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Ondas Holdings (ONDS)
NASDAQ:ONDS
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Ondas Holdings
(NASDAQ:ONDS)
38Underperform
Positive Factors
Cash Position
ONDS ended 4Q24 with $30M in cash and equivalents, up from $2.8M sequentially.
Revenue Growth
The company reported $10M of drone revenue backlog, with a substantial business development pipeline in the U.S., Middle East, and Europe.
Strategic Partnerships
ONDS announced a partnership with Palantir that aims to use its AI software for operations optimization and eventual expansion of platform capabilities.
Negative Factors
Capital Needs
The company held $30.2M in convertible debt at the end of 3Q24 with about a $30M annual burn rate; additional capital will be needed by YE24 and again in 2025.
EBITDA Performance
Adjusted EBITDA loss of ($7.5M) missed the estimate of ($5.8M).
Revenue Target
Management introduced a 2025 revenue target of $25M, below consensus of $33.4M.
Ondas Holdings (ONDS) vs. S&P 500 (SPY)
Market Cap
$85.85M
Dividend YieldN/A
Average Volume (3M)7.17M
Price to Earnings (P/E)―
Beta (1Y)2.51
Revenue Growth-54.16%
EPS Growth31.61%
CountryUS
Employees113
SectorTechnology
Sector Strength51
IndustryCommunication Equipment
Share Statistics
EPS (TTM)-0.61
Shares Outstanding105,730,830
10 Day Avg. Volume15,843,348
30 Day Avg. Volume7,166,971
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)10.29
Price to Cash Flow (P/CF)-2.30
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$2.75Price Target Upside239.51% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Ondas Holdings Business Overview & Revenue Model
Company DescriptionOndas Holdings Inc., through its subsidiaries, provides private wireless, drone, and automated data solutions. The company operates in two segments, Ondas Networks and American Robotics. The company designs, develops, manufactures, sells, and supports FullMAX, a software defined radio (SDR) platform for wide-area broadband networks. Its FullMAX SDR platform enables secure and reliable industrial-grade connectivity for truly mission-critical applications. The company also offers Scout Drone, an AI-powered drone with imaging payloads; the ScoutBase, a ruggedized base station for housing, charging, data processing, and cloud transfer; and ScoutView, an American robotics analytics and user interface software package. It serves users in rail, energy, mining, agriculture, and critical infrastructure markets in the United States and internationally. The company is headquartered in Waltham, Massachusetts.
How the Company Makes MoneyOndas Holdings makes money by providing its FullMAX wireless communication platform to industrial and government clients. The company's revenue is generated through the sale of network equipment, software licenses, and associated maintenance and support services. Ondas also engages in strategic partnerships and collaborations with key industry players to expand its market reach and enhance its product offerings. Additionally, the company may derive income from custom development projects and consulting services tailored to specific client needs.
Ondas Holdings Financial Statement Overview
Summary
Ondas Holdings is facing significant financial challenges, with declining revenues, high leverage, and persistent losses. The income statement reflects poor profitability and operational inefficiencies. Despite a substantial cash position, the balance sheet shows high leverage. Cash flow issues are evident with negative free cash flow and reliance on external financing, posing risks to sustainability.Income Statement
Ondas Holdings shows declining revenue with a significant decrease from $15.69 million in 2023 to $7.19 million in 2024, indicating a negative revenue growth rate. The gross profit margin is low at 4.80%, and the net profit margin is negative, reflecting sustained losses. Both EBIT and EBITDA margins are negative, underscoring ongoing operational challenges and inefficiencies.25
Negative
Balance Sheet
The company has a high debt-to-equity ratio of 1.40, indicating significant leverage. Stockholders' equity has decreased considerably, and the equity ratio stands at 15.12%, suggesting a weaker financial position. The return on equity is negative due to continued losses, highlighting profitability issues. However, the presence of cash reserves provides some liquidity.45
Neutral
Cash Flow
Free cash flow remains negative, and there is no growth in free cash flow, indicating liquidity challenges. The operating cash flow to net income ratio is negative, showing inefficiency in converting revenue into cash. Despite substantial financing activities, cash flow from operations remains negative, suggesting reliance on external funding.30
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 7.19M | 15.69M | 2.13M | 2.91M | 2.16M | Gross Profit |
| 345.18K | 6.38M | 1.11M | 1.10M | 927.67K | EBIT |
| -27.76M | -39.73M | -50.01M | -17.97M | -11.52M | EBITDA |
| -28.72M | -34.64M | -64.63M | -15.55M | -11.14M | Net Income Common Stockholders |
| -42.42M | -44.84M | -92.66M | -15.02M | -15.43M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 29.96M | 14.98M | 29.78M | 40.82M | 26.06M | Total Assets |
| 109.62M | 92.16M | 97.95M | 117.44M | 28.51M | Total Debt |
| 23.22M | 35.29M | 33.39M | 1.09M | 8.03M | Net Debt |
| -6.73M | 20.31M | 3.61M | -39.72M | -18.03M | Total Liabilities |
| 73.68M | 47.11M | 39.72M | 5.21M | 13.43M | Stockholders Equity |
| 16.58M | 33.14M | 58.22M | 112.23M | 15.08M |
| Cash Flow | Free Cash Flow | |||
| -33.47M | -34.30M | -40.89M | -17.92M | -7.57M | Operating Cash Flow |
| -33.47M | -34.02M | -37.96M | -16.90M | -7.53M | Investing Cash Flow |
| -1.73M | 536.27K | -6.93M | -10.21M | -16.14K | Financing Cash Flow |
| 50.18M | 18.73M | 33.86M | 41.86M | 31.46M |
Ondas Holdings Technical Analysis
Negative
0.81
Price Trends
1.43
Negative
1.35
Negative
1.08
Negative
Market Momentum
-0.20
Negative
38.80
Neutral
45.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ONDS, the sentiment is Negative. The current price of 0.81 is below the 20-day moving average (MA) of 0.82, below the 50-day MA of 1.43, and below the 200-day MA of 1.08, indicating a bearish trend. The MACD of -0.20 indicates Negative momentum. The RSI at 38.80 is Neutral, neither overbought nor oversold. The STOCH value of 45.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ONDS.
Ondas Holdings Risk Analysis
Ondas Holdings disclosed 66 risk factors in its most recent earnings report. Ondas Holdings 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
Ondas Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $3.01B | 29.37 | 15.40% | 1.99% | 5.05% | 632.38% | |
59 Neutral | $4.71B | 305.16 | 1.40% | ― | 9.57% | ― | |
58 Neutral | $22.11B | 10.47 | -17.86% | 2.40% | 4.75% | -24.81% | |
47 Neutral | $464.04M | ― | -100.48% | ― | 49.84% | -2.84% | |
46 Neutral | $2.78B | ― | -17.12% | ― | 11.86% | -140.69% | |
43 Neutral | $6.98M | ― | -157.31% | ― | -25.03% | 42.78% | |
38 Underperform | $85.85M | ― | -152.89% | ― | -54.16% | 31.61% |
* Technology Sector Average
Performance Comparison
ONDS
Ondas Holdings
0.81
-0.15
-15.62%
GSAT
Globalstar
23.42
2.72
13.14%
IRDM
Iridium Communications
28.19
3.07
12.22%
KTOS
Kratos Defense
32.53
14.74
82.86%
WKHS
Workhorse Group
2.19
-50.31
-95.83%
RCAT
Red Cat Holdings
5.98
5.20
666.67%
Ondas Holdings Earnings Call Summary
Earnings Call Date: Mar 12, 2025 | % Change Since: 12.50% | Next Earnings Date: May 19, 2025
Earnings Call Sentiment Neutral
Ondas Holdings Inc. reported significant strategic achievements, including a partnership with Palantir and major military contracts, with an optimistic outlook for record revenue growth in 2025. However, challenges remain in the form of revenue traction for Ondas Networks and ongoing operating losses.Highlights
Record Revenue Growth Anticipation
Ondas anticipates a record year of revenue growth in 2025, primarily driven by Ondas Autonomous Systems (OAS), with expected total revenues of $25 million.
Strategic Partnership with Palantir
Ondas announced a strategic partnership with Palantir Technologies, leveraging Palantir's Foundry AI platform to enhance operational efficiencies and scale OAS's operating platform.
Successful Military Contracts
Ondas secured two major programs of record with a key military customer in the Middle East for its Optimus and Iron Drone Raider platforms, significantly increasing their total addressable market.
Significant Backlog and Improved Financial Position
Ondas closed the year with a $10 million backlog primarily with OAS and raised $35 million in Q4, providing a strong liquidity position.
Growth in Defense and Homeland Security Markets
OAS is expanding in defense and homeland security markets with plans to secure multiple additional military customers in 2025.
Lowlights
Ondas Networks Revenue Challenges
Ondas Networks experienced a lack of revenue traction, primarily due to extended timelines related to the 900 megahertz network activity with Class 1 railroads.
Operating Losses and Cash Utilization
The operating loss was $8.5 million for Q4 2024, with cash used in operations at $33.5 million for the full year, reflecting the early stage of platform adoption.
Revenue Decrease Year-over-Year
Full-year 2024 revenues decreased to $7.2 million from $15.7 million in 2023, largely due to extended timelines at Ondas Networks and disruptions in Israel.
Company Guidance
During the Ondas Holdings Inc. fourth quarter and full year 2024 conference call, the company provided guidance for 2025, anticipating a record year of revenue growth primarily driven by Ondas Autonomous Systems (OAS). They project total revenues of $25 million, with at least $20 million expected from OAS, citing a significant backlog of $10 million and a growing order book. Key objectives for 2025 include expanding existing Optimus and Iron Drone programs, securing additional military customers, and investing in operational efficiencies through a partnership with Palantir Technologies. Despite challenges, including extended timelines at Ondas Networks and geopolitical tensions, Ondas is focused on scaling operations and expanding customer engagements, aiming for transformative growth in defense, homeland security, and critical infrastructure markets.Ondas Holdings Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Ondas CEO Appointed Co-Chair of Commercial Drone Alliance
Positive
Jan 21, 2025
On January 21, 2025, Ondas Holdings announced that its CEO, Eric Brock, has been appointed as Co-Chair of the Commercial Drone Alliance (CDA) Board of Directors. This appointment signifies a strategic move for Ondas as it positions itself at the forefront of the commercial drone industry’s growth. The CDA collaborates with key policymakers to advocate for the drone sector, and Brock’s leadership is expected to bolster industry collaboration and ecosystem development. This development is crucial as the drone industry enters a significant growth phase, promising scalable advancements beneficial to stakeholders and the broader public.
Executive/Board ChangesBusiness Operations and Strategy
Ondas Holdings Appoints Ron Stern to Board
Positive
Jan 13, 2025
Ondas Holdings Inc. announced the appointment of Ron Stern to its Board of Directors, effective January 7, 2025. With over 20 years of experience in growth equity and venture capital, Stern is expected to play a significant role in supporting the accelerated growth of Ondas’ Autonomous Systems business unit. His previous roles, including as Chairman of Ondas subsidiary Airobotics, position him well to contribute to Ondas’ strategic initiatives and operational capabilities, potentially driving value for stakeholders through targeted acquisitions and enhanced growth strategies.
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.