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Vuzix Corporation (VUZI)
NASDAQ:VUZI
Top Page
Vuzix
(NASDAQ:VUZI)
50Neutral
Positive Factors
Growth Opportunities
Upside scenarios over the next several quarters include a major consumer electronics manufacturing OEM agreement(s), significant defense & aerospace potential, and other engineering services opportunities materializing.
Investment and Development
The investment is planned to be used to support the expansion of Vuzix's waveguide production capabilities and joint development of new AR smart glasses technologies.
Strategic Partnerships
The infusion of investment capital from Quanta provides much needed balance sheet support for the company and expands the strategic partnership with a key global manufacturer that could likely drive exponential growth in demand for waveguides as the market matures and Quanta develops new products.
Negative Factors
Financial Health
The cash burn is becoming a serious issue with the company experiencing a cash burn of $(5.6)mn against a cash balance at the end of the quarter of $9.9mn.
Potential Risks
Downside scenarios include a lack of big contract manufacturing arrangements, below-cost liquidation of inventory, and solvency issues that could force less than ideal capital raising via the ATM or high yield debt.
Revenue Performance
Revenue was well below expectations due to significantly slower glasses sales as the company is now more focused on the OEM opportunities.
Vuzix (VUZI) vs. S&P 500 (SPY)
Market Cap
$178.89M
Dividend YieldN/A
Average Volume (3M)1.82M
Price to Earnings (P/E)―
Beta (1Y)1.53
Revenue Growth-60.25%
EPS Growth-87.45%
CountryUS
Employees94
SectorTechnology
Sector Strength45
IndustryHardware & Equipment
Share Statistics
EPS (TTM)-1.22
Shares Outstanding73,615,486
10 Day Avg. Volume1,493,972
30 Day Avg. Volume1,821,862
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)36.61
Price to Cash Flow (P/CF)-9.60
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
$2.00Price Target Upside-13.79% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Vuzix Business Overview & Revenue Model
Company DescriptionVuzix Corporation (VUZI) is a leading designer, manufacturer, and supplier of smart glasses and augmented reality (AR) technologies and products for the consumer and enterprise markets. Founded in 1997 and headquartered in Rochester, New York, Vuzix focuses on developing innovative wearable display devices that provide users with hands-free access to data, enhancing productivity and efficiency. The company's core products include AR smart glasses and accessories that cater to a wide range of applications in sectors such as healthcare, logistics, manufacturing, and field service.
How the Company Makes MoneyVuzix makes money primarily by selling its smart glasses and related products to both enterprise and consumer markets. Revenue is generated through direct sales, distribution partnerships, and licensing agreements. The company collaborates with various industries to integrate its AR solutions into existing workflows, thereby enhancing operational efficiencies. Key revenue streams include the sale of hardware units, software solutions, and service contracts. Vuzix also benefits from strategic partnerships with technology companies and system integrators, which help expand its market reach and product adoption. Additionally, the company occasionally receives grants and funding for research and development from government and industry entities, contributing to its earnings.
Vuzix Financial Statement Overview
Summary
Vuzix's financial performance exhibits significant challenges, with deeply negative income and cash flow metrics highlighting ongoing operational losses and cash burn. The balance sheet provides some stability with low debt levels, but the negative return on equity due to continuous losses is concerning.Income Statement
Vuzix's income statement reveals significant challenges. The gross profit margin is negative, indicating cost issues relative to revenue. The net profit margin is also negative, reflecting substantial losses. Revenue has declined significantly in the TTM compared to the previous annual period, showing a concerning growth trajectory. Margins like EBIT and EBITDA are deeply negative, highlighting persistent operational losses.35
Negative
Balance Sheet
The balance sheet shows a relatively low debt burden, with a debt-to-equity ratio that is minimal. However, the return on equity is negative due to ongoing net losses. The equity ratio is strong, indicating that a substantial portion of the company’s assets is financed by equity, which adds a layer of stability despite operational losses.50
Neutral
Cash Flow
Cash flow analysis shows negative free cash flow, with a decline from the previous period indicating cash burn challenges. The operating cash flow is negative, further stressing liquidity. Ratios like operating cash flow to net income and free cash flow to net income are not favorable, highlighting inefficiencies in converting income into cash flow.40
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 5.55M | 12.13M | 11.84M | 13.16M | 11.58M | 6.67M | Gross Profit |
| -5.86M | -1.75M | 1.48M | 2.45M | 1.93M | -4.41M | EBIT |
| -80.52M | -52.30M | -42.10M | -39.72M | -19.05M | -26.57M | EBITDA |
| -45.63M | -45.42M | -39.89M | -37.59M | -14.92M | -23.81M | Net Income Common Stockholders |
| -79.76M | -50.15M | -39.30M | -40.64M | -18.03M | -26.48M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 17.26M | 26.56M | 72.56M | 120.20M | 36.07M | 10.61M | Total Assets |
| 35.13M | 86.15M | 132.31M | 148.47M | 52.47M | 28.45M | Total Debt |
| 0.00 | 301.19K | 956.16K | 1.12M | 1.52M | 2.10M | Net Debt |
| -17.26M | -26.25M | -71.61M | -119.09M | -34.55M | -8.51M | Total Liabilities |
| 4.68M | 5.35M | 15.58M | 4.74M | 4.17M | 4.21M | Stockholders Equity |
| 30.46M | 80.79M | 116.73M | 143.73M | 48.30M | 24.24M |
| Cash Flow | Free Cash Flow | ||||
| -29.84M | -42.86M | -43.39M | -31.83M | -15.45M | -25.26M | Operating Cash Flow |
| -25.86M | -26.28M | -24.52M | -26.98M | -13.96M | -22.36M | Investing Cash Flow |
| -7.92M | -19.28M | -21.17M | -4.85M | -1.49M | -3.16M | Financing Cash Flow |
| -439.11M | -449.56K | -1.95M | 115.97M | 40.91M | 18.86M |
Vuzix Technical Analysis
Negative
2.32
Price Trends
3.67
Negative
2.83
Negative
2.01
Positive
Market Momentum
-0.35
Positive
31.68
Neutral
15.09
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VUZI, the sentiment is Negative. The current price of 2.32 is below the 20-day moving average (MA) of 3.28, below the 50-day MA of 3.67, and above the 200-day MA of 2.01, indicating a neutral trend. The MACD of -0.35 indicates Positive momentum. The RSI at 31.68 is Neutral, neither overbought nor oversold. The STOCH value of 15.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VUZI.
Vuzix Risk Analysis
Vuzix disclosed 39 risk factors in its most recent earnings report. Vuzix 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
Vuzix Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $1.50B | 21.41 | 9.11% | 3.25% | -4.43% | 56.02% | |
65 Neutral | $244.33M | 7.51 | 29.19% | 2.18% | ― | ― | |
58 Neutral | $208.03M | ― | -169.61% | ― | 0.60% | -115.20% | |
58 Neutral | $21.35B | 10.05 | -19.26% | 2.35% | 5.02% | -22.63% | |
55 Neutral | $245.23M | ― | -103.99% | ― | 277.53% | 1.16% | |
50 Neutral | $178.89M | ― | -117.97% | ― | -60.25% | -87.45% |
* Technology Sector Average
Performance Comparison
VUZI
Vuzix
2.32
0.92
65.71%
HIMX
Himax Technologies
8.49
2.88
51.34%
IMMR
Immersion
7.76
-0.05
-0.64%
KOPN
Kopin
1.34
-0.98
-42.24%
MVIS
Microvision
1.09
-1.22
-52.81%
Vuzix Earnings Call Summary
Earnings Call Date: Nov 14, 2024 | % Change Since: 114.81% | Next Earnings Date: Mar 13, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced outlook for Vuzix, with significant strategic partnerships and cost reductions offsetting the challenges of declining revenue and increased gross loss. The company's focus on OEM and consumer markets, along with reduced operating expenses, indicates a potential for future growth despite current financial hurdles.Highlights
Strategic Partnership with Quanta Computer
Quanta's $20 million investment in Vuzix, with $10 million already received, aimed at revolutionizing the AR industry and expanding the production of waveguides for AI-driven Smart Glasses.
Reduction in Cash Operating Expenses
Achieved a 28% year-over-year reduction in quarterly cash operating expenses, down to $4.8 million, through targeted cost reduction initiatives.
Strengthened Presence in Defense and Industrial Sectors
Expanded partnerships, such as with Thales, to deliver high-margin, mission-critical AR solutions.
Waveguide Manufacturing Capabilities
Vuzix's manufacturing facility is positioned to supply millions of units per year, with low production costs and scalable capacity.
Expanding Consumer and OEM Markets
Transitioning focus from enterprise to consumer markets, leveraging partnerships with major OEMs and fashion brands for scalable AR solutions.
Lowlights
Decrease in Total Revenues
Total revenues decreased by 36% to $1.4 million compared to $2.2 million in the previous year, due to a decline in Smart Glass product sales and Engineering Services revenues.
Increased Gross Loss
Gross loss increased by 9% compared to the previous year, attributed to lower product revenues and reduced production rates.
Challenges in Smart Glass Product Sales
Smart Glass product sales decreased by 28% year-over-year, impacting overall revenue performance.
Company Guidance
In the Vuzix Q3 2024 earnings call, significant guidance was provided regarding the company's strategic direction and financial performance. Vuzix emphasized its transition towards OEM markets, bolstered by a $20 million investment from Quanta Computer, with the first $10 million tranche already received. The company reported a 36% decrease in total revenues to $1.4 million, attributed to lower Smart Glass product sales and reduced engineering services revenues. Despite this, Vuzix achieved a 28% reduction in quarterly cash operating expenses to $4.8 million, extending its financial runway. The cash position stood at $14.3 million, with no debt obligations, supported by a recent $10 million investment. Vuzix is focusing on scaling its Waveguide production to meet growing demand from defense and OEM clients, anticipating significant revenue growth through strategic partnerships and market expansion. The call highlighted ongoing efforts to position Vuzix as a leader in the AR and AI Smart Glasses market, with a focus on OEM opportunities and expanding consumer adoption through collaborations with global fashion brands.Vuzix Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Vuzix Announces 2023 Equity Incentive Plan Changes
Neutral
Jan 8, 2025
Vuzix Corporation announced the granting of restricted stock units (RSUs) to its top executives and management employees as part of its 2023 Equity Incentive Plan. This move, pending shareholder approval, involves surrendering previously granted unvested options and aims to align management incentives with performance goals, potentially impacting the company’s operational strategy and shareholder value.
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.