Wearable Devices Ltd. (WLDS) AI Stock Analysis

• Market Cap: $1.46M
• Dividend Yield: N/A
• Average Volume (3M): 693.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.20
• Revenue Growth: 536.59%
• EPS Growth: -5.05%
• Country: US
• Employees: 25
• Sector: Technology
• Sector Strength: 86
• Industry: Consumer Electronics
• EPS (TTM): -21.70
• Shares Outstanding: 1,028,980
• 10 Day Avg. Volume: 123,666
• 30 Day Avg. Volume: 693,275
• PEG Ratio: -0.23
• Price to Book (P/B): 13.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -22.80
• Enterprise Value/Market Cap: 82.93
• Enterprise Value/Revenue: 110.46
• Enterprise Value/Gross Profit: 3.79K
• Enterprise Value/Ebitda: -3.86
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 43 Neutral
• Price Target: $1.50 ▲(5.63%Upside)

Wearable Devices Ltd.'s stock is primarily weighed down by its financial performance, characterized by significant operational inefficiencies and cash flow challenges. Technical indicators show weak market momentum, further affecting the stock's attractiveness. The valuation is poor due to negative earnings and lack of dividend yield, reinforcing the low overall score.

Wearable Devices Ltd. Business Overview & Revenue Model

Company Description

Wearable Devices Ltd. (WLDS) is a pioneering company in the wearable technology sector, focused on developing advanced wearable devices and solutions that integrate seamlessly into daily life. The company specializes in producing innovative products that enhance user experience through gesture recognition, health monitoring, and augmented reality applications. With a commitment to enhancing human-computer interaction, Wearable Devices Ltd. combines cutting-edge technology with user-friendly designs to deliver its core products and services.

How the Company Makes Money

Wearable Devices Ltd. generates revenue primarily through the sale of its wearable technology products, which include smartwatches, fitness trackers, and augmented reality devices. The company leverages various retail and online distribution channels to reach a broad consumer base. Additionally, Wearable Devices Ltd. may engage in strategic partnerships with technology firms and healthcare providers, enabling them to integrate their technology into broader ecosystems, thereby expanding their market reach. Licensing agreements for their proprietary technology and software solutions also contribute to their revenue streams. The company focuses on innovation and user engagement to capture market share and drive financial growth.

Wearable Devices Ltd. Financial Statement Overview

Summary

Wearable Devices Ltd. shows strong revenue growth but struggles with significant profitability issues, evidenced by deeply negative net and gross profit margins. The balance sheet presents a relatively moderate debt-to-equity ratio, although the return on equity is negative. Cash flow remains a challenge with ongoing negative operating and free cash flows.

Income Statement

Wearable Devices Ltd. shows significant revenue growth over the last year, with a 536.6% increase from 2023 to 2024. However, profitability remains a concern as the company reported negative net and gross profit margins. The net profit margin for 2024 is -1509.0%, indicating high losses relative to revenue. Both EBIT and EBITDA margins are also deeply negative, suggesting operational inefficiencies.

Balance Sheet

The company's balance sheet reflects a relatively moderate debt-to-equity ratio of 0.28, which indicates manageable leverage. However, the return on equity is negative at -204.1%, reflecting net losses. The equity ratio is 64.6%, which is a positive sign of financial stability, showing a strong equity base relative to total assets.

Cash Flow

Free cash flow improved slightly but remains negative, and operating cash flow is also negative, indicating challenges in generating cash from operations. The free cash flow to net income ratio is 0.97, suggesting that free cash flow closely mirrors net income losses. These metrics highlight persistent cash flow challenges.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	522.00K	82.00K	45.00K	142.00K	57.00K
Gross Profit	85.00K	20.00K	19.67K	126.50K	48.00K
EBITDA	-7.71M	-8.12M	-6.43M	-2.60M	-1.15M
Net Income	-7.88M	-7.81M	-6.50M	-2.61M	-1.26M
Balance Sheet
Total Assets	5.98M	7.59M	11.22M	1.45M	593.00K
Cash, Cash Equivalents and Short-Term Investments	3.95M	4.86M	10.37M	1.27M	475.00K
Total Debt	1.08M	575.00K	162.00K	0.00	3.05M
Total Liabilities	2.12M	2.07M	1.24M	638.00K	3.47M
Stockholders Equity	3.86M	5.53M	9.98M	807.00K	-2.88M
Cash Flow
Free Cash Flow	-7.66M	-8.63M	-5.76M	-2.14M	-1.10M
Operating Cash Flow	-7.61M	-8.43M	-5.71M	-2.10M	-1.09M
Investing Cash Flow	3.20M	-4.25M	-66.00K	-36.00K	-16.00K
Financing Cash Flow	6.70M	3.12M	14.88M	2.94M	0.00

Wearable Devices Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WLDS, the sentiment is Negative. The current price of 1.42 is below the 20-day moving average (MA) of 1.60, below the 50-day MA of 1.65, and below the 200-day MA of 7.12, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 49.37 is Neutral, neither overbought nor oversold. The STOCH value of 42.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WLDS.

Wearable Devices Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	£571.07M	23.82	-6.00%	2.39%	3.52%	-29.29%
VUZI	57 Neutral	$212.72M	―	-136.11%	―	-46.37%	-34.50%
UEIC	56 Neutral	$92.19M	―	-13.55%	―	-2.15%	52.80%
GPRO	55 Neutral	$137.68M	―	-83.57%	―	-20.88%	62.21%
ZEPP	55 Neutral	$35.06M	―	-28.57%	―	-39.27%	-211.36%
WLDS	43 Neutral	$1.46M	―	-167.89%	―	536.59%	-5.05%
KOSS	42 Neutral	$48.19M	―	-2.44%	―	-0.34%	32.41%