Symbotic (SYM) AI Stock Analysis

• Market Cap: $28.01B
• Dividend Yield: N/A
• Average Volume (3M): 2.35M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.46
• Revenue Growth: 36.50%
• EPS Growth: 66.90%
• Country: US
• Employees: 1,650
• Sector: Industrials
• Sector Strength: 79
• Industry: Industrial - Machinery
• EPS (TTM): 0.07
• Shares Outstanding: 111,314,940
• 10 Day Avg. Volume: 1,770,679
• 30 Day Avg. Volume: 2,348,061
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.13
• Enterprise Value/Revenue: 1.66
• Enterprise Value/Gross Profit: 9.87
• Enterprise Value/Ebitda: -61.35
• 1Y Price Target: $49.42
• Price Target Upside: 4.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 70 Outperform
• Price Target: ―

Symbotic's stock shows strong financial performance with significant revenue growth and cash flow improvements, despite ongoing net losses. Technical indicators suggest short-term momentum but advise caution due to longer-term weakness. Valuation challenges persist due to negative earnings and lack of dividends. The earnings call highlights strategic growth through acquisitions and a positive outlook, offset by challenges in deployment execution. Overall, the stock presents a balanced investment opportunity with growth potential and associated risks.

Positive Factors

Competitive Advantage

Symbotic's technology is highly differentiated and contributes to a wide competitive moat with strong backlog visibility.

Financial Performance

Stronger-than-expected FQ3 results included 11% upside to consensus revenues and a near-doubling of adj. EBITDA vs. expectations.

Technology and Innovation

The company's next-generation storage system is anticipated to drive organic sales reacceleration once deployment ramps up.

Negative Factors

Financial Transparency

There continues to be deep questions regarding the Company’s aggressive accounting.

Production Challenges

The trajectory of Symbotic’s production ramp-up has become harder to pinpoint, given the ever-changing goal posts associated with its various commercial opportunities.

Stock Volatility

Shares remain volatile and valuation is the main debate around range highs and lows.

Symbotic Business Overview & Revenue Model

Company Description

Symbotic Inc. (SYM) is a technology company specializing in robotics and automation solutions for supply chain and warehouse operations. It operates within the logistics and technology sectors, providing innovative systems that optimize the storage, retrieval, and distribution of goods. Symbotic's core offerings include advanced software and robotics systems that enhance efficiency, accuracy, and speed in warehouse operations, catering primarily to large retailers, wholesalers, and distributors.

How the Company Makes Money

Symbotic generates revenue through the sale and deployment of its automation systems and related services. The company earns money by designing and integrating robotic systems tailored to the specific needs of its clients, which often involves long-term contracts and ongoing support and maintenance services. Key revenue streams include the initial sale and installation of automated warehouse systems, software licensing fees, and recurring revenue from maintenance and support services. Significant partnerships with major retailers and distribution companies are crucial, as they drive large-scale implementations and provide a steady stream of income. Symbotic's earnings are also influenced by the growing demand for automation in logistics, driven by the need for increased efficiency and cost savings in supply chain operations.

Symbotic Financial Statement Overview

Summary

Symbotic demonstrates robust revenue growth and cash flow improvements, with a sound balance sheet free of debt. However, the persistence of net losses affects profitability metrics. Focusing on achieving profitability could enhance financial performance further. The company's strong cash position and growth trajectory provide a solid foundation for future improvements.

Income Statement

Symbotic's income statement shows strong revenue growth with a TTM revenue increase of approximately 6.6% compared to the previous annual period. The gross profit margin is 13.4% for the TTM, but the company is still operating at a net loss with a negative EBIT margin of -6.4%. Despite the net loss, the EBITDA margin improved slightly, indicating operational efficiencies. The consistent revenue growth trajectory is a key strength, though continued net losses present a risk.

Balance Sheet

The balance sheet is stable with no long-term debt, resulting in a strong equity position. The equity ratio stands at 22.97% in the TTM. Return on equity is negative due to net losses, but cash reserves are strong, bolstering financial flexibility. The absence of debt is a significant strength, while the challenge is achieving positive ROE.

Cash Flow

Cash flow analysis reveals positive trends with significant free cash flow growth in the TTM, backed by positive operating cash flow to net income ratio. Free cash flow turned positive, reflecting improved cash management. The company has effectively reversed negative free cash flow seen in prior periods, which is a strong indicator of financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.13B	1.79B	1.18B	593.31M	251.91M	92.09M
Gross Profit	359.48M	245.67M	189.74M	99.65M	10.45M	-18.93M
EBITDA	-57.86M	-93.25M	-211.92M	-134.39M	-117.89M	-104.64M
Net Income	-15.81M	-13.49M	-23.87M	-79.00M	-122.31M	-109.52M
Balance Sheet
Total Assets	1.83B	1.58B	1.05B	631.26M	280.54M	224.95M
Cash, Cash Equivalents and Short-Term Investments	777.58M	727.31M	545.51M	353.46M	156.63M	58.26M
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	1.38B	1.19B	1.05B	562.32M	1.39B	1.07B
Stockholders Equity	210.75M	197.23M	82.00K	7.18M	-1.11B	-844.47M
Cash Flow
Free Cash Flow	325.94M	-102.45M	209.47M	-166.20M	97.40M	-129.38M
Operating Cash Flow	375.22M	-58.08M	230.79M	-148.25M	109.57M	-124.31M
Investing Cash Flow	-291.27M	156.48M	-299.46M	-17.95M	-12.17M	-5.06M
Financing Cash Flow	736.00K	371.04M	-24.10M	362.45M	0.00	100.00M

Symbotic Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 47.43
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SYM, the sentiment is Neutral. The current price of 47.43 is below the 20-day moving average (MA) of 51.26, below the 50-day MA of 48.31, and above the 200-day MA of 31.66, indicating a neutral trend. The MACD of -0.70 indicates Positive momentum. The RSI at 46.62 is Neutral, neither overbought nor oversold. The STOCH value of 59.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SYM.

Symbotic Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZTO	75 Outperform	$14.20B	12.45	13.98%	3.85%	14.40%	2.41%
GXO	74 Outperform	$6.03B	99.75	2.16%	―	22.39%	-54.71%
J	73 Outperform	$17.48B	36.54	9.29%	0.85%	-30.12%	-21.04%
SYM	70 Outperform	$28.01B	―	-4.09%	―	36.50%	66.90%
XPO	67 Neutral	$15.27B	44.87	21.10%	―	-0.11%	-4.28%
JBHT	67 Neutral	$14.03B	26.35	14.33%	1.21%	-2.24%	-5.43%
Sector *	64 Neutral	$10.84B	16.10	8.24%	1.99%	2.74%	-14.89%

Symbotic Corporate Events

Symbotic Reports Strong Revenue Growth and Strategic Acquisition

Symbotic Inc. reported its financial results for the first fiscal quarter of 2025, showcasing significant growth with a 35% year-over-year increase in revenue, reaching $487 million. The company completed the acquisition of Walmart’s Advanced Systems and Robotics business, which is expected to further strengthen its market position and drive exceptional results for stakeholders. Looking ahead, Symbotic anticipates continued revenue growth of at least 30% in the second quarter of fiscal 2025.