Symbotic (SYM) AI Stock Analysis

• Market Cap: $13.17B
• Dividend Yield: N/A
• Average Volume (3M): 1.59M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.81
• Revenue Growth: 44.84%
• EPS Growth: 41.00%
• Country: US
• Employees: 1,650
• Sector: Industrials
• Sector Strength: 70
• Industry: Shell Companies
• EPS (TTM): -0.12
• Shares Outstanding: 107,704,510
• 10 Day Avg. Volume: 1,282,840
• 30 Day Avg. Volume: 1,592,398
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 6.91
• Price to Cash Flow (P/CF): 16.10
• P/FCF Ratio: 16.10
• 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: $35.00
• Price Target Upside: 56.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

Symbotic's stock is bolstered by strong financial performance, particularly in revenue growth and cash flow management, along with strategic acquisitions that enhance future prospects. However, current technical indicators suggest a bearish trend, and valuation remains challenging due to ongoing net losses. Positive earnings call sentiment and corporate events further support a favorable outlook, although profitability improvements are necessary for a higher score.

Positive Factors

Partnerships and Expansion

WMT is displaying the ability to expand meaningfully with SYM, both internationally and in store.

Strategic Acquisitions

The acquisition deepens SYM's relationship with WMT as a provider of robotic automation solutions.

Technology and Market Potential

The technology itself is unique and is being deployed into a market with little to no real penetration.

Negative Factors

Financial Performance

Symbotic reported fiscal first quarter revenue towards the lower end of the Company's revised guidance range, while adjusted EBITDA missed the guidance range.

Operational Execution

Confidence in the company's ability to execute its core backlog and improve system deployment rates has been shaken due to inconsistent execution.

Regulatory and Legal Challenges

SYM received a SEC subpoena related to its restatement process adding to the already disclosed investigation related to alleged whistleblower violations.

Symbotic Business Overview & Revenue Model

Company Description

Symbotic Inc., an automation technology company, provides robotics and technology to improve efficiency for retailers and wholesalers in the United States. It offers The Symbotic System, a full-service warehouse automation system that reduces costs, improves efficiency, and maximizes inventory. The company is based in Wilmington, Massachusetts.

How the Company Makes Money

Symbotic generates revenue through the sale and deployment of its automation systems and related services. The company earns money by designing and integrating robotic systems tailored to the specific needs of its clients, which often involves long-term contracts and ongoing support and maintenance services. Key revenue streams include the initial sale and installation of automated warehouse systems, software licensing fees, and recurring revenue from maintenance and support services. Significant partnerships with major retailers and distribution companies are crucial, as they drive large-scale implementations and provide a steady stream of income. Symbotic's earnings are also influenced by the growing demand for automation in logistics, driven by the need for increased efficiency and cost savings in supply chain operations.

Symbotic Financial Statement Overview

Summary

Symbotic demonstrates robust revenue growth and cash flow improvements, with a sound balance sheet free of debt. However, the persistence of net losses affects profitability metrics. Focusing on achieving profitability could enhance financial performance further. The company's strong cash position and growth trajectory provide a solid foundation for future improvements.

Income Statement

Symbotic's income statement shows strong revenue growth with a TTM revenue increase of approximately 6.6% compared to the previous annual period. The gross profit margin is 13.4% for the TTM, but the company is still operating at a net loss with a negative EBIT margin of -6.4%. Despite the net loss, the EBITDA margin improved slightly, indicating operational efficiencies. The consistent revenue growth trajectory is a key strength, though continued net losses present a risk.

Balance Sheet

The balance sheet is stable with no long-term debt, resulting in a strong equity position. The equity ratio stands at 22.97% in the TTM. Return on equity is negative due to net losses, but cash reserves are strong, bolstering financial flexibility. The absence of debt is a significant strength, while the challenge is achieving positive ROE.

Cash Flow

Cash flow analysis reveals positive trends with significant free cash flow growth in the TTM, backed by positive operating cash flow to net income ratio. Free cash flow turned positive, reflecting improved cash management. The company has effectively reversed negative free cash flow seen in prior periods, which is a strong indicator of financial health.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
1.91B	1.79B	1.18B	593.31M	251.91M	92.09M
	Gross Profit
255.60M	245.67M	189.74M	99.65M	10.45M	-18.93M
	EBIT
-122.31M	-116.72M	-223.23M	-140.38M	-122.38M	-110.38M
	EBITDA
-105.18M	-93.25M	-203.04M	-134.39M	-117.89M	-104.64M
	Net Income Common Stockholders
-15.04M	-13.49M	-23.87M	-77.71M	-122.31M	-109.52M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
903.03M	727.31M	545.51M	353.46M	156.63M	58.26M
	Total Assets
1.72B	1.58B	1.05B	631.26M	280.54M	224.95M
	Total Debt
0.00	0.00	13.64M	0.00	0.00	17.75K
	Net Debt
-903.03M	-727.31M	-258.77M	-353.46M	-156.63M	-58.25M
	Total Liabilities
1.32B	1.19B	1.05B	562.32M	1.39B	1.07B
	Stockholders Equity
393.93M	390.13M	82.00K	7.18M	-1.11B	-844.47M
Cash Flow		Free Cash Flow
128.37M	-102.45M	209.47M	-166.20M	97.40M	-129.38M
	Operating Cash Flow
177.10M	-58.08M	230.79M	-148.25M	109.57M	-124.31M
	Investing Cash Flow
32.44M	156.48M	-299.46M	-17.95M	-12.17M	-5.06M
	Financing Cash Flow
208.53M	371.04M	-24.10M	362.45M	324.20M	100.00M

Symbotic Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 22.39
• 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 SYM, the sentiment is Neutral. The current price of 22.39 is above the 20-day moving average (MA) of 22.09, below the 50-day MA of 25.92, and below the 200-day MA of 27.92, indicating a neutral trend. The MACD of -1.00 indicates Negative momentum. The RSI at 50.99 is Neutral, neither overbought nor oversold. The STOCH value of 77.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SYM.

Symbotic Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TER	73 Outperform	$14.15B	26.35	20.29%	0.55%	5.52%	16.59%
SYM	70 Outperform	$13.17B	―	-17.18%	―	44.84%	41.00%
ROK	69 Neutral	$29.26B	32.20	26.22%	1.98%	-11.28%	-23.69%
Sector *	62 Neutral	$8.27B	14.03	2.36%	3.08%	3.85%	-14.32%
CARG	57 Neutral	$3.28B	173.67	3.62%	―	-2.17%	-26.53%
KNDI	48 Neutral	$131.04M	―	-1.59%	―	-11.61%	-22.20%
IRBT	44 Neutral	$105.36M	―	-112.92%	―	-23.06%	56.09%

Symbotic Corporate Events

Symbotic Reports Strong Revenue Growth and Strategic Acquisition

Symbotic Inc. reported its financial results for the first fiscal quarter of 2025, showcasing significant growth with a 35% year-over-year increase in revenue, reaching $487 million. The company completed the acquisition of Walmart’s Advanced Systems and Robotics business, which is expected to further strengthen its market position and drive exceptional results for stakeholders. Looking ahead, Symbotic anticipates continued revenue growth of at least 30% in the second quarter of fiscal 2025.

Symbotic Expands Market with Walmart Automation Deal

On January 28, 2025, Symbotic Inc. announced the completion of its acquisition of Walmart’s Advanced Systems and Robotics business and signed a Commercial Agreement with Walmart. The deal involves the development and deployment of automation systems for Accelerated Pickup and Delivery centers at Walmart stores, potentially increasing Symbotic’s future backlog by over $5 billion. The agreement includes Walmart’s commitment to purchase 400 APDs, with an option for 200 more, subject to performance metrics. The transaction is expected to expand Symbotic’s market reach by over $300 billion in the U.S., strengthening its position in the retail automation industry.

Symbotic Acquires Walmart’s Robotics Business, Boosts Partnership

On January 15, 2025, Symbotic Inc. agreed to acquire Walmart’s Advanced Systems & Robotics business, strengthening their long-term partnership to automate Walmart’s supply chain. This acquisition, along with a new Commercial Agreement, aims to enhance Walmart’s Accelerated Pickup and Delivery systems, potentially adding over $5 billion to Symbotic’s future backlog and expanding its market reach by $300 billion in the U.S. The transaction includes a $200 million cash payment and contingent considerations up to $350 million, contingent on the number of systems ordered. This strategic move is expected to close in Symbotic’s fiscal second quarter of 2025, further integrating Symbotic’s technology into Walmart’s operations.