ParaZero Technologies Ltd. (PRZO) AI Stock Analysis

• Market Cap: $14.43M
• Dividend Yield: N/A
• Average Volume (3M): 590.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.18
• Revenue Growth: 49.04%
• EPS Growth: -121.30%
• Country: US
• Employees: 22
• Sector: Industrials
• Sector Strength: 78
• Industry: Aerospace & Defense
• EPS (TTM): -0.27
• Shares Outstanding: 16,679,630
• 10 Day Avg. Volume: 1,239,948
• 30 Day Avg. Volume: 590,939
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

ParaZero Technologies Ltd. is currently facing considerable financial difficulties, with significant losses and high leverage. Despite recent revenue growth, these improvements have not yielded profitability, impacting the stock's attractiveness. The technical analysis suggests potential short-term upward momentum, but high valuation risks remain due to negative earnings and lack of dividends. Investors should be cautious of the high volatility and financial instability.

ParaZero Technologies Ltd. Business Overview & Revenue Model

Company Description

ParaZero Technologies Ltd., an aerospace company, engages in the design, development, manufacturing, distribution, and sale of autonomous parachute safety systems for commercial drones in the United States, Israel, Canada, Europe, and internationally. The company offers SafeAir system, a smart parachute system that monitors unmanned aerial systems flight in real-time, as well as identifies critical failures and autonomously triggers a parachute in the event of an emergency. Its autonomous parachute system portfolio includes SafeAir Phantom, SafeAir Mavic, SafeAir M-200 Pro, SafeAir M-300 Pro, SafeAir M-600 Pro, SafeAir V1EX, SafeAir 350, and Custom Integrations. The company serves system manufacturers, resellers, and online stores. ParaZero Technologies Ltd. was incorporated in 2013 and is based in Kiryat Ono, Israel.

How the Company Makes Money

ParaZero Technologies Ltd. generates revenue primarily through the sale of its SafeAir systems and associated components. The company's key revenue streams include direct sales to drone manufacturers, commercial operators, and governmental entities that require enhanced safety features for their UAV fleets. Additionally, ParaZero may engage in licensing agreements or partnerships with drone manufacturers to integrate its technology into their products. The company could also offer maintenance, support services, and training programs as supplementary revenue sources. Significant partnerships with key players in the drone industry and regulatory approvals of their safety systems further contribute to the company's earnings by expanding its market reach and credibility.

ParaZero Technologies Ltd. Financial Statement Overview

Summary

ParaZero Technologies Ltd. faces significant financial challenges, with consistent losses, high leverage, and negative equity. Despite revenue growth, the company struggles with profitability and cash flow, indicating a need for improved operational efficiency and financial restructuring.

Income Statement

ParaZero Technologies Ltd. has experienced a volatile financial performance with significant losses, as reflected by the negative net profit and EBIT margins over the years. Although there was a substantial increase in revenue from 2022 to 2024, the net income has continued to decline, indicating challenges in managing operational costs. The company needs to improve cost management and profitability to strengthen its financial position.

Balance Sheet

The balance sheet indicates a concerning financial structure with negative stockholders' equity and a high debt load relative to assets. The debt-to-equity ratio is unfavorable due to negative equity, suggesting high financial risk. This structure reflects potential solvency issues, requiring strategic actions to stabilize the balance sheet.

Cash Flow

The cash flow analysis shows persistent negative free cash flow and operating cash flow, indicating cash challenges. Despite significant financing inflows in recent years, the company has not yet achieved positive cash flow from operations, pointing to a need for better operational efficiency and cash management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
932.15K	168.25K	560.12K	724.39K	762.41K
	Gross Profit
58.29K	-308.36K	222.55K	259.68K	-86.52K
	EBIT
-5.57M	-2.80M	-1.84M	-987.43K	-1.32M
	EBITDA
-11.03M	-3.60M	-1.62M	-969.80K	-1.30M
	Net Income Common Stockholders
-11.05M	-3.77M	-1.65M	-615.38K	-1.94M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.18M	7.43M	89.81K	33.02K	144.74K
	Total Assets
5.74M	8.42M	1.15M	532.74K	763.07K
	Total Debt
419.48K	7.54K	452.67K	6.65M	6.23M
	Net Debt
-3.76M	-7.42M	362.86K	6.62M	6.08M
	Total Liabilities
6.05M	2.32M	2.79M	7.15M	6.76M
	Stockholders Equity
-311.64K	6.11M	-1.64M	-6.62M	-6.00M
Cash Flow		Free Cash Flow
-4.97M	-2.96M	-1.98M	-991.47K	-830.05K
	Operating Cash Flow
-4.89M	-2.94M	-1.97M	-985.90K	-829.35K
	Investing Cash Flow
-148.74K	-25.76K	-9.72K	-5.57K	-695.00
	Financing Cash Flow
1.82M	10.30M	2.04M	910.56K	868.74K

ParaZero Technologies Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.86
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRZO, the sentiment is Positive. The current price of 0.86 is above the 20-day moving average (MA) of 0.67, above the 50-day MA of 0.76, and below the 200-day MA of 0.96, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 63.09 is Neutral, neither overbought nor oversold. The STOCH value of 70.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRZO.

ParaZero Technologies Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPXS	68 Neutral	$43.79M	10.44	23.81%	―	23.22%	39.83%
Sector *	63 Neutral	$4.21B	11.55	5.28%	250.72%	4.13%	-9.42%
CVU	50 Neutral	$42.48M	12.57	13.74%	―	-6.23%	-80.67%
SIDU	42 Neutral	$28.92M	―	-114.28%	―	-21.64%	86.28%
ASTC	38 Underperform	$9.90M	―	-39.20%	―	-78.93%	-29.96%
MNTS	38 Underperform	$9.67M	―	688.16%	―	-31.56%	94.00%
PRZO	30 Underperform	$14.43M	―	-370.62%	―	49.04%	-121.30%