Arbe Robotics Ltd. (ARBE) Stock Analysis and Metrics

Sector: Technology Industry: Software - Infrastructure CIK: 0001861841

P/B 2.47

P/E -2.57

P/S 181.55

Market Cap 121.10 Mn

ROIC (Qtr) -75.70

Div Yield % 0.00

Rev 1y % (Qtr) 106.50

Total Debt (Qtr) 11.43 Mn

Debt/Equity (Qtr) 0.23

About

Arbe Robotics Ltd., known by its ticker symbol ARBE, operates in the technology industry with a focus on developing 4D imaging radar technology for the automotive sector. The company's main business activities involve the development and commercialization of its radar technology, which is designed to enable advanced driver-assistance systems (ADAS) and autonomous vehicles. Arbe's primary products include its 4D imaging radar chipset, which is a high-resolution, long-range radar sensor that provides a 360-degree view of the environment around a...

Arbe Robotics Ltd., known by its ticker symbol ARBE, operates in the technology industry with a focus on developing 4D imaging radar technology for the automotive sector. The company's main business activities involve the development and commercialization of its radar technology, which is designed to enable advanced driver-assistance systems (ADAS) and autonomous vehicles.

Arbe's primary products include its 4D imaging radar chipset, which is a high-resolution, long-range radar sensor that provides a 360-degree view of the environment around a vehicle. The company's radar technology is expected to be used in various applications, including ADAS, autonomous vehicles, and other industries such as industrial automation and robotics.

Arbe's revenue is generated primarily through the sale of its 4D imaging radar chipset and related products and services to Tier 1 automotive suppliers and original equipment manufacturers (OEMs). These companies are responsible for designing and manufacturing vehicles, and Arbe's radar technology is designed to be integrated into these vehicles, providing a range of safety and convenience features, such as lane departure warning, blind spot detection, and automatic emergency braking.

Arbe's position within the industry is strong, with its 4D imaging radar technology being recognized as a leading solution for ADAS and autonomous vehicles. The company's competitive advantages include its high-resolution, long-range view of the environment around a vehicle, ability to detect and track objects in multiple dimensions, high accuracy and reliability, ability to operate in a variety of weather and lighting conditions, and compact and lightweight design.

Arbe's customers include Tier 1 automotive suppliers and OEMs, such as Continental, Robert Bosch, and Valeo. These companies are established players in the automotive industry and have significant resources and expertise in the development and manufacturing of radar technology. As such, Arbe faces strong competition from these companies, as well as the need to continually invest in research and development to stay ahead of the competition and develop new and innovative products and solutions.

In addition to its radar technology, Arbe also provides application engineering services to its customers. These services involve the development of customized radar-based solutions for specific vehicle applications, and are an important part of Arbe's business as they help to differentiate the company's products and solutions from those of its competitors.

Stock Price Chart

Analysis

Pros

Operating cash flow of (37.33M) provides exceptional 11.06x coverage of interest expenses (3.37M), showing strong debt service capability.
Strong tangible asset base of 66.08M provides 5.78x coverage of total debt 11.43M, indicating robust asset backing and low credit risk.
Free cash flow of (37.70M) provides exceptional 11.17x coverage of interest expense (3.37M), showing strong debt service ability.
Short-term investments of 48.31M provide solid 10.03x coverage of other current liabilities 4.82M, indicating strong liquidity.
Tangible assets of 66.08M provide robust 13.71x coverage of other current liabilities 4.82M, indicating strong asset backing.

Cons

Operating cash flow of (37.33M) barely covers its investment activities of (44.93M), with a coverage ratio of 0.83, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
Investment activities of (44.93M) provide weak support for R&D spending of 35.18M, which is -1.28x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
Short-term investments of 48.31M significantly exceed cash reserves of 4.29M, which is 11.27x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
The company's operating cash flow of (37.33M) shows concerning coverage of stock compensation expenses of 11.90M, with a -3.14 ratio indicating potential earnings quality issues.
Free cash flow of (37.70M) provides weak coverage of capital expenditures of 363000, with a -103.85 ratio suggesting additional external financing needs for growth initiatives.

Peer Comparison

Companies in the Software - Infrastructure

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	MSFT	Microsoft Corp	3,542.10 Bn	33.76	12.06	60.56 Bn
2	ORCL	Oracle Corp	533.93 Bn	34.61	8.75	124.39 Bn
3	PLTR	Palantir Technologies Inc.	437.56 Bn	399.47	112.31	0.24 Bn
4	PANW	Palo Alto Networks Inc	125.16 Bn	112.03	13.10	0.35 Bn
5	CRWD	CrowdStrike Holdings, Inc.	120.85 Bn	-384.67	26.47	0.82 Bn
6	SNPS	Synopsys Inc	71.69 Bn	35.89	11.14	15.14 Bn
7	NET	Cloudflare, Inc.	67.84 Bn	-658.43	33.70	3.50 Bn
8	FTNT	Fortinet, Inc.	63.33 Bn	33.80	9.66	1.00 Bn

Industry Comparisons

Current Valuation

Metric	Value	Industry
EV to Assets	1.90	2.56
EV to Cash from Ops.	-3.37	38.32
EV to Debt	11.00	-11.37
EV to EBIT	-2.48	-12.79
EV to EBITDA	-2.58	7.72
EV to Free Cash Flow [EV/FCF]	-3.33	24.22
EV to Market Cap	1.04	0.58
EV to Revenue	188.37	-35.00
Price to Book Value [P/B]	2.47	3.74
Price to Earnings [P/E]	-2.57	-18.61

Dividend Metrics

Metric	Value	Industry
Dividend Coverage Ratio	0.00	-0.30
Dividend Payout Ratio %	0.00	2.69
Dividend per Basic Share	0.00	0.10
FCF Dividend Payout Ratio %	0.00	1.67
Interest Coverage	14.99	-13.15

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	36.76	-404.11
Cash and Equivalents Growth (1y) %	-77.51	226.02
Dividend Growth (1y) %	0.00	-0.27
EBIAT Growth (1y) %	-11.09	31.15
EBITDA Growth (1y) %	-0.62	49.02
EBIT Growth (1y) %	-11.09	25.85
EBT Growth (1y) %	-1.73	17.82
EPS Growth (1y) %	19.30	70.69
FCF Growth (1y) %	-25.19	295.45
Gross Profit Growth (1y) %	-22.06	49.96

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.01	0.68
Cash Payout Ratio	0.00	0.02
Cash Ratio	0.28	1.21
Current Ratio	4.18	2.57
Debt to Equity Ratio	0.23	-0.93
Interest Cover Ratio	14.99	-13.15
Times Interest Earned	14.99	-13.15

Profitability

Metric	Value	Industry
EBITDA Margin %	-7,500.60	-544.82
EBIT Margin %	-7,583.36	-197.78
EBT Margin %	-7,077.51	-602.74
Gross Margin %	-140.20	52.06
Net Profit Margin %	-7,077.50	-605.52

Arbe Robotics Ltd. (NASDAQ: ARBE)