Should you buy Symbotic stock? (August 2023)
- 9 months ago
Symbotic stock analysis. Ticker: SYM.
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Symbotic, ticker symbol SYM, uses robots to automate warehouse supply chains. The stock jumped 50% after earnings last week and it’s up 500% since it came to the market via a SPAC last year.
At the current share price, the company has a valuation of 28 billion dollars. It’s got 500 million of cash and investments and no debt so the enterprise value is 27.3 billion.
Symbotic’s technology sounds futuristic and it’s revenue growth is equally impressive. Revenue in the latest quarter surged by 78% to 312 million taking the twelve month total to over 1 billion and that’s ten times more than it produced in 2019.
However, the company is not profitable. Net income over the last 12 months is negative 216 million. With 149 million of stock based compensation free cash flow, however, is positive at 107 million.
Symbotic’s autonomous robots can travel up to 25 miles per hour and are controlled by AI. This addresses 3 fundamental problems for companies.
1. It reduces the need for warehouse workers such as forklift drivers. 3
2. It helps companies more quickly adapt their warehousing strategies
and 3. It better suits the huge increase in individual items of stock known as SKUs.
This is a huge market and Symbotic already has relationships with large customers such as Walmart, Albertsons, Target and Giant Tiger. Plus, a joint venture with Softbank means the company can begin to adapt the technology for smaller customers as well.
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Join 9000+ investors: https://www.overlookedalpha.com
Symbotic, ticker symbol SYM, uses robots to automate warehouse supply chains. The stock jumped 50% after earnings last week and it’s up 500% since it came to the market via a SPAC last year.
At the current share price, the company has a valuation of 28 billion dollars. It’s got 500 million of cash and investments and no debt so the enterprise value is 27.3 billion.
Symbotic’s technology sounds futuristic and it’s revenue growth is equally impressive. Revenue in the latest quarter surged by 78% to 312 million taking the twelve month total to over 1 billion and that’s ten times more than it produced in 2019.
However, the company is not profitable. Net income over the last 12 months is negative 216 million. With 149 million of stock based compensation free cash flow, however, is positive at 107 million.
Symbotic’s autonomous robots can travel up to 25 miles per hour and are controlled by AI. This addresses 3 fundamental problems for companies.
1. It reduces the need for warehouse workers such as forklift drivers. 3
2. It helps companies more quickly adapt their warehousing strategies
and 3. It better suits the huge increase in individual items of stock known as SKUs.
This is a huge market and Symbotic already has relationships with large customers such as Walmart, Albertsons, Target and Giant Tiger. Plus, a joint venture with Softbank means the company can begin to adapt the technology for smaller customers as well.
#overlookedalpha #stocks #investing #stockstowatch