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ODDITY Tech Ltd. Class A (ODD)
:ODD
RESEARCH TOOLSreports
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ODDITY Tech Ltd. Class A
(NASDAQ:ODD)
80Outperform
Positive Factors
Earnings and Financial Performance
ODDITY reported a strong finish to FY24, delivering sales growth, adj. EBITDA, and EPS well ahead of guidance that had been consistently raised each quarter this past year.
Growth and Expansion
ODDITY Tech Ltd. is expanding both domestically and internationally, with strong sales growth and a focus on new markets.
Technological Capabilities
ODDITY Tech Ltd. is recognized for its strong and profitable growth profile, and its enhanced technological capabilities set it apart from legacy peers.
Negative Factors
Investment Impact
Management plans significant investments behind new brands and towards Oddity Labs in 2025, which it expects will drive margin contraction this year.
Margin Pressure
Gross margin is expected to contract by over 200 basis points to 70% as the product mix normalizes and Brand 3 launches, which has a lower gross margin.
Operating Costs
Higher SG&A and tariff pressures are present, but management plans to offset these with cost efficiencies.
ODDITY Tech Ltd. Class A (ODD) vs. S&P 500 (SPY)
Market Cap
$3.58B
Dividend YieldN/A
Average Volume (3M)1.29M
Price to Earnings (P/E)37.2
Beta (1Y)1.92
Revenue Growth26.83%
EPS Growth47.48%
CountryUS
Employees489
SectorTechnology
Sector Strength77
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.63
Shares Outstanding44,281,292
10 Day Avg. Volume1,871,046
30 Day Avg. Volume1,294,302
Financial Highlights & Ratios
PEG Ratio0.88
Price to Book (P/B)10.89
Price to Sales (P/S)0.00
P/FCF Ratio26.01
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$58.00Price Target Upside-9.45% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering8
ODDITY Tech Ltd. Class A Business Overview & Revenue Model
Company DescriptionOddity Tech Ltd., together with its subsidiaries, operates as a consumer-tech company worldwide. The company provides beauty and wellness products utilizing its PowerMatch technology. It builds and scales digital-first brands to disrupt the offline-dominated beauty and wellness industries. The company offers products for face and complexion, eyes and brows, lips, and skin care under the IL MAKIAGE brand; and hair and skin care products under the SpoiledChild brand. The company was incorporated in 2013 and is based in Tel Aviv-Jaffa, Israel.
How the Company Makes MoneyODDITY Tech Ltd. makes money primarily through direct-to-consumer sales of its beauty and wellness products. The company utilizes its proprietary AI and data analytics platforms to create personalized beauty solutions, which are marketed and sold through its online channels. Key revenue streams include sales of skincare, cosmetics, and wellness products. Furthermore, the company may engage in strategic partnerships with other technology and beauty firms to enhance its product offering and reach a wider audience. These partnerships, along with the company's focus on innovation and customer engagement, contribute significantly to its earnings.
ODDITY Tech Ltd. Class A Financial Statement Overview
Summary
ODDITY Tech Ltd. Class A exhibits strong financial health across all verticals. The Income Statement highlights significant revenue and profit growth, supported by high margins. The Balance Sheet is solid, with low leverage and strong equity metrics. Cash Flow analysis reveals excellent cash generation and growth, underscoring financial robustness and potential for sustained performance.Income Statement
The company demonstrates strong revenue growth, with a significant increase in Total Revenue from $222.6 million in 2021 to $703.5 million in TTM 2025. Gross Profit Margin remains high at 72.9% TTM, indicating effective cost control and pricing power. The Net Profit Margin has improved to 15.1% TTM, showing enhanced profitability. EBIT and EBITDA margins have also strengthened, supporting the company's operating efficiency.87
Very Positive
Balance Sheet
The balance sheet reflects a healthy financial position with a Debt-to-Equity Ratio of 0.07, indicating low leverage. Return on Equity is robust at 32.2% TTM, implying effective use of equity capital. The Equity Ratio is 61.7% TTM, suggesting a solid equity base relative to assets. The company's asset management and capital structure are well-balanced, providing stability.82
Very Positive
Cash Flow
Cash flow performance is impressive, with strong Operating Cash Flow of $146.5 million TTM. Free Cash Flow shows consistent growth, increasing by 6.2% from 2024 to TTM 2025, and the Free Cash Flow to Net Income Ratio is a healthy 1.30, indicating efficient cash conversion. The Operating Cash Flow to Net Income Ratio of 1.38 suggests robust cash generation relative to earnings.90
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 703.49M | 647.04M | 508.69M | 324.52M | 222.56M | 110.64M | Gross Profit |
| 513.06M | 468.32M | 358.23M | 218.05M | 153.18M | 77.83M | EBIT |
| 119.28M | 115.60M | 74.32M | 27.66M | 19.51M | 16.66M | EBITDA |
| 129.47M | 125.43M | 82.92M | 32.07M | 23.52M | 20.92M | Net Income Common Stockholders |
| 106.34M | 101.49M | 58.53M | 21.73M | 13.92M | 11.71M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 186.66M | 100.22M | 115.65M | 40.95M | 28.83M | 39.77M | Total Assets |
| 534.24M | 438.88M | 404.91M | 216.41M | 142.97M | 81.75M | Total Debt |
| 23.67M | 22.71M | 12.51M | 15.88M | 5.35M | 5.49M | Net Debt |
| -113.19M | -27.63M | -24.02M | -25.07M | -23.48M | -34.27M | Total Liabilities |
| 204.50M | 156.58M | 121.80M | 117.70M | 74.32M | 29.40M | Stockholders Equity |
| 329.74M | 282.30M | 283.11M | 98.70M | 68.65M | 52.35M |
| Cash Flow | Free Cash Flow | ||||
| 137.75M | 129.76M | 81.84M | 31.25M | 3.12M | 19.75M | Operating Cash Flow |
| 146.45M | 137.76M | 87.45M | 39.03M | 9.87M | 23.02M | Investing Cash Flow |
| 44.49M | 1.35M | -139.99M | -25.78M | -18.78M | 6.67M | Financing Cash Flow |
| -131.80M | -127.30M | 48.81M | -246.00K | -318.00K | 161.00K |
ODDITY Tech Ltd. Class A Technical Analysis
Positive
64.05
Price Trends
49.21
Positive
46.80
Positive
43.70
Positive
Market Momentum
5.11
Positive
62.82
Neutral
36.01
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ODD, the sentiment is Positive. The current price of 64.05 is above the 20-day moving average (MA) of 58.58, above the 50-day MA of 49.21, and above the 200-day MA of 43.70, indicating a bullish trend. The MACD of 5.11 indicates Positive momentum. The RSI at 62.82 is Neutral, neither overbought nor oversold. The STOCH value of 36.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ODD.
ODDITY Tech Ltd. Class A Risk Analysis
ODDITY Tech Ltd. Class A disclosed 95 risk factors in its most recent earnings report. ODDITY Tech Ltd. Class A 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
ODDITY Tech Ltd. Class A Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $3.58B | 37.18 | 32.25% | ― | 26.83% | 47.48% | |
76 Outperform | $25.84B | 190.49 | 11.06% | ― | 26.72% | ― | |
73 Outperform | $16.44B | 7.16 | 69.66% | 6.30% | 26.84% | 13.42% | |
71 Outperform | $9.52B | ― | -4.73% | ― | 33.95% | 87.03% | |
64 Neutral | $6.62B | ― | -17.68% | ― | 32.25% | 20.56% | |
60 Neutral | $11.59B | 10.34 | -7.15% | 2.94% | 7.49% | -10.88% | |
57 Neutral | $7.45B | ― | -34.18% | ― | 24.11% | 21.87% |
* Technology Sector Average
Performance Comparison
ODD
ODDITY Tech Ltd. Class A
64.52
26.55
69.92%
CFLT
Confluent
21.84
-9.70
-30.75%
S
SentinelOne
20.09
-2.46
-10.91%
TOST
Toast Inc
44.32
17.79
67.06%
KVYO
Klaviyo, Inc. Class A
34.01
9.52
38.87%
KSPI
Kaspi.kz JSC Sponsored ADR RegS
82.30
-28.25
-25.55%
ODDITY Tech Ltd. Class A Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q1-2025)
| % Change Since: 35.90%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call conveyed a strong positive sentiment with significant revenue and EBITDA growth, strategic brand expansion, and successful international market penetration. Challenges such as potential tariff impacts and lower average order value in newer international markets were acknowledged but described as manageable.Q1-2025 Updates
Positive Updates
Record Revenue Growth
Revenue grew 27% to $268 million, exceeding expectations and previous guidance.
Strong Adjusted EBITDA Performance
Achieved $52 million in adjusted EBITDA, representing a 19.5% margin, exceeding guidance.
High Free Cash Flow
Generated $87 million in free cash flow, reflecting strong business model quality.
Growth in International Markets
International markets contributed significantly, with both US and international markets growing double-digits.
Successful Brand Expansion
SpoiledChild is on track to cross the $200 million revenue mark, and Brand 3 set for launch in 2025.
Strong Gross Margin
Gross margin expanded by 116 basis points year-over-year to 74.9%, driven by cost efficiencies and product mix.
Negative Updates
Tariff Impact on Gross Margin
Tariffs expected to impact gross margin by 50 to 100 basis points in 2025, though deemed manageable.
Lower Average Order Value in International Markets
International markets, while growing, currently have lower average order values due to their earlier development stages.
Company Guidance
In the first quarter of 2025, Oddity surpassed its expectations across multiple metrics, prompting an upward revision of its full-year outlook. The company reported a 27% increase in revenue, reaching $268 million, alongside an adjusted EBITDA of $52 million, which constitutes a 19.5% margin. Free cash flow stood at $87 million. Oddity aims to achieve approximately $800 million in revenue for the year, up from $500 million in 2023. The company continues to leverage its direct-to-consumer model, with repeat revenue forming over 60% of total revenue. Gross margin expanded to 74.9%, exceeding guidance, due to cost efficiencies and a favorable product mix. Oddity's strategic priorities include international expansion, with the US currently contributing 80% of revenue, and the ongoing development of new brands and technologies, such as a telehealth platform offering personalized skincare solutions. The company maintains a robust balance sheet with $257 million in cash and no debt, preparing to seize opportunities in acquisitions and further growth initiatives.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.