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Unusual Machines Inc. (UMAC)
:UMAC
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Unusual Machines Inc.
(NYSE MKT:UMAC)
Rating:41Neutral
Price Target:―
Positive Factors
Acquisition and Market Expansion
UMAC's acquisition of Rotor Lab accelerates its play for the void in motor supply as T-Motor is excluded from the U.S. market.
Financial Performance
UMAC ended the quarter with an increase in cash and no debt, signaling sufficient capital to execute on the growth strategy.
Strategic Market Position
UMAC is one of three vendors with flight controller products on the Blue UAS cleared list, which allows for sales to the Department of Defense.
Negative Factors
Capital Requirements
The company's annualized burn rate is around $3.5M, and capital will likely be needed by early-2026.
Profitability Challenges
Gross margin of 24.3% was below our estimate of 30% and down from 27.7% in 4Q24. The contraction was driven by increased tariff-related expenses.
Unusual Machines Inc. (UMAC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$216.77M
Dividend YieldN/A
Average Volume (3M)4.81M
Price to Earnings (P/E)―
Beta (1Y)2.69
Revenue GrowthN/A
EPS Growth-694.54%
CountryUS
Employees16
SectorGeneral
Sector StrengthN/A
IndustryShell Companies
Share Statistics
EPS (TTM)-0.21
Shares Outstanding24,830,170
10 Day Avg. Volume3,057,290
30 Day Avg. Volume4,807,699
Financial Highlights & Ratios
PEG Ratio-0.03
Price to Book (P/B)7.02
Price to Sales (P/S)0.00
P/FCF Ratio-18.22
Enterprise Value/Market Cap0.09
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit0.04
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$16.00Price Target Upside83.28% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Unusual Machines Inc. Business Overview & Revenue Model
Company DescriptionUnusual Machines Inc. (UMAC) is a cutting-edge technology company that specializes in the development and manufacturing of innovative robotics and automation solutions for various industries, including manufacturing, logistics, and healthcare. The company is committed to advancing the field of robotics through its state-of-the-art products and services, which aim to enhance operational efficiency and productivity for its clients.
How the Company Makes MoneyUMAC generates revenue through the sale of its advanced robotics and automation systems to businesses across multiple sectors. The company offers both direct sales and leasing options, allowing clients to choose the most suitable financial model for their needs. Additionally, UMAC provides ongoing maintenance and support services, which contribute to recurring revenue streams. The company may also engage in strategic partnerships with other technology firms to co-develop solutions, thereby expanding its reach and creating additional revenue opportunities. Revenue is further bolstered by licensing its proprietary technology to other companies, enabling them to incorporate UMAC's innovations into their own products.
Unusual Machines Inc. Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q4-2024)
| % Change Since: 61.07%|
Next Earnings Date:Aug 13, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed sentiment with significant achievements such as record revenue and a strong cash position overshadowed by challenges like a substantial GAAP net loss and market uncertainties. While the company is poised for aggressive growth and has eliminated debt, the dilution and unmet expectations in defense spending and European markets present concerns.Q4-2024 Updates
Positive Updates
Record Revenue Quarter
The fourth quarter was the highest revenue quarter of all time, with the company finishing the year at $5.65 million, exceeding the target of $5 million in sales for 2024.
Strong Cash Position
Unusual Machines started the quarter with $1.7 million and finished with $3.8 million. Additional warrant exercises brought in $2.4 million, leaving the company with about $5 million in cash today.
Debt Elimination
The company eliminated $4 million in debt, leaving it in the best financial position it has ever been.
Introduction of Options Trading
Unusual Machines enabled options trading on its stock and plans to file a Form S-3 to provide flexibility in capitalizing on market opportunities.
Focus on Growth and Expansion
The company is focusing on aggressive growth, planning to expand its components business and electric motor production in Orlando.
Blue UAS Products and B2B Sales
B2B sales represented 15% of Q4 revenue, with the company's components business already accounting for the same percentage of total revenue.
Negative Updates
GAAP Net Loss Reporting
The company reported a GAAP net loss of $32 million for 2024, primarily due to non-cash expenses related to debt conversion and impairment on goodwill.
Challenges from European Market
The European market orders did not materialize as expected, impacting potential revenue streams.
Disappointing U.S. Defense Spending
U.S. defense spending in the FPV category was below expectations for 2024, affecting anticipated growth in that segment.
Dilution Due to Debt Conversion
Since the IPO, the fully diluted share count increased from 11.2 million shares to 17 million, resulting in some dilution.
Company Guidance
During the call, Unusual Machines' CEO, Allan Evans, provided guidance on the company's financial health and growth prospects. The company ended the fourth quarter of 2024 with $3.8 million in cash, a significant increase from the $1.7 million at the start of the quarter. This was bolstered by an additional $2.4 million from warrant exercises. Revenue for the fourth quarter was over $2 million, with a 28% gross margin, contributing to a total annual revenue of $5.65 million—exceeding their target of $5 million. The company reported a net loss of $32 million for 2024, but emphasized that this included non-cash expenses, with a practical operating loss of about $4.6 million. The company plans to focus on aggressive growth, particularly in their components business, and expects B2B sales to represent a higher percentage of revenue moving forward. They are also preparing to scale motor production in Orlando, aiming to capitalize on a favorable legislative environment and mitigate any potential impact from tariffs.Unusual Machines Inc. Financial Statement Overview
Summary
Unusual Machines Inc. faces significant profitability and cash flow challenges despite a large revenue increase. The company benefits from low leverage, but operational inefficiencies and poor cash flow sustainability are major concerns for long-term viability.Income Statement
The company shows a dramatic increase in revenue from 2023 to 2024, but this is accompanied by substantial negative net income and EBIT margins, indicating operational inefficiencies and potential sustainability concerns. The net profit margin is deeply negative, suggesting the company is not currently profitable.25
Negative
Balance Sheet
The company has a high equity ratio, indicating low leverage and a solid equity base, which is a potential strength. However, the significant negative net income impacts the return on equity negatively. The debt levels are low, suggesting low financial risk from debt obligations.40
Negative
Cash Flow
The company has negative operating and free cash flows, which is a red flag for sustainability. However, there is a significant inflow from financing activities, possibly indicating reliance on external funding to maintain operations.30
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.05B | 5.57M | 158.28M | 0.00 | 4.99K |
| Gross Profit | 498.08M | 1.47M | 158.28M | -885.00 | 4.99K |
| EBITDA | -3.28B | -31.80M | -2.38M | -1.24M | -161.88K |
| Net Income | -3.30B | -31.98M | -2.38M | -1.24M | -161.88K |
Balance Sheet | |||||
| Total Assets | 17.28B | 16.11M | 1.53M | 3.33M | 3.90M |
| Cash, Cash Equivalents and Short-Term Investments | 5.00B | 3.76B | 894.77K | 3.10M | 3.79M |
| Total Debt | 313.90M | 329.99K | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 1.39B | 1.29M | 114.50K | 120.94K | 0.00 |
| Stockholders Equity | 15.90B | 14.82B | 1.41M | 3.21M | 3.90M |
Cash Flow | |||||
| Free Cash Flow | -1.20B | -4.00M | -1.78M | -1.24M | -162.82K |
| Operating Cash Flow | -1.20B | -4.00M | -1.78M | -1.23M | -162.82K |
| Investing Cash Flow | -851.95M | -852.80K | -3.16K | -4.58K | 0.00 |
| Financing Cash Flow | 6.80B | 7.71M | -424.93K | 549.90K | 3.95M |
Unusual Machines Inc. Technical Analysis
Neutral
8.73
Price Trends
6.74
Positive
6.93
Positive
7.15
Positive
Market Momentum
0.41
Positive
51.50
Neutral
46.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UMAC, the sentiment is Neutral. The current price of 8.73 is above the 20-day moving average (MA) of 8.42, above the 50-day MA of 6.74, and above the 200-day MA of 7.15, indicating a neutral trend. The MACD of 0.41 indicates Positive momentum. The RSI at 51.50 is Neutral, neither overbought nor oversold. The STOCH value of 46.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for UMAC.
Unusual Machines Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
57 Neutral | $5.79B | 25.71 | -31.22% | 5.58% | 10.88% | -29.73% | |
41 Neutral | $216.77M | ― | -183.96% | ― | ― | -694.54% | |
| $78.00M | 86.03 | 3.18% | ― | ― | ― | ||
| $115.89M | 60.94 | 4.91% | ― | ― | ― | ||
| $79.40M | 88.28 | 5.26% | ― | ― | ― | ||
| $63.20M | 689.77 | 0.39% | ― | ― | ― | ||
| $61.60M | 64.54 | 2.73% | ― | ― | ― |
* General Sector Average
Performance Comparison
UMAC
Unusual Machines Inc.
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6.76
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12.01
0.63
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SVII
Spring Valley Acquisition Corp. II Class A
11.75
0.62
5.57%
ISRL
Israel Acquisitions Corp. Class A
12.50
1.46
13.22%
OAKU
Oak Woods Acquisition Corporation Class A
11.83
0.92
8.43%
BAYA
Bayview Acquisition Corp Class A
11.32
1.07
10.44%
Unusual Machines Inc. Corporate Events
Business Operations and StrategyFinancial Disclosures
Unusual Machines Inc. Highlights Strategic Growth in Drone Market
Positive
Mar 17, 2025
On March 17, 2025, Unusual Machines, Inc. presented at an investor conference, highlighting its strategic growth in the American drone market. The company reported significant revenue increases, a strong cash position, and no debt, positioning itself to capitalize on new U.S. legislation favoring domestic drone production. The company is expanding its market presence with a focus on organic growth, acquisitions, and leveraging its B2C foundation to drive B2B and B2G sales, particularly in the defense sector.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.