Symbotic (SYM) AI Stock Analysis

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Symbotic

(NASDAQ:SYM)

70Outperform

Symbotic's stock shows strong financial performance with significant revenue growth and cash flow improvements, despite ongoing net losses. Technical indicators suggest short-term momentum but advise caution due to longer-term weakness. Valuation challenges persist due to negative earnings and lack of dividends. The earnings call highlights strategic growth through acquisitions and a positive outlook, offset by challenges in deployment execution. Overall, the stock presents a balanced investment opportunity with growth potential and associated risks.

Positive Factors

Financial Performance

Fiscal second-quarter revenue of $549.7 million exceeded consensus of $522.4 million.

Operational Efficiency

Adjusted gross margins achieved a record quarter at 22.2%, driven by operational improvements and favorable system completions.

Strategic Partnerships

The acquisition earlier this year of the Walmart Advanced Systems and Robotics business was a meaningful contributor to revenue growth in FQ2.

Negative Factors

Guidance and Expectations

Third-quarter revenue guidance is below consensus, impacting expectations negatively.

Market Limitations

The close relationship with Walmart and the lawsuit between The Kroger Co. and Albertsons Companies likely limits SYM receiving orders from KR and ACI, and potentially other national customers.

Operational Challenges

Improvements laid out at Symbotic’s investor day have failed to materialize, with average deployment times increasing to 24 months.

Symbotic (SYM) vs. S&P 500 (SPY)

Market Cap

$16.51B

Dividend YieldN/A

Average Volume (3M)1.33M

Price to Earnings (P/E)―

Beta (1Y)2.53

Revenue Growth44.84%

EPS Growth41.00%

CountryUS

Employees1,650

SectorIndustrials

Sector Strength88

IndustryShell Companies

Share Statistics

EPS (TTM)0.06

Shares Outstanding109,080,020

10 Day Avg. Volume1,405,758

30 Day Avg. Volume1,334,640

Financial Highlights & Ratios

PEG Ratio24.45

Price to Book (P/B)13.36

Price to Sales (P/S)0.00

P/FCF Ratio113.42

Enterprise Value/Market Cap0.83

Enterprise Value/Revenue1.99

Enterprise Value/Gross Profit53.43

Enterprise Value/Ebitda-28.89

Forecast

1Y Price Target

$29.25

Price Target Upside8.57% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering10

Symbotic Business Overview & Revenue Model

Company DescriptionSymbotic Inc., an automation technology company, provides robotics and technology to improve efficiency for retailers and wholesalers in the United States. It offers The Symbotic System, a full-service warehouse automation system that reduces costs, improves efficiency, and maximizes inventory. The company is based in Wilmington, Massachusetts.

How the Company Makes MoneySymbotic generates revenue through the sale and deployment of its automation systems and related services. The company earns money by designing and integrating robotic systems tailored to the specific needs of its clients, which often involves long-term contracts and ongoing support and maintenance services. Key revenue streams include the initial sale and installation of automated warehouse systems, software licensing fees, and recurring revenue from maintenance and support services. Significant partnerships with major retailers and distribution companies are crucial, as they drive large-scale implementations and provide a steady stream of income. Symbotic's earnings are also influenced by the growing demand for automation in logistics, driven by the need for increased efficiency and cost savings in supply chain operations.

Symbotic Key Performance Indicators (KPIs)

Any

Revenue by Segment

Revenue by Segment
Analyzes revenue from different business segments, highlighting which areas are driving growth and which might need strategic adjustments to enhance profitability.

Chart InsightsSymbotic's Systems revenue has shown robust growth, reflecting strong demand and improved project execution, as highlighted in their recent earnings call. The significant increase in Software Maintenance and Support and Operations Services revenue underscores the company's strategic focus on diversifying its revenue streams. However, the earnings call also noted potential short-term revenue declines due to tariff impacts and lower contributions from the Walmart ASR acquisition. Despite these challenges, Symbotic's strong backlog and operational improvements suggest a positive long-term outlook.

Data provided by:

Main Street Data

Symbotic Financial Statement Overview

Summary

Symbotic demonstrates robust revenue growth and cash flow improvements, with a sound balance sheet free of debt. However, the persistence of net losses affects profitability metrics. Focusing on achieving profitability could enhance financial performance further. The company's strong cash position and growth trajectory provide a solid foundation for future improvements.

Income Statement

Positive

Symbotic's income statement shows strong revenue growth with a TTM revenue increase of approximately 6.6% compared to the previous annual period. The gross profit margin is 13.4% for the TTM, but the company is still operating at a net loss with a negative EBIT margin of -6.4%. Despite the net loss, the EBITDA margin improved slightly, indicating operational efficiencies. The consistent revenue growth trajectory is a key strength, though continued net losses present a risk.

Balance Sheet

Positive

The balance sheet is stable with no long-term debt, resulting in a strong equity position. The equity ratio stands at 22.97% in the TTM. Return on equity is negative due to net losses, but cash reserves are strong, bolstering financial flexibility. The absence of debt is a significant strength, while the challenge is achieving positive ROE.

Cash Flow

Positive

Cash flow analysis reveals positive trends with significant free cash flow growth in the TTM, backed by positive operating cash flow to net income ratio. Free cash flow turned positive, reflecting improved cash management. The company has effectively reversed negative free cash flow seen in prior periods, which is a strong indicator of financial health.

TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Breakdown
Income Statement		Total Revenue
1.91B	1.79B	1.18B	593.31M	251.91M	92.09M
	Gross Profit
255.60M	245.67M	189.74M	99.65M	10.45M	-18.93M
	EBIT
-122.31M	-116.72M	-223.23M	-140.38M	-122.38M	-110.38M
	EBITDA
-97.53M	-93.25M	-203.04M	-134.39M	-117.89M	-104.64M
	Net Income Common Stockholders
-15.04M	-13.49M	-23.87M	-77.71M	-122.31M	-109.52M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
903.03M	727.31M	545.51M	353.46M	156.63M	58.26M
	Total Assets
1.72B	1.58B	1.05B	631.26M	280.54M	224.95M
	Total Debt
0.00	0.00	13.64M	0.00	0.00	17.75K
	Net Debt
-903.03M	-727.31M	-258.77M	-353.46M	-156.63M	-58.25M
	Total Liabilities
1.32B	1.19B	1.05B	562.32M	1.39B	1.07B
	Stockholders Equity
196.54M	197.23M	82.00K	7.18M	-1.11B	-844.47M
Cash Flow		Free Cash Flow
128.37M	-102.45M	209.47M	-166.20M	97.40M	-129.38M
	Operating Cash Flow
177.10M	-58.08M	230.79M	-148.25M	109.57M	-124.31M
	Investing Cash Flow
32.44M	156.48M	-299.46M	-17.95M	-12.17M	-5.06M
	Financing Cash Flow
208.53M	371.04M	-24.10M	362.45M	324.20M	100.00M

Symbotic Technical Analysis

Technical Analysis Sentiment

Positive

Last Price26.94

Price Trends

50DMA

21.80

Positive

100DMA

24.26

Positive

200DMA

25.16

Positive

Market Momentum

MACD

1.45

Negative

RSI

67.77

Neutral

STOCH

89.68

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SYM, the sentiment is Positive. The current price of 26.94 is above the 20-day moving average (MA) of 23.04, above the 50-day MA of 21.80, and above the 200-day MA of 25.16, indicating a bullish trend. The MACD of 1.45 indicates Negative momentum. The RSI at 67.77 is Neutral, neither overbought nor oversold. The STOCH value of 89.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SYM.

Symbotic Risk Analysis

Symbotic disclosed 60 risk factors in its most recent earnings report. Symbotic reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Symbotic Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
J	72 Outperform	$15.17B	34.81	8.46%	0.94%	-22.81%	-30.13%
GXO	71 Outperform	$4.64B	66.32	2.61%	―	23.40%	-55.55%
SYM	70 Outperform	$16.51B	―	-3.52%	―	44.84%	41.00%
JBHT	68 Neutral	$14.61B	26.75	13.97%	1.17%	-3.82%	-12.80%
ZTO	67 Neutral	$14.87B	12.62	14.46%	3.62%	12.67%	-0.32%
Sector *	64 Neutral	$4.39B	12.06	5.17%	249.63%	4.03%	-11.04%
XPO	63 Neutral	$15.05B	38.67	26.24%	―	1.94%	60.91%

* Industrials Sector Average

Performance Comparison

SYM

Symbotic

26.94

-19.22

-41.64%

XPO

125.68

13.67

12.20%

JBHT

JB Hunt

147.86

-19.84

-11.83%

Jacobs Solutions

128.80

14.77

12.95%

ZTO

ZTO Express

18.16

-4.61

-20.25%

GXO

GXO Logistics

41.30

-11.36

-21.57%

Symbotic Earnings Call Summary

Earnings Call Date:May 07, 2025

(Q2-2025)

% Change Since: 19.95%|

Next Earnings Date:Aug 04, 2025

Earnings Call Sentiment Positive

Symbotic's earnings call highlighted strong revenue growth, improved margins, and operational efficiencies, which were offset by concerns about future revenue guidance, potential tariff impacts, and increased operating expenses. The company's strategic initiatives, such as key leadership hires and a robust backlog, suggest a positive long-term outlook despite some short-term challenges.

Q2-2025 Updates

Positive Updates

Strong Revenue Growth

Symbotic's revenue grew by 40% year-over-year, reaching $550 million for the second quarter, driven by solid progress across 46 systems and team deployments.

Improved Gross Margins

Gross margins expanded significantly due to improved project execution and a more streamlined workflow, delivering high-quality deployments.

Reduced Net Loss

Net loss was reduced to $21 million in the second quarter, down from $55 million in the same period of fiscal 2024.

Record System Deployments

Symbotic began a record 10 new system deployments and completed 8 systems in the quarter, doubling their previous record.

Strong Backlog

Symbotic reported a backlog of $22.7 billion, up from $22.4 billion in the previous quarter.

Operational Improvements

Installation to acceptance timelines for Phase 1 systems improved by two months, and these systems were 15% larger than historical averages.

Increased Software and Services Revenue

Software revenue grew by over 160% year-over-year, and operations services revenue grew 47% year-over-year.

New Leadership Hires

Symbotic added new talent, including Brian Alexander as Senior Vice President Commercial and Ashfaque Chowdhury as CEO of GreenBox.

Cash Position

Symbotic ended the quarter with $955 million in cash and equivalents, an increase from $903 million in the first quarter.

Negative Updates

Sequential Revenue Decline Guidance

For the third quarter of fiscal 2025, Symbotic expects revenue to be between $520 million to $540 million, a potential sequential decline from the second quarter.

ASR Revenue Impact

Revenue contribution from the Walmart Advanced Systems and Robotics (ASR) acquisition is expected to be lower in the third quarter due to development phases.

Tariff Impact Concerns

Discussion around tariffs indicated potential impacts on system costs, although these are expected to be pass-through costs to customers.

Increased Operating Expenses

Operating expenses rose sequentially due to acquisitions and investments to support growth.

Mixed Customer Demand

While there is increased interest, some potential customers are holding back due to uncertain global conditions.

Company Guidance

During the Symbotic Second Quarter 2025 Financial Results Conference Call, the company provided guidance for the upcoming quarter, projecting revenue between $520 million and $540 million and adjusted EBITDA between $26 million and $30 million. This reflects a sequential decrease from the second quarter's revenue of $550 million and adjusted EBITDA of $35 million. The guidance does not account for potential impacts from tariff-related costs, which are expected to pass through to customers without affecting gross profit dollars. The company emphasized the continued improvement in project execution, with installation-to-acceptance timelines for Phase 1 systems reduced by about two months compared to historical averages, despite those systems being 15% larger. Symbotic's backlog increased slightly to $22.7 billion, primarily due to new development contracts with Walmart. The company is also investing in future growth with ongoing innovations and the recent acquisition of Walmart Advanced Systems and Robotics, which contributed a mid-to-high single-digit percentage of quarterly revenue.

Symbotic Corporate Events

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures

Symbotic Reports Strong Revenue Growth and Strategic Acquisition

Positive

Feb 5, 2025

Symbotic Inc. reported its financial results for the first fiscal quarter of 2025, showcasing significant growth with a 35% year-over-year increase in revenue, reaching $487 million. The company completed the acquisition of Walmart’s Advanced Systems and Robotics business, which is expected to further strengthen its market position and drive exceptional results for stakeholders. Looking ahead, Symbotic anticipates continued revenue growth of at least 30% in the second quarter of fiscal 2025.

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.