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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#2712
Positioning
Market Dominance
Manufacturing
Measuring And Control Equipment
$42M
Kurt Workman
Owlet, Inc. operates as a digital parenting platform in the United States. Its products include Smart Sock, a baby monitor to track an infant's oxygen levels, heart rates, and sleep trends. The company also offers Dream Duo, a monitoring system for baby's sleeping habits.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = OWLT ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UL UNILEVER PLC | 78 | 96 | 98 | 59 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 32.9% | 20.5% | 48.8% | 30.6% | 24.4% | 7.7% | 0.9% | 32.0x | $148.6B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.4% | 7.5% | 68.3% | 19.5% | 18.2% | 29.0% | 0.0% | 0.0x | $84M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$OWLT Owlet, Inc. | 46 | 43 | 18 | 74 | 64.8x | 64.2x | 60.5% | -48.2% | 52.0% | -9.5% | -35.6% | 54.5% | 0.0% | - | $42M | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -1.9% | 0.9% | 44.1% | 2.5% | 1.0% | 6.7% | 0.0% | 0.2x | - | REF |
Owlet, Inc. (OWLT) receives a "Reduce" rating with a composite score of 45.6/100. It ranks #2712 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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Outperforming peers — winners tend to keep winning over 3-12 months
Expensive relative to fundamentals — limited margin of safety
Average quality profile
Average volatility — neutral timing signal
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
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Relative valuation derived from Manufacturing sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for OWLT.
View All RatingsROE proxy 60.5% (sector -1.9%)
GM 52% vs sector 44%, OM -10% vs sector 3%
Capital turnover N/A, R&D intensity 13.2%
Rev growth 55%, 5yr history
Interest coverage N/A
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate Owlet, Inc. (OWLT) as a Reduce with a composite score of 45.6/100 at a current price of $11.28. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential.
Owlet, Inc. holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 45.6/100 places it at rank #2712 in our full universe.
The near-term outlook is constructive, with revenue growing at 55% and momentum in the 74th percentile confirming positive market sentiment. The combination of strong top-line growth and favorable price dynamics suggests the company is executing well on its growth strategy.
Narrow
High
Poor
Fair Value
Gross margins of 52% signal strong pricing power.
Returns on equity of 60.5% exceed cost of capital.
Positive momentum indicates institutional accumulation.
Elevated P/E ratio of 64.8x leaves little room for execution misses.
Vulnerability to macroeconomic shocks and interest rate volatility.
Owlet, Inc. represents a reduce based on multi-factor quantitative performance.
Owlet, Inc. receives a Reduce rating from our analysis, with a composite score of 45.6/100 and 2 out of 5 stars, ranking #2712 out of 7,333 stocks. OWLT's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
OWLT's quality score of 43/100 is below average, suggesting challenges with profitability or capital efficiency. The company reports a return on equity of 60.5% (sector avg: -1.9%), gross margins of 52.0% (sector avg: 44.1%), net margins of -35.6% (sector avg: 1.0%). Investors should examine whether management is actively addressing these weaknesses or if they reflect structural industry headwinds.
OWLT registers a value score of just 18/100, suggesting the stock trades at a significant premium to its fundamental metrics. Key valuation metrics include a P/E ratio of 64.76x, an EV/EBITDA of 64.19x. High-premium valuations like this require strong future execution to avoid multiple compression, and downside risk is elevated if growth disappoints.
Owlet, Inc.'s investment score of 27/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 54.5% vs. a sector average of 6.7% and a return on assets of -48.2% (sector: 0.9%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
OWLT shows strong momentum characteristics with a score of 74/100. The stock has been trending above key moving averages, indicating solid demand from institutional buyers. Revenue growth stands at 54.5% year-over-year, while a beta of 1.16 reflects its sensitivity to broader market moves. This level of momentum typically signals sustained investor confidence and favorable near-term price action.
OWLT's stability score of 44/100 signals elevated volatility and/or leverage concerns. Key stability metrics include a beta of 1.16. Investors should be prepared for wider-than-average price swings and consider position sizing accordingly to manage portfolio risk.
The short interest score of 52/100 for OWLT suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include micro-cap liquidity risk. With a $42M market cap (micro-cap), Owlet, Inc. may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
Owlet, Inc. is a micro-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #2712 of 7,333 overall (63rd percentile). Key comparisons include ROE of 60.5% exceeding the -1.9% sector median and operating margins of -9.5% below the 2.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While OWLT currently exhibits a REDUCE profile, superior opportunities exist within the MANUFACTURING sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
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Improvement in Value (18) would have the largest impact on the composite score.
EV/EBITDA 460% ABOVE SECTOR MEDIAN
ROE 3283% BELOW SECTOR MEDIAN
Gross Margin 18% ABOVE SECTOR MEDIAN (FAVORABLE)
Owlet (OWLT) has seen a significant surge over the past year, attributed to rapid revenue growth and investor optimism. However, the author initiates coverage with a Sell rating, citing the company's lack of profitability, high price/sales ratio, demographic headwinds from declining US fertility rates, and concentration around its DreamSock product with international regulatory uncertainties. The article concludes that the current price is too high given these financial and business model challenges.
Robbins Geller Rudman & Dowd LLP announced a class action lawsuit against Owlet, Inc. f/k/a Sandbridge Acquisition Corporation, (NYSE:OWLT)(NYSE:OWLT.WS)(NYSE:SBG)(NYSE:SBG.WS). The lawsuit alleges that Owlet made misleading statements regarding its Smart Sock product, specifically that it was likely a medical device requiring FDA authorization, which it did not have. This led to a significant stock price drop after the FDA issued a warning letter.
Owlet, Inc. (NYSE:OWLT) has seen a significant 67% price jump in the last month, bringing its annual gain to 204%. Despite this surge, its Price/Sales (P/S) ratio of 3.8x is in line with the Medical Equipment industry median, but analysts project weaker revenue growth for Owlet compared to the industry. Investors may be overlooking potential risks associated with Owlet's diluted growth forecasts and a P/S ratio that doesn't fully reflect these expectations.
Owlet Inc. (NASDAQ:OWLT) stock dropped 7.2% after the smart infant monitoring company priced a public offering of 4,196,000 shares of Class A common stock at $7.15 each, expecting to raise approximately $30 million. The company plans to use the net proceeds for commercialization, research and development, and general corporate purposes. Investors reacted to the potential dilution and the offering price being at a discount to the previous closing price, causing downward pressure on the shares.
Owlet, Inc. announced the pricing of an underwritten public offering of 4.196 million shares of its Class A common stock at $7.15 per share, aiming to raise approximately $30 million. The company plans to use the proceeds for commercialization, research and development, and general corporate purposes. This follows strong revenue growth and comes as Owlet expands its market reach and makes governance changes, including new leadership.
Above 50MA
37.18%
Net New Highs
+51081