Net-Net STRC Sarcos Technology and Robotics Corporation
This company trading below net current asset value recently caught my eye. The Street is hungry for artificial intelligence stocks this year. Robotics is related in potential applications for these AI models. I’ve been doing a great deal of research lately and thought on how AI is going to change certain industries. I've been putting my findings in my AI article on StockPursuit.com and regularly tweeting things I find on Twitter.
Let’s take a quick look at this intriguing robotics net-net Sarcos Technology and Robotics Corporation. The company develops and manufactures advanced mobile robotic systems for military and industrial applications. The company was founded in the early 1980s and spun out from the University of Utah. Some of its products include teleoperated robotic systems, a powered robotic exoskeleton, and software solutions that enable task autonomy.
What makes this company attractive to me is its combination of strong financials, impressive revenue growth, and exposure to a trendy industry. Let’s take a closer look at each of these aspects.
Financials: The company has an NCAV of $88.3 million and a market cap of $63 million, which means it trades at a 28% discount to NCAV. The majority of its current assets are in cash ($94 million), while its total liabilities are only $22 million.
Revenue growth: The company’s revenue increased by 209% year over year in the last quarter. Its annual revenue in 2022 grew by 280% year over year. Its revenue is projected to grow by 64% this year and by 330% next year. The company is not profitable yet, but it is expected to narrow its EPS loss to $0.33 next year.
Industry: The company operates in the robotics sector, which is closely related to AI and has many potential applications in various domains. The company’s products are designed to enhance human capabilities and performance in challenging environments.
I think this company has a lot of potential and could be an opportunity for investors who are looking for undervalued AI/robotics stocks.
The main thing I like about this one is the trendy industry and revenue growth along with the asset valuation. I think that could be enough to push this one at some point. Technically, it is trying to break a downtrend here. It needs to get some momentum here next week or hold support for awhile for a technical setup to emerge. At the time of this writing I have no position in this company. I may have a position in the future.
