Ondas Holdings Inc. (NASDAQ: ONDS)

Sector: Technology Industry: Communication Equipment CIK: 0001646188
Market Cap 1.13 Bn
P/B 2.33
P/E -23.80
P/S 45.85
ROIC (Qtr) -14.71
Div Yield % 0.00
Rev 1y % (Qtr) 581.95
Total Debt (Qtr) 17.97 Mn
Debt/Equity (Qtr) 0.04

About

Ondas Holdings Inc., a prominent provider of private wireless, drone, and automated data solutions, operates under the stock symbols ONDS and ONDS on the Nasdaq and OTC markets respectively. The company is a key player in the technology industry, with a focus on delivering secure and efficient data solutions for industrial, public safety, and government markets. Ondas Holdings' business activities revolve around providing turnkey data solutions, which encompass secure wireless connectivity and aerial security and data collection capabilities. The...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 434.31M provide 34.31x coverage of short-term debt 12.66M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of (34.13M) provides exceptional 2700.10x coverage of minority interest expenses (12639), showing strong core operations.
  • Strong tangible asset base of 487.26M provides 27.11x coverage of total debt 17.97M, indicating robust asset backing and low credit risk.
  • Tangible assets of 487.26M provide exceptional 232.26x coverage of deferred revenue 2.10M, showing strong service capability backing.
  • Strong free cash flow of (34.64M) provides 5.20x coverage of acquisition spending (6.66M), indicating disciplined M&A strategy.

Bear case

  • Investment activities of (18.82M) provide weak support for R&D spending of 15.35M, which is -1.23x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 434.31M provide limited coverage of acquisition spending of (6.66M), which is -65.23x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of (34.13M) provides insufficient coverage of deferred revenue obligations of 2.10M, which is -16.27x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (34.13M) shows concerning coverage of stock compensation expenses of 9.49M, with a -3.60 ratio indicating potential earnings quality issues.
  • Free cash flow of (34.64M) provides weak coverage of capital expenditures of 510713, with a -67.82 ratio suggesting additional external financing needs for growth initiatives.

Peer comparison

Companies in the Communication Equipment
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 CSCO Cisco Systems, Inc. 306.02 Bn 29.63 5.30 28.09 Bn
2 MSI Motorola Solutions, Inc. 63.92 Bn 30.21 5.65 9.81 Bn
3 HPE Hewlett Packard Enterprise Co 35.43 Bn -600.50 1.03 22.37 Bn
4 UI Ubiquiti Inc. 33.47 Bn 42.27 12.14 0.17 Bn
5 CIEN Ciena Corp 33.16 Bn 268.82 6.95 1.58 Bn
6 LITE Lumentum Holdings Inc. 25.28 Bn 224.75 13.73 3.28 Bn
7 ASTS AST SpaceMobile, Inc. 19.88 Bn -65.43 1,072.82 0.72 Bn
8 ZBRA Zebra Technologies Corp 12.46 Bn 24.33 2.37 2.32 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.98 2.22
EV to Cash from Ops. EV/CFO -31.92 10.78
EV to Debt EV to Debt 60.62 25.00
EV to EBIT EV/EBIT -30.91 32.18
EV to EBITDA EV/EBITDA -28.82 10.60
EV to Free Cash Flow [EV/FCF] EV/FCF -31.45 -3.32
EV to Market Cap EV to Market Cap 0.96 1.17
EV to Revenue EV/Rev 44.01 27.87
Price to Book Value [P/B] P/B 2.33 5.35
Price to Earnings [P/E] P/E -23.80 2.67
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -9.58 0.91
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -25.01
Dividend per Basic Share Div per Share (Qtr) 0.00 0.22
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 4.46
Interest Coverage Int. cover (Qtr) -4.94 -12.93
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 70.62 -73.93
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 15,015.49 463.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.39
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 7.78 204.95
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -15.70 -1.04
EBIT Growth (1y) % EBIT 1y % (Qtr) 8.44 238.24
EBT Growth (1y) % EBT 1y % (Qtr) -1.37 173.82
EPS Growth (1y) % EPS 1y % (Qtr) 43.06 8.68
FCF Growth (1y) % FCF 1y % (Qtr) -4.93 20.80
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 598.60 41.66
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.04 0.76
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 13.87 1.20
Current Ratio Curr Ratio (Qtr) 15.30 2.69
Debt to Equity Ratio Debt/Equity (Qtr) 0.04 0.43
Interest Cover Ratio Int Coverage (Qtr) -4.94 -12.93
Times Interest Earned Times Interest Earned (Qtr) -4.94 -12.93
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -119.00 -40.66
EBIT Margin % EBIT Margin % (Qtr) -142.42 -52.32
EBT Margin % EBT Margin % (Qtr) -171.25 -59.46
Gross Margin % Gross Margin % (Qtr) 33.60 39.35
Net Profit Margin % Net Margin % (Qtr) -192.60 -60.72