Viomi Technology Co (VIOT) AI Stock Analysis

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Viomi Technology Co

(NASDAQ:VIOT)

49Neutral

Viomi Technology Co's stock score is primarily impacted by its financial performance, with declining revenues, ongoing losses, and negative cash flows. Technical analysis shows weak momentum, while valuation is challenged by a negative P/E ratio and no dividend yield. These factors together indicate significant financial and operational hurdles that the company needs to overcome to improve its stock performance.

Viomi Technology Co (VIOT) vs. S&P 500 (SPY)

Market Cap

$98.24M

Dividend YieldN/A

Average Volume (3M)174.20K

Price to Earnings (P/E)11.1

Beta (1Y)0.67

Revenue GrowthN/A

EPS GrowthN/A

CountryUS

Employees750

SectorConsumer Cyclical

Sector Strength58

IndustryFurnishings, Fixtures & Appliances

Share Statistics

EPS (TTM)0.04

Shares Outstanding33,952,858

10 Day Avg. Volume97,983

30 Day Avg. Volume174,199

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 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 ConsensusN/A

Number of Analyst Covering0

Viomi Technology Co Business Overview & Revenue Model

Company DescriptionViomi Technology Co., Ltd, through its subsidiaries, develops and sells Internet-of-things-enabled (IoT-enabled) smart home products in the People's Republic of China. The company offers IoT-enabled smart home products, including smart water purification systems; smart kitchen products, such as refrigerators, oven steamers, dishwashers, range hoods, and gas stoves; and other smart products comprising air conditioning systems, washing machines, water heaters, smart water kettles, sweeper robots, smart locks, smart TV, and other smart devices. It also provides a suite of complementary consumable products and small appliances, such as blenders, portable fans, rice cookers, water quality meters, water filter pitchers, stainless-steel insulated water bottles, smart toilet, and food waste disposals; and value-added services. The company sells its products directly to consumers through its online platform, Viomi mobile app, and e-commerce channels, including Youpin, JD.com, Tmall, Pinduoduo, and Suning, as well as offline experience stores. Viomi Technology Co., Ltd has a strategic partnership with Xiaomi Corporation. The company was founded in 2014 and is headquartered in Guangzhou, China.

How the Company Makes MoneyViomi Technology Co. generates revenue primarily through the sale of its IoT-enabled smart home products. The company offers a diverse portfolio of products that cater to the growing demand for smart home solutions, including smart water purifiers, refrigerators, washing machines, and other appliances. Viomi also partners with various e-commerce platforms and retail channels to distribute its products, thereby expanding its market reach. Additionally, the company benefits from collaborations with technology firms such as Xiaomi, which not only helps in product development but also in leveraging established distribution networks to boost sales. These partnerships and innovative product offerings contribute significantly to Viomi's earnings.

Viomi Technology Co Financial Statement Overview

Summary

Viomi Technology Co is encountering financial difficulties characterized by declining revenues, persistent losses, and negative cash flows. While the company's balance sheet reflects moderate leverage and stable equity, the income statement and cash flow indicate significant challenges in profitability and cash generation. Strategic adjustments are necessary to improve financial health and sustain long-term growth.

Income Statement

Neutral

Viomi Technology Co has experienced significant revenue decline over the past few years, decreasing from CNY 5.83 billion in 2020 to CNY 2.49 billion in 2023. The gross profit margin has decreased slightly from 2022 to 2023, while the company has been operating at a net loss for the past three years, with a negative net profit margin, reflecting challenges in profitability.

Balance Sheet

Neutral

The company maintains a stable equity base with an equity ratio around 49% in 2023, indicating moderate leverage. However, the debt-to-equity ratio has increased slightly due to rising total debt, pointing to a cautious approach towards debt management. Stockholders' equity has decreased but remains a significant part of the assets.

Cash Flow

Neutral

Viomi Technology Co has faced negative free cash flow in recent years, with a substantial decline in free cash flow from 2019 to 2023. Operating cash flow is consistently negative, highlighting challenges in operational efficiency. The free cash flow to net income ratio is unfavorable, reflecting weak cash generation relative to earnings.

Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
2.49B	3.23B	5.30B	5.83B	4.65B
	Gross Profit
569.52M	737.09M	1.20B	1.08B	1.08B
	EBIT
-119.16M	-277.31M	-7.48M	129.71M	311.07M
	EBITDA
-54.27M	-188.82M	136.82M	238.25M	334.65M
	Net Income Common Stockholders
-84.67M	-282.63M	88.61M	173.32M	292.17M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
957.92M	1.11B	1.47B	1.21B	1.35B
	Total Assets
2.75B	2.97B	3.28B	3.18B	3.02B
	Total Debt
261.85M	148.79M	35.01M	21.17M	116.25M
	Net Debt
-229.86M	-588.35M	-551.94M	-482.93M	-856.19M
	Total Liabilities
1.41B	1.54B	1.63B	1.65B	1.65B
	Stockholders Equity
1.35B	1.43B	1.65B	1.53B	1.37B
Cash Flow		Free Cash Flow
-216.83M	-484.13M	198.80M	134.75M	176.88M
	Operating Cash Flow
-103.23M	-284.17M	308.97M	185.20M	245.48M
	Investing Cash Flow
-198.93M	314.55M	-265.32M	-433.08M	-268.96M
	Financing Cash Flow
115.66M	113.56M	17.13M	-146.38M	48.54M

Viomi Technology Co Technical Analysis

Technical Analysis Sentiment

Negative

Last Price1.38

Price Trends

50DMA

1.59

Negative

100DMA

1.52

Negative

200DMA

1.46

Negative

Market Momentum

MACD

-0.05

Negative

RSI

45.38

Neutral

STOCH

79.37

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VIOT, the sentiment is Negative. The current price of 1.38 is below the 20-day moving average (MA) of 1.39, below the 50-day MA of 1.59, and below the 200-day MA of 1.46, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 45.38 is Neutral, neither overbought nor oversold. The STOCH value of 79.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VIOT.

Viomi Technology Co Risk Analysis

Viomi Technology Co disclosed 86 risk factors in its most recent earnings report. Viomi Technology Co 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

Viomi Technology Co Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SN	68 Neutral	$11.24B	25.77	25.69%	―	29.97%	160.79%
ETD	66 Neutral	$652.53M	12.91	12.09%	6.08%	-6.32%	-18.35%
MBC	64 Neutral	$1.52B	12.44	8.02%	―	1.30%	-44.70%
Sector *	61 Neutral	$6.58B	11.81	3.06%	3.99%	2.54%	-21.54%
LEG	54 Neutral	$1.23B	―	-50.33%	2.19%	-6.54%	-221.33%
VIOT	49 Neutral	$98.24M	11.15	5.61%	―	―	―
IRBT	46 Neutral	$72.28M	―	-237.51%	―	-27.44%	-2.92%

* Consumer Cyclical Sector Average

Performance Comparison

VIOT

Viomi Technology Co

1.38

0.69

100.00%

ETD

Ethan Allen

25.27

-3.71

-12.80%

IRBT

iRobot

2.31

-9.09

-79.74%

LEG

Leggett & Platt

9.11

-3.62

-28.44%

MBC

MasterBrand Inc

10.09

-6.63

-39.65%

SharkNinja, Inc.

81.19

9.84

13.79%

Viomi Technology Co Earnings Call Summary

Earnings Call Date:Mar 25, 2025

(Q4-2024)

% Change Since: -42.02%|

Next Earnings Date:Aug 20, 2025

Earnings Call Sentiment Positive

The earnings call highlighted strong revenue growth and a shift to profitability following strategic reorganization. Despite challenges such as a decrease in gross margin and consumables revenue, the company's successful product launches and strategic market expansions indicate a positive outlook.

Q4-2024 Updates

Positive Updates

Record Revenue Growth

Full-year net revenues reached RMB2.1 billion, marking a 29.3% increase from RMB1,638.7 million in 2023. Revenues from home water solutions grew by 39% year-over-year.

Turnaround to Profitability

The company achieved a net income of RMB62.3 million, reversing losses from the past two years.

Successful Product Launches

The Vortex series under-the-sink RO water purifiers surpassed its Kickstarter funding goal on the first day, and the AI water purifier ranked high on various platforms during the Double 11 Shopping Festival.

Strategic Partnerships

Viomi renewed its agreement with Xiaomi and established a strategic partnership with Malaysia's leading home appliance retailer.

Global Market Expansion

Viomi participated in CES 2025 and expanded its presence in North America and Southeast Asia.

Negative Updates

Gross Margin Decline

Gross margin decreased from 32.8% to 22.6% for the second half of 2024, and from 31.9% to 25.9% for the full year, primarily due to a higher revenue contribution from low-margin products.

Decreased Revenue from Consumables

Revenues from consumables decreased by 24.6% in the second half and 14.5% for the full year of 2024, mainly due to decreased sales of water purifier filters sold to Xiaomi.

Company Guidance

In the second half and full year of 2024, Viomi Technology Co., Ltd. reported strong financial performance, surpassing previous guidance with full-year net revenues of RMB2.1 billion and operating income of RMB156.3 million. Notably, revenues from home water solutions grew by 39% year-over-year, which significantly contributed to the company's overall business expansion. The strategic shift following the August 2024 business reorganization improved operational efficiency, leading to a net income of RMB62.3 million, reversing the losses from the past two years. The company also reclassified its revenue streams into three categories: home water systems, consumables, and kitchen appliances, with home water systems generating RMB925.7 million, marking a 58.2% increase from the same period in 2023. Despite a temporary increase in personnel expenses, the company achieved a gross margin of 25.9% for the full year. Viomi's strategic initiatives for 2025 include strengthening domestic market presence, driving international expansion, enhancing their water purification product portfolio, and deepening collaborations, particularly following their successful entry into the North American market and Southeast Asia.

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.