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ODDITY Tech Ltd. Class A (ODD)
NASDAQ:ODD
RESEARCH TOOLSreports
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ODDITY Tech Ltd. Class A
(NASDAQ:ODD)
Rating:82Outperform
Price Target:
$80.00
▲(6.51%Upside)
Positive Factors
Brand Momentum
Brand interest continues to rise with Il Makiage and SpoiledChild seeing sustained momentum on Search channels.
Financial Performance
Sales grew 27% to $268mm, driven by strength at both brands and higher average order value.
Online Sales Growth
ODD is well positioned to benefit from the beauty category increasingly moving to online sales as consumers’ preferred purchasing channels shift.
Negative Factors
Competitive Pressure
Competing beauty brands continue to innovate and are increasingly offering technology on their websites/apps to use for product matching.
Gross Margin Contraction
Gross margin (GM) is expected to contract over 200bp to 70% as product mix normalizes and Brand 3 launches (which has lower GM).
Margin Pressure
Higher SG&A and tariffs are offset with cost efficiencies, but there is an expected EBITDA margin decline as management invests in growth initiatives.
ODDITY Tech Ltd. Class A (ODD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.19B
Dividend YieldN/A
Average Volume (3M)1.09M
Price to Earnings (P/E)43.3
Beta (1Y)1.83
Revenue Growth26.83%
EPS Growth47.48%
CountryUS
Employees489
SectorTechnology
Sector Strength86
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.63
Shares Outstanding44,281,292
10 Day Avg. Volume911,450
30 Day Avg. Volume1,090,928
Financial Highlights & Ratios
PEG Ratio2.79
Price to Book (P/B)27.23
Price to Sales (P/S)0.00
P/FCF Ratio85.99
Enterprise Value/Market Cap0.63
Enterprise Value/Revenue1.35
Enterprise Value/Gross Profit5.17
Enterprise Value/Ebitda5.34
Forecast
1Y Price Target
$63.71Price Target Upside-15.18% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering7
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 the sale of its beauty and wellness products directly to consumers via its e-commerce platform. The company employs a direct-to-consumer model, which allows it to maintain control over its branding and customer interactions, thereby enhancing profit margins. Revenue streams include product sales, subscription services for recurring purchases, and potentially exclusive partnerships with beauty influencers or brands. The company's use of data analytics and artificial intelligence also plays a significant role in optimizing marketing strategies and product recommendations, which helps increase sales and customer retention. Additionally, ODDITY Tech Ltd. may explore opportunities for monetization through strategic collaborations or technology licensing agreements within the beauty and wellness industries.
ODDITY Tech Ltd. Class A Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q1-2025)
| % Change Since: 59.37%|
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.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 |
| EBITDA | 129.47M | 125.43M | 82.92M | 32.07M | 23.52M | 20.92M |
| Net Income | 106.34M | 101.49M | 58.53M | 21.73M | 13.92M | 11.71M |
Balance Sheet | ||||||
| Total Assets | 534.24M | 438.88M | 404.91M | 216.41M | 142.97M | 81.75M |
| Cash, Cash Equivalents and Short-Term Investments | 186.66M | 100.22M | 115.65M | 40.95M | 28.83M | 39.77M |
| Total Debt | 23.67M | 22.71M | 12.51M | 15.88M | 5.35M | 5.49M |
| 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
75.11
Price Trends
67.66
Positive
55.54
Positive
49.15
Positive
Market Momentum
1.97
Positive
60.71
Neutral
66.39
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 75.11 is above the 20-day moving average (MA) of 73.17, above the 50-day MA of 67.66, and above the 200-day MA of 49.15, indicating a bullish trend. The MACD of 1.97 indicates Positive momentum. The RSI at 60.71 is Neutral, neither overbought nor oversold. The STOCH value of 66.39 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 (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $4.19B | 43.29 | 32.25% | ― | 26.83% | 47.48% | |
76 Outperform | $24.61B | 181.41 | 11.06% | ― | 26.72% | ― | |
71 Outperform | $16.66B | 7.24 | 69.66% | 8.12% | 26.84% | 13.42% | |
64 Neutral | $8.71B | ― | -34.18% | ― | 24.11% | 21.87% | |
64 Neutral | $6.03B | ― | -26.98% | ― | 32.25% | 20.56% | |
61 Neutral | $9.07B | ― | -4.73% | ― | 33.95% | 87.03% | |
56 Neutral | $3.18B | 5.08 | -5.68% | 5.65% | 8.05% | -41.83% |
* Technology Sector Average
Performance Comparison
ODD
ODDITY Tech Ltd. Class A
75.96
34.79
84.50%
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26.30
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43.58
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33.91
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KSPI
Kaspi.kz JSC Sponsored ADR RegS
84.64
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-34.18%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.