Ocean Power Technologies (OPTT) AI Stock Analysis

• Market Cap: $99.59M
• Dividend Yield: N/A
• Average Volume (3M): 4.07M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.29
• Revenue Growth: 23.98%
• EPS Growth: 52.50%
• Country: US
• Employees: 43
• Sector: Industrials
• Sector Strength: 92
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.05
• Shares Outstanding: 172,745,510
• 10 Day Avg. Volume: 4,434,208
• 30 Day Avg. Volume: 4,067,460
• PEG Ratio: -0.18
• Price to Book (P/B): 2.56
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.05
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 3.24
• Enterprise Value/Gross Profit: 34.21
• Enterprise Value/Ebitda: -0.83
• 1Y Price Target: $0.50
• Price Target Upside: -7.41% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• Price Target: $0.50 ▼(-7.41%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, Inc. develops and commercializes proprietary systems that generate electricity by harnessing the renewable energy of ocean waves in North America, South America, Europe, and Asia. It offers PB3 PowerBuoy system that generates power for use independent of the power grid in offshore locations. The company also provides hybrid PowerBuoy products; subsea battery systems; and software, controls, sensors, integration services, and marine installation services. In addition, it offers distributed offshore power and communications for remote surface and subsea applications in markets, such as defense and security, offshore oil and gas, science and research, and offshore wind. Further, the company provides Wave Adaptive Modular Vessel (WAM-V) technology, which enables roaming capabilities for uncrewed maritime systems in waters; leases WAM-V robotics and access information; maritime domain awareness solutions; and strategic consulting services. Additionally, it offers offshore data collection, integration, analytics, and real time communication for various applications. The company serves public and private entities, and agencies that require remote offshore power. Ocean Power Technologies, Inc. was incorporated in 1984 and is headquartered in Monroe Township, New Jersey.

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
EBITDA	-19.98M	-28.24M	-27.76M	-21.10M	-13.44M	-10.89M
Net Income	-21.81M	-27.48M	-26.33M	-18.87M	-15.85M	-10.35M
Balance Sheet
Total Assets	34.41M	28.70M	53.37M	73.39M	86.38M	13.54M
Cash, Cash Equivalents and Short-Term Investments	10.03M	3.15M	34.67M	57.27M	83.03M	10.00M
Total Debt	2.06M	2.57M	1.84M	857.00K	2.06M	1.41M
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: 0.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 0.54 is above the 20-day moving average (MA) of 0.51, above the 50-day MA of 0.51, and above the 200-day MA of 0.47, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 54.00 is Neutral, neither overbought nor oversold. The STOCH value of 64.10 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 *	65 Neutral	$10.89B	15.56	5.22%	1.87%	3.09%	-26.84%
EOSE	52 Neutral	$1.15B	―	125.43%	―	37.60%	-161.38%
OPTT	52 Neutral	$99.59M	―	-80.51%	―	23.98%	52.50%
FCEL	45 Neutral	$122.39M	―	-20.52%	―	48.62%	0.23%
ADSE	44 Neutral	$614.21M	―	-279.62%	―	2.45%	-69.94%
TE	40 Underperform	$221.43M	―	-21.45%	―	―	-517.75%
GWH	39 Underperform	$19.37M	―	-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.