expected demand for its Lucyd Armor smart safety glass product, indicating strong market validation.

Product Launch

The company launched its first line of Reebok-branded products, which is expected to contribute to revenue growth.

Negative Factors

Revenue Outlook

Revenue estimates for 2025 and 2026 are lowered due to an uncertain outlook for uptake by a major optical retailer.

Strategic Shift

The company removed references to a near-term expectation for onboarding with a major optical group or chain, reflecting a shift in strategy.

Wholesale Decline

Wholesale declined 27% y/y as the company prioritizes larger customer opportunities, which have not yet materialized.

Innovative Eyewear, Inc. Business Overview & Revenue Model

Company Description

Innovative Eyewear, Inc. develops and sells smart eyeglasses and sunglasses. The company's flagship product is Lucyd Lyte glasses that enable the wearer to listen to music, take and make calls, and use voice assistants to perform various smartphone tasks hands-free. It also offers Vyrb, a social media application that enables the user to receive and send posts through Lucyd Lyte smart glasses with voice. The company sells its products through various e-commerce and retail distribution channels. Innovative Eyewear, Inc. has a partnership with Lucyd. The company was founded in 2019 and is headquartered in North Miami, Florida. Innovative Eyewear, Inc. operates as a subsidiary of Lucyd Ltd.

How the Company Makes Money

Innovative Eyewear, Inc. generates revenue primarily through the sale of its smart eyewear products. The company's revenue streams include direct sales to consumers through its online platform and retail partnerships, along with wholesale distribution to optical retailers. By pioneering in the smart eyewear sector, the company also engages in collaborations and partnerships with technology firms to integrate advanced features into its products, which may include licensing fees or co-marketing arrangements. Additionally, the company may leverage its technological innovations to offer premium-priced products, thereby enhancing its overall profitability.

Innovative Eyewear, Inc. Financial Statement Overview

Summary

Despite impressive revenue growth, Innovative Eyewear, Inc. is facing significant operational losses and negative cash flow trends. The company's balance sheet is strengthened by a strong equity position with no debt, but profitability remains elusive. Improving operational efficiency and achieving profitability are critical concerns.

Income Statement

The company has shown significant revenue growth from 2019 to 2024, but it is still experiencing substantial losses. The net profit margin is deeply negative, reflecting high expenses relative to revenue. The EBIT and EBITDA margins are also negative, indicating operational inefficiencies and financial instability.

Balance Sheet

The balance sheet shows a strong equity position with no debt, which is a positive indicator of financial prudence. However, the company has had negative stockholders' equity in the past and has only recently improved. The equity ratio is high, suggesting reliance on equity financing, but the return on equity is negative due to ongoing losses.

Cash Flow

The cash flow statement reveals negative operating cash flow and free cash flow, indicating poor cash generation from operations. The company is heavily reliant on financing activities to sustain its cash flow needs. The free cash flow to net income ratio is unfavorable due to persistent losses.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.64M	1.15M	659.79K	690.67K	57.00K
Gross Profit	215.19K	-119.33K	-56.29K	148.25K	-17.27K
EBITDA	-7.62M	-6.58M	-5.54M	-3.20M	-762.22K
Net Income	-7.77M	-6.66M	-5.68M	-3.24M	-768.18K
Balance Sheet
Total Assets	9.84M	6.22M	4.69M	824.32K	211.02K
Cash, Cash Equivalents and Short-Term Investments	7.52M	4.29M	3.59M	79.73K	27.02K
Total Debt	0.00	0.00	61.36K	289.03K	599.54K
Total Liabilities	743.17M	659.94K	665.46K	616.80K	765.85K
Stockholders Equity	9.10B	5.56M	4.02M	207.52K	-554.84K
Cash Flow
Free Cash Flow	-7.01M	-6.02M	-3.44M	-1.33M	-99.30K
Operating Cash Flow	-6.74M	-5.77M	-3.22M	-1.21M	-40.26K
Investing Cash Flow	-5.16M	-198.75K	-219.95K	-118.45K	-59.04K
Financing Cash Flow	10.24M	6.66M	6.96M	1.39M	126.33K

Innovative Eyewear, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.13
• 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 LUCY, the sentiment is Negative. The current price of 2.13 is below the 20-day moving average (MA) of 2.23, below the 50-day MA of 2.47, and below the 200-day MA of 4.54, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 44.42 is Neutral, neither overbought nor oversold. The STOCH value of 39.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LUCY.

Innovative Eyewear, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	52 Neutral	kr5.53B	10.95	-62.48%	1.93%	26.02%	25.13%
HYPD	48 Neutral	$84.72M	―		―	663.82%	25.89%
ACXP	39 Underperform	$12.76M	―	-285.79%	―	―	23.65%
LUCY	35 Underperform	$9.93M	―	-132.93%	―	41.99%	47.51%
PMCB	―	$7.69M	1.34	45.44%	―	―	―
ALZN	―	$2.63M	―	-1092.96%	―	―	―
BJDX	29 Underperform	$2.41M	―	-200.56%	―	―	81.35%