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Wearable Devices Ltd. (WLDS)
NASDAQ:WLDS
US Market

Wearable Devices Ltd. (WLDS) AI Stock Analysis

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Wearable Devices Ltd.

(NASDAQ:WLDS)

Rating:40Underperform
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. (WLDS) vs. SPDR S&P 500 ETF (SPY)

Wearable Devices Ltd. Business Overview & Revenue Model

Company DescriptionWearable 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 MoneyWearable 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
35
Negative
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
45
Neutral
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
40
Negative
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
522.00K82.00K45.00K142.00K57.00K
Gross Profit
85.00K20.00K19.67K126.50K48.00K
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 SheetCash, Cash Equivalents and Short-Term Investments
3.95M4.86M10.37M1.27M475.00K
Total Assets
5.98M7.59M11.22M1.45M593.00K
Total Debt
1.08M575.00K162.00K0.003.05M
Net Debt
-2.01M-235.00K-10.21M-1.27M2.58M
Total Liabilities
2.12M2.07M1.24M638.00K3.47M
Stockholders Equity
3.86M5.53M9.98M807.00K-2.88M
Cash FlowFree 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
6.70M3.12M14.88M2.94M0.00

Wearable Devices Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1.67
Price Trends
50DMA
1.80
Negative
100DMA
2.76
Negative
200DMA
9.13
Negative
Market Momentum
MACD
-0.04
Negative
RSI
49.32
Neutral
STOCH
42.59
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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$11.55B10.41-6.86%2.93%7.50%-8.30%
55
Neutral
$220.34M-136.11%-46.37%-34.50%
54
Neutral
$101.45M-83.57%-20.88%62.21%
48
Neutral
$87.19M-13.55%-2.15%52.80%
48
Neutral
$34.22M-28.57%-39.27%-211.36%
45
Neutral
$53.82M-2.44%-0.34%32.41%
40
Underperform
$1.72M-167.89%536.59%-5.05%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WLDS
Wearable Devices Ltd.
1.67
-25.93
-93.95%
GPRO
GoPro
0.66
-0.82
-55.41%
KOSS
Koss
5.81
1.03
21.55%
UEIC
Universal Electronics
6.78
-5.22
-43.50%
VUZI
Vuzix
3.18
1.70
114.86%
ZEPP
Zepp Health
2.47
-0.50
-16.84%
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.