Arbe Robotics Ltd. (NASDAQ: ARBE)

Sector: Technology Industry: Software - Infrastructure CIK: 0001861841
Market Cap 139.57 Mn
P/B 2.84
P/E -2.96
P/S 209.25
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...

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Price action

Investment thesis

Bull case

  • 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.

Bear case

  • 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 3,563.59 Bn 33.97 12.13 60.56 Bn
2 ORCL Oracle Corp 561.87 Bn 36.43 9.21 124.39 Bn
3 PLTR Palantir Technologies Inc. 413.65 Bn 377.64 106.17 0.24 Bn
4 PANW Palo Alto Networks Inc 126.45 Bn 113.19 13.23 0.35 Bn
5 CRWD CrowdStrike Holdings, Inc. 116.42 Bn -370.56 25.50 0.82 Bn
6 SNPS Synopsys Inc 86.06 Bn 64.60 12.20 14.29 Bn
7 NET Cloudflare, Inc. 62.78 Bn -609.27 31.18 3.50 Bn
8 FTNT Fortinet, Inc. 60.83 Bn 32.47 9.28 1.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.18 2.69
EV to Cash from Ops. EV/CFO -3.86 28.91
EV to Debt EV to Debt 12.61 19.83
EV to EBIT EV/EBIT -2.85 -9.95
EV to EBITDA EV/EBITDA -2.96 6.82
EV to Free Cash Flow [EV/FCF] EV/FCF -3.82 26.09
EV to Market Cap EV to Market Cap 1.03 0.36
EV to Revenue EV/Rev 216.06 -9.34
Price to Book Value [P/B] P/B 2.84 3.88
Price to Earnings [P/E] P/E -2.96 -10.66
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -0.30
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.71
Dividend per Basic Share Div per Share (Qtr) 0.00 0.10
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.68
Interest Coverage Int. cover (Qtr) 14.99 -14.20
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 36.76 -408.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -77.51 226.39
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.28
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -11.09 25.27
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -0.62 47.48
EBIT Growth (1y) % EBIT 1y % (Qtr) -11.09 20.13
EBT Growth (1y) % EBT 1y % (Qtr) -1.73 14.16
EPS Growth (1y) % EPS 1y % (Qtr) 19.30 67.50
FCF Growth (1y) % FCF 1y % (Qtr) -25.19 296.60
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -22.06 46.75
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.01 0.67
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.28 1.22
Current Ratio Curr Ratio (Qtr) 4.18 2.59
Debt to Equity Ratio Debt/Equity (Qtr) 0.23 -0.96
Interest Cover Ratio Int Coverage (Qtr) 14.99 -14.20
Times Interest Earned Times Interest Earned (Qtr) 14.99 -14.20
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -7,500.60 -548.16
EBIT Margin % EBIT Margin % (Qtr) -7,583.36 -199.84
EBT Margin % EBT Margin % (Qtr) -7,077.51 -607.20
Gross Margin % Gross Margin % (Qtr) -140.20 51.88
Net Profit Margin % Net Margin % (Qtr) -7,077.50 -610.00