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SES AI Corporation Class A (SES)
NYSE:SES
US Market

SES AI Corporation Class A (SES) AI Stock Analysis

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SES AI Corporation Class A

(NYSE:SES)

43Neutral
SES AI Corporation's overall stock score reflects its early-stage revenue generation and strategic expansion efforts, tempered by significant financial challenges such as ongoing losses and cash flow issues. While technical indicators show short-term momentum, valuation concerns due to a negative P/E ratio and no dividend yield limit its attractiveness. The positive developments noted in the earnings call, including high gross margins and market expansion, are weighed against the risks of financial instability.

SES AI Corporation Class A (SES) vs. S&P 500 (SPY)

SES AI Corporation Class A Business Overview & Revenue Model

Company DescriptionSES AI Corporation engages in the development and production of high-performance Lithium-metal rechargeable batteries for electric vehicles and other applications. The company was founded in 2012 and is headquartered in Boston, Massachusetts.
How the Company Makes MoneySES AI Corporation generates revenue primarily through the development and licensing of its lithium-metal battery technologies to automotive manufacturers and other partners in the electric vehicle industry. The company collaborates with major automotive companies to integrate its battery solutions into their production lines, thus earning revenue from licensing agreements, joint development projects, and potentially from the sale of battery cells and systems. Partnerships with industry leaders and ongoing research and development efforts play a crucial role in advancing SES's technology and securing its position in the market.

SES AI Corporation Class A Financial Statement Overview

Summary
SES AI Corporation is in the early stages of revenue generation with its first reported revenue in 2024. Despite a solid equity position, the company faces significant profitability and cash flow challenges, as evidenced by negative margins and cash flows. The low leverage suggests financial stability, but ongoing losses and cash burn indicate potential risks unless the company can stabilize and grow its operations.
Income Statement
15
Very Negative
SES AI Corporation has seen its revenue increase to $2.04 million in 2024, indicating initial revenue generation after several years. However, the company continues to face significant losses, with a net income of -$100.19 million in 2024, resulting in a negative net profit margin. The company is yet to achieve positive EBIT and EBITDA margins, reflecting ongoing operational challenges.
Balance Sheet
40
Negative
SES AI Corporation's balance sheet shows a strong equity position with a stockholders' equity of $278.31 million against total assets of $329.79 million, leading to an equity ratio of approximately 84.4%. However, the company has a modest debt level with a total debt of $10.56 million, resulting in a low debt-to-equity ratio. The negative net income affects the return on equity, highlighting challenges in profitability.
Cash Flow
25
Negative
The company reported negative free cash flow of -$78.29 million in 2024, with operating cash flow also remaining negative. Despite a significant amount of cash and short-term investments, the free cash flow to net income ratio illustrates continued cash flow challenges. The operating cash flow to net income ratio is unfavorable, indicating inefficiencies in cash generation relative to net losses.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
2.04M0.000.000.000.00
Gross Profit
1.29M-5.54M-2.60M-1.66M0.00
EBIT
-109.25M-78.16M-79.57M-32.01M-13.90M
EBITDA
-109.25M-72.62M-76.98M-30.34M-12.20M
Net Income Common Stockholders
-100.19M-53.40M-50.38M-31.25M-13.89M
Balance SheetCash, Cash Equivalents and Short-Term Investments
262.54M332.45M390.08M160.50M14.73M
Total Assets
329.79M406.81M442.32M193.35M24.59M
Total Debt
10.56M13.72M12.06M0.00840.00K
Net Debt
-118.23M-71.95M-94.56M-160.50M-1.60M
Total Liabilities
51.48M47.86M50.17M281.68M86.66M
Stockholders Equity
278.31M358.95M392.15M-88.32M-62.07M
Cash FlowFree Cash Flow
-78.29M-72.17M-61.15M-38.97M-11.99M
Operating Cash Flow
-66.09M-56.41M-46.50M-29.99M-11.01M
Investing Cash Flow
108.19M32.72M-296.01M3.31M-13.27M
Financing Cash Flow
1.01M3.27M289.93M184.76M840.00K

SES AI Corporation Class A Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.87
Price Trends
50DMA
0.65
Positive
100DMA
0.83
Positive
200DMA
0.82
Positive
Market Momentum
MACD
0.06
Negative
RSI
77.20
Negative
STOCH
80.47
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SES, the sentiment is Positive. The current price of 0.87 is above the 20-day moving average (MA) of 0.63, above the 50-day MA of 0.65, and above the 200-day MA of 0.82, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 77.20 is Negative, neither overbought nor oversold. The STOCH value of 80.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SES.

SES AI Corporation Class A Risk Analysis

SES AI Corporation Class A disclosed 53 risk factors in its most recent earnings report. SES AI Corporation Class A reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

SES AI Corporation Class A Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
60
Neutral
$6.78B11.633.24%4.20%2.36%-21.91%
53
Neutral
$409.81M-92.90%110.23%12.96%
QSQS
46
Neutral
$2.17B-39.86%6.49%
SESES
43
Neutral
$316.85M-31.44%-83.20%
GGGGR
42
Neutral
$76.79M-57.97%-11.24%-36.73%
ECECX
41
Neutral
$404.10M102.04%18.50%0.28%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SES
SES AI Corporation Class A
0.87
-0.49
-36.03%
AEVA
Aeva Technologies
7.32
4.23
136.89%
QS
QuantumScape
3.94
-1.45
-26.90%
GGR
Gogoro
0.26
-1.28
-83.12%
ECX
ECARX Holdings
1.09
-0.55
-33.54%

SES AI Corporation Class A Earnings Call Summary

Earnings Call Date: Apr 24, 2025 | % Change Since: 0.00% | Next Earnings Date: Aug 12, 2025
Earnings Call Sentiment Positive
The earnings call highlighted SES AI's strong start to the fiscal year with record revenue and high gross margins, alongside strategic developments like the Molecular Universe platform. However, the company also faces high operating expenses and significant cash utilization. The strengths in revenue growth and strategic initiatives outweigh the financial challenges.
Highlights
Record Revenue Achievement
SES AI achieved a new record for revenue with $5.8 million in the first quarter of 2025, marking a strong start to the year.
High Gross Margin
The company reported a strong gross margin of 79% for Q1 2025, consistent with their expectations and indicative of their asset-lite, AI-driven business model.
Launch of Molecular Universe Platform
SES AI announced the upcoming launch of their Molecular Universe software and service platform, which aims to mass-produce material discovery and development services. Early access testing is already underway with a dozen companies.
Strong Liquidity Position
SES AI concluded the quarter with $240 million in liquidity and no debt, positioning the company well for future growth.
Positive Market Reception for New Products
The AI-enhanced 2170 cylindrical cell for robotics and drones received a tremendous response, showcasing new applications for SES AI's technology.
Lowlights
High Operating Expenses
GAAP operating expenses were $27.8 million for the quarter, indicating substantial spending to support growth.
Cash Utilization
The company utilized $22.8 million in cash from operations, reflecting significant cash outflows despite a strong liquidity position.
Company Guidance
In the first quarter of 2025, SES AI reported a record revenue of $5.8 million and is on track to achieve its full-year revenue guidance of $15 million to $25 million. The company highlighted a strong gross margin of 79%, largely attributed to its asset-lite business model. SES AI's notable advancements include the development of AI-enhanced lithium metal and lithium-ion batteries for EVs, with contracts in place with two OEM partners. Additionally, SES AI is set to launch its Molecular Universe platform, aimed at mass-producing material discovery and development services for various battery chemistries, a move expected to significantly boost its most profitable revenue component. The company concluded the quarter with a solid liquidity position of $240 million and no debt, planning to exit 2025 with more than $200 million in liquidity.

SES AI Corporation Class A Corporate Events

Stock BuybackBusiness Operations and StrategyFinancial Disclosures
SES AI Corporation Announces $30 Million Stock Buyback
Positive
Apr 24, 2025

On April 24, 2025, SES AI Corporation announced a stock repurchase program to buy back up to $30 million of its Class A common stock, signaling confidence in its financial health and future prospects. The company reported a record revenue of $5.8 million for Q1 2025 and maintained its annual revenue outlook of $15 million to $25 million. SES AI is strategically positioned for growth with its Molecular Universe platform, which has attracted interest from numerous companies even before its official release. The company aims to exit 2025 with over $200 million in liquidity, focusing on scalable growth and commercial readiness, particularly in the EV and robotics sectors.

Spark’s Take on SES Stock

According to Spark, TipRanks’ AI Analyst, SES is a Underperform.

SES AI Corporation’s stock is rated low due to significant challenges in financial performance, including ongoing losses and cash flow issues. While the company has achieved early-stage revenue generation and strategic expansion, these positives are overshadowed by the negative financial metrics and the recent NYSE delisting notice. The technical indicators show mixed signals, and the valuation remains unattractive due to a negative P/E ratio. The company must address these financial and operational challenges to improve its stock performance.

To see Spark’s full report on SES stock, click here.

Delistings and Listing ChangesStock Split
SES AI Corporation Faces NYSE Delisting Notice
Negative
Mar 12, 2025

On March 7, 2025, SES AI Corporation received a notice from the New York Stock Exchange (NYSE) indicating non-compliance with the listing standards due to its Class A common stock’s average closing price falling below $1.00 over 30 consecutive trading days. The company plans to address this issue within a six-month period by potentially implementing measures such as a reverse stock split, which would require stockholder approval. Despite the notice, SES AI’s stock will continue to trade on the NYSE, and the company remains committed to regaining compliance, ensuring minimal impact on its operations and stakeholders.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.