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Symbotic (SYM)
NASDAQ:SYM
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Symbotic
(NASDAQ:SYM)
68Neutral
Positive Factors
Executive Leadership
Symbotic made several executive hires, including a new chief technology officer, to address deployment challenges.
International Expansion
WMT is displaying the ability to expand meaningfully with SYM, both internationally and in store.
Unique Technology
The technology itself is unique and is being deployed into a market with little to no real penetration.
Negative Factors
Deployment Challenges
The move to second- and third-stage deployments has proved more time-consuming than anticipated, tying up labor and driving cost overruns.
Financial Discrepancies
SYM received a SEC subpoena related to its restatement process adding to the already disclosed investigation related to alleged whistleblower violations.
System Growth Plateau
Symbotic (SYM) might have reached the plateau in the number of system placements.
Symbotic (SYM) vs. S&P 500 (SPY)
Market Cap
$12.94B
Dividend YieldN/A
Average Volume (3M)1.28M
Price to Earnings (P/E)―
Beta (1Y)2.55
Revenue Growth44.84%
EPS Growth41.00%
CountryUS
Employees1,650
SectorIndustrials
Sector Strength75
IndustryShell Companies
Share Statistics
EPS (TTM)-0.12
Shares Outstanding107,704,510
10 Day Avg. Volume850,417
30 Day Avg. Volume1,278,191
Financial Highlights & Ratios
PEG RatioN/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 Ratio0.00
Enterprise Value/Market Cap0.14
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit7.62
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$33.33Price Target Upside54.45% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
Symbotic Business Overview & Revenue Model
Company DescriptionSymbotic Inc., an automation technology company, provides robotics and technology to improve efficiency for retailers and wholesalers in the United States. It offers The Symbotic System, a full-service warehouse automation system that reduces costs, improves efficiency, and maximizes inventory. The company is based in Wilmington, Massachusetts.
How the Company Makes MoneySymbotic 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 Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes revenue from different business segments, highlighting which areas are driving growth and which might need strategic adjustments to enhance profitability.
Analyzes revenue from different business segments, highlighting which areas are driving growth and which might need strategic adjustments to enhance profitability.
Data provided by:
Main Street Data
Main Street DataSymbotic 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.75
Positive
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.70
Positive
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.80
Positive
| Breakdown | ||||
| Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.79B | 1.18B | 593.31M | 251.91M | 92.09M | Gross Profit |
| 245.67M | 189.74M | 99.65M | 10.45M | -18.93M | EBIT |
| -116.72M | -223.23M | -140.38M | -122.38M | -110.38M | EBITDA |
| -93.25M | -203.04M | -134.39M | -117.89M | -104.64M | Net Income Common Stockholders |
| -13.49M | -23.87M | -77.71M | -122.31M | -109.52M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 727.31M | 545.51M | 353.46M | 156.63M | 58.26M | Total Assets |
| 1.58B | 1.05B | 631.26M | 280.54M | 224.95M | Total Debt |
| 0.00 | 13.64M | 0.00 | 0.00 | 17.75K | Net Debt |
| -727.31M | -258.77M | -353.46M | -156.63M | -58.25M | Total Liabilities |
| 1.19B | 1.05B | 562.32M | 1.39B | 1.07B | Stockholders Equity |
| 390.13M | 82.00K | 7.18M | -1.11B | -844.47M |
| Cash Flow | Free Cash Flow | |||
| -102.45M | 209.47M | -166.20M | 97.40M | -129.38M | Operating Cash Flow |
| -58.08M | 230.79M | -148.25M | 109.57M | -124.31M | Investing Cash Flow |
| 156.48M | -299.46M | -17.95M | -12.17M | -5.06M | Financing Cash Flow |
| 371.04M | -24.10M | 362.45M | 324.20M | 100.00M |
Symbotic Technical Analysis
Negative
21.58
Price Trends
21.61
Negative
24.51
Negative
25.94
Negative
Market Momentum
0.04
Negative
52.00
Neutral
77.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SYM, the sentiment is Negative. The current price of 21.58 is above the 20-day moving average (MA) of 20.43, below the 50-day MA of 21.61, and below the 200-day MA of 25.94, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 52.00 is Neutral, neither overbought nor oversold. The STOCH value of 77.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SYM.
Symbotic Risk Analysis
Symbotic disclosed 60 risk factors in its most recent earnings report. Symbotic 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
Symbotic Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $15.07B | 12.89 | 14.46% | 5.06% | 12.67% | -0.32% | |
68 Neutral | $12.94B | ― | -17.18% | ― | 44.84% | 41.00% | |
68 Neutral | $15.00B | 25.22 | 10.92% | 0.96% | -13.76% | -13.39% | |
68 Neutral | $4.24B | 32.48 | 4.53% | ― | 19.75% | -41.77% | |
67 Neutral | $11.49B | 30.16 | 27.07% | ― | 4.22% | 105.29% | |
64 Neutral | $13.29B | 23.92 | 13.97% | 1.33% | -3.82% | -12.80% | |
63 Neutral | $4.23B | 11.54 | 5.34% | 209.77% | 4.14% | -9.49% |
* Industrials Sector Average
Performance Comparison
SYM
Symbotic
21.58
-18.40
-46.02%
XPO
XPO
106.12
-2.80
-2.57%
JBHT
JB Hunt
130.58
-32.35
-19.86%
J
Jacobs Solutions
123.80
3.83
3.19%
ZTO
ZTO Express
18.50
-2.38
-11.40%
GXO
GXO Logistics
36.24
-14.00
-27.87%
Symbotic Earnings Call Summary
Earnings Call Date:Feb 05, 2025
(Q1-2025)
| % Change Since: -30.21%|
Next Earnings Date:May 07, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a strong performance in revenue growth and strategic acquisitions, particularly with Walmart, contributing to a positive outlook. However, challenges in deployment execution and increased operating expenses were notable downsides, though they are expected to moderate in the future.Q1-2025 Updates
Positive Updates
Strong Revenue Growth
First quarter revenue grew 35% year-over-year to $487 million, driven by solid progress across deployments and over 80% growth in recurring revenue from software and operation services.
Expansion in Software Margins
Software revenue more than doubled year-over-year, delivering software margins over 65% for the first time in a quarter.
Successful Acquisitions and Strategic Partnerships
Closed three acquisitions in the last seven months, including a transformative acquisition of Walmart's Advanced Systems and Robotics business, representing over $5 billion of future backlog.
Positive Cash Flow
Finished the quarter with cash and equivalents of $903 million, increasing significantly from $727 million in the previous quarter, primarily due to cash from operations.
Negative Updates
Negative Gross Profit in Operation Services
Posted a negative gross profit in Operation Services due to additional resource investments to support certain sites, with expectations for this to moderate going forward.
Ongoing Challenges in Deployment Execution
Deployment execution remains a challenge, with some systems taking longer than expected to go live, affecting overall systems gross margin.
Increased Operating Expenses
Operating expenses increased sequentially due to continued investments to support growth and recent acquisitions, resulting in an overall net loss of $19 million for the quarter.
Company Guidance
During Symbotic's first-quarter 2025 financial results conference call, the company provided guidance reflecting strong growth and strategic investments. Revenue for the first quarter grew by 35% year-over-year to $487 million, driven by a significant increase in recurring revenue, including software and operation services, with software revenue more than doubling and achieving margins over 65%. The company closed three acquisitions, including Walmart's Advanced Systems and Robotics business, contributing to a backlog of $22.4 billion and a future revenue opportunity of over $5 billion. Looking ahead to the second quarter of fiscal 2025, Symbotic expects revenue between $510 million and $530 million, with adjusted EBITDA ranging from $26 million to $30 million, indicating at least 30% year-over-year revenue growth. This outlook accounts for a sequential increase in gross margins and operating expenses associated with recent acquisitions, with modest contributions from the Walmart acquisition expected as the development program progresses.Symbotic Corporate Events
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Symbotic Reports Strong Revenue Growth and Strategic Acquisition
Positive
Feb 5, 2025
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.
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.