Wrap Technologies (WRAP) AI Stock Analysis

• Market Cap: $87.18M
• Dividend Yield: N/A
• Average Volume (3M): 191.66K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.34
• Revenue Growth: -53.65%
• EPS Growth: -9.65%
• Country: US
• Employees: 52
• Sector: Technology
• Sector Strength: 43
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.41
• Shares Outstanding: 45,882,900
• 10 Day Avg. Volume: 122,755
• 30 Day Avg. Volume: 191,665
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 22.45
• Price to Cash Flow (P/CF): 72.00
• P/FCF Ratio: 72.00
• 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

Wrap Technologies' score is influenced by significant financial challenges, including declining revenues and profitability, high leverage, and negative cash flows. However, positive technical indicators suggest some investor confidence, and the recent corporate event of regaining Nasdaq compliance adds a layer of stability. Despite these positives, the negative valuation metrics and lack of earnings call guidance weigh heavily on the stock's overall score.

Wrap Technologies Business Overview & Revenue Model

Company Description

Wrap Technologies, Inc., a public safety technology and services company, develops policing solutions to law enforcement and security personnel. The company develops BolaWrap 150, a hand-held remote restraint device that discharges a Kevlar cord to restrain noncompliant individuals from a range of 10-25 feet. It operates in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company was founded in 2016 and is based in Tempe, Arizona.

How the Company Makes Money

Wrap Technologies generates revenue primarily through the sale of its BolaWrap devices, accessories, and associated training services. The company sells its products directly to law enforcement agencies and public safety organizations, both domestically and internationally. Revenue streams are bolstered through recurring sales of consumables like cartridges used in the BolaWrap device, as well as revenue from training programs designed to educate officers on the effective use of the product. Additionally, strategic partnerships and collaborations with law enforcement bodies and distribution partners help expand the company's market reach and contribute to its earnings.

Wrap Technologies Financial Statement Overview

Summary

Wrap Technologies faces challenges across all financial statements. Declining revenues and profitability, coupled with increased leverage and negative cash flows, highlight operational and financial difficulties. The company needs strategic measures to improve revenue generation, cost management, and cash flow to enhance its financial stability and performance.

Income Statement

The company has experienced declining revenue from 2022 to TTM (Trailing-Twelve-Months) with a negative revenue growth rate. Gross profit margin stands at approximately 41.7% for TTM, which is relatively solid but offset by negative EBIT and net profit margins indicating significant operational and net losses. Overall, the income statement indicates financial challenges with declining profitability.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio, reflecting increased financial leverage risk. The equity ratio has decreased significantly in the latest period, indicating reduced financial stability. However, the company still maintains a positive stockholders' equity, which provides some cushion against liabilities. The balance sheet suggests potential risks due to leverage and changing financial structure.

Cash Flow

The cash flow statement reveals negative operating and free cash flows, with a slight improvement in free cash flow growth. The operating cash flow to net income ratio remains negative, indicating cash flow issues. Overall, cash flow challenges persist, emphasizing the need for improved cash management and operational efficiency.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
4.23M	6.13M	8.05M	7.73M	3.94M	696.79K
	Gross Profit
1.76M	2.91M	3.73M	2.00M	1.34M	276.77K
	EBIT
-17.57M	-18.72M	-17.73M	-24.50M	-13.08M	-8.61M
	EBITDA
-17.18M	-17.90M	-16.97M	-23.88M	-12.91M	-8.57M
	Net Income Common Stockholders
-16.68M	-30.22M	-17.28M	-24.42M	-12.50M	-8.32M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.46M	11.46M	19.28M	34.92M	41.64M	16.98M
	Total Assets
28.50M	28.50M	30.57M	44.23M	48.83M	20.42M
	Total Debt
2.29M	2.29M	301.00K	56.00K	369.00K	278.15K
	Net Debt
-1.67M	-1.67M	-5.03M	-4.88M	-16.28M	-16.71M
	Total Liabilities
25.34M	25.34M	3.52M	2.97M	2.42M	1.23M
	Stockholders Equity
3.16M	3.16M	27.05M	41.26M	46.41M	19.20M
Cash Flow		Free Cash Flow
-10.86M	-17.33M	-15.03M	-20.16M	-13.11M	-8.86M
	Operating Cash Flow
-10.70M	-16.70M	-14.60M	-18.22M	-12.19M	-8.49M
	Investing Cash Flow
9.77M	5.18M	14.91M	-6.94M	-26.11M	-382.19K
	Financing Cash Flow
864.00K	10.15M	83.00K	13.45M	37.96M	13.49M

Wrap Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WRAP, the sentiment is Negative. The current price of 1.9 is below the 20-day moving average (MA) of 2.09, below the 50-day MA of 2.08, and above the 200-day MA of 1.77, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 41.96 is Neutral, neither overbought nor oversold. The STOCH value of 11.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WRAP.

Wrap Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AXON	78 Outperform	$40.99B	111.94	19.10%	―	33.32%	111.64%
ISSC	76 Outperform	$114.04M	17.03	15.23%	―	43.24%	4.37%
VTSI	59 Neutral	$48.08M	33.84	3.09%	―	-30.73%	-83.53%
Sector *	58 Neutral	$21.03B	10.28	-16.29%	2.47%	4.45%	-23.80%
SILC	54 Neutral	$86.44M	―	-8.70%	―	-53.18%	49.22%
WRAP	52 Neutral	$87.18M	―	-125.05%	―	-53.65%	-9.65%
DGLY	15 Underperform	$2.69M	―	-234.89%	―	-32.26%	39.17%

Wrap Technologies Corporate Events

Wrap Technologies Announces Key Decisions at Annual Meeting

Wrap Technologies held its Annual Meeting on December 23, 2024, where stockholders approved all proposals, including the election of five directors, the ratification of HTL International, LLC as independent auditors, an amendment to increase shares under the 2017 Equity Compensation Plan, and a proposal to adjourn the meeting if necessary for further proxy solicitation.