Vuzix (VUZI) AI Stock Analysis

• Market Cap: $268.42M
• Dividend Yield: N/A
• Average Volume (3M): 2.54M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.10
• Revenue Growth: -4.31%
• EPS Growth: 59.68%
• Country: US
• Employees: 76
• Sector: Technology
• Sector Strength: 88
• Industry: Consumer Electronics
• EPS (TTM): -0.09
• Shares Outstanding: 80,126,490
• 10 Day Avg. Volume: 1,806,364
• 30 Day Avg. Volume: 2,542,082
• PEG Ratio: -0.10
• Price to Book (P/B): 7.17
• Price to Sales (P/S): 46.45
• P/FCF Ratio: -10.03
• Enterprise Value/Market Cap: 0.86
• Enterprise Value/Revenue: 43.51
• Enterprise Value/Gross Profit: -38.34
• Enterprise Value/Ebitda: -6.65
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): -0.38
• Revenue Forecast (FY): $12.50M

• Rating: 50 Neutral
• Price Target: $3.50 ▲(2.04% Upside)

The score is held back primarily by very weak financial performance (shrinking revenue, negative gross profit, heavy losses, and ongoing cash burn). Technicals are modestly supportive with price above key moving averages and neutral momentum. Valuation provides limited support due to negative earnings and no dividend. Earnings-call updates add some optimism via strategic investment and partnership-driven growth opportunities, but near-term fundamentals remain challenged.

Positive Factors

Strategic Partnerships

These partnerships enhance Vuzix's technological capabilities and market reach, potentially leading to increased adoption of their AR solutions.

Defense Sector Engagement

This collaboration opens significant revenue opportunities in the defense sector, positioning Vuzix for long-term growth in a stable market.

Cash Position and Debt

A strong cash position and no debt provide financial stability and flexibility, enabling Vuzix to invest in growth opportunities without financial strain.

Negative Factors

Revenue Decline

Declining revenue indicates challenges in product sales and market penetration, which could hinder long-term growth if not addressed.

Persistent Losses

Ongoing losses and negative profitability metrics suggest operational inefficiencies, which may impact the company's ability to achieve sustainable growth.

Increased R&D Expenses

Rising R&D costs without corresponding revenue growth can strain financial resources, impacting the company's ability to invest in other strategic areas.

Vuzix Business Overview & Revenue Model

Company Description

Vuzix 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 Money

Vuzix generates revenue primarily through the sale of its smart glasses and augmented reality display systems to businesses and organizations. The company has established key revenue streams from direct product sales, software licensing, and service contracts related to its AR solutions. Additionally, Vuzix has formed strategic partnerships with major companies and technology providers to enhance its product offerings and expand its market reach, contributing to its earnings. The company also explores opportunities in government and defense contracts, which can provide significant revenue potential.

Vuzix Financial Statement Overview

Summary

Vuzix is facing significant financial challenges with persistent losses, high operational costs, and inadequate revenue growth. Despite a strong equity base and low debt, the company struggles with profitability and cash flow issues, making its financial position precarious.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.31M	5.75M	12.13M	11.84M	13.16M	11.58M
Gross Profit	-6.03M	-4.87M	-1.75M	2.28M	2.89M	2.11M
EBITDA	-34.75M	-39.82M	-45.42M	-39.89M	-37.95M	-16.70M
Net Income	-37.31M	-73.54M	-50.15M	-40.76M	-40.38M	-17.95M
Balance Sheet
Total Assets	42.47M	39.41M	86.15M	132.31M	148.47M	52.47M
Cash, Cash Equivalents and Short-Term Investments	22.61M	18.19M	26.56M	72.56M	120.20M	36.07M
Total Debt	1.13M	494.24K	301.19K	956.16K	1.12M	1.52M
Total Liabilities	4.59M	2.11M	5.35M	15.58M	4.74M	4.17M
Stockholders Equity	37.89M	37.29M	80.79M	116.73M	143.73M	48.30M
Cash Flow
Free Cash Flow	-19.65M	-26.66M	-42.86M	-43.39M	-31.83M	-15.45M
Operating Cash Flow	-17.26M	-23.74M	-26.28M	-24.52M	-26.98M	-13.96M
Investing Cash Flow	-2.44M	-2.92M	-19.28M	-21.17M	-4.85M	-1.49M
Financing Cash Flow	28.04M	18.29M	-449.56K	-1.95M	115.97M	40.91M

Vuzix Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.43
• 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 VUZI, the sentiment is Neutral. The current price of 3.43 is above the 20-day moving average (MA) of 3.39, above the 50-day MA of 2.93, and above the 200-day MA of 2.66, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 51.04 is Neutral, neither overbought nor oversold. The STOCH value of 22.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VUZI.

Vuzix Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TBCH	64 Neutral	$264.17M	16.27	17.19%	―	6.43%	196.68%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
VUZI	50 Neutral	$268.42M	-6.76	-96.37%	―	-4.31%	59.68%
GPRO	50 Neutral	$225.69M	-1.80	-91.95%	―	-27.37%	70.46%
ZEPP	44 Neutral	$296.70M	―	-24.39%	―	13.27%	-66.48%
FEBO	44 Neutral	$13.72M	-6.29	―	―	11.95%	-956.47%
WLDS	39 Underperform	$8.14M	-0.15	-268.12%	―	-9.05%	77.41%