Wearable Devices Ltd. (WLDS) AI Stock Analysis

• Market Cap: $1.72M
• Dividend Yield: N/A
• Average Volume (3M): 2.34M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.35
• Revenue Growth: 536.59%
• EPS Growth: -5.05%
• Country: US
• Employees: 25
• Sector: Technology
• Sector Strength: 79
• Industry: Consumer Electronics
• EPS (TTM): -21.70
• Shares Outstanding: 1,028,980
• 10 Day Avg. Volume: 367,050
• 30 Day Avg. Volume: 2,340,931
• PEG Ratio: <0.01
• Price to Book (P/B): 0.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.19
• 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

• Rating: 40 Underperform
• Price Target: $1.50 ▼(-10.18%Downside)

Wearable Devices Ltd. receives a low score of 40 due to significant financial performance challenges, particularly in profitability and cash flow. The bearish technical indicators further contribute to the low score. Valuation concerns, driven by negative earnings and absence of dividends, also weigh heavily on the overall assessment.

Wearable Devices Ltd. Business Overview & Revenue Model

Company Description

Wearable Devices Ltd. engages in developing a non-invasive neural input interface for controlling digital devices using subtle finger movements. The company offers Mudra Inspire development kits that enables users to control digital devices through finger movements and hand gestures. These digital devices include consumer electronics, smart watches, smartphones, augmented reality glasses, virtual reality headsets, televisions, personal computers and laptop computers, drones, robots, etc. It serves consumer electronics companies, industrial companies, information technology and software solutions providers, software development studios, and academia and research universities, as well as consumers from B2C market. The company was incorporated in 2014 and is based in Yokneam Illit, Israel.

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 with a 536.6% increase, but faces significant profitability and cash flow challenges, with high negative margins and ongoing cash flow issues. The balance sheet is stable with moderate debt, but overall financial health is weak due to operational inefficiencies.

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
	EBIT
-7.82M	-8.19M	-5.55M	-2.57M	-1.16M
	EBITDA
-7.71M	-8.12M	-6.43M	-2.60M	-1.15M
	Net Income Common Stockholders
-7.88M	-7.81M	-6.50M	-2.61M	-1.26M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.95M	4.86M	10.37M	1.27M	475.00K
	Total Assets
5.98M	7.59M	11.22M	1.45M	593.00K
	Total Debt
1.08M	575.00K	162.00K	0.00	3.05M
	Net Debt
-2.01M	-235.00K	-10.21M	-1.27M	2.58M
	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: Neutral
• Last Price: 1.67
• 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 Neutral. The current price of 1.67 is above the 20-day moving average (MA) of 1.59, below the 50-day MA of 1.80, and below the 200-day MA of 9.13, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 49.32 is Neutral, neither overbought nor oversold. The STOCH value of 42.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WLDS.

Wearable Devices Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
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%
GPRO	54 Neutral	$101.45M	―	-83.57%	―	-20.88%	62.21%
UEIC	48 Neutral	$87.19M	―	-13.55%	―	-2.15%	52.80%
ZEPP	48 Neutral	$34.22M	―	-28.57%	―	-39.27%	-211.36%
KOSS	45 Neutral	$53.82M	―	-2.44%	―	-0.34%	32.41%
WLDS	40 Underperform	$1.72M	―	-167.89%	―	536.59%	-5.05%