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SES AI Corporation Class A (SES)
NYSE:SES
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SES AI Corporation Class A
(NYSE:SES)
41Neutral
SES AI Corporation Class A (SES) vs. S&P 500 (SPY)
Market Cap
$246.18M
Dividend YieldN/A
Average Volume (3M)26.62M
Price to Earnings (P/E)―
Beta (1Y)3.24
Revenue GrowthN/A
EPS Growth-83.20%
CountryUS
Employees250
SectorConsumer Cyclical
Sector Strength51
IndustryAuto - Parts
Share Statistics
EPS (TTM)-0.31
Shares Outstanding320,778,600
10 Day Avg. Volume49,928,109
30 Day Avg. Volume26,623,742
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)94.15
Price to Cash Flow (P/CF)-3.90
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$1.00Price Target Upside47.06% Upside
Rating ConsensusHold
Number of Analyst Covering1
SES AI Corporation Class A Business Overview & Revenue Model
Company DescriptionSES AI Corporation Class A (SES) is a technology company focused on the development and commercialization of high-performance lithium-metal rechargeable batteries. These batteries are designed for use in electric vehicles and other applications that require high energy density and safety. SES combines advanced materials, cell design, and manufacturing processes to deliver innovative battery solutions that aim to enhance the performance and efficiency of electric vehicles.
How the Company Makes MoneySES 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 in the early stages of revenue generation with its first reported revenue in 2024. Despite a solid equity position, the company faces significant profitability and cash flow challenges, as evidenced by negative margins and cash flows. The low leverage suggests financial stability, but ongoing losses and cash burn indicate potential risks unless the company can stabilize and grow its operations.Income Statement
SES AI Corporation has seen its revenue increase to $2.04 million in 2024, indicating initial revenue generation after several years. However, the company continues to face significant losses, with a net income of -$100.19 million in 2024, resulting in a negative net profit margin. The company is yet to achieve positive EBIT and EBITDA margins, reflecting ongoing operational challenges.15
Very Negative
Balance Sheet
SES AI Corporation's balance sheet shows a strong equity position with a stockholders' equity of $278.31 million against total assets of $329.79 million, leading to an equity ratio of approximately 84.4%. However, the company has a modest debt level with a total debt of $10.56 million, resulting in a low debt-to-equity ratio. The negative net income affects the return on equity, highlighting challenges in profitability.40
Negative
Cash Flow
The company reported negative free cash flow of -$78.29 million in 2024, with operating cash flow also remaining negative. Despite a significant amount of cash and short-term investments, the free cash flow to net income ratio illustrates continued cash flow challenges. The operating cash flow to net income ratio is unfavorable, indicating inefficiencies in cash generation relative to net losses.25
Negative
| 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 |
| -109.25M | -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
Positive
0.68
Price Trends
0.84
Negative
0.77
Negative
0.88
Negative
Market Momentum
-0.07
Negative
47.79
Neutral
72.16
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 0.68 is above the 20-day moving average (MA) of 0.55, below the 50-day MA of 0.84, and below the 200-day MA of 0.88, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 47.79 is Neutral, neither overbought nor oversold. The STOCH value of 72.16 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 Risk Analysis
SES AI Corporation Class A disclosed 53 risk factors in its most recent earnings report. SES AI Corporation Class A 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
SES AI Corporation 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 |
|---|---|---|---|---|---|---|---|
59 Neutral | $12.68B | 11.14 | 0.97% | 3.72% | 1.33% | -21.21% | |
59 Neutral | $205.12M | ― | -26.15% | ― | ― | -457.87% | |
52 Neutral | $209.29M | ― | -21.13% | ― | 15.67% | -45.59% | |
46 Neutral | $2.48B | ― | -38.29% | ― | ― | 2.40% | |
45 Neutral | $548.38M | ― | -38.88% | ― | -30.80% | -84.41% | |
44 Neutral | $1.67B | ― | -88.04% | ― | 1429.35% | -36.13% | |
41 Neutral | $246.18M | ― | -31.44% | ― | ― | -83.20% |
* Consumer Cyclical Sector Average
Performance Comparison
SES
SES AI Corporation Class A
0.63
-1.03
-62.05%
TSE:BLDP
Ballard Power Systems
1.77
-2.01
-53.17%
TE
T1 Energy
1.40
-0.25
-15.15%
QS
QuantumScape
4.57
-1.65
-26.53%
ENVX
Enovix
8.14
0.11
1.37%
SLDP
Solid Power
1.09
-0.83
-43.23%
SES AI Corporation Class A Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: -19.05% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive transition for SES AI as it moves from a pre-revenue to a revenue-generating entity. The company achieved significant milestones, including first-time revenue generation and high gross margins, alongside strategic expansions into new markets such as drones and BESS. However, high operating expenses and cash usage remain challenges, and the dependence on contract manufacturing could pose supply chain risks. Overall, the positive developments outweigh the concerns.Highlights
First Revenue Generation
SES AI reported revenue for the first time in the fourth quarter of 2024, marking a significant milestone in its transition from a pre-revenue company to a revenue-generating business.
High Gross Margin
The company achieved a 63% gross margin in the fourth quarter, indicating strong value proposition and efficiency in its new business model.
Significant Contracts in EV and BESS Sectors
SES AI signed contracts totaling up to $10 million for AI-enhanced batteries with two automotive OEM partners and an MOU with AISPEX worth up to $45 million for Battery Energy Storage Systems (BESS).
Expansion into New Markets
The company is expanding into drones, robotics, and Battery Energy Storage Systems, leveraging its AI technology to enhance battery performance and safety.
Strong Liquidity Position
SES AI ended the quarter with a liquidity position of $262.5 million, ensuring its ability to fund ongoing and future projects.
Lowlights
High Operating Expenses
GAAP operating expenses were $30.4 million for the quarter, driven primarily by research, development, and general administrative costs.
Cash Usage Concerns
The company utilized $12.3 million in cash from operations and invested $0.2 million in capital expenditures during the quarter, highlighting ongoing cash flow challenges.
Dependency on Contract Manufacturing
SES AI's reliance on contract manufacturing, primarily in Asia, presents potential supply chain sensitivities, especially for drone customers.
Company Guidance
In the SES AI fourth quarter 2024 earnings call, the company provided guidance on its strategic shift towards becoming a revenue-generating business with diverse income streams. SES AI reported its first-ever revenue of $2 million for the quarter, driven by contracts with automotive OEMs for AI-enhanced lithium-metal and lithium-ion batteries, achieving a 63% gross margin. Looking ahead, SES AI anticipates 2025 revenue to range between $15 million and $25 million, emphasizing growth in sectors such as Electric Vehicles (EVs), drones, robotics, and Battery Energy Storage Systems (BESS), with a significant contract in place for up to 100-megawatt hours of BESS solutions. The company forecasts total cash usage of $70 million to $80 million for operations and capital expenditures in 2025, while maintaining strong liquidity of $262.5 million to support its strategic initiatives and expansion into new markets.SES AI Corporation Class A Corporate Events
Delistings and Listing ChangesStock Split
SES AI Corporation Faces NYSE Delisting Notice
Negative
Mar 12, 2025
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.
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.