Odysightai (ODYS) AI Stock Analysis

• Market Cap: $93.77M
• Dividend Yield: N/A
• Average Volume (3M): 17.36K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.34
• Revenue Growth: 30.70%
• EPS Growth: -1.05%
• Country: US
• Employees: 61
• Sector: Technology
• Sector Strength: 49
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -1.03
• Shares Outstanding: 16,307,322
• 10 Day Avg. Volume: 10,902
• 30 Day Avg. Volume: 17,357
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 21.37
• Price to Cash Flow (P/CF): -11.20
• P/FCF Ratio: 0.00
• 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: $10.00
• Price Target Upside: 76.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Odysightai's overall score is driven by its strong revenue growth contrasted by ongoing profitability challenges and negative cash flow. The technical analysis shows mixed signals with potential short-term gains but overall bearish sentiment. Valuation concerns arise from the current lack of profitability and dividend yield. Despite a positive corporate event indicating improved governance, financial performance remains a significant risk.

Positive Factors

Contracts and Partnerships

ODYS is a pioneer of visual sensing and advanced AI models for predictive maintenance, winning several contracts for aerospace and defense platforms.

Growth and Expansion

ODYS is experiencing hypergrowth within the Aerospace and Defense customer set, with backlog growth supporting its valuation.

Innovative Offerings

ODYS's system offers retro-fits, real-time monitoring, and instant value, which is well-suited for the aerospace and defense market.

Negative Factors

Market Competition

ODYS's holistic offering could be the key to unlocking the Department of Defense's decades-long efforts at jump-starting predictive maintenance and condition-based monitoring.

Odysightai Business Overview & Revenue Model

Company Description

Odysight.ai Inc., together with its subsidiaries, develops, produces, and markets visual sensing and AI-based video analytics solutions in Israel, the United States, the United Kingdom, and internationally. The company, through its visualization technology offers solutions across predictive maintenance and condition-based monitoring markets in various sectors, such as medical, defense, energy, automotive, transportation, aviation, maritime, and industrial non-destructing-testing. Odysight.ai Inc. is based in Omer, Israel.

How the Company Makes Money

Odysightai generates revenue primarily through the sale and licensing of its AI-powered software solutions to enterprises across different sectors. The company offers subscription-based models for its software services, allowing clients to access and utilize its visual data processing tools on a recurring basis. Additionally, Odysightai engages in strategic partnerships with industry leaders, integrating its AI technologies into broader systems and platforms, which contributes to its revenue streams. Custom AI solution development and consulting services for clients seeking specific implementations also play a significant role in the company's earnings. These diversified revenue streams, along with ongoing advancements and updates to their technology, help sustain Odysightai's financial growth and market presence.

Odysightai Financial Statement Overview

Summary

Odysightai exhibits significant revenue growth but remains unprofitable with negative margins and cash flow. Despite a strong equity position and low leverage, the company struggles with sustaining positive cash flow and return on equity, indicating potential risks if profitability does not improve.

Income Statement

The company experienced a significant revenue increase from $303,300 to $3,964,000 (30.7% growth) from 2023 to 2024, indicating strong growth potential. However, substantial losses in EBIT and Net Income margins (-315.6% EBIT Margin and -296.8% Net Profit Margin in 2024) highlight ongoing profitability challenges which weigh heavily on the score.

Balance Sheet

Strong equity position with an equity ratio of 77.1% in 2024, indicating stability. The debt-to-equity ratio is low (0.06), reflecting low leverage and financial safety. However, the negative ROE of -64.5% in 2024 indicates inefficiencies in generating profit from equity.

Cash Flow

The company shows improvement in operating cash flow from -$10,009,000 to -$8,217,000, indicating better cash management. However, the free cash flow remains negative, affecting the overall liquidity. The free cash flow to net income ratio of 0.70 shows improvement but still suggests challenges in covering net losses with cash flow.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.96M	3.03M	665.00K	387.00K	491.00K
	Gross Profit
1.16M	509.00K	-966.00K	-721.00K	-503.00K
	EBIT
-12.51M	-10.63M	-9.44M	-9.11M	-4.71M
	EBITDA
-12.38M	-10.35M	-9.19M	-9.00M	-4.64M
	Net Income Common Stockholders
-11.77M	-9.45M	-9.47M	-8.99M	-4.67M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
18.16M	17.04M	13.15M	19.59M	3.37M
	Total Assets
23.68M	22.83M	16.89M	23.55M	5.89M
	Total Debt
1.05M	1.33M	263.00K	498.00K	107.00K
	Net Debt
-17.12M	-7.62M	-9.84M	-8.08M	-3.27M
	Total Liabilities
5.43M	5.02M	5.11M	3.93M	1.93M
	Stockholders Equity
18.24M	17.81M	11.79M	19.62M	3.96M
Cash Flow		Free Cash Flow
-8.27M	-10.12M	-6.21M	-6.48M	-4.46M
	Operating Cash Flow
-8.22M	-10.01M	-6.09M	-5.89M	-4.19M
	Investing Cash Flow
7.64M	-5.11M	7.88M	-11.60M	-276.00K
	Financing Cash Flow
9.82M	13.81M	0.00	22.56M	4.51M

Odysightai Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.67
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ODYS, the sentiment is Negative. The current price of 5.67 is below the 20-day moving average (MA) of 6.31, below the 50-day MA of 6.74, and below the 200-day MA of 6.58, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 56.73 is Neutral, neither overbought nor oversold. The STOCH value of 77.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ODYS.

Odysightai Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLTR	77 Outperform	$207.78B	468.27	10.90%	―	28.79%	112.38%
Sector *	57 Neutral	$19.52B	9.58	-12.47%	2.79%	5.43%	-24.71%
UPST	52 Neutral	$3.66B	―	-20.27%	―	24.50%	49.38%
ODYS	47 Neutral	$93.77M	―	-65.28%	―	30.70%	-1.05%
SOUN	43 Neutral	$3.27B	―	-332.68%	―	84.62%	-152.92%
VERI	41 Neutral	$100.88M	―	-365.12%	―	-16.08%	-72.09%
AIHS	37 Underperform	$9.30M	―	-408.12%	―	-44.34%	27.19%

Odysightai Corporate Events

Odysightai Approves CEO Salary Increase and Bonuses

On March 10, 2025, Odysight.ai Inc. announced that its Board of Directors approved a salary increase for CEO Yehu Ofer, raising his monthly base salary from NIS 80,000 to NIS 90,000, effective January 1, 2025. Additionally, Ofer received a cash bonus of $142,500 and 150,000 stock options under the company’s 2024 Stock Incentive Plan. CFO Einav Brenner was also awarded a cash bonus of $95,000. These decisions reflect the company’s commitment to rewarding its executives and could impact its operational dynamics and stakeholder relations.

Odysightai Enhances Governance with New Agreements

On January 23, 2025, Odysight.ai Inc.’s Board of Directors approved a new indemnification agreement for its directors and officers, updating previous agreements to ensure maximum protection under Nevada law. This move aims to enhance the company’s governance framework by offering comprehensive indemnification and expense advancement to current and future directors and officers, strengthening their legal protections.