ParaZero Technologies Ltd. (PRZO) AI Stock Analysis

• Market Cap: $23.89M
• Dividend Yield: N/A
• Average Volume (3M): 1.06M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.25
• Revenue Growth: 49.04%
• EPS Growth: -121.30%
• Country: US
• Employees: 22
• Sector: Industrials
• Sector Strength: 85
• Industry: Aerospace & Defense
• EPS (TTM): -0.27
• Shares Outstanding: 17,063,630
• 10 Day Avg. Volume: 1,912,376
• 30 Day Avg. Volume: 1,062,264
• PEG Ratio: -0.07
• Price to Book (P/B): -13.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.81
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 32.72
• Enterprise Value/Gross Profit: 1.38K
• Enterprise Value/Ebitda: -3.97
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 41 Neutral
• Price Target: $1.50 ▲(7.14%Upside)

ParaZero Technologies Ltd.'s stock score is primarily impacted by its weak financial performance, characterized by consistent losses, high debt levels, and negative equity. Technical analysis further suggests caution due to overbought conditions. The company's valuation is unfavorable, with a negative P/E ratio indicating lack of profitability. There were no earnings call or corporate events data to influence the overall score.

ParaZero Technologies Ltd. Business Overview & Revenue Model

Company Description

ParaZero Technologies Ltd. (PRZO) is a technology company specializing in the development of safety systems for drones and other aerial platforms. The company is focused on providing solutions that enhance the safety and reliability of unmanned aerial vehicles (UAVs) through its proprietary SafeAir system, which includes a parachute recovery system designed to mitigate the risks associated with drone malfunctions. ParaZero operates within the aerospace and defense sectors, catering to commercial, industrial, and governmental clients who require advanced safety measures for their UAV operations.

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. has a weak financial performance, with significant losses, high leverage, negative equity, and persistent negative cash flow. Despite revenue growth, profitability and cash flow remain challenges.

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
-5.54M	-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: 1.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 1.4 is above the 20-day moving average (MA) of 1.00, above the 50-day MA of 0.83, and above the 200-day MA of 1.01, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 78.92 is Negative, neither overbought nor oversold. The STOCH value of 88.10 is Negative, 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	79 Outperform	$62.29M	12.70	25.69%	―	21.77%	36.36%
Sector *	66 Neutral	$4.47B	12.21	5.40%	3.65%	4.14%	-12.00%
CVU	52 Neutral	$37.96M	20.56	7.62%	―	-7.34%	-88.84%
SIDU	43 Neutral	$28.19M	―	-109.05%	―	-18.70%	84.35%
ASTC	42 Neutral	$9.49M	―	-44.54%	―	-54.94%	-24.76%
PRZO	41 Neutral	$23.89M	―	-370.62%	―	49.04%	-121.30%
MNTS	40 Neutral	$7.14M	―	688.16%	―	-46.28%	93.33%