The markets received shares of a robotic company Symbotic Company NASDAQ: SYM It is difficult in the last 52 weeks. Industrial shares have lost almost 37% of their value as of February 13. Retail giant Walmart NYSE: WMT It is a huge symbolic client, evidence of the relevance of the company. But are the shares of this advanced robotics company ready to bounce, or is there still a significant risk? I will go deep into the recent report of the company about profit and analyze important questions related to it to answer this question.
SYM: revenue grows by 35%; The leadership is lagging behind
Symbolic today
As of 02/14/2025 21:00
- 52-week range
- $ 17,11
▼
$ 50.40
- Value is valuable
- $ 38.33
Symbotic reported that income from 487 million US dollars in Q4 calendar in 487 million US dollars. It was a growth rate of 35%, and missed forecasts by about $ 3 million. An imperfect base, the company lost 0.03 US dollars per share, more than the loss, to forecast Wall Street. Nevertheless, one of the larger passes appeared in the company’s income manual for the Q1 calendar. Predicts sales of $ 520 million, which is significantly lower than the set target analysts for $ 533 million. This leadership is 32%growth rate.
This figure takes into account how the company had to pass. The press release of the company on November 27, associated with this event, led to the sale of shares 35%. The company was supposed to significantly reduce its registered profit in the 2024 financial year to interest, taxes, depreciation and depreciation (EBITDA). This figure fell by 30 million to 40 million dollars from the previous 96 million dollars. In the middle, this is a drop of almost 37%.
Solving important issues: Accounting and deployment time
A mass sale associated with accounting issues makes sense. The scale of the fall of EBITDA was huge. Although this does not mean that the company is doing something vile, it is reasonable to assume that the company has the level of incompetence. Accounting rules are complex. Symbotic complex systems add to this complexity, but this does not justify them. Another important consideration is that the fall of EBITDA was directly the cause of reassessment of income. With relatively, the return of the company’s revenue by 34 million dollars reduced its annual income by less than 2%. This, of course, is not an insignificant figure. But this is much less anxious than the mass drop in the adjusted EBITDA +30%.
Symbotic revenue growth and the demand for its products remain strong. He still retains a contract in the amount of $ 22.4 billion. USA, more than 12 times in 2024. However, this is only one side of the equation. The big question regarding the symbolic is how quickly it can expand its complex robotic systems in customer warehouses. Only after Symbotic sets the systems or corresponds to certain stages, can he recognize his lag as an income.
Improving the speed of installation and profitability is very important. This gives the company a sticky product for creating other sources of income. Since they are so expensive for customers to implement, the transition to a competitor after installation does not make sense. Thus, Symbotic can expand its set of services over time, receiving a more repeated income per client. There are already some evidence of this. The income from the software has more than doubled in the last quarter and is still a very small percentage of the common business.
The deployment rate is still the main obstacle to the growth of the company. This affects his ability to maintain a high assessment. Symbotic said its deployment is still about 24 months on average. In its call, the company marked the record speed of 20 months in the first quarter of 2024. Nevertheless, he did not say that this was average for the entire company. Symbotic is working on reducing deployment time. Nevertheless, large and complex projects have been preserved on average after 24 months. At least, the reduction in deployment time, in the same way, stopped, and it is difficult to assume that they will improve significantly in 2025.
Symbotic Inc. (SYM) Price on Sunday, February 16, 1625
SI: Patience is the way forward
Ultimately, I am optimistic about the general value offer standing behind Symbotic. Nevertheless, accounting and lack of improvement of deployment time make it reasonable to see more information. According to the 10-K company, it is under the investigation of the securities and exchanges commission (SEC). There are also several educational processes against this. This can lead to greater clarity around his accounting practice. In addition, it is important to see more evidence of improvement during the deployment of the company is crucial.
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