Unusual Machines Inc. (UMAC) AI Stock Analysis

• Market Cap: $331.35M
• Dividend Yield: N/A
• Average Volume (3M): 5.93M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.60
• Revenue Growth: N/A
• EPS Growth: -694.54%
• Country: US
• Employees: 16
• Sector: General
• Sector Strength: N/A
• Industry: Shell Companies
• EPS (TTM): -0.21
• Shares Outstanding: 30,287,786
• 10 Day Avg. Volume: 7,029,900
• 30 Day Avg. Volume: 5,925,573
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• 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: $16.00
• Price Target Upside: 46.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 41 Neutral
• Price Target: ―

Unusual Machines Inc. faces significant challenges with profitability and sustainability, as reflected in its low financial performance score. The technical analysis indicates volatility, with bearish sentiment prevailing. Valuation is unattractive due to negative earnings. The earnings call showed mixed results with some positive strategic developments, while recent corporate events indicate potential for future growth. These factors result in an overall low stock score.

Positive Factors

Acquisition Strategy

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.

Market Position

UMAC's strategic position with dual-use products, close relationship with RCAT, and potential role as a consolidator and multi-component supplier to a fast-growing market make it a unique play on small drones.

Negative Factors

Capital Needs

The company's annualized burn rate is around $3.5M, and capital will likely be needed by early-2026.

Gross Margin

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.

Revenue Estimates

UMAC reported 4Q24 results with revenue of $2.0M, below our estimate of $2.5M.

Unusual Machines Inc. Business Overview & Revenue Model

Company Description

Unusual 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 Money

UMAC 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. 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.

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.

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.

Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Unusual Machines Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.94
• 50DMA: Positive
• 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 UMAC, the sentiment is Positive. The current price of 10.94 is above the 20-day moving average (MA) of 9.97, above the 50-day MA of 8.18, and above the 200-day MA of 7.82, indicating a bullish trend. The MACD of 0.76 indicates Positive momentum. The RSI at 52.65 is Neutral, neither overbought nor oversold. The STOCH value of 33.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UMAC.

Unusual Machines Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	59 Neutral	HK$22.85B	24.63	-16.35%	4.29%	7.50%	-107.03%
UMAC	41 Neutral	$331.35M	―	-183.96%	―	―	-694.54%
IVCAF	―	$78.00M	86.03	3.18%	―	―	―
SVII	―	$116.44M	61.22	4.91%	―	―	―
ISRL	―	$79.59M	88.49	5.26%	―	―	―
OAKU	―	$63.78M	692.11	0.01%	―	―	―
BAYA	―	$60.37M	63.26	2.73%	―	―	―

Unusual Machines Inc. Corporate Events

Unusual Machines Inc. Highlights Strategic Growth in Drone Market

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.