SES AI Corporation Class A (SES) AI Stock Analysis

• Market Cap: $296.78M
• Dividend Yield: N/A
• Average Volume (3M): 19.57M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.93
• Revenue Growth: N/A
• EPS Growth: -79.83%
• Country: US
• Employees: 250
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Auto - Parts
• EPS (TTM): -0.04
• Shares Outstanding: 322,972,020
• 10 Day Avg. Volume: 23,435,703
• 30 Day Avg. Volume: 19,569,568
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: -0.20
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -45.61
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $14.06
• Price Target Upside: 1462.22% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

SES AI Corporation has a score of 54, driven by rapid revenue growth and strategic initiatives, yet challenged by significant financial and profitability issues. Despite technical indicators showing short-term momentum, the negative P/E ratio and potential volatility limit its attractiveness. The company's strong liquidity and strategic focus are positives, but addressing operational losses is crucial for future improvement.

Positive Factors

Business Strategy

The board approved a $30 million share repurchase program, signaling management's belief that the company is undervalued and aiming to bolster the stock price.

Financial Performance

SES reported $5.8 million in revenue, almost triple expectations, with the full-year guide of $15 million to $20 million maintained.

Technological Advancement

Crossing the chasm to revenue earlier than expected places SES above peers who remain in R&D, and is expected to spur interest from investors.

Negative Factors

Technology Risk

Investor risks include technology risk with SES’s Li-metal anode and electrolyte formulations, scaling risks and timeline shifts in manufacturing, and competition risks from incumbents.

SES AI Corporation Class A Business Overview & Revenue Model

Company Description

SES AI Corporation engages in the development and production of high-performance Lithium-metal rechargeable batteries for electric vehicles and other applications. The company was founded in 2012 and is headquartered in Boston, Massachusetts.

How the Company Makes Money

SES AI Corporation generates revenue primarily through the development and licensing of its lithium-metal battery technologies to automotive manufacturers and other partners in the electric vehicle industry. The company collaborates with major automotive companies to integrate its battery solutions into their production lines, thus earning revenue from licensing agreements, joint development projects, and potentially from the sale of battery cells and systems. Partnerships with industry leaders and ongoing research and development efforts play a crucial role in advancing SES's technology and securing its position in the market.

SES AI Corporation Class A Financial Statement Overview

Summary

SES AI Corporation is experiencing rapid revenue growth but faces significant profitability challenges. Despite a strong balance sheet with low leverage and high equity, continuous net losses and negative cash flow raise concerns about long-term financial sustainability.

Income Statement

SES AI Corporation's income statement reveals a challenging financial period. The TTM (Trailing-Twelve-Months) data shows a dramatic revenue increase from $2.04 million to $7.83 million, indicating significant growth. However, the company remains unprofitable with a net loss of $97.06 million, leading to a negative net profit margin. High EBIT and EBITDA losses further suggest operational inefficiencies. The gross profit margin is relatively strong, which indicates efficient cost management in production, but overall profitability remains a concern.

Balance Sheet

SES AI Corporation's balance sheet displays a mixed financial health picture. The equity ratio is high at about 88%, suggesting a solid capital structure with limited reliance on debt. However, the company operates with significant net losses affecting return on equity negatively. The debt-to-equity ratio is low, which is positive, but the declining stockholders' equity may signal financial instability if losses continue. Overall, strong liquidity is a positive, but sustained losses could erode equity over time.

Cash Flow

The cash flow statement indicates operational challenges, given the negative operating cash flow of $79.79 million. The free cash flow remains negative, with a slight deterioration, highlighting liquidity risks and the need for external funding. Although the company has managed its capital expenditures efficiently, the cash flow to net income ratios underscore difficulties in converting revenue to cash, necessitating improvements in cash generation.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.04M	0.00	0.00	0.00	0.00
	Gross Profit
1.29M	-5.54M	-2.60M	-1.66M	0.00
	EBIT
-109.25M	-78.16M	-79.57M	-32.01M	-13.90M
	EBITDA
-100.94M	-72.62M	-76.98M	-30.34M	-12.20M
	Net Income Common Stockholders
-100.19M	-53.40M	-50.38M	-31.25M	-13.89M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
262.54M	332.45M	390.08M	160.50M	14.73M
	Total Assets
329.79M	406.81M	442.32M	193.35M	24.59M
	Total Debt
10.56M	13.72M	12.06M	0.00	840.00K
	Net Debt
-118.23M	-71.95M	-94.56M	-160.50M	-1.60M
	Total Liabilities
51.48M	47.86M	50.17M	281.68M	86.66M
	Stockholders Equity
278.31M	358.95M	392.15M	-88.32M	-62.07M
Cash Flow		Free Cash Flow
-78.29M	-72.17M	-61.15M	-38.97M	-11.99M
	Operating Cash Flow
-66.09M	-56.41M	-46.50M	-29.99M	-11.01M
	Investing Cash Flow
108.19M	32.72M	-296.01M	3.31M	-13.27M
	Financing Cash Flow
1.01M	3.27M	289.93M	184.76M	840.00K

SES AI Corporation Class A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.90
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SES, the sentiment is Positive. The current price of 0.9 is above the 20-day moving average (MA) of 0.80, above the 50-day MA of 0.65, and above the 200-day MA of 0.80, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 58.07 is Neutral, neither overbought nor oversold. The STOCH value of 26.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SES.

SES AI Corporation Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$6.66B	11.77	3.06%	3.96%	2.60%	-21.54%
AEVA	56 Neutral	$503.91M	―	-92.90%	―	110.23%	12.96%
SES	54 Neutral	$296.78M	―	-31.45%	―	―	-79.83%
QS	46 Neutral	$2.17B	―	-39.86%	―	―	6.49%
ECX	44 Neutral	$568.07M	―	102.04%	―	21.32%	17.48%
GGR	42 Neutral	$74.43M	―	-57.97%	―	-10.52%	-118.68%

SES AI Corporation Class A Corporate Events

SES AI Corporation Announces $30 Million Stock Buyback

On April 24, 2025, SES AI Corporation announced a stock repurchase program to buy back up to $30 million of its Class A common stock, signaling confidence in its financial health and future prospects. The company reported a record revenue of $5.8 million for Q1 2025 and maintained its annual revenue outlook of $15 million to $25 million. SES AI is strategically positioned for growth with its Molecular Universe platform, which has attracted interest from numerous companies even before its official release. The company aims to exit 2025 with over $200 million in liquidity, focusing on scalable growth and commercial readiness, particularly in the EV and robotics sectors.

Spark’s Take on SES Stock

According to Spark, TipRanks’ AI Analyst, SES is a Underperform.

SES AI Corporation’s stock is rated low due to significant challenges in financial performance, including ongoing losses and cash flow issues. While the company has achieved early-stage revenue generation and strategic expansion, these positives are overshadowed by the negative financial metrics and the recent NYSE delisting notice. The technical indicators show mixed signals, and the valuation remains unattractive due to a negative P/E ratio. The company must address these financial and operational challenges to improve its stock performance.

To see Spark’s full report on SES stock, click here.

SES AI Corporation Faces NYSE Delisting Notice

On March 7, 2025, SES AI Corporation received a notice from the New York Stock Exchange (NYSE) indicating non-compliance with the listing standards due to its Class A common stock’s average closing price falling below $1.00 over 30 consecutive trading days. The company plans to address this issue within a six-month period by potentially implementing measures such as a reverse stock split, which would require stockholder approval. Despite the notice, SES AI’s stock will continue to trade on the NYSE, and the company remains committed to regaining compliance, ensuring minimal impact on its operations and stakeholders.