Ouster (OUST) AI Stock Analysis

• Market Cap: $549.97M
• Dividend Yield: N/A
• Average Volume (3M): 1.28M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.67
• Revenue Growth: 33.41%
• EPS Growth: 81.07%
• Country: US
• Employees: 290
• Sector: Technology
• Sector Strength: 51
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -2.09
• Shares Outstanding: 49,770,638
• 10 Day Avg. Volume: 1,776,458
• 30 Day Avg. Volume: 1,277,776
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 5.43
• Price to Cash Flow (P/CF): -38.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $12.00
• Price Target Upside: 8.60% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

Ouster's strong revenue growth and strategic achievements in software contribute positively. However, challenges with profitability, negative cash flow, and a mixed technical outlook pose risks. The earnings call highlights strengths, but valuation concerns weigh down the overall score.

Ouster Business Overview & Revenue Model

Company Description

Ouster (OUST) is a leading provider of high-resolution digital lidar sensors used in various industries, including automotive, industrial, robotics, and smart infrastructure. The company's core products include advanced lidar solutions that enable 3D perception for applications such as autonomous vehicles, industrial automation, and smart city deployments. Ouster's digital lidar technology is designed to deliver superior performance and reliability, facilitating the integration of advanced sensing capabilities across multiple sectors.

How the Company Makes Money

Ouster makes money primarily through the sale of its digital lidar sensors, which are used in a wide range of applications across different industries. The company's revenue model is largely based on the direct sale of these lidar units to customers in sectors such as automotive, industrial automation, robotics, and smart infrastructure. Ouster also engages in strategic partnerships and collaborations with other technology and manufacturing firms to expand its market reach and enhance its product offerings. Additionally, the company may generate revenue through service agreements, customization, and support services for its lidar technology. Key factors contributing to Ouster's earnings include the growing demand for autonomous vehicle technology, industrial automation, and smart city solutions, which drive the need for advanced sensing and perception capabilities that Ouster's products provide.

Ouster Financial Statement Overview

Summary

Ouster is experiencing financial challenges with continuous operational losses and cash flow issues. Despite revenue growth, profitability remains weak, with a low gross profit margin and negative net income. The balance sheet shows a strong equity position, but operational inefficiencies prevent effective use of shareholder capital. Cash flow improvement is needed to support operations.

Income Statement

Ouster's income statement reveals a challenging financial position with persistent negative net income and EBIT margins over recent years, indicating ongoing operational losses. Although there is positive revenue growth from 2023 to TTM 2024, the gross profit margin remains low at approximately 29.4% in TTM 2024. The company needs to improve its profitability metrics, particularly focusing on reducing operational expenses to achieve sustainable net income.

Balance Sheet

The balance sheet shows a relatively high debt-to-equity ratio of approximately 0.13 in TTM 2024, which suggests moderate leverage. The equity ratio stands at 67.3%, indicating a strong equity position relative to total assets. However, the company's ability to generate returns on equity is hindered by consistent net losses, pointing to inefficiencies in utilizing shareholder capital.

Cash Flow

Cash flow analysis indicates that Ouster has significant negative free cash flow, with a free cash flow to net income ratio of 0.52 in TTM 2024, reflecting limited efficiency in converting earnings to cash. While operating cash flow has improved slightly, it remains negative, suggesting challenges in generating cash from core operations. The company needs to enhance cash flow management to support operational and strategic initiatives.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
105.45M	83.28M	41.03M	33.58M	18.90M	11.41M
	Gross Profit
31.05M	9.68M	10.93M	9.09M	1.51M	-6.01M
	EBIT
-107.95M	-373.19M	-145.42M	-99.71M	-51.76M	-48.36M
	EBITDA
-90.45M	-342.62M	-123.38M	-88.69M	-98.30M	-46.05M
	Net Income Common Stockholders
-112.30M	-374.11M	-138.56M	-93.98M	-106.78M	-51.66M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
16.85M	190.15M	122.93M	182.64M	11.36M	16.85M
	Total Assets
39.86M	330.74M	256.14M	307.70M	46.41M	39.86M
	Total Debt
89.16M	69.90M	56.20M	19.27M	21.81M	89.16M
	Net Debt
72.31M	18.91M	-66.74M	-163.37M	10.45M	72.31M
	Total Liabilities
100.16M	151.07M	84.52M	47.00M	122.32M	100.16M
	Stockholders Equity
-60.30M	179.67M	171.62M	260.70M	-75.91M	-60.30M
Cash Flow		Free Cash Flow
-58.00M	-140.90M	-116.11M	-74.84M	-45.63M	-47.68M
	Operating Cash Flow
-55.32M	-137.89M	-110.69M	-70.56M	-42.12M	-40.19M
	Investing Cash Flow
21.93M	50.60M	-5.15M	-15.23M	-3.51M	-7.49M
	Financing Cash Flow
2.84M	15.66M	55.60M	257.80M	39.86M	50.51M

Ouster Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OUST, the sentiment is Positive. The current price of 11.05 is above the 20-day moving average (MA) of 8.34, above the 50-day MA of 9.45, and above the 200-day MA of 9.46, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 68.81 is Neutral, neither overbought nor oversold. The STOCH value of 86.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OUST.

Ouster Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OUST	58 Neutral	$549.97M	―	-53.83%	―	33.41%	81.07%
Sector *	58 Neutral	$22.11B	10.47	-17.86%	2.40%	4.75%	-24.81%
MVIS	55 Neutral	$332.97M	―	-103.99%	―	277.53%	1.16%
AEVA	54 Neutral	$225.77M	―	-92.90%	―	110.23%	12.96%
VLN	47 Neutral	$226.24M	―	-23.83%	―	-31.25%	-79.47%
LIDR	43 Neutral	$12.90M	―	-160.65%	―	-86.20%	67.94%
LAZR	27 Underperform	$278.02M	―	146.24%	―	27.61%	40.95%

Ouster Corporate Events

Ouster Transfers Stock Listing to Nasdaq Markets

Ouster, Inc. announced its decision to transfer the listing of its common stock and public warrants from the New York Stock Exchange to the Nasdaq Global Select Market and Nasdaq Capital Market. This strategic move, effective December 23, 2024, aims to enhance the company’s market positioning as its securities continue to trade under the new symbols on Nasdaq, potentially offering better visibility and trading opportunities for stakeholders.

Ouster Announces Board Changes and New Severance Plan

Ouster, Inc. recently saw changes in its Board of Directors with the resignations of Karin Rådström and Kristin Slanina, who will continue in advisory roles, and the appointments of Christina Correia and Stephen Skaggs. Additionally, the company has implemented a new Executive Change in Control and Severance Plan, offering financial benefits to executives in the event of certain terminations or company control changes, positioning the company for stability and strategic growth.