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Energous (WATT)
NASDAQ:WATT

Energous (WATT) AI Stock Analysis

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Energous

(NASDAQ:WATT)

Rating:41Neutral
Price Target:
$0.50
▲(72.41%Upside)
Energous faces significant financial and valuation challenges, with a negative P/E ratio and no dividend yield. Financial performance is the most critical factor, revealing severe operational inefficiencies and liquidity issues. Technical analysis suggests no strong momentum to offset these financial concerns. Overall, the stock presents high risks with limited upside potential under current conditions.

Energous (WATT) vs. SPDR S&P 500 ETF (SPY)

Energous Business Overview & Revenue Model

Company DescriptionEnergous Corporation (WATT) is a technology company specializing in the development and commercialization of wireless charging solutions. The company's core product offerings include its WattUp technology, which enables wireless power transfer for electronic devices at a distance. Energous aims to revolutionize the way devices are charged by eliminating the need for traditional wired chargers, focusing on sectors such as consumer electronics, wearables, medical devices, and industrial applications.
How the Company Makes MoneyEnergous Corporation generates revenue primarily through the licensing of its proprietary wireless charging technology to original equipment manufacturers (OEMs) and other partners. The company enters into strategic partnerships and collaborations to integrate its WattUp technology into various electronic devices, enabling these partners to offer wireless charging capabilities to end-users. Additionally, Energous may earn revenue from direct sales of wireless charging transmitters and receivers, as well as from engineering services related to the customization and integration of its technology into partner devices. The company's revenue model is heavily reliant on establishing and maintaining strong partnerships with OEMs and growing the adoption of its technology across multiple industries.

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
35
Negative
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
25
Negative
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
40
Negative
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
1.05M768.00K474.18K851.32K756.79K327.35K
Gross Profit
150.00K12.00K195.10K-426.24K-175.76K200.81K
EBIT
-15.36M-18.41M-22.10M-26.69M-37.42M-31.90M
EBITDA
-14.95M-16.84M-21.55M-25.30M-37.16M-30.78M
Net Income Common Stockholders
-15.16M-18.40M-19.37M-25.86M-44.51M-30.64M
Balance SheetCash, Cash Equivalents and Short-Term Investments
10.09M1.35M13.94M26.29M49.07M50.73M
Total Assets
13.38M3.79M16.68M29.75M51.37M53.14M
Total Debt
1.87M1.49M1.26M1.97M668.72K1.40M
Net Debt
-8.22M133.00K-12.67M-24.32M-48.40M-49.33M
Total Liabilities
3.88M4.87M5.18M5.11M4.39M4.09M
Stockholders Equity
9.50M-1.08M11.50M24.65M46.98M49.05M
Cash FlowFree Cash Flow
-17.31M-17.70M-19.44M-23.80M-29.09M-24.93M
Operating Cash Flow
-17.17M-17.57M-19.25M-23.64M-28.72M-24.79M
Investing Cash Flow
-143.00K-123.00K-187.08K-164.99K-365.74K-136.63K
Financing Cash Flow
16.68M5.11M7.08M1.02M27.43M53.97M

Energous Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.29
Price Trends
50DMA
0.28
Positive
100DMA
0.33
Negative
200DMA
0.48
Negative
Market Momentum
MACD
<0.01
Negative
RSI
57.27
Neutral
STOCH
60.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WATT, the sentiment is Positive. The current price of 0.29 is above the 20-day moving average (MA) of 0.28, above the 50-day MA of 0.28, and below the 200-day MA of 0.48, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.27 is Neutral, neither overbought nor oversold. The STOCH value of 60.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WATT.

Energous Risk Analysis

Energous disclosed 1 risk factors in its most recent earnings report. Energous reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Q4, 2024

Energous Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$11.80B10.31-7.45%2.91%7.43%-7.78%
54
Neutral
$128.27M-24.86%2.59%-48.02%
52
Neutral
$284.16M-135.21%-41.76%5.56%
MEMEI
51
Neutral
$292.31M-11.90%6.84%-6.16%-59.41%
WBWBX
45
Neutral
$97.88M-138.61%14.08%-9.61%
43
Neutral
$81.28M-131.75%-20.77%-2.08%
41
Neutral
$9.72M-182.14%137.14%57.43%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WATT
Energous
0.29
-1.09
-78.99%
LPTH
Lightpath Technologies
3.06
1.86
155.00%
GNSS
Genasys
1.72
0.02
1.18%
MEI
Methode Electronics
8.57
-1.22
-12.46%
MVIS
Microvision
1.19
0.10
9.17%
WBX
Wallbox
0.34
-1.04
-75.36%

Energous Corporate Events

Delistings and Listing ChangesPrivate Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
Energous Boosts Equity, Achieves Key Milestones
Positive
Jan 16, 2025

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.

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.