Bedrijfsoverzicht
Wrap Technologies, Inc. is a public safety technology and services firm that specializes in developing policing solutions designed specifically for law enforcement agencies and security personnel operating across the United States, Europe, the Middle East, Africa, Asia Pacific, and other international markets. The company operates within the Technology sector, specifically classified under the Scientific & Technical Instruments industry, which focuses on the design, manufacture, and sale of specialized equipment for scientific research, engineering, and public safety applications. As of the latest data, the organization maintains a market capitalization of $83.25 million, generates annual revenue of $4.67 million, and employs a workforce of 25 individuals. These financial metrics indicate that Wrap Technologies is a small-cap entity with a relatively modest revenue base compared to large-scale technology conglomerates, suggesting a niche market position that relies on specialized product offerings like the handheld remote restraint device known as BolaWrap 150 rather than mass-market volume sales.
Financiële gezondheid
The company reports a trailing twelve-month revenue of $4.67 million, yet this revenue figure stands in stark contrast to a net income of -$11,238,000 and an EBITDA of -$12,303,000, revealing a cost structure where operational expenses significantly exceed earnings before interest, taxes, and depreciation. This substantial gap between gross revenue and net income highlights severe operating inefficiencies or high fixed costs that are not covered by current sales levels. Furthermore, the company generated free cash flow of -$15,721,625, indicating a negative cash burn rate that limits financial flexibility and suggests the business is currently consuming cash reserves to sustain operations. Margin analysis shows a gross margin of 57.8%, which indicates healthy pricing power or cost control on the cost of goods sold, but this is heavily offset by an operating margin of -239.0% and a profit margin of -221.2%, both of which reflect deep structural losses in the core business operations. Regarding liquidity and leverage, the firm holds $3.47 million in cash against $2.42 million in debt, resulting in a debt-to-equity ratio of 21.04, which technically indicates a leveraged balance sheet due to the negative equity implied by the losses, although the absolute dollar amount of debt is lower than cash on hand. The current ratio stands at 6.29, a metric that suggests strong short-term liquidity and an ability to meet its current liabilities with current assets, despite the overall profitability challenges. Return on equity is reported at -176.1% and return on assets at -52.8%, metrics that reveal that management has not yet generated positive returns on the capital invested in the company, pointing to a period of investment or operational difficulty rather than effective capital allocation.
Waarderingsbeoordeling
Valuation metrics for Wrap Technologies present a complex picture due to the absence of positive earnings, as evidenced by a trailing P/E ratio of N/A and a forward P/E of -6.25. The negative forward P/E implies that the market expects earnings to remain negative or that the valuation model is relying on non-GAAP adjustments or forward-looking estimates that do not yet materialize into positive income. The price-to-book ratio is calculated at 6.76, indicating that the stock trades at a significant premium relative to its book value, a common characteristic for small-cap technology firms with intangible assets or high growth potential that are not yet reflected in their accounting equity. Alternative valuation measures such as the price-to-sales ratio of 17.82 and an EV/EBITDA of -6.68 further suggest that the market is pricing the company based on revenue multiple rather than profitability, as investors may be betting on future monetization of their policing solutions. Price action over the last year shows a 52-week high of $3.23 and a 52-week low of $1.20, establishing a trading range of approximately $2.03 per share. Without a specific current share price provided in the facts, the precise percentage distance from the high or low cannot be calculated, but the wide range suggests significant volatility in investor sentiment over the past year. The stock exhibits a beta of 1.52, which indicates that the share price is historically 52% more volatile than the broader market, reflecting the inherent risks associated with small-cap biotechnology or specialized technology sectors.
Growth & Income
Revenue growth for the company is robust at 62.3% year-over-year, while earnings growth is listed as N/A due to the company's continued net losses. The disparity between strong top-line revenue expansion and the absence of earnings growth implies that the company is reinvesting its growing revenue base into operations, R&D, or market expansion rather than generating immediate profit. As a non-dividend payer, Wrap Technologies offers a dividend yield of N/A with a payout ratio of 0.0%, meaning the company retains all of its cash flow to fund operations and future growth initiatives rather than distributing income to shareholders. This reinvestment strategy is typical for small-cap technology firms in the development phase, where capital is prioritized for product development and market penetration over shareholder returns. Consequently, the overall growth and income profile of Wrap Technologies is characterized by aggressive revenue expansion coupled with significant cash burn and a complete absence of dividend income, positioning the stock as a high-risk, high-potential-growth vehicle for investors seeking exposure to public safety technology.