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Wrap Technologies (WRAP)
NASDAQ:WRAP
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Wrap Technologies
(NASDAQ:WRAP)
43Neutral
Wrap Technologies (WRAP) vs. S&P 500 (SPY)
Market Cap
$72.71M
Dividend YieldN/A
Average Volume (3M)137.62K
Price to Earnings (P/E)―
Beta (1Y)2.24
Revenue Growth-26.51%
EPS Growth78.84%
CountryUS
Employees19
SectorTechnology
Sector Strength44
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)-0.15
Shares Outstanding50,494,700
10 Day Avg. Volume87,954
30 Day Avg. Volume137,617
Financial Highlights & Ratios
PEG RatioN/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 Ratio72.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Wrap Technologies Business Overview & Revenue Model
Company DescriptionWrap Technologies, Inc. is a public safety technology and services company focused on delivering innovative solutions to law enforcement and security personnel. The company operates primarily in the non-lethal restraint and security sectors. Its core product, the BolaWrap, is a remote restraint device that discharges a Kevlar tether to safely entangle and restrain individuals from a distance, reducing the risk of injury and escalation during confrontations.
How the Company Makes MoneyWrap Technologies generates revenue primarily through the sale of its BolaWrap devices and related accessories to law enforcement agencies and security organizations worldwide. The company also earns income from the provision of training services to ensure proper use and deployment of its products. Additionally, Wrap Technologies may have revenue streams from maintenance services, software, and licensing fees associated with its technology. Significant partnerships with law enforcement and security agencies, as well as potential collaborations with government bodies, contribute to its earnings by expanding its market reach and customer base.
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.45
Neutral
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.50
Neutral
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.40
Negative
| 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 | ||||
| 255.07K | 11.46M | 19.28M | 34.92M | 41.64M | 16.98M | Total Assets |
| 293.11K | 28.50M | 30.57M | 44.23M | 48.83M | 20.42M | Total Debt |
| 0.00 | 2.29M | 301.00K | 56.00K | 369.00K | 278.15K | Net Debt |
| -255.07K | -1.67M | -5.03M | -4.88M | -16.28M | -16.71M | Total Liabilities |
| 84.97K | 25.34M | 3.52M | 2.97M | 2.42M | 1.23M | Stockholders Equity |
| 208.14K | 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
Negative
1.47
Price Trends
1.90
Negative
1.90
Negative
1.75
Negative
Market Momentum
-0.14
Negative
39.18
Neutral
50.17
Neutral
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 1.47 is below the 20-day moving average (MA) of 1.60, below the 50-day MA of 1.90, and below the 200-day MA of 1.75, indicating a bearish trend. The MACD of -0.14 indicates Negative momentum. The RSI at 39.18 is Neutral, neither overbought nor oversold. The STOCH value of 50.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WRAP.
Wrap Technologies Risk Analysis
Wrap Technologies disclosed 43 risk factors in its most recent earnings report. Wrap Technologies 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
Wrap Technologies Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
58 Neutral | $9.99B | 10.12 | -6.46% | 3.10% | 7.47% | -11.60% | |
52 Neutral | $77.91M | ― | -30.42% | ― | -1.01% | -72.93% | |
49 Neutral | $57.07M | ― | -16.87% | ― | -16.22% | -297.70% | |
43 Neutral | $72.71M | ― | -355.35% | ― | -26.51% | 78.84% | |
43 Neutral | $89.87M | ― | -107.28% | ― | -34.41% | -17.56% | |
41 Neutral | $86.59M | ― | -65.28% | ― | 30.70% | -1.05% |
* Technology Sector Average
Performance Comparison
WRAP
Wrap Technologies
1.52
-0.45
-22.84%
LPTH
Lightpath Technologies
2.00
0.56
38.89%
GNSS
Genasys
2.08
-0.02
-0.95%
LINK
Interlink Electronics
5.80
-0.83
-12.52%
ODYS
Odysightai
5.22
-1.53
-22.67%
Wrap Technologies Earnings Call Summary
Earnings Call Date: Mar 31, 2025 | % Change Since: -14.04% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant improvements in financial metrics and strategic actions, such as increased management ownership and the acquisition of W1 Global, which are expected to drive future growth. However, challenges remain in the form of declining revenue and the lengthy timelines for international deals. The company is taking strategic steps to address these issues, including a focus on R&D and expanding its federal market presence.Highlights
Improved Financial Metrics
Operating losses improved by 17% from $18.75 million in 2023 to $15.6 million in 2024. Net losses improved significantly by 81% from $30.2 million in 2023 to $5.9 million in 2024.
Increased Management Ownership
Management's beneficial ownership increased by over 50% due to recent financing activity, indicating strong insider confidence.
Expansion into International Markets
Numerous late-stage opportunities in international markets, with relationships being developed with U.S. government resources to counter China's influence.
Strategic Acquisition of W1 Global
Acquisition of W1 Global has already led to significant domestic and global sales opportunities, expanding Wrap's network and market reach.
R&D and New Product Development
Plans for a next-gen BolaWrap product and integration of proven technologies from sectors like defense and aerospace into law enforcement solutions.
Lowlights
Decline in Revenue
Revenue for 2024 was $4.5 million, down 27% from $6.1 million in 2023.
Lengthy International Deal Timelines
International deals, such as those in Chile, take significant time to materialize, impacting revenue realization.
Operational Relocation Challenges
The move of operations to Virginia is underway, with a focus on maintaining high-quality manufacturing. Full completion is expected by mid-Q2.
Company Guidance
In the earnings call for Wrap's fiscal year 2024, the company highlighted significant financial and operational improvements. Revenue for 2024 was reported at $4.5 million, a decrease of 27% from $6.1 million in 2023. However, the cost of revenue decreased by 37%, from $3.2 million in 2023 to $2 million in 2024, which resulted in an increase in margins by 7 points, reaching over 54%. Operating losses improved by 17% from $18.75 million in 2023 to $15.6 million in 2024, and net losses saw a significant improvement of 81%, decreasing from $30.2 million in 2023 to $5.9 million in 2024. The company has reduced its monthly expenses to approximately $600,000 on a cash annualized basis. Wrap's leadership emphasized their commitment to expanding their market presence and product offerings, particularly in public safety, through strategic restructuring, talent acquisition, and leveraging U.S. government resources for international expansion. The company remains optimistic about future growth but refrains from providing specific guidance for the upcoming year.Wrap Technologies Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Wrap Technologies Appoints Jared Novick as President
Positive
Mar 14, 2025
On March 10, 2025, Wrap Technologies appointed Jared Novick as President and Chief Operating Officer, with no change to his existing compensation. Novick’s leadership is expected to drive Wrap’s expansion in public safety offerings, aligning with U.S. federal government efficiency initiatives and the company’s strategic relocation to Virginia. This move aims to enhance Wrap’s pursuit of federal contracts and operational growth. Novick’s investment in the company and his extensive background in government and technology sectors position him to lead Wrap’s integration of established technologies into public safety, supporting cost-saving initiatives and international expansion.
Executive/Board ChangesBusiness Operations and Strategy
Wrap Technologies Grants Equity Awards to Executives
Positive
Feb 11, 2025
On February 5, 2025, Wrap Technologies, Inc. granted significant equity awards to its CEO Scot Cohen and COO Jared Novick. Each received 250,000 restricted stock units vested immediately and stock options for 500,000 shares, vesting over four years, signaling strategic retention and incentivization of top executives.
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.