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Neonode Inc. (NEON)
NASDAQ:NEON
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Neonode
(NASDAQ:NEON)
Rating:51Neutral
Price Target:
$10.50
▲(1.94%Upside)
Neonode (NEON) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$173.70M
Dividend YieldN/A
Average Volume (3M)114.37K
Price to Earnings (P/E)―
Beta (1Y)1.63
Revenue Growth-18.53%
EPS Growth46.30%
CountryUS
Employees40
SectorTechnology
Sector Strength84
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)-0.11
Shares Outstanding16,782,923
10 Day Avg. Volume71,791
30 Day Avg. Volume114,369
Financial Highlights & Ratios
PEG Ratio-3.10
Price to Book (P/B)12.40
Price to Sales (P/S)0.00
P/FCF Ratio-35.34
Enterprise Value/Market Cap0.96
Enterprise Value/Revenue10.35
Enterprise Value/Gross Profit58.74
Enterprise Value/Ebitda-4.63
Forecast
1Y Price Target
$16.50Price Target Upside60.19% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Neonode Business Overview & Revenue Model
Company DescriptionNeonode Inc. (NEON) is a technology company specializing in the development and licensing of advanced optical sensing solutions. Operating primarily in the sensor technology sector, Neonode provides innovative touch, gesture, and object-sensing solutions. Their core products include touch and gesture sensors that are integrated into various devices, ranging from automotive and consumer electronics to office equipment and industrial applications.
How the Company Makes MoneyNeonode generates revenue primarily through the licensing of its patented optical sensing technology. The company earns income by partnering with original equipment manufacturers (OEMs) who incorporate Neonode's sensor solutions into their products. This licensing model allows Neonode to receive royalties based on the sales of these products. Additionally, Neonode may engage in collaborative development projects with these partners, further contributing to its revenue. Significant partnerships with companies in the automotive and consumer electronics industries play a crucial role in Neonode's revenue generation, as these sectors demand advanced sensing technologies for improved user interfaces and experiences.
Neonode Earnings Call Summary
Earnings Call Date:May 14, 2025
(Q4-2023)
| % Change Since: -6.45%|
Next Earnings Date:Aug 13, 2025
Earnings Call Sentiment Neutral
The earnings call reveals a challenging year for Neonode, marked by significant revenue declines and strategic shifts. However, the company has made a strategic pivot towards technology licensing, which they believe will streamline operations and create future growth opportunities. While the strategic changes and cash position are positive, the overall financial performance for 2023 was disappointing.Q4-2023 Updates
Positive Updates
Breakthrough Driver Monitoring Software Award
Neonode announced a significant win in Q4 2023 with a leading commercial vehicle manufacturer for their driver monitoring software, marking a major milestone after several years of development.
Strong Cash Position
Despite a challenging year, Neonode reported $17.1 million in cash and accounts receivable as of December 31, 2023, an increase of $0.8 million from the previous year.
New Strategy Focus on Technology Licensing
Neonode has shifted its focus entirely to technology and software licensing, which is expected to reduce operational complexity and better fit market demands.
Negative Updates
Decline in Total Revenue
Total revenue for 2023 was $4.4 million, representing a 22% decrease compared to 2022.
Decrease in License and Product Revenues
License revenues fell by 15% to $3.8 million, and product revenues declined by 38% to $0.6 million in 2023.
Operational Expenses and Net Loss Increase
Operating expenses increased by 5% to $10.7 million, and the net loss for 2023 was $10.1 million, more than double the loss in 2022.
Phase-out of Products Business
Neonode announced the phase-out of its Products business due to weak demand, with a $3.6 million impairment loss impacting the cost of revenues.
Company Guidance
During the Neonode Q4 2023 earnings call, it was announced that the company's revenue for 2023 was $4.4 million, reflecting a 22% decrease from 2022. License revenues fell by 15% to $3.8 million due to surplus inventory at customer sites, while product revenues decreased by 38% to $0.6 million, attributed to low demand. Operating expenses rose 5% to $10.7 million, primarily due to increased marketing and payroll costs. The company reported a net loss of $10.1 million for 2023, up from a $4.9 million loss in 2022, influenced by impairment losses and purchase commitments related to the phase-out of their Products business. Despite these challenges, the company has $17.1 million in cash and receivables, an increase of $0.8 million from the previous year. Looking forward, Neonode plans to focus entirely on technology and software licensing, leveraging their strong licensing DNA to drive future growth, and has already secured a significant driver monitoring software award from a commercial vehicle manufacturer, which is expected to provide momentum into 2024.Neonode Financial Statement Overview
Summary
Neonode's financial performance is weak with declining revenues and profitability challenges reflected in the income statement. The balance sheet shows some stability, but decreasing equity and negative cash flows raise concerns about liquidity and reliance on external funding.Income Statement
Neonode's income statement reveals significant challenges. The company has experienced declining revenues with a notable drop from 2023 to 2024. Gross profit margins are positive but have been inconsistent, with a sharp decline in 2023. The company struggles with profitability, evidenced by negative EBIT and net profit margins, indicating operational inefficiencies and high expenses relative to revenue.40
Negative
Balance Sheet
The balance sheet reflects some financial stability, with equity outweighing debt, resulting in a low debt-to-equity ratio. However, stockholders' equity has been decreasing over the years. The equity ratio is relatively healthy, but the company's total assets have been on a downward trend, which could impact future financial flexibility.55
Neutral
Cash Flow
Cash flow analysis shows persistent negative free cash flow, indicating potential liquidity issues. Operating cash flow is consistently negative, and the free cash flow to net income ratio is unfavorable. Financing activities have been crucial in maintaining cash levels, suggesting reliance on external funding to support operations.45
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 3.43M | 3.11M | 4.45M | 5.67M | 5.84M | 5.98M | Gross Profit |
| 2.83M | 2.99M | -93.00K | 4.87M | 4.88M | 4.91M | EBIT |
| -6.60M | -6.55M | -10.74M | -5.29M | -7.11M | -6.19M | EBITDA |
| -6.48M | -6.41M | -10.58M | -4.65M | -5.97M | -5.02M | Net Income Common Stockholders |
| -6.12M | -6.47M | -10.12M | -5.28M | -7.27M | -6.28M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 4.91M | 16.43M | 16.16M | 14.82M | 17.38M | 10.47M | Total Assets |
| 12.96M | 18.38M | 19.01M | 21.20M | 22.99M | 16.57M | Total Debt |
| 2.08M | 546.00K | 106.00K | 259.00K | 865.00K | 1.75M | Net Debt |
| -2.83M | -15.88M | -16.05M | -14.56M | -16.52M | -8.73M | Total Liabilities |
| 4.50M | 1.94M | 1.85M | 1.78M | 3.15M | 4.68M | Stockholders Equity |
| 9.83M | 16.44M | 17.16M | 19.42M | 23.88M | 15.11M |
| Cash Flow | Free Cash Flow | ||||
| -5.11M | -5.63M | -6.43M | -6.86M | -7.75M | -5.81M | Operating Cash Flow |
| -5.04M | -5.59M | -6.31M | -6.81M | -7.68M | -5.75M | Investing Cash Flow |
| 112.00K | 152.00K | -123.00K | -52.00K | -67.00K | -58.00K | Financing Cash Flow |
| 5.79M | 5.78M | 7.78M | 4.51M | 14.57M | 13.61M |
Neonode Technical Analysis
Positive
10.30
Price Trends
9.89
Positive
9.23
Positive
8.49
Positive
Market Momentum
<0.01
Positive
48.93
Neutral
58.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEON, the sentiment is Positive. The current price of 10.3 is below the 20-day moving average (MA) of 10.53, above the 50-day MA of 9.89, and above the 200-day MA of 8.49, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.93 is Neutral, neither overbought nor oversold. The STOCH value of 58.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NEON.
Neonode Risk Analysis
Neonode disclosed 26 risk factors in its most recent earnings report. Neonode 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 1 New Risks
1.
We have identified a material weakness in our internal control over financial reporting which may, if not effectively remediated, result in additional material misstatements in our financial statements. Q3, 2024
Neonode Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $11.70B | 10.39 | -7.10% | 2.92% | 7.45% | -8.42% | |
54 Neutral | $124.41M | ― | -24.86% | ― | 2.59% | -48.02% | |
51 Neutral | $173.70M | ― | -40.61% | ― | -18.53% | 46.30% | |
50 Neutral | $221.41M | ― | -112.75% | ― | 28.16% | 74.88% | |
43 Neutral | $72.33M | ― | -166.89% | ― | -44.97% | 75.63% | |
42 Neutral | $95.65M | ― | -138.61% | ― | 14.08% | -9.61% |
* Technology Sector Average
Performance Comparison
NEON
Neonode
10.30
7.71
297.68%
KOPN
Kopin
1.43
0.65
83.33%
LPTH
Lightpath Technologies
2.90
1.68
137.70%
WRAP
Wrap Technologies
1.43
0.03
2.14%
WBX
Wallbox
0.32
-1.10
-77.46%
Neonode Corporate Events
Executive/Board Changes
Neonode Announces Board Changes with New Appointments
Neutral
Apr 10, 2025
On April 10, 2025, Neonode Inc. announced changes to its Board of Directors, with Cecilia Edström resigning as a Class I director and Didier Schreiber being appointed as her replacement. Schreiber, who has extensive experience in the automotive industry, is expected to contribute significantly to Neonode’s growth and development, aligning with the company’s focus on technology and innovation. The board also appointed Peter Kruk as the chair of the Compensation, Nominating and Governance Committee.
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.