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Gauzy Ltd. (GAUZ)
:GAUZ
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Gauzy Ltd.
(NASDAQ:GAUZ)
42Neutral
Positive Factors
Backlog and Revenue Visibility
Gauzy exited 3Q24 with a record backlog of $38.3 million, providing visibility into future revenue.
Business Expansion
Management noted ramping business with Yutong, the first time this bus OEM was announced as well as an award with a European auto OEM for an EV platform to ramp with annual volumes at approximately 50,000.
Labor Capacity
Additional labor was approved by the French works councils to add a 2nd shift and the management team does not anticipate future delivery shortfalls.
Negative Factors
Labor Availability
Labor availability in aero cockpit shading impacted revenue by approximately $4 million and gross profit by approximately $1 million, delaying the EBITDA breakeven target.
Price Target Reduction
Lowering Price Target to $18 from $24: Given Softer Auto and European Backdrop, Peer Group Multiple Compression.
Revenue Shortfall
Gauzy preannounced a soft 3Q, with revenue approximately $4 million below our estimate.
Gauzy Ltd. (GAUZ) vs. S&P 500 (SPY)
Market Cap
N/A
Dividend YieldN/A
Average Volume (3M)53.48K
Price to Earnings (P/E)―
Beta (1Y)0.47
Revenue Growth18.63%
EPS Growth30.17%
CountryUS
Employees708
SectorGeneral
Sector StrengthN/A
IndustryIndustrial Conglomerates
Share Statistics
EPS (TTM)-0.58
Shares Outstanding18,720,287
10 Day Avg. Volume37,040
30 Day Avg. Volume53,477
Financial Highlights & Ratios
PEG Ratio-0.33
Price to Book (P/B)3.73
Price to Sales (P/S)0.00
P/FCF Ratio-4.16
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$11.88Price Target Upside35.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
Gauzy Ltd. Business Overview & Revenue Model
Company DescriptionGauzy is a global leader in vision and light control solutions for the automotive, aeronautics, architecture, and safety technology industries. Its core capabilities start with world-class research and development which leads to the manufacturing and marketing of surfaces, systems and solutions that are smart and multifunctional for the spaces we spend our time in most. From glass that switches between transparent and opaque on an aircraft, automobile or building to transparent displays for digital signage and communications, to ADAS technologies for safer roads, Gauzy is there, changing the world through the control and manipulation of light.
How the Company Makes MoneyGauzy Ltd. generates revenue through the sale of its smart glass and liquid crystal-based products. The company collaborates with manufacturers and integrators in the automotive and architectural industries to incorporate its technology into vehicles and building projects. Additionally, Gauzy earns revenue from licensing its technology to other companies and providing related support services. Strategic partnerships with key industry players enhance its market reach, while ongoing innovation in smart materials helps maintain its competitive edge in the industry.
Gauzy Ltd. Financial Statement Overview
Summary
Gauzy Ltd. shows strong revenue growth but faces significant challenges with profitability and cash flow management. The company is highly leveraged and continues to report negative earnings, posing financial risks despite improvements in balance sheet stability.Income Statement
Gauzy Ltd. has shown significant revenue growth, with a dramatic increase from $4.7 million in 2020 to $103.5 million in 2024. Despite this growth, the company has consistently recorded negative net income, with a net profit margin deeply in the red. Gross profit margins have improved slightly over the years but remain under pressure due to high operational costs, as evidenced by negative EBIT and EBITDA margins.45
Neutral
Balance Sheet
The debt-to-equity ratio improved significantly in 2024 as stockholders' equity turned positive, but the company remains highly leveraged with total debt exceeding equity. The equity ratio has improved but is still low, indicating financial instability. Return on equity remains negative due to persistent net losses.40
Negative
Cash Flow
Gauzy Ltd. has struggled with negative operating cash flow over the years, and free cash flow remains negative. The operating cash flow to net income ratio indicates operational inefficiencies, and the free cash flow to net income ratio suggests poor cash conversion. Despite some improvement in free cash flow, the growth rate remains negative.38
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 103.53M | 77.98M | 49.03M | 7.31M | 4.74M | Gross Profit |
| 29.74M | 16.28M | 5.98M | 2.02M | 1.41M | EBIT |
| -30.76M | -31.25M | -29.79M | -14.29M | -10.72M | EBITDA |
| -34.92M | -59.88M | -28.50M | -16.35M | -10.32M | Net Income Common Stockholders |
| -53.18M | -79.27M | -37.90M | -17.22M | -12.46M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 5.62M | 4.71M | 4.70M | 1.86M | 7.92M | Total Assets |
| 138.25M | 127.94M | 109.54M | 22.01M | 22.53M | Total Debt |
| 48.37M | 135.04M | 63.44M | 12.30M | 6.28M | Net Debt |
| 42.76M | 130.33M | 58.75M | 10.44M | -1.64M | Total Liabilities |
| 89.92M | 194.30M | 101.61M | 20.56M | 11.39M | Stockholders Equity |
| 48.33M | -66.35M | 7.93M | 1.45M | 11.14M |
| Cash Flow | Free Cash Flow | |||
| -43.52M | -41.54M | -33.43M | -14.36M | -11.87M | Operating Cash Flow |
| -31.91M | -31.11M | -29.75M | -12.63M | -10.64M | Investing Cash Flow |
| -11.46M | -10.62M | -39.49M | -6.39M | -855.00K | Financing Cash Flow |
| 44.57M | 41.69M | 71.61M | 12.93M | 18.83M |
Gauzy Ltd. Technical Analysis
Negative
8.80
Price Trends
9.17
Negative
9.94
Negative
9.57
Negative
Market Momentum
-0.05
Positive
40.92
Neutral
12.80
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GAUZ, the sentiment is Negative. The current price of 8.8 is below the 20-day moving average (MA) of 9.61, below the 50-day MA of 9.17, and below the 200-day MA of 9.57, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 40.92 is Neutral, neither overbought nor oversold. The STOCH value of 12.80 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GAUZ.
Gauzy Ltd. Risk Analysis
Gauzy Ltd. disclosed 74 risk factors in its most recent earnings report. Gauzy Ltd. 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
Gauzy Ltd. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Performance Comparison
GAUZ
Gauzy Ltd.
8.58
-7.16
-45.49%
FBLG
FibroBiologics, Inc.
1.02
-10.78
-91.36%
LOBO
Lobo EV Technologies Ltd.
1.20
-1.90
-61.29%
AUNA
Auna S.A. Class A
6.95
-1.60
-18.71%
INTJ
Intelligent Group Ltd
0.60
-0.37
-38.14%
LEGT
Legato Merger Corp. III
10.61
0.51
5.05%
Gauzy Ltd. Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q1-2025)
| % Change Since: -9.37%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
Gauzy demonstrated resilience with significant business milestones and an improved gross margin. However, the company faced a decline in quarterly revenue and continued to report negative adjusted EBITDA and free cash flow. Despite these challenges, the outlook for 2025 remains positive with strong purchase order backlog and favorable guidance.Q1-2025 Updates
Positive Updates
Expanded Purchase Order Backlog
Backlog of purchase orders increased from below $31 million at year-end 2024 to almost $36 million at the end of March 2025, indicating strong demand for Gauzy's products.
Significant Business Milestones
Air France KLM Group selected Gauzy's shading system for Boeing 777, Mercedes-Benz implemented Smart Glass technologies in 75% of the glazing in the Vision V show car, and Cadillac Celestiq EV with SPD sunroof commenced production.
Improved Gross Margin
Gross margin increased to 25.6% from 25.1% in the prior year period, showing a 50 basis points expansion due to operational efficiencies.
Positive Revenue Guidance for 2025
Revenue expected to be in the range of $130 million to $140 million, representing more than 30% growth at the midpoint compared to 2024.
New Debt Facility
Secured a new $10 million debt facility with Mizrahi, with favorable terms including a 370 basis point interest rate reduction.
Negative Updates
Decrease in Quarterly Revenue
First quarter 2025 revenues were $22.4 million, a drop from $24.7 million in the prior year period.
Negative Adjusted EBITDA
Adjusted EBITDA was negative $5.5 million, compared to negative $4.8 million in the prior year quarter.
Revenue Decline in Aero and Architecture Segments
Aero revenue decreased by 24.6% and Architecture revenue decreased by 8.2% compared to the prior year quarter.
Free Cash Flow Remains Negative
Free cash flow was negative $2.3 million compared to negative $8.4 million in the prior year quarter.
Company Guidance
During the Gauzy Limited First Quarter 2025 Earnings Conference Call, management reaffirmed its 2025 guidance, projecting revenue between $130 million to $140 million, representing over 30% growth at the midpoint compared to 2024. The company reported first-quarter revenues of $22.4 million, a decrease from $24.7 million in the prior year, with growth in the Automotive and Safety Tech segments offset by timing shifts in Aero and Architecture deliveries. Gross margin improved to 25.6% from 25.1%, while operating expenses decreased by 9% to $14.4 million. The backlog of purchase orders grew from below $31 million at year-end 2024 to nearly $36 million by the end of March 2025, indicating strong demand. Gauzy also secured the first $10 million of a planned $20 million debt financing, which will enhance liquidity and support full-year goals, including achieving positive adjusted EBITDA.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.