Odysightai (ODYS) AI Stock Analysis

• Market Cap: $77.83M
• Dividend Yield: N/A
• Average Volume (3M): 10.39K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.24
• Revenue Growth: 100.27%
• EPS Growth: -7.06%
• Country: US
• Employees: 61
• Sector: Technology
• Sector Strength: 90
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.23
• Shares Outstanding: 16,316,456
• 10 Day Avg. Volume: 16,363
• 30 Day Avg. Volume: 10,394
• PEG Ratio: 0.00
• Price to Book (P/B): 5.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.00
• Enterprise Value/Market Cap: 0.13
• Enterprise Value/Revenue: 0.69
• Enterprise Value/Gross Profit: 8.87
• Enterprise Value/Ebitda: -0.23
• 1Y Price Target: $10.00
• Price Target Upside: 108.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 47 Neutral
• Price Target: $5.00 ▲(4.17%Upside)

The company's strong revenue growth is overshadowed by significant profitability and cash flow challenges. Technical analysis suggests a bearish trend, and valuation metrics highlight unattractive investment prospects due to negative earnings and lack of dividends.

Positive Factors

Financial Performance

ODYS reported 1Q:25 revenues of $2.1M, significantly exceeding the $0.3M estimate, showcasing a growth of 1004% year over year.

Market Expansion

ODYS is experiencing hypergrowth within the Aerospace and Defense customer set, with backlog growth supporting its valuation.

New Contracts

ODYS announced a new purchase order from a European Industrial customer for monitoring cables and belts used on cranes, elevators, and machinery.

Negative Factors

Backlog Concerns

Backlog at the end of 1Q:25 was $14.8M, which remained flat sequentially despite solid results.

Odysightai Business Overview & Revenue Model

Company Description

Odysight.ai Inc., together with its subsidiaries, develops, produces, and markets visual sensing and AI-based video analytics solutions in Israel, the United States, the United Kingdom, and internationally. The company, through its visualization technology offers solutions across predictive maintenance and condition-based monitoring markets in various sectors, such as medical, defense, energy, automotive, transportation, aviation, maritime, and industrial non-destructing-testing. Odysight.ai Inc. is based in Omer, Israel.

How the Company Makes Money

Odysightai generates revenue primarily through the sale and licensing of its AI-powered software solutions to businesses across multiple sectors. The company offers subscription-based pricing models for its software-as-a-service (SaaS) products, ensuring a steady stream of recurring revenue. Additionally, Odysightai engages in strategic partnerships with industry leaders to co-develop customized AI solutions, further expanding its market reach and revenue potential. The company may also offer consulting and implementation services to assist clients in integrating its technologies, providing an additional revenue stream.

Odysightai Financial Statement Overview

Summary

Odysightai shows impressive revenue growth, yet faces significant profitability challenges with negative EBIT and net profit margins. While maintaining a strong equity position and low leverage, the company struggles with negative cash flow and inefficiencies in generating returns on equity.

Income Statement

The company experienced a significant revenue increase from $303,300 to $3,964,000 (30.7% growth) from 2023 to 2024, indicating strong growth potential. However, substantial losses in EBIT and Net Income margins (-315.6% EBIT Margin and -296.8% Net Profit Margin in 2024) highlight ongoing profitability challenges which weigh heavily on the score.

Balance Sheet

Strong equity position with an equity ratio of 77.1% in 2024, indicating stability. The debt-to-equity ratio is low (0.06), reflecting low leverage and financial safety. However, the negative ROE of -64.5% in 2024 indicates inefficiencies in generating profit from equity.

Cash Flow

The company shows improvement in operating cash flow from -$10,009,000 to -$8,217,000, indicating better cash management. However, the free cash flow remains negative, affecting the overall liquidity. The free cash flow to net income ratio of 0.70 shows improvement but still suggests challenges in covering net losses with cash flow.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.96M	3.03M	665.00K	387.00K	491.00K
Gross Profit	1.16M	509.00K	-966.00K	-721.00K	-503.00K
EBITDA	-12.38M	-10.35M	-9.19M	-9.00M	-4.64M
Net Income	-11.77M	-9.45M	-9.47M	-8.99M	-4.67M
Balance Sheet
Total Assets	23.68M	22.83M	16.89M	23.55M	5.89M
Cash, Cash Equivalents and Short-Term Investments	18.16M	17.04M	13.15M	19.59M	3.37M
Total Debt	1.05M	1.33M	263.00K	498.00K	107.00K
Total Liabilities	5.43M	5.02M	5.11M	3.93M	1.93M
Stockholders Equity	18.24M	17.81M	11.79M	19.62M	3.96M
Cash Flow
Free Cash Flow	-8.27M	-10.12M	-6.21M	-6.48M	-4.46M
Operating Cash Flow	-8.22M	-10.01M	-6.09M	-5.89M	-4.19M
Investing Cash Flow	7.64M	-5.11M	7.88M	-11.60M	-276.00K
Financing Cash Flow	9.82M	13.81M	0.00	22.56M	4.51M

Odysightai Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ODYS, the sentiment is Negative. The current price of 4.8 is below the 20-day moving average (MA) of 5.04, below the 50-day MA of 5.20, and below the 200-day MA of 6.38, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 46.09 is Neutral, neither overbought nor oversold. The STOCH value of 5.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ODYS.

Odysightai Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$33.92B	6.00	-11.84%	1.85%	5.31%	-18.34%
LPTH	54 Neutral	$138.99M	―	-24.86%	―	2.59%	-48.02%
WRAP	51 Neutral	$75.36M	―	-166.89%	―	-44.97%	75.63%
GNSS	49 Neutral	$90.31M	―	-131.75%	―	-20.77%	-2.08%
ODYS	47 Neutral	$77.83M	―	-50.56%	―	100.27%	-7.06%
WBX	44 Neutral	$145.15M	―	-138.61%	―	14.08%	-9.62%
HOLO		$28.56M	―	-7.37%	―	―	―

Odysightai Corporate Events

Odysightai Approves CEO Salary Increase and Bonuses

On March 10, 2025, Odysight.ai Inc. announced that its Board of Directors approved a salary increase for CEO Yehu Ofer, raising his monthly base salary from NIS 80,000 to NIS 90,000, effective January 1, 2025. Additionally, Ofer received a cash bonus of $142,500 and 150,000 stock options under the company’s 2024 Stock Incentive Plan. CFO Einav Brenner was also awarded a cash bonus of $95,000. These decisions reflect the company’s commitment to rewarding its executives and could impact its operational dynamics and stakeholder relations.