Vuzix (VUZI) AI Stock Analysis

• Market Cap: $220.34M
• Dividend Yield: N/A
• Average Volume (3M): 1.82M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.96
• Revenue Growth: -46.37%
• EPS Growth: -34.50%
• Country: US
• Employees: 76
• Sector: Technology
• Sector Strength: 79
• Industry: Consumer Electronics
• EPS (TTM): -0.11
• Shares Outstanding: 76,242,420
• 10 Day Avg. Volume: 2,235,981
• 30 Day Avg. Volume: 1,820,740
• PEG Ratio: -0.22
• Price to Book (P/B): 3.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.86
• Enterprise Value/Market Cap: 0.59
• Enterprise Value/Revenue: 4.72
• Enterprise Value/Gross Profit: -19.82
• Enterprise Value/Ebitda: -0.73
• 1Y Price Target: $3.00
• Price Target Upside: 3.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: $3.00 ▲(3.81%Upside)

Vuzix's overall stock score reflects significant financial challenges, despite technical indicators showing positive momentum. The balanced sentiment from the earnings call suggests potential growth, but current financial metrics and valuation concerns weigh heavily on the score.

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 Business Overview & Revenue Model

Company Description

Vuzix Corporation is a leading supplier of Smart Glasses and Augmented Reality (AR) technologies and products for the consumer and enterprise markets. The company, headquartered in Rochester, New York, designs, manufactures, and markets wearable display devices that offer portable, high-quality viewing solutions and are used in a variety of applications, including training, field service, manufacturing, and logistics. Vuzix's core products include personal display and wearable computing devices such as the Vuzix Blade AR Smart Glasses and the Vuzix M-Series, which provide hands-free access to digital information and interactive content.

How the Company Makes Money

Vuzix 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, high operational costs, and inadequate revenue growth. Despite having 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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.75M	12.13M	11.84M	13.16M	11.58M
	Gross Profit
-5.60M	-1.75M	1.48M	2.45M	1.93M
	EBIT
-73.97M	-52.30M	-42.10M	-39.72M	-19.05M
	EBITDA
-69.61M	-45.42M	-39.89M	-37.59M	-14.92M
	Net Income Common Stockholders
-73.54M	-50.15M	-39.30M	-40.64M	-18.03M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
18.19M	26.56M	72.56M	120.20M	36.07M
	Total Assets
39.41M	86.15M	132.31M	148.47M	52.47M
	Total Debt
494.24K	301.19K	956.16K	1.12M	1.52M
	Net Debt
-17.69M	-26.25M	-71.61M	-119.09M	-34.55M
	Total Liabilities
2.11M	5.35M	15.58M	4.74M	4.17M
	Stockholders Equity
37.29B	80.79M	116.73M	143.73M	48.30M
Cash Flow		Free Cash Flow
-26.66M	-42.86M	-43.39M	-31.83M	-15.45M
	Operating Cash Flow
-23.74M	-26.28M	-24.52M	-26.98M	-13.96M
	Investing Cash Flow
-2.92M	-19.28M	-21.17M	-4.85M	-1.49M
	Financing Cash Flow
18.29M	-449.56K	-1.95M	115.97M	40.91M

Vuzix Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.89
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VUZI, the sentiment is Positive. The current price of 2.89 is above the 20-day moving average (MA) of 2.49, above the 50-day MA of 2.12, and above the 200-day MA of 2.26, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 68.65 is Neutral, neither overbought nor oversold. The STOCH value of 70.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VUZI.

Vuzix Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MKTW	66 Neutral	$267.33M	1.49	-10.56%	4.90%	-11.07%	953.01%
Sector *	61 Neutral	$11.55B	10.41	-6.86%	2.93%	7.50%	-8.30%
VUZI	55 Neutral	$220.34M	―	-136.11%	―	-46.37%	-34.50%
KOPN	50 Neutral	$206.75M	―	-112.75%	―	28.16%	74.88%
TLS	47 Neutral	$193.26M	―	-38.32%	―	-21.83%	-67.07%

Vuzix Corporate Events

Vuzix Announces 2023 Equity Incentive Plan Changes

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.