Last Updated: 08 Nov 2024
Executive Summary
Mobileye Global Inc. (MBLY) is a leading provider of machine learning and machine vision-based detection products, mapping, and driving policy technology solutions for advanced driver assistance systems (ADAS) and autonomous driving technologies. Despite facing headwinds in the automotive industry, MBLY has demonstrated strong revenue growth, driven by increasing demand for its technology in the ADAS market. However, the company's profitability remains a concern, with ongoing losses and negative margins.
Company Overview
MBLY was founded in 1999 and is headquartered in Jerusalem, Israel. The company develops and markets a range of products and solutions, including:
EyeQ chips for computer vision and machine learning
REM mapping software for high-definition mapping
Road Experience Management (REM) platform for data collection and analysis
MBLY's technology is used by major automakers such as BMW, Volkswagen, and Ford. The company also has partnerships with Intel, NVIDIA, and other technology leaders.
Fundamental Analysis
Revenue: MBLY's revenue for the trailing twelve months (TTM) was $1.8 billion, reflecting a -0.083% decline year-over-year.
Earnings: The company reported a net loss of $-242 million for the TTM, with a diluted EPS of $-3.66.
Profitability: MBLY's gross profit margin was 51.2%, while its operating margin was -0.221%. The company's negative EBITDA and net income indicate profitability challenges.
Balance Sheet: As of September 30, 2024, MBLY had $1.5 billion in cash and equivalents and $1.2 billion in debt. The company's book value per share was $14.89.
Technical Analysis
Trend: MBLY's stock price has been in a downtrend since reaching a 52-week high of $44.48 in November 2021.
Moving Averages: The stock is currently trading below its 50-day and 200-day moving averages, indicating bearish momentum.
Support and Resistance: Key support levels are at $15 and $10.48 (52-week low), while resistance levels are at $19.02 (analyst target price) and $22.88 (200-day moving average).
Short Term Outlook
In the short term, MBLY's stock price is likely to remain volatile due to ongoing concerns about the automotive industry and the company's profitability. The stock may test the support level at $15 if the downtrend continues.
Long Term Outlook
MBLY's long-term outlook depends on the adoption of ADAS and autonomous driving technologies. The company's strong partnerships and technological capabilities position it well to benefit from the growing demand for these technologies. However, profitability remains a key concern, and the company needs to address this issue to sustain long-term growth.
Analyst Recommendations
According to analysts, MBLY has a consensus rating of "Buy." The average analyst target price is $19.02, suggesting a potential upside of 15.2% from the current price of $16.51.
