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Mobileye Global, Inc. Class A (MBLY)
:MBLY
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Mobileye Global, Inc. Class A
(NASDAQ:MBLY)
60Neutral
Positive Factors
Financial Backing
Japanese firm Marubeni will own and finance the vehicles, highlighting a strong financial backing for the initiative.
Innovative Technology
Mobileye's purpose-built, transformer-based architecture has been innovative rather than archaic all along.
Partnerships and Collaborations
Shares of Mobileye are trading higher on Lyft's announcement it will roll out Mobileye autonomous taxis in Dallas as early as 2026.
Negative Factors
Market Competition
It could take until 2027 for earnings growth to inflect more positively and the AV tech market is increasingly competitive.
OEM Contracts
Investors' frustration with the company's inability to secure and announce a new OEM.
Revenue and Profit Guidance
Revenue and operating profit guide tracked lower relative to consensus.
Mobileye Global, Inc. Class A (MBLY) vs. S&P 500 (SPY)
Market Cap
$11.82B
Dividend YieldN/A
Average Volume (3M)3.93M
Price to Earnings (P/E)―
Beta (1Y)1.44
Revenue Growth-20.44%
EPS Growth-11112.94%
CountryUS
Employees3,900
SectorConsumer Cyclical
Sector Strength48
IndustryAuto - Parts
Share Statistics
EPS (TTM)-3.81
Shares Outstanding100,226,480
10 Day Avg. Volume2,805,752
30 Day Avg. Volume3,933,618
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)7.15
Price to Cash Flow (P/CF)14.50
P/FCF Ratio14.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$19.27Price Target Upside32.35% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
Mobileye Global, Inc. Class A Business Overview & Revenue Model
Company DescriptionMobileye Global, Inc. Class A (MBLY) is a leading company in the field of advanced driver-assistance systems (ADAS) and autonomous vehicle technology. The company operates in the automotive sector, providing innovative solutions that enhance vehicle safety and enable self-driving capabilities. Mobileye's core products include vision-based platforms that integrate a range of technologies such as cameras, sensors, and software algorithms to offer features like collision avoidance, lane keeping, and adaptive cruise control. These technologies are utilized by automotive manufacturers and suppliers globally to improve vehicle safety and pave the way for fully autonomous driving.
How the Company Makes MoneyMobileye generates revenue primarily through the sale of its ADAS and autonomous vehicle systems to automotive manufacturers and suppliers. The company's key revenue streams include direct sales of its vision-based platforms and related technologies, as well as licensing its proprietary software and intellectual property to other companies in the automotive industry. Mobileye's strategic partnerships with leading car manufacturers and technology firms also contribute significantly to its earnings. These collaborations often involve joint development projects and long-term supply agreements, which help Mobileye expand its market reach and drive growth in the adoption of its technologies. Additionally, the company's continuous investment in research and development fuels innovation and maintains its competitive edge in the rapidly evolving automotive sector.
Mobileye Global, Inc. Class A Financial Statement Overview
Summary
Mobileye Global, Inc. faces significant challenges in revenue growth and profitability, evidenced by declining revenues and increasing net losses. While the balance sheet remains strong with no debt and high equity, the cash flow shows some resilience but is strained by operational losses.Income Statement
Mobileye Global, Inc. shows a concerning trend in revenue and profitability. The company reported a significant decline in total revenue from $2.079B in 2023 to $1.654B in 2024, indicating a negative revenue growth rate. Gross profit margin also fell, with gross profit decreasing from $1.047B to $741M, suggesting pressure on sales and cost management. The net income continues to be negative, worsening from -$27M in 2023 to -$3.09B in 2024, which severely impacts the net profit margin. The ongoing negative EBIT and EBITDA margins indicate operational inefficiencies.45
Neutral
Balance Sheet
Despite income challenges, Mobileye maintains a strong balance sheet with high stockholders' equity of $12.087B in 2024 compared to $14.924B in 2023. The equity ratio remains robust, reflecting a solid financial position with low total liabilities at $492M. The company has no debt, improving financial stability. However, declining total assets from $15.577B to $12.579B could indicate potential long-term concerns if asset utilization is not optimized.70
Positive
Cash Flow
Cash flow operations show resilience with operating cash flow increasing slightly to $400M in 2024 from $394M in 2023, despite a decrease in revenue. Free cash flow improved to $319M from $296M, showing better capital expenditure management. However, the free cash flow to net income ratio remains concerning due to the large net losses, and the overall cash flow position is under pressure from declining revenues.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.65B | 2.08B | 1.87B | 1.39B | 967.00M | Gross Profit |
| 741.00M | 1.05B | 922.00M | 655.00M | 376.00M | EBIT |
| -3.23B | -33.00M | -8.00M | -57.00M | -212.00M | EBITDA |
| -2.66B | 529.00M | 559.00M | 469.00M | 251.00M | Net Income Common Stockholders |
| -3.09B | -27.00M | -82.00M | -75.00M | -196.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.43B | 1.21B | 1.02B | 616.00M | 85.00M | Total Assets |
| 12.58B | 15.58B | 15.44B | 16.66B | 16.46B | Total Debt |
| 0.00 | 51.00M | 58.00M | 12.00M | 0.00 | Net Debt |
| -1.43B | -1.16B | -966.00M | -604.00M | -85.00M | Total Liabilities |
| 492.00M | 653.00M | 647.00M | 766.00M | 620.00M | Stockholders Equity |
| 12.09B | 14.92B | 14.79B | 15.89B | 15.84B |
| Cash Flow | Free Cash Flow | |||
| 319.00M | 296.00M | 435.00M | 456.00M | 180.00M | Operating Cash Flow |
| 400.00M | 394.00M | 546.00M | 599.00M | 271.00M | Investing Cash Flow |
| -120.00M | -98.00M | 1.19B | -157.00M | -965.00M | Financing Cash Flow |
| -66.00M | -100.00M | -1.32B | 91.00M | 732.00M |
Mobileye Global, Inc. Class A Technical Analysis
Positive
14.56
Price Trends
16.04
Negative
16.69
Negative
17.55
Negative
Market Momentum
-0.50
Negative
48.65
Neutral
50.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MBLY, the sentiment is Positive. The current price of 14.56 is below the 20-day moving average (MA) of 15.05, below the 50-day MA of 16.04, and below the 200-day MA of 17.55, indicating a neutral trend. The MACD of -0.50 indicates Negative momentum. The RSI at 48.65 is Neutral, neither overbought nor oversold. The STOCH value of 50.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MBLY.
Mobileye Global, Inc. Class A Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $173.44B | 16.76 | 41.96% | 2.14% | 12.13% | 36.17% | |
75 Outperform | $2.87T | 40.06 | 119.18% | 0.03% | 114.20% | 146.26% | |
73 Outperform | $172.48B | 106.10 | 2.89% | ― | 13.69% | 91.75% | |
66 Neutral | $799.98B | 122.02 | 10.52% | ― | 0.95% | -52.81% | |
60 Neutral | $11.82B | ― | -22.88% | ― | -20.44% | -11112.94% | |
59 Neutral | $12.50B | 11.24 | 1.20% | 3.72% | 1.27% | -20.93% | |
54 Neutral | $105.05B | ― | -18.31% | 2.06% | -2.08% | -1212.72% |
* Consumer Cyclical Sector Average
Performance Comparison
MBLY
Mobileye Global, Inc. Class A
15.26
-15.93
-51.07%
AMD
Advanced Micro Devices
113.85
-64.78
-36.26%
INTC
Intel
24.22
-17.18
-41.50%
NVDA
Nvidia
121.41
26.44
27.84%
QCOM
Qualcomm
160.08
-4.15
-2.53%
TSLA
Tesla
278.39
105.76
61.26%
Mobileye Global, Inc. Class A Earnings Call Summary
Earnings Call Date: Jan 30, 2025 | % Change Since: -9.06% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive developments in volume growth and new business wins, but also highlighted challenges with revenue declines and conservative outlooks for 2025. Efforts in technological advancements and customer engagements show promise, though uncertainties in customer volume assumptions and market conditions pose risks.Highlights
EyeQ Volume Increase
EyeQ volume exceeded expectations, up 9% versus Q3, primarily due to higher demand from Chinese domestic OEMs.
Operating Margin Improvement
Operating margin for Q4 was 21%, almost 5 percentage points higher than Q3.
Strong Operating Cash Flow
Operating cash flow remained robust at $400 million, flat compared to 2023, despite revenue and earnings declines.
New Business Wins
Mobileye secured a multimillion-unit RAM data harvesting program with a key customer and began collaboration with an Indian OEM on data harvesting.
Advanced Product Development
Continued progress in advanced product design with expectations for a steady cadence of announcements in 2025.
Lowlights
Revenue and Earnings Declines
Year-over-year revenue and earnings declined due to an inventory digestion period in the first half of 2024.
Conservative Guidance for 2025
Guidance for 2025 was conservatively set, assuming deterioration in customer volumes and challenges in forecasting Chinese OEM output.
SuperVision Volume Assumptions
Assumed SuperVision volumes are low, with most units expected from Polestar 4, impacting revenue projections.
Potential Risks with Key Customers
Concerns about Zeekr potentially choosing an in-house system and conservative assumptions on Polestar volumes due to uncertainty.
Company Guidance
During the Mobileye earnings call, Moran Shemesh, the CFO, provided guidance for 2025, projecting revenue at $1.75 billion and adjusted operating income of $217 million. This guidance represents approximately 6% year-over-year revenue growth and over 10% growth in adjusted operating income. EyeQ volumes are expected between 32 million to 34 million units. The guidance assumes the majority of SuperVision units will be for Polestar 4, with overall volumes in the low 20,000-unit range. Gross margin for 2025 is anticipated to be 1.5 percentage points higher than in 2024, primarily due to a lower percentage of SuperVision-related revenue. Operating expenses are expected to average around $250 million per quarter, consistent with the previous run rate, despite savings from the LIDAR unit wind-down being offset by typical employee compensation inflation and expected military reserve investment. The effective tax rate is projected to remain at approximately 20%, similar to 2024.Mobileye Global, Inc. Class A Corporate Events
Executive/Board Changes
Leadership Changes at Mobileye Global and Intel
Neutral
Dec 2, 2024
Patrick P. Gelsinger has retired from Mobileye Global Inc.’s board as he steps down as Intel’s CEO, with no disputes causing his departure. Meanwhile, Frank D. Yeary takes on the interim role of Intel’s executive chair, temporarily leaving his position on Mobileye’s Audit Committee, with a successor yet to be named.
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.