Ocean Power Technologies (OPTT) AI Stock Analysis

• Market Cap: $89.65M
• Dividend Yield: N/A
• Average Volume (3M): 3.96M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.36
• Revenue Growth: 23.98%
• EPS Growth: 52.50%
• Country: US
• Employees: 43
• Sector: Industrials
• Sector Strength: 85
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.05
• Shares Outstanding: 172,745,510
• 10 Day Avg. Volume: 3,972,683
• 30 Day Avg. Volume: 3,959,748
• PEG Ratio: -0.03
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.26
• Enterprise Value/Market Cap: 0.26
• Enterprise Value/Revenue: 0.97
• Enterprise Value/Gross Profit: 10.24
• Enterprise Value/Ebitda: -0.25
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• Price Target: $0.50 ▼(-10.71%Downside)

Ocean Power Technologies faces significant financial challenges with poor profitability and cash flow metrics, which heavily impact its overall score. However, technical indicators suggest some potential for short-term improvement, and recent corporate events provide a positive outlook for future operational and financial stability.

Ocean Power Technologies Business Overview & Revenue Model

Company Description

Ocean Power Technologies (OPTT) is a pioneering company in the renewable energy sector, specializing in the development and commercialization of advanced wave energy solutions. The company's core products include the PowerBuoy, a wave energy converter designed to harness the power of ocean waves and convert it into clean, reliable electricity. OPTT aims to provide sustainable energy solutions for offshore applications, including oil and gas, defense, and communications sectors.

How the Company Makes Money

Ocean Power Technologies generates revenue primarily through the sale and leasing of its PowerBuoy systems, which are deployed in offshore environments to produce renewable energy. The company also earns income from providing engineering consulting services, maintenance, and support for its energy systems. Additionally, OPTT may engage in strategic partnerships and collaborations with governmental agencies, research institutions, and private sector companies to enhance its technological capabilities and expand its market reach, which can also contribute to its revenue. Furthermore, OPTT may receive government grants or subsidies aimed at promoting renewable energy technologies, which can be a supplemental source of income.

Ocean Power Technologies Financial Statement Overview

Summary

Ocean Power Technologies demonstrates revenue growth but suffers from significant profitability and cash flow challenges. The company has a strong equity position with no debt, yet persistent negative cash flows and profitability metrics raise concerns about its financial sustainability.

Income Statement

Ocean Power Technologies shows considerable revenue growth, with TTM revenue at $6.12 million, up from $5.53 million in the previous year. However, the company faces significant profitability challenges. The net profit margin is deeply negative due to substantial net losses, and EBIT and EBITDA margins are also negative, indicating operational inefficiencies.

Balance Sheet

The balance sheet highlights strong equity levels with a total equity of $28.91 million against no debt, suggesting potential stability. However, the equity ratio has decreased over time, and the return on equity is negative due to ongoing losses, which is concerning for financial sustainability.

Cash Flow

Cash flow analysis reveals negative free cash flow growth, with TTM free cash flow at -$21.39 million. The operating cash flow to net income ratio is negative, reflecting cash outflows from operations. Despite significant financing inflows, cash flow sustainability remains a concern.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
6.12M	5.53M	2.73M	1.76M	1.21M	1.68M
	Gross Profit
2.30M	2.83M	236.00K	-101.00K	-1.07M	-105.00K
	EBIT
-20.98M	-29.33M	-29.22M	-21.61M	-13.59M	-11.37M
	EBITDA
-19.98M	-28.24M	-27.76M	-21.10M	-13.44M	-10.89M
	Net Income Common Stockholders
-21.81M	-27.48M	-26.33M	-18.87M	-15.85M	-10.35M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.03M	3.15M	34.67M	57.27M	83.03M	10.00M
	Total Assets
34.41M	28.70M	53.37M	73.39M	86.38M	13.54M
	Total Debt
2.06M	2.57M	1.84M	857.00K	2.06M	1.41M
	Net Debt
-7.96M	-579.00K	-5.04M	-7.03M	-80.97M	-8.60M
	Total Liabilities
5.50M	9.36M	9.42M	4.56M	5.91M	3.04M
	Stockholders Equity
28.91M	19.34M	43.95M	68.83M	80.47M	10.49M
Cash Flow		Free Cash Flow
-21.39M	-32.35M	-22.73M	-21.44M	-11.70M	-10.64M
	Operating Cash Flow
-19.68M	-29.76M	-21.71M	-21.30M	-11.67M	-10.58M
	Investing Cash Flow
2.68M	25.50M	20.46M	-54.03M	74.00K	-65.00K
	Financing Cash Flow
22.31M	469.00K	-14.00K	87.00K	84.17M	4.45M

Ocean Power Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OPTT, the sentiment is Positive. The current price of 0.56 is above the 20-day moving average (MA) of 0.53, above the 50-day MA of 0.47, and above the 200-day MA of 0.44, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 55.79 is Neutral, neither overbought nor oversold. The STOCH value of 42.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OPTT.

Ocean Power Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	$4.50B	12.26	5.40%	3.65%	4.17%	-12.01%
FCEL	57 Neutral	$137.43M	―	-20.52%	―	48.62%	0.23%
OPTT	52 Neutral	$89.65M	―	-80.51%	―	23.98%	52.50%
EOSE	46 Neutral	$992.75M	―	125.43%	―	37.60%	-161.38%
ADSE	45 Neutral	$603.24M	―	-279.62%	―	2.45%	-69.94%
TE	40 Underperform	$235.47M	―	-21.45%	―	―	-517.75%
GWH	39 Underperform	$12.83M	―	-172.05%	―	-58.05%	-6.90%

Ocean Power Technologies Corporate Events

Ocean Power Technologies Secures New Maritime Certification

On May 22, 2025, Ocean Power Technologies announced the successful completion of its first sea trial for WAM-V® 22 at a newly permitted test site in Southern New Jersey, approved by the US Coast Guard. This milestone allows the company to conduct year-round testing on both coasts, enhancing product delivery efficiency and reducing the time from booking to revenue recognition. Additionally, on May 27, 2025, the company achieved a new certification, further solidifying its position in the maritime industry.

Ocean Power Technologies Secures $25M Convertible Notes Deal

On May 15, 2025, Ocean Power Technologies entered into a securities purchase agreement with institutional investors to issue and sell convertible notes worth up to $25 million, with an initial sale of $10 million. This agreement allows the company to raise capital through public offerings, potentially impacting its financial stability and market position by providing additional funding for its operations and growth initiatives.