ParaZero Technologies Ltd. (PRZO) AI Stock Analysis

• Market Cap: $12.85M
• Dividend Yield: N/A
• Average Volume (3M): 681.28K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.24
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 14
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): -0.14
• Shares Outstanding: 16,479,631
• 10 Day Avg. Volume: 486,488
• 30 Day Avg. Volume: 681,283
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 14.21
• Price to Cash Flow (P/CF): N/A
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

ParaZero Technologies Ltd. has substantial financial challenges, with declining revenues and reliance on external funding. While technical indicators show short-term positive momentum, the company’s valuation reflects its current unprofitability, leading to a cautious overall stock score.

ParaZero Technologies Ltd. Business Overview & Revenue Model

Company Description

ParaZero Technologies Ltd. (PRZO) is a technology company specializing in drone safety systems. The company operates within the aerospace and defense sectors, providing innovative safety solutions designed to mitigate risks associated with drone operations. Its core product offerings include autonomous parachute safety systems for commercial and industrial drones, ensuring safe landings in the event of a malfunction or failure.

How the Company Makes Money

ParaZero Technologies Ltd. generates revenue primarily through the sale of its drone safety systems to manufacturers, commercial drone operators, and service providers in the aerospace industry. Key revenue streams include direct sales of parachute systems and associated safety technology. The company may also engage in partnerships with drone manufacturers to integrate its safety solutions into new drone models, thereby expanding its market reach and enhancing its revenue potential. Additionally, ParaZero may offer support and maintenance services for its products, contributing to its overall earnings.

ParaZero Technologies Ltd. Financial Statement Overview

Summary

ParaZero Technologies Ltd. faces significant financial challenges with declining revenues and ongoing losses. While the balance sheet shows improved equity, the company heavily relies on external financing, posing risks without revenue stabilization and operational efficiency improvements.

Income Statement

ParaZero Technologies Ltd. shows a concerning decline in revenue and profitability. The revenue has decreased from $560,118 in 2022 to $168,249 in 2023, indicating a significant downturn. The gross profit margin is negative, and net profit margin is deeply in the red, highlighting ongoing losses. EBIT and EBITDA margins are also negative, reflecting operational inefficiencies.

Balance Sheet

The company's balance sheet presents mixed signals. On the positive side, stockholders' equity is now positive at $6,105,058, reflecting improved capital structure compared to negative equity in previous years. However, the debt-to-equity ratio is very low due to minimal debt, but this is coupled with substantial liabilities relative to assets. The equity ratio has improved, though overall asset base remains small.

Cash Flow

Cash flow analysis reveals a weak financial position. The operating cash flow and free cash flow are both negative, indicating challenges in generating cash from operations. Although there is a significant inflow from financing activities, this reliance on external funding could pose a risk if not managed carefully.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
149.38K	168.25K	560.12K	724.39K	762.41K
	Gross Profit
17.99K	-308.36K	222.55K	259.68K	-86.52K
	EBIT
-1.25M	-2.80M	-1.84M	-987.43K	-1.32M
	EBITDA
-1.43M	-3.60M	-1.62M	-969.80K	-1.30M
	Net Income Common Stockholders
-1.43M	-3.77M	-1.65M	-615.38K	-1.94M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.43M	7.43M	89.81K	33.02K	144.74K
	Total Assets
8.42M	8.42M	1.15M	532.74K	763.07K
	Total Debt
7.54K	7.54K	452.67K	6.65M	6.23M
	Net Debt
-7.42M	-7.42M	362.86K	6.62M	6.08M
	Total Liabilities
2.32M	2.32M	2.79M	7.15M	6.76M
	Stockholders Equity
6.11M	6.11M	-1.64M	-6.62M	-6.00M
Cash Flow		Free Cash Flow
-559.53K	-2.96M	-1.98M	-991.47K	-830.05K
	Operating Cash Flow
-1.25M	-2.94M	-1.97M	-985.90K	-829.35K
	Investing Cash Flow
-35.98K	-25.76K	-9.72K	-5.57K	-695.00
	Financing Cash Flow
2.66M	10.30M	2.04M	910.56K	868.74K

ParaZero Technologies Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRZO, the sentiment is Negative. The current price of 0.78 is below the 20-day moving average (MA) of 1.01, below the 50-day MA of 1.57, and below the 200-day MA of 0.95, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 30.05 is Neutral, neither overbought nor oversold. The STOCH value of 35.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRZO.

ParaZero Technologies Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$8.16B	12.85	0.64%	3.04%	3.83%	-15.83%
PRZO	51 Neutral	$12.85M	―	-512.37%	―	―	―
ACHR	43 Neutral	$3.69B	―	-95.88%	―	―	17.43%
SPCE	40 Underperform	$107.30M	―	-83.78%	―	3.47%	53.31%
JOBY	40 Underperform	$4.75B	―	-62.47%	―	-86.82%	-7.68%
DM	38 Underperform	$66.02M	―	-152.96%	―	-14.97%	22.83%
RDW	38 Underperform	$754.59M	―	-451.56%	―	24.73%	-219.97%