Ouster, Inc. (NASDAQ: OUST)

Sector: Technology Industry: Electronic Components CIK: 0001816581
Market Cap 1.01 Bn
P/B 4.06
P/E -11.41
P/S 7.32
ROIC (Qtr) -40.17
Div Yield % 0.00
Rev 1y % (Qtr) 40.78
Total Debt (Qtr) 15.90 Mn
Debt/Equity (Qtr) 0.06
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About

Ouster, Inc., a prominent name in the lidar sensor industry, trades under the ticker symbol OUST on the NASDAQ stock exchange. The company operates in the technology sector, specifically specializing in the design, manufacturing, and distribution of high-resolution scanning and solid-state digital lidar sensors, as well as analog lidar sensors and software solutions. These products cater to various markets, including automotive, industrial, robotics, and smart infrastructure industries. In the lidar sensor market, Ouster competes against several...

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Investment thesis

Bull case

  • Healthy cash reserves of 87.93M provide 11.74x coverage of short-term debt 7.49M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 339.32M provides 21.34x coverage of total debt 15.90M, indicating robust asset backing and low credit risk.
  • Tangible assets of 339.32M provide exceptional 102.02x coverage of deferred revenue 3.33M, showing strong service capability backing.
  • Short-term investments of 157.39M provide solid 2.25x coverage of other current liabilities 69.93M, indicating strong liquidity.
  • Tangible assets of 339.32M provide robust 4.85x coverage of other current liabilities 69.93M, indicating strong asset backing.

Bear case

  • Operating cash flow of (27.09M) barely covers its investment activities of (51.77M), with a coverage ratio of 0.52, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (51.77M) provide weak support for R&D spending of 64.63M, which is -0.80x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (27.09M) provides insufficient coverage of deferred revenue obligations of 3.33M, which is -8.15x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (27.09M) shows concerning coverage of stock compensation expenses of 42.39M, with a -0.64 ratio indicating potential earnings quality issues.
  • Free cash flow of (31.68M) provides weak coverage of capital expenditures of 4.59M, with a -6.90 ratio suggesting additional external financing needs for growth initiatives.

Geographical Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Electronic Components
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 APH Amphenol Corp /De/ 180.75 Bn 42.33 7.83 15.50 Bn
2 GLW Corning Inc /Ny 111.40 Bn 69.80 7.13 8.43 Bn
3 TEL TE Connectivity plc 69.66 Bn 33.75 3.85 5.71 Bn
4 CLS Celestica Inc 33.17 Bn 47.38 2.94 0.78 Bn
5 JBL Jabil Inc 27.80 Bn 39.54 0.89 3.37 Bn
6 FLEX Flex Ltd. 24.18 Bn 28.38 0.90 5.02 Bn
7 FN Fabrinet 17.82 Bn 47.27 4.58 0.06 Bn
8 TTMI Ttm Technologies Inc 9.30 Bn 70.47 3.34 1.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.67 3.02
EV to Cash from Ops. EV/CFO -34.92 -590.38
EV to Debt EV to Debt 59.51 107.94
EV to EBIT EV/EBIT -10.38 20.68
EV to EBITDA EV/EBITDA -10.80 -27.60
EV to Free Cash Flow [EV/FCF] EV/FCF -29.86 -537.03
EV to Market Cap EV to Market Cap 0.94 -1.14
EV to Revenue EV/Rev 6.89 96.65
Price to Book Value [P/B] P/B 4.06 6.99
Price to Earnings [P/E] P/E -11.41 -8.83
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 1.07
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 20.91
Dividend per Basic Share Div per Share (Qtr) 0.00 0.26
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 10.42
Interest Coverage Int. cover (Qtr) 0.00 14.05
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -128.23 -43.87
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 96.16 125.88
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.04
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 17.18 -176.07
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 12.66 14.38
EBIT Growth (1y) % EBIT 1y % (Qtr) 14.04 15.28
EBT Growth (1y) % EBT 1y % (Qtr) 18.57 7.50
EPS Growth (1y) % EPS 1y % (Qtr) 30.04 2.30
FCF Growth (1y) % FCF 1y % (Qtr) 44.74 9.29
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 81.01 15.57
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.39 0.77
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.05
Cash Ratio Cash Ratio (Qtr) 0.94 1.48
Current Ratio Curr Ratio (Qtr) 3.26 3.80
Debt to Equity Ratio Debt/Equity (Qtr) 0.06 0.68
Interest Cover Ratio Int Coverage (Qtr) 0.00 14.05
Times Interest Earned Times Interest Earned (Qtr) 0.00 14.05
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -57.00 21.48
EBIT Margin % EBIT Margin % (Qtr) -66.37 -42.60
EBT Margin % EBT Margin % (Qtr) -66.37 -10.39
Gross Margin % Gross Margin % (Qtr) 43.10 31.37
Net Profit Margin % Net Margin % (Qtr) -64.20 -11.50