Published first at https://www.3minutebreakdowns.com Mobileye stock analysis. Ticker: $MBLY Mobileye produces microchips and systems for autonomous driving. At the current price the company has a market cap of 25 billion dollars. With 1.2 billion of cash on the balance sheet and no debt, the enterp...

Published first at https://www.3minutebreakdowns.com Mobileye stock analysis. Ticker: $MBLY Mobileye produces microchips and systems for autonomous driving. At the current price the company has a market cap of 25 billion dollars. With 1.2 billion of cash on the balance sheet and no debt, the enterprise value is 24 billion. Revenue over the last 12 months comes to 2 billion with almost 300 million of free cash flow. However, net income is negative 27 million owing to a significant amount of stock based compensation. These figures make Mobileye look like an expensive stock particularly when you consider the company’s outlook for 2024. Management thinks revenue will fall 9% with operating income set to plunge 50% and it was this news that sent the stock down by a quarter in January. High levels of short interest indicate that a number of investors are still short the stock. However, it’s important to understand Mobileye’s valuation in the context of its long term strategy. Crucially, Mobileye has a highly profitable driver-assist business that is used by automakers all over the world with operating margins over 50%. But instead of collecting the cash on that business, Mobileye is aggressively reinvesting into self driving. Products include SuperVision, which uses cameras to provide advanced driver assistance and Chaffeur, a full tech stack for autonomous driving. #mobileyestock #investing #stocks #3mb