Wrap Technologies (WRAP) AI Stock Analysis

• Market Cap: $77.76M
• Dividend Yield: N/A
• Average Volume (3M): 163.44K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.41
• Revenue Growth: -26.51%
• EPS Growth: 78.84%
• Country: US
• Employees: 52
• Sector: Technology
• Sector Strength: 40
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.15
• Shares Outstanding: 50,494,700
• 10 Day Avg. Volume: 175,298
• 30 Day Avg. Volume: 163,441
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 22.45
• Price to Cash Flow (P/CF): 72.00
• P/FCF Ratio: 72.00
• 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

Wrap Technologies faces substantial financial and operational challenges, with declining revenues and persistent losses. Technical analysis suggests bearish sentiment, and valuation metrics indicate poor attractiveness. While recent strategic actions and corporate appointments show promise, significant risks remain for the company’s stock performance.

Wrap Technologies Business Overview & Revenue Model

Company Description

Wrap Technologies, Inc. is a public safety technology and services company focused on delivering innovative solutions to law enforcement and security personnel. The company operates primarily in the non-lethal restraint and security sectors. Its core product, the BolaWrap, is a remote restraint device that discharges a Kevlar tether to safely entangle and restrain individuals from a distance, reducing the risk of injury and escalation during confrontations.

How the Company Makes Money

Wrap Technologies generates revenue primarily through the sale of its BolaWrap devices and related accessories to law enforcement agencies and security organizations worldwide. The company also earns income from the provision of training services to ensure proper use and deployment of its products. Additionally, Wrap Technologies may have revenue streams from maintenance services, software, and licensing fees associated with its technology. Significant partnerships with law enforcement and security agencies, as well as potential collaborations with government bodies, contribute to its earnings by expanding its market reach and customer base.

Wrap Technologies Financial Statement Overview

Summary

Wrap Technologies faces challenges across all financial statements. Declining revenues and profitability, coupled with increased leverage and negative cash flows, highlight operational and financial difficulties. The company needs strategic measures to improve revenue generation, cost management, and cash flow to enhance its financial stability and performance.

Income Statement

The company has experienced declining revenue from 2022 to TTM (Trailing-Twelve-Months) with a negative revenue growth rate. Gross profit margin stands at approximately 41.7% for TTM, which is relatively solid but offset by negative EBIT and net profit margins indicating significant operational and net losses. Overall, the income statement indicates financial challenges with declining profitability.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio, reflecting increased financial leverage risk. The equity ratio has decreased significantly in the latest period, indicating reduced financial stability. However, the company still maintains a positive stockholders' equity, which provides some cushion against liabilities. The balance sheet suggests potential risks due to leverage and changing financial structure.

Cash Flow

The cash flow statement reveals negative operating and free cash flows, with a slight improvement in free cash flow growth. The operating cash flow to net income ratio remains negative, indicating cash flow issues. Overall, cash flow challenges persist, emphasizing the need for improved cash management and operational efficiency.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
4.23M	6.13M	8.05M	7.73M	3.94M	696.79K
	Gross Profit
1.76M	2.91M	3.73M	2.00M	1.34M	276.77K
	EBIT
-17.57M	-18.72M	-17.73M	-24.50M	-13.08M	-8.61M
	EBITDA
-17.18M	-17.90M	-16.97M	-23.88M	-12.91M	-8.57M
	Net Income Common Stockholders
-16.68M	-30.22M	-17.28M	-24.42M	-12.50M	-8.32M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
255.07K	11.46M	19.28M	34.92M	41.64M	16.98M
	Total Assets
293.11K	28.50M	30.57M	44.23M	48.83M	20.42M
	Total Debt
0.00	2.29M	301.00K	56.00K	369.00K	278.15K
	Net Debt
-255.07K	-1.67M	-5.03M	-4.88M	-16.28M	-16.71M
	Total Liabilities
84.97K	25.34M	3.52M	2.97M	2.42M	1.23M
	Stockholders Equity
208.14K	3.16M	27.05M	41.26M	46.41M	19.20M
Cash Flow		Free Cash Flow
-10.86M	-17.33M	-15.03M	-20.16M	-13.11M	-8.86M
	Operating Cash Flow
-10.70M	-16.70M	-14.60M	-18.22M	-12.19M	-8.49M
	Investing Cash Flow
9.77M	5.18M	14.91M	-6.94M	-26.11M	-382.19K
	Financing Cash Flow
864.00K	10.15M	83.00K	13.45M	37.96M	13.49M

Wrap Technologies Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WRAP, the sentiment is Negative. The current price of 1.42 is below the 20-day moving average (MA) of 1.84, below the 50-day MA of 1.98, and below the 200-day MA of 1.76, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 33.04 is Neutral, neither overbought nor oversold. The STOCH value of 15.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WRAP.

Wrap Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AXON	78 Outperform	$42.90B	117.15	19.10%	―	33.32%	111.64%
ISSC	76 Outperform	$106.50M	15.90	15.23%	―	43.24%	4.37%
VTSI	59 Neutral	$50.22M	35.34	3.09%	―	-30.73%	-83.53%
Sector *	57 Neutral	$20.24B	9.51	-13.28%	2.72%	5.43%	-24.54%
SILC	54 Neutral	$76.40M	―	-8.70%	―	-53.18%	49.22%
WRAP	44 Neutral	$77.76M	―	-355.35%	―	-26.51%	78.84%
DGLY	15 Underperform	$2.18M	―	-234.89%	―	-32.26%	39.17%

Wrap Technologies Corporate Events

Wrap Technologies Appoints Jared Novick as President

On March 10, 2025, Wrap Technologies appointed Jared Novick as President and Chief Operating Officer, with no change to his existing compensation. Novick’s leadership is expected to drive Wrap’s expansion in public safety offerings, aligning with U.S. federal government efficiency initiatives and the company’s strategic relocation to Virginia. This move aims to enhance Wrap’s pursuit of federal contracts and operational growth. Novick’s investment in the company and his extensive background in government and technology sectors position him to lead Wrap’s integration of established technologies into public safety, supporting cost-saving initiatives and international expansion.

Wrap Technologies Grants Equity Awards to Executives

On February 5, 2025, Wrap Technologies, Inc. granted significant equity awards to its CEO Scot Cohen and COO Jared Novick. Each received 250,000 restricted stock units vested immediately and stock options for 500,000 shares, vesting over four years, signaling strategic retention and incentivization of top executives.