SES AI Corporation Class A (SES) AI Stock Analysis

• Market Cap: $185.98M
• Dividend Yield: N/A
• Average Volume (3M): 27.06M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.72
• Revenue Growth: N/A
• EPS Growth: -83.20%
• Country: US
• Employees: 250
• Sector: Consumer Cyclical
• Sector Strength: 46
• Industry: Auto - Parts
• EPS (TTM): -0.31
• Shares Outstanding: 320,778,600
• 10 Day Avg. Volume: 24,721,757
• 30 Day Avg. Volume: 27,064,495
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 94.15
• Price to Cash Flow (P/CF): -3.90
• 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: $1.00
• Price Target Upside: 96.08% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

SES AI Corporation's overall score reflects its early-stage revenue generation and solid equity position, countered by significant profitability and cash flow challenges. Technical analysis suggests caution with bearish indicators, while the negative P/E ratio and lack of dividends highlight valuation concerns. Positives from the earnings call are overshadowed by the NYSE delisting notice, adding risk and uncertainty to the stock's outlook.

SES AI Corporation Class A Business Overview & Revenue Model

Company Description

SES 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 Money

SES 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

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

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

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.04M	0.00	0.00	0.00	0.00
	Gross Profit
1.29M	-5.54M	-2.60M	-1.66M	0.00
	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 Sheet		Cash, Cash Equivalents and Short-Term Investments
262.54M	332.45M	390.08M	160.50M	14.73M
	Total Assets
329.79M	406.81M	442.32M	193.35M	24.59M
	Total Debt
10.56M	13.72M	12.06M	0.00	840.00K
	Net Debt
-118.23M	-71.95M	-94.56M	-160.50M	-1.60M
	Total Liabilities
51.48M	47.86M	50.17M	281.68M	86.66M
	Stockholders Equity
278.31M	358.95M	392.15M	-88.32M	-62.07M
Cash Flow		Free 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
108.19M	32.72M	-296.01M	3.31M	-13.27M
	Financing Cash Flow
1.01M	3.27M	289.93M	184.76M	840.00K

SES AI Corporation Class A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.51
• 50DMA: Negative
• 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 SES, the sentiment is Negative. The current price of 0.51 is below the 20-day moving average (MA) of 0.53, below the 50-day MA of 0.78, and below the 200-day MA of 0.85, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 43.90 is Neutral, neither overbought nor oversold. The STOCH value of 24.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SES.

SES AI Corporation Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	59 Neutral	$12.18B	11.09	-1.08%	3.77%	1.26%	-19.82%
SLDP	52 Neutral	$189.27M	―	-21.13%	―	15.67%	-45.59%
QS	46 Neutral	$2.18B	―	-38.29%	―	―	2.40%
TE	44 Neutral	$171.53M	―	-26.15%	―	―	-517.75%
ENVX	44 Neutral	$1.27B	―	-88.04%	―	1429.35%	-36.13%
SES	41 Neutral	$185.98M	―	-31.44%	―	―	-83.20%

SES AI Corporation Class A Corporate Events

SES AI Corporation Faces NYSE Delisting Notice

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.