Siyata Mobile (SYTA) AI Stock Analysis

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Siyata Mobile

(NASDAQ:SYTA)

41Neutral

Siyata Mobile's overall stock score reflects significant financial challenges, including ongoing losses and negative cash flows, despite notable revenue growth and market opportunities. Technical analysis suggests bearish momentum, while the valuation is constrained by a negative P/E ratio. The most significant positive factor is potential future growth driven by new product launches.

Positive Factors

Carrier Relationships

SYTA has achieved 'stocked status' with four large carriers, which means the carrier supports the sell-through with subsidies and aggressive pricing.

Order Backlog

The company has a backlog of $7M+ confirmed orders, giving strong visibility into the second half of the year.

Negative Factors

Cash Position

SYTA ended 3Q24 with cash of $0.2M, indicating that additional capital will be required by 2Q25.

Financial Performance

SYTA reported 3Q24 results below expectations with revenue of $5.9M, slightly below the estimate of $6.0M, and an adjusted EBITDA loss wider than estimated.

Siyata Mobile (SYTA) vs. S&P 500 (SPY)

Market Cap

$1.76M

Dividend YieldN/A

Average Volume (3M)1.40M

Price to Earnings (P/E)―

Beta (1Y)0.30

Revenue Growth41.59%

EPS Growth92.05%

CountryUS

Employees23

SectorTechnology

Sector Strength40

IndustryCommunication Equipment

Share Statistics

EPS (TTM)-218.63

Shares Outstanding983,733

10 Day Avg. Volume361,556

30 Day Avg. Volume1,399,688

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.17

Price to Cash Flow (P/CF)-0.10

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusHold

Number of Analyst Covering0

Siyata Mobile Business Overview & Revenue Model

Company DescriptionSiyata Mobile Inc. (SYTA) is a telecommunications company that operates in the mobile communication sector, specializing in the development and sale of cellular devices and communication systems. The company's core products include Uniden® cellular signal boosters, rugged mobile devices, and connected vehicle solutions designed to enhance communication capabilities for enterprise customers, first responders, and commercial fleets.

How the Company Makes MoneySiyata Mobile generates revenue primarily through the sale of its mobile communication devices and solutions. The company's key revenue streams include: 1) the sale of Uniden® cellular signal boosters, which amplify cellular signals for improved connectivity in vehicles and buildings; 2) the sale of rugged mobile devices that are tailored for use in demanding environments by industries such as public safety and transportation; and 3) the deployment of in-vehicle communication systems that integrate push-to-talk over cellular (PoC) technology, enabling seamless communication for fleet management and emergency services. Additionally, strategic partnerships with distributors, resellers, and telecom operators help to expand market reach and drive sales growth. Siyata Mobile's earnings are influenced by its ability to innovate and meet the evolving needs of its target markets, as well as its capacity to penetrate new geographical regions.

Siyata Mobile Financial Statement Overview

Summary

Siyata Mobile faces significant financial challenges. Although there's revenue growth, substantial operating losses and negative cash flows highlight financial instability. The company's reliance on external financing to sustain operations poses risks, signaling the need for strategic adjustments to improve profitability and cash flow management.

Income Statement

Negative

Siyata Mobile's income statement reveals significant challenges. The TTM data shows a negative net profit margin of -168.6%, indicating substantial losses relative to revenue. The gross profit margin is 19.6%, showing some ability to cover direct costs, but the EBIT and EBITDA margins are deeply negative at -109.7% and -139.1%, respectively. Revenue growth is positive at 45.6% from 2022 to 2023, but this is offset by increasing net losses.

Balance Sheet

Negative

The balance sheet highlights financial instability with a debt-to-equity ratio of 0.40, showing moderate leverage. However, the return on equity (ROE) is negative at -204.3%, reflecting heavy losses against shareholders' equity. The equity ratio is reasonable at 51.1%, suggesting some asset financing via equity. Overall, financial health is weak due to high losses.

Cash Flow

Negative

Cash flow analysis shows severe challenges, with negative free cash flow growth and negative operating cash flow. The operating cash flow to net income ratio is 0.78, indicating the net income losses reflect cash flow issues. The company is heavily reliant on financing activities to cover cash deficiencies.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
11.99M	8.23M	6.48M	7.55M	5.99M	9.97M
	Gross Profit
2.35M	2.66M	1.39M	1.87M	1.58M	2.52M
	EBIT
-13.15M	-11.36M	-15.68M	-10.76M	-7.33M	―
	EBITDA
-16.68M	-11.04M	-19.34M	-17.42M	-11.64M	-5.53M
	Net Income Common Stockholders
-20.21M	-12.93M	-9.94M	-25.31M	-15.34M	―
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
585.56K	898.77K	1.91M	1.62M	5.47M	2.65M
	Total Assets
14.31M	15.51M	16.14M	12.05M	31.09M	16.08M
	Total Debt
3.23M	2.20M	939.00K	4.39M	7.05M	5.46M
	Net Debt
2.64M	1.30M	-974.74K	2.77M	1.58M	2.80M
	Total Liabilities
7.28M	5.81M	6.90M	9.56M	9.81M	7.63M
	Stockholders Equity
7.03M	9.71M	9.24M	2.49M	21.28M	8.45M
Cash Flow		Free Cash Flow
-17.16M	-10.62M	-17.27M	-15.56M	-11.52M	―
	Operating Cash Flow
-15.81M	-8.34M	-13.85M	-12.57M	-9.99M	―
	Investing Cash Flow
-2.64M	-2.27M	-3.56M	-3.12M	-1.53M	―
	Financing Cash Flow
18.39M	9.60M	17.57M	1.01M	25.35M	9.62M

Siyata Mobile Technical Analysis

Technical Analysis Sentiment

Negative

Last Price1.79

Price Trends

50DMA

2.94

Negative

100DMA

5.25

Negative

200DMA

23.46

Negative

Market Momentum

MACD

-0.39

Negative

RSI

38.87

Neutral

STOCH

9.85

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SYTA, the sentiment is Negative. The current price of 1.79 is below the 20-day moving average (MA) of 2.03, below the 50-day MA of 2.94, and below the 200-day MA of 23.46, indicating a bearish trend. The MACD of -0.39 indicates Negative momentum. The RSI at 38.87 is Neutral, neither overbought nor oversold. The STOCH value of 9.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SYTA.

Siyata Mobile Risk Analysis

Siyata Mobile disclosed 67 risk factors in its most recent earnings report. Siyata Mobile 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

Siyata Mobile Peers Comparison

Overall Rating

UnderperformOutperform

Sector (57)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ERIC	73 Outperform	$23.07B	12,050.00	0.15%	2.39%	-5.59%	―
IRDM	70 Outperform	$2.68B	26.18	15.40%	2.27%	5.05%	632.38%
CALX	60 Neutral	$2.32B	―	-3.97%	―	-20.02%	-193.84%
Sector *	57 Neutral	$20.24B	9.51	-13.28%	2.72%	5.43%	-24.54%
SYTA	41 Neutral	$1.76M	―	-370.85%	―	41.59%	92.05%
CMBM	41 Neutral	$8.19M	―	-112.88%	―	-34.89%	-579.83%
SONM	32 Underperform	$8.47M	―	-403.74%	―	-37.74%	-79666.67%

* Technology Sector Average

Performance Comparison

SYTA

Siyata Mobile

1.71

-579.69

-99.71%

CALX

Calix

33.38

1.84

5.83%

IRDM

Iridium Communications

24.15

-1.03

-4.09%

ERIC

Telefonaktiebolaget LM Ericsson

7.11

2.19

44.51%

SONM

Sonim Technologies

1.37

-3.93

-74.15%

CMBM

Cambium Networks

0.32

-3.86

-92.34%

Siyata Mobile Earnings Call Summary

Earnings Call Date: Apr 1, 2025 | % Change Since: -16.36% | Next Earnings Date: May 22, 2025

Earnings Call Sentiment Neutral

The earnings call reported significant revenue growth and a strong performance in the U.S. market, alongside an optimistic outlook with the upcoming 5G product launch. However, increased expenses, negative EBITDA, and decreased working capital present challenges. The positive revenue achievements are somewhat offset by financial strains.

Highlights

Record Revenue Growth

Revenue for Q3 2024 was $5.9 million, a 218% increase compared to $1.8 million in Q3 2023 and a 210% increase from $1.9 million in Q2 2024. This was the strongest revenue quarter ever in the company's history.

U.S. Market Dominance

Revenue from the U.S. market was $4.8 million, representing 81% of total revenue, compared to $1.3 million or 69% of total revenue in Q3 2023.

Increase in Gross Margin

Gross margin percentage for Q3 2024 was 29%, up from 26.6% in Q3 2023. Gross margin dollars rose from $500,000 to $1.7 million, a $1.2 million positive variance.

Strong Product Demand

Increased demand for the SD7 handset and accessories contributed significantly to the revenue growth.

5G Product Portfolio Launch

An exciting 5G product portfolio is planned for launch in 2025, with T-Mobile already set to launch part of this portfolio.

Lowlights

Increased SG&A Expenses

SG&A expenses were $4.7 million in Q3 2024, up from $2.7 million in Q3 2023, primarily due to marketing expenses related to investor awareness.

Negative Adjusted EBITDA

Adjusted EBITDA for Q3 2024 was negative $3.3 million compared to negative $1.6 million in Q3 2023, a $1.8 million negative variance driven by increased marketing expenses.

Decrease in Working Capital

Working capital as of September 30, 2024, was $200,000, down from $1.3 million as of December 31, 2023, a decrease of $1.1 million.

Slight Decrease in Gross Margin Percentage

Gross margin percentage for the 9 months ended September 30, 2024, was 27.3%, down from 28.2% in the same period of 2023, a decrease of 0.9%.

Company Guidance

During the Siyata Mobile Third Quarter 2024 earnings call, significant financial metrics were highlighted. The company reported a revenue of $5.9 million for Q3 2024, marking a 218% increase from $1.8 million in Q3 2023. The U.S. market contributed $4.8 million, or 81% of the total revenue, up from $1.3 million, or 69%, in the previous year. Gross margin improved to 29% from 26.6% in Q3 2023, with gross margin dollars increasing by $1.2 million to $1.7 million. However, SG&A expenses rose to $4.7 million, a $2 million increase, largely due to marketing for investor awareness. The adjusted EBITDA was negative $3.3 million, a $1.8 million decline from Q3 2023. Working capital decreased to $200,000 by September 30, 2024, from $1.3 million at the end of 2023. For the first nine months of 2024, total revenue reached $10.1 million, a $3.8 million increase from the same period in 2023, while gross margin dollars rose by $1 million to $2.8 million. Despite these challenges, the company remains optimistic about future growth, driven by the adoption of their PTT product portfolio and the upcoming launch of their 5G products.

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.