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Vuzix Corporation (VUZI)
NASDAQ:VUZI
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Vuzix
(NASDAQ:VUZI)
37Underperform
Positive Factors
Growth Opportunities
Upside scenarios over the next several quarters include a major consumer electronics manufacturing OEM agreement(s), significant defense & aerospace potential, and other engineering services opportunities materializing.
Investment and Development
The investment is planned to be used to support the expansion of Vuzix's waveguide production capabilities and joint development of new AR smart glasses technologies.
Strategic Partnerships
The infusion of investment capital from Quanta provides much needed balance sheet support for the company and expands the strategic partnership with a key global manufacturer that could likely drive exponential growth in demand for waveguides as the market matures and Quanta develops new products.
Negative Factors
Financial Health
The cash burn is becoming a serious issue with the company experiencing a cash burn of $(5.6)mn against a cash balance at the end of the quarter of $9.9mn.
Potential Risks
Downside scenarios include a lack of big contract manufacturing arrangements, below-cost liquidation of inventory, and solvency issues that could force less than ideal capital raising via the ATM or high yield debt.
Revenue Performance
Revenue was well below expectations due to significantly slower glasses sales as the company is now more focused on the OEM opportunities.
Vuzix (VUZI) vs. S&P 500 (SPY)
Market Cap
$175.36M
Dividend YieldN/A
Average Volume (3M)1.73M
Price to Earnings (P/E)―
Beta (1Y)1.54
Revenue Growth-52.56%
EPS Growth-38.67%
CountryUS
Employees76
SectorTechnology
Sector Strength51
IndustryConsumer Electronics
Share Statistics
EPS (TTM)-1.09
Shares Outstanding76,242,420
10 Day Avg. Volume1,561,094
30 Day Avg. Volume1,725,951
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)30.47
Price to Cash Flow (P/CF)-10.90
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 Target
$3.00Price Target Upside31.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Vuzix Business Overview & Revenue Model
Company DescriptionVuzix Corporation, together with its subsidiaries, designs, manufactures, markets, and sells augmented reality (AR) wearable display and computing devices for consumer and enterprise markets in North America, the Asia-Pacific, Europe, and internationally. It provides M300XL, M400, and M4000 series of smart glasses for enterprise, industrial, commercial, and medical markets; Vuzix Blade smart glasses; waveguide optics and related coupling optics; and Vuzix Shield smart glasses, as well as custom and engineering solutions. The company sells its products through resellers, direct to commercial customers, and via online stores, as well as various Vuzix operated web stores in Europe and Japan. The company was formerly known as Icuiti Corporation and changed its name to Vuzix Corporation in September 2007. Vuzix Corporation was incorporated in 1997 and is headquartered in West Henrietta, New York.
How the Company Makes MoneyVuzix makes money primarily through the sale of its smart glasses and augmented reality products to both individual consumers and enterprise customers. Key revenue streams include direct sales of hardware, software development kits (SDKs), and licensing fees from technology partnerships. The company also generates income through custom solutions and services, which involve creating tailored AR applications for specific business needs. Additionally, Vuzix has established partnerships and collaborations with major companies in technology and industry sectors, enhancing its market reach and contributing to its earnings. The firm's focus on innovation and expanding its product lineup continues to support its revenue growth.
Vuzix Financial Statement Overview
Summary
Vuzix is facing significant financial challenges with persistent losses, a negative gross profit margin, and operational inefficiencies. Despite a strong equity base and low debt, profitability and cash flow remain concerns, with inadequate revenue growth and high operational costs.Income Statement
Vuzix has been experiencing significant financial challenges with consistently negative gross profit margins and net income. The gross profit has been negative for the latest year, and the company is incurring substantial losses at the EBIT and EBITDA levels. Revenue growth is minimal with a significant drop in profitability indicators, suggesting operational inefficiencies and high costs relative to revenues.15
Very Negative
Balance Sheet
The balance sheet indicates a relatively strong equity position, with a high equity ratio of 94.6% and low debt levels, resulting in a low debt-to-equity ratio. However, the company has been unable to translate this into profitability, as indicated by the negative return on equity (ROE) due to substantial losses.35
Negative
Cash Flow
Vuzix's cash flow situation is concerning, with negative operating cash flow and free cash flow. The free cash flow growth rate is trending negatively, and both operating and free cash flow to net income ratios are unfavorable, highlighting continued cash burn and insufficient cash generation to cover operational needs.20
Very Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 5.55M | 5.75B | 12.13M | 11.84M | 13.16M | 11.58M | Gross Profit |
| -5.86M | -5.60B | -1.75M | 1.48M | 2.45M | 1.93M | EBIT |
| -80.52M | -73.97B | -52.30M | -42.10M | -39.72M | -19.05M | EBITDA |
| -45.63M | -70.98B | -45.42M | -39.89M | -37.59M | -14.92M | Net Income Common Stockholders |
| -79.76M | -73.54B | -50.15M | -39.30M | -40.64M | -18.03M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 17.26M | 18.19B | 26.56M | 72.56M | 120.20M | 36.07M | Total Assets |
| 35.13M | 39.41B | 86.15M | 132.31M | 148.47M | 52.47M | Total Debt |
| 0.00 | 494.24M | 301.19K | 956.16K | 1.12M | 1.52M | Net Debt |
| -17.26M | -17.69B | -26.25M | -71.61M | -119.09M | -34.55M | Total Liabilities |
| 4.68M | 2.11B | 5.35M | 15.58M | 4.74M | 4.17M | Stockholders Equity |
| 30.46M | 37.29B | 80.79M | 116.73M | 143.73M | 48.30M |
| Cash Flow | Free Cash Flow | ||||
| -29.84M | -25.10B | -42.86M | -43.39M | -31.83M | -15.45M | Operating Cash Flow |
| -25.86M | -23.74B | -26.28M | -24.52M | -26.98M | -13.96M | Investing Cash Flow |
| -7.92M | -2.92B | -19.28M | -21.17M | -4.85M | -1.49M | Financing Cash Flow |
| -439.11M | 18.29B | -449.56K | -1.95M | 115.97M | 40.91M |
Vuzix Technical Analysis
Negative
2.28
Price Trends
3.27
Negative
2.92
Negative
2.05
Positive
Market Momentum
-0.32
Negative
34.79
Neutral
33.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VUZI, the sentiment is Negative. The current price of 2.28 is below the 20-day moving average (MA) of 2.55, below the 50-day MA of 3.27, and above the 200-day MA of 2.05, indicating a neutral trend. The MACD of -0.32 indicates Negative momentum. The RSI at 34.79 is Neutral, neither overbought nor oversold. The STOCH value of 33.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VUZI.
Vuzix Risk Analysis
Vuzix disclosed 35 risk factors in its most recent earnings report. Vuzix reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Vuzix Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $1.50B | 18.57 | 9.11% | 3.31% | -4.43% | 56.02% | |
58 Neutral | $219.14M | ― | -169.61% | ― | 0.60% | -115.20% | |
58 Neutral | $22.11B | 10.47 | -17.86% | 2.40% | 4.75% | -24.81% | |
56 Neutral | $253.34M | 7.14 | 29.19% | 2.21% | ― | ― | |
55 Neutral | $332.97M | ― | -103.99% | ― | 277.53% | 1.16% | |
37 Underperform | $175.36M | ― | -124.55% | ― | -52.56% | -38.67% |
* Technology Sector Average
Performance Comparison
VUZI
Vuzix
2.30
1.05
84.00%
HIMX
Himax Technologies
8.58
3.42
66.28%
IMMR
Immersion
7.98
0.73
10.07%
KOPN
Kopin
1.32
-0.51
-27.87%
MVIS
Microvision
1.52
-0.17
-10.06%
Vuzix Earnings Call Summary
Earnings Call Date: Mar 13, 2025 | % Change Since: 4.59% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strategic partnerships and new product launches, which are expected to drive future growth. However, the company faced significant revenue declines and increased losses in 2024. While there are positive prospects, current financial challenges present notable concerns.Highlights
Strategic Partnership with Quanta Computer
Vuzix Corporation has established a strategic partnership with Quanta Computer, with a $20 million investment to develop smart glass reference designs. The partnership is expected to supply millions of waveguides for AR and AI-driven smart glasses.
Product Launches and Positive Reception
Vuzix introduced the UltraLight Pro AR and Audio Smart Glasses platforms at CES 2025, receiving positive responses and awards. These products are designed for enterprise verticals and have sparked interest from OEMs and white-label partners.
Operational Expense Reductions
R&D, sales, and marketing expenses were significantly reduced by 22% and 36%, respectively, contributing to improved cost management.
Strong Financial Foundation
Vuzix ended 2024 with $18 million in cash and cash equivalents, reflecting disciplined cost management and capital-raising efforts, including $8.2 million raised through the at-the-market facility in Q4.
Lowlights
Revenue Decline
For the full year ending December 31, 2024, Vuzix reported $5.8 million in total revenues, a 58% decrease from the prior year. This was primarily due to a decline in M400 product sales.
Gross Loss Increase
Vuzix reported a gross loss of $5.6 million for 2024, up from a $2.6 million loss in 2023. This was driven by inventory obsolescence reserves and increased manufacturing overhead costs.
Net Loss Increase
The net loss for 2024 was $73.5 million, compared to $50.1 million in 2023, impacted by the write-off of technology licenses and investments.
Company Guidance
During the Vuzix Corporation's conference call for the fourth quarter and full year ending December 31, 2024, the company provided guidance and discussed several key metrics. Vuzix highlighted a strategic partnership with Quanta Computer, which includes a $20 million multi-phase investment aimed at revolutionizing the AR and AI industry. The first $10 million tranche was received in September 2024, with the remaining two $5 million tranches contingent upon meeting certain milestones. The company reported a total revenue of $5.8 million for the year, a decrease from $12.1 million in 2023, primarily due to a 58% decline in product sales. Despite this, Vuzix anticipates significant growth in 2025, with expectations of increased customer wins and design wins across their OEM and enterprise businesses. The firm ended 2024 with approximately $18 million in cash and cash equivalents and a net working capital position of $24.6 million. Vuzix also achieved a 36% reduction in recurring cash operating costs year-over-year by reducing headcount and other expenses. Looking forward, Vuzix is preparing for increased production capacity and anticipates meaningful growth in their ODM/OEM business, driven by partnerships and technological advancements in their smart glasses platform.Vuzix Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Vuzix Announces 2023 Equity Incentive Plan Changes
Neutral
Jan 8, 2025
Vuzix Corporation announced the granting of restricted stock units (RSUs) to its top executives and management employees as part of its 2023 Equity Incentive Plan. This move, pending shareholder approval, involves surrendering previously granted unvested options and aims to align management incentives with performance goals, potentially impacting the company’s operational strategy and shareholder value.
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.