Energous (WATT) AI Stock Analysis

• Market Cap: $8.58M
• Dividend Yield: N/A
• Average Volume (3M): 611.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.57
• Revenue Growth: 61.96%
• EPS Growth: 39.34%
• Country: US
• Employees: 26
• Sector: Technology
• Sector Strength: 44
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -2.56
• Shares Outstanding: 30,436,726
• 10 Day Avg. Volume: 397,049
• 30 Day Avg. Volume: 611,177
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 11.78
• Price to Cash Flow (P/CF): -0.80
• P/FCF Ratio: 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Energous Corporation faces significant financial and operational challenges, as evidenced by its poor income, balance sheet, and cash flow performance. However, recent corporate events, including raising capital and achieving strategic milestones, provide some optimism. The technical analysis indicates a bearish trend, but potential oversold conditions could offer a short-term rebound opportunity. Overall, the stock is rated low due to its financial instability and weak market performance, tempered slightly by positive corporate developments.

Energous Business Overview & Revenue Model

Company Description

Energous Corporation develops wireless charging solutions. The company develops WattUp wireless power technology that consists of semiconductor chipsets, software controls, hardware designs, and antennas that enables radio frequency-based charging for electronic devices. The company's products are used in building and home automation, electronic shelf labels, industrial IoT sensors, surface and implanted medical devices, tracking devices, hearables, wearables, consumer electronics, and public safety applications. Energous Corporation was formerly known as DvineWave Inc. and changed its name to Energous Corporation in January 2014. The company was incorporated in 2012 and is headquartered in San Jose, California.

How the Company Makes Money

Energous makes money through the licensing of its proprietary wireless charging technology, WattUp, to original equipment manufacturers (OEMs) and other technology companies. The company's revenue model is based on licensing fees, development services, and royalties from products that incorporate its technology. Energous collaborates with various partners to integrate its wireless charging solutions into their products, thus expanding its market reach. Additionally, the company may receive revenue from joint development agreements and other collaborative efforts aimed at advancing wireless power transfer technologies.

Energous Financial Statement Overview

Summary

Energous is experiencing significant financial difficulties, characterized by declining revenue, negative profit margins, and an unstable balance sheet with negative equity. The negative cash flows further emphasize the company’s liquidity and operational challenges. The overall financial health is troubling, necessitating strategic changes to improve profitability and stabilize the balance sheet.

Income Statement

Energous has faced consistent revenue challenges with significant declines in EBIT and net income. The company has posted negative net profit and EBIT margins, indicating ongoing operational inefficiencies. Despite minor revenue growth from 2023 to 2024, the profit margins remain negative, reflecting continued financial strain.

Balance Sheet

The balance sheet reveals a concerning negative stockholders' equity and increased leverage, with a high debt-to-equity ratio due to negative equity. The equity ratio is also negative, indicating that liabilities exceed assets. These factors highlight a precarious financial position with potential solvency risks.

Cash Flow

Energous shows a poor cash flow position with negative free cash flow and operating cash flow. The operating cash flow to net income ratio is unfavorable, suggesting inefficiencies in converting earnings to cash. However, a stable financing cash flow indicates some capital raising capability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
768.00K	474.18K	851.32K	756.79K	327.35K
	Gross Profit
12.00K	195.10K	-426.24K	-175.76K	200.81K
	EBIT
-18.41M	-22.10M	-26.69M	-37.42M	-31.90M
	EBITDA
-16.84M	-21.55M	-25.30M	-37.16M	-30.78M
	Net Income Common Stockholders
-18.40M	-19.37M	-25.86M	-44.51M	-30.64M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.35M	13.94M	26.29M	49.07M	50.73M
	Total Assets
3.79M	16.68M	29.75M	51.37M	53.14M
	Total Debt
1.49M	1.26M	1.97M	668.72K	1.40M
	Net Debt
133.00K	-12.67M	-24.32M	-48.40M	-49.33M
	Total Liabilities
4.87M	5.18M	5.11M	4.39M	4.09M
	Stockholders Equity
-1.08M	11.50M	24.65M	46.98M	49.05M
Cash Flow		Free Cash Flow
-17.70M	-19.44M	-23.80M	-29.09M	-24.93M
	Operating Cash Flow
-17.57M	-19.25M	-23.64M	-28.72M	-24.79M
	Investing Cash Flow
-123.00K	-187.08K	-164.99K	-365.74K	-136.63K
	Financing Cash Flow
5.11M	7.08M	1.02M	27.43M	53.97M

Energous Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WATT, the sentiment is Negative. The current price of 0.28 is below the 20-day moving average (MA) of 0.31, below the 50-day MA of 0.39, and below the 200-day MA of 0.65, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 37.70 is Neutral, neither overbought nor oversold. The STOCH value of 10.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WATT.

Energous Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVEC	67 Neutral	$314.37M	20.99	23.13%	6.15%	-27.68%	-30.47%
PI	62 Neutral	$2.62B	69.95	44.39%	―	19.04%	―
POWI	58 Neutral	$2.90B	90.36	4.29%	1.61%	-5.75%	-41.75%
Sector *	58 Neutral	$21.03B	10.58	-16.29%	2.47%	4.38%	-23.63%
QRVO	55 Neutral	$6.68B	252.74	0.77%	―	9.51%	―
SLAB	53 Neutral	$3.67B	―	-16.69%	―	-25.29%	-449.44%
WATT	40 Underperform	$8.58M	―	-353.11%	―	61.96%	39.34%

Energous Corporate Events

Energous Boosts Equity, Achieves Key Milestones

On January 16, 2025, Energous Corporation announced a significant business update, highlighting recent achievements and financial results. The company raised approximately $11.4 million through an at-the-market offering, enhancing its stockholders’ equity and meeting Nasdaq’s listing requirements. Key achievements in 2024 included winning industry awards, securing contracts with major retailers, and receiving FCC certification for its PowerBridge transmitter. These milestones, along with strategic growth funding, position Energous to advance its initiatives in wireless power solutions, targeting profitability through increased sales momentum and technological innovation.