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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#3878
Positioning
Market Dominance
Manufacturing
Aircraft
$20M
Boaz Shetzer
We are an aerospace company that is focused on drone safety systems and engaged in the business of designing, developing, and providing what we believe are best-in-class autonomous parachute safety systems for commercial drones, also known as unmanned aerial systems or UAS. We are an Israeli corporation based in Israel and were incorporated on June 30, 2013, under the name ParaZero Ltd. On September 6, 2018, our name was changed to ParaZero Israel Ltd., and on November 4, 2018, our name was changed to our current name, ParaZero Technologies Ltd. Our principal executive offices are located at 30 Dov Hoz, Kiryat Ono, 5555626, Israel.
Headcount
—
HQ Base
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| 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 | - | - | 28.5% | 8.0% | 100.0% | 100.0% | 10.4% | -4.6% | 3.3% | 0.0x | $141.8B | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | 46.1% | 16.6% | 51.3% | 31.9% | 26.8% | -4.0% | 1.0% | 25.0x | $272.1B | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | 10.3% | 3.1% | 24.1% | 7.2% | 4.7% | 14.3% | 0.8% | 25.0x | $11.4B | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | 2.2% | 1.5% | 9.3% | 5.3% | 2.2% | -8.5% | 2.2% | 16.0x | $18.9B | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 35.5% | 19.8% | 48.7% | 29.2% | 24.7% | 4.4% | 0.8% | 32.0x | $181.9B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | 11.8% | 8.8% | 45.9% | 11.3% | 11.1% | 25.7% | 3.7% | 0.0x | $1.8B | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.6% | 7.0% | 66.5% | 17.1% | 15.6% | 39.0% | 0.0% | 0.0x | $115M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | 22.6% | 4.9% | 71.2% | 12.8% | 9.4% | 1.7% | 5.9% | 124.0x | $72.1B | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | 3.0% | 1.1% | 20.9% | 7.3% | 1.3% | 3.0% | 0.9% | 67.0x | $1.2B | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | 8.2% | 3.5% | 55.3% | 25.9% | 12.4% | 0.7% | 1.7% | 0.0x | $87.0B | VS | |
$PRZO ParaZero Technologies Ltd. | 37 | 38 | 15 | 28 | 1.2x | - | -381.6% | -770.7% | 6.3% | -597.1% | -1185.9% | 50.2% | 0.0% | - | $20M | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -2.5% | -0.1% | 42.5% | 1.3% | -0.2% | 5.9% | 0.0% | 0.2x | - | REF |
ParaZero Technologies Ltd. (PRZO) receives a "Avoid" rating with a composite score of 37.2/100. It ranks #3878 out of 7,333 stocks in our coverage universe and carries a 1-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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YOY expansion rate
Core pricing power
Operating efficiency
Bottom-line conversion
Equity capital efficiency
Asset base utilization
Direct cash return
Boaz Shetzer
Chief Executive Officer
38
64
27
Audit Verdict: Lower quality and stability scores may indicate governance concerns.
No recent insider transactions available for PRZO
Pending Verification
Lagging peers — losers tend to keep underperforming
Expensive relative to fundamentals — limited margin of safety
Average quality profile
High volatility — wider range of outcomes increases timing risk
Conservative, efficient capex — capital discipline signals management quality
Below-average composite — caution warranted
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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 PRZO.
View All RatingsInsufficient data for Financial Analysis
ROE proxy -381.6% (sector -2.5%)
GM 6% vs sector 43%, OM -597% vs sector 1%
Capital turnover N/A, R&D intensity 229.9%
Rev growth 50%, 2yr 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.
Our quantitative model flags ParaZero Technologies Ltd. with an Avoid rating, assigning a composite score of 37.2/100 and 1 out of 5 stars. Ranked #3878 of 7,333 stocks, PRZO falls in the bottom tier across key factors. Historically, stocks with this profile have faced elevated risk of underperformance and capital loss.
PRZO's quality score of 38/100 is below average, suggesting challenges with profitability or capital efficiency. The company reports a return on equity of -381.6% (sector avg: -2.5%), gross margins of 6.3% (sector avg: 42.5%), net margins of -1185.9% (sector avg: -0.2%). Investors should examine whether management is actively addressing these weaknesses or if they reflect structural industry headwinds.
PRZO registers a value score of just 15/100, suggesting the stock trades at a significant premium to its fundamental metrics. Key valuation metrics include a P/E ratio of 1.18x. High-premium valuations like this require strong future execution to avoid multiple compression, and downside risk is elevated if growth disappoints.
PRZO shows a solid investment score of 64/100, reflecting measured but productive capital allocation. Key growth metrics include revenue growth of 50.2% vs. a sector average of 5.9% and a return on assets of -770.7% (sector: -0.1%). This suggests the company is investing at an appropriate level to sustain growth without overextending its balance sheet.
ParaZero Technologies Ltd. is experiencing notably weak momentum with a score of just 28/100. The stock has underperformed its peers and is trending below major moving averages. Revenue growth stands at 50.2% year-over-year, while a beta of 1.38 reflects its sensitivity to broader market moves. While deep momentum weakness can occasionally present value opportunities, it often reflects deteriorating fundamentals or structural headwinds that may persist.
PRZO's stability score of 27/100 signals elevated volatility and/or leverage concerns. Key stability metrics include a beta of 1.38. Investors should be prepared for wider-than-average price swings and consider position sizing accordingly to manage portfolio risk.
The short interest score of 57/100 for PRZO suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include above-average market sensitivity (beta: 1.38), micro-cap liquidity risk. With a $20M market cap (micro-cap), ParaZero Technologies Ltd. may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
ParaZero Technologies Ltd. is a micro-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #3878 of 7,333 overall (47th percentile). Key comparisons include ROE of -381.6% trailing the -2.5% sector median and operating margins of -597.1% below the 1.3% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While PRZO currently exhibits a AVOID 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 (15) would have the largest impact on the composite score.
ROE 15288% ABOVE SECTOR MEDIAN (FAVORABLE)
Gross Margin 85% BELOW SECTOR MEDIAN
Op. Margin 46388% BELOW SECTOR MEDIAN
AUDIT DATA AS OF DEC 31, 2024 (Q3 FY2024)
We rate ParaZero Technologies Ltd. (PRZO) as Avoid with a composite score of 37.2/100 at a current price of $1.19. The stock falls in the bottom quintile of our universe across key quantitative factors, and the multi-factor weakness suggests a high probability of continued underperformance.
The rating is primarily driven by strength in investment (64th percentile) and quality (38th percentile), which together account for the majority of the composite score. Offsetting weakness in value (15th percentile) and stability (27th percentile) tempers our overall conviction. We assign a No Moat rating (30/100), High uncertainty, and Poor capital allocation.
Key items to watch: momentum to confirm whether the current price trend has legs; sustainability of the current growth rate; the path to profitability. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.
ParaZero Technologies Ltd. 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 37.2/100 places it at rank #3878 in our full 7,333-stock universe. At $20M in market capitalization, ParaZero Technologies Ltd. is a small-cap player in the Manufacturing space, which limits certain scale advantages but may allow for more agile strategic execution.
Revenue is growing at 50%, though momentum at the 28th percentile suggests the market has not yet fully recognized this trajectory. This potential disconnect between fundamental improvement and market recognition could represent an opportunity for patient investors if the growth trend persists.
The margin cascade tells an important story: gross margins of 6% (-36.3pp vs sector) narrow to operating margins of -597% (-598.4pp vs sector) and net margins of -1185.9%, yielding a gross-to-net conversion rate of -18974%. The significant margin erosion from gross to net suggests elevated operating expenses, high interest costs, or other structural drags that warrant monitoring.
At a current price of $1.19, ParaZero Technologies Ltd. is trading at a premium to fundamental value. Our value factor score of 15/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. The premium valuation implies the market is pricing in significant future growth or quality improvements that are not yet fully reflected in current fundamentals.
The stock currently trades at a P/E of 1.2x (a 95% discount to the sector median of 22.3x), P/S of 6.6x. The below-sector P/E suggests possible undervaluation or the market pricing in near-term headwinds.
Revenue growth of 50% confirms the business is expanding its addressable market — growth at this level typically supports multiple expansion and attracts institutional capital.
The Avoid rating (composite 37.2/100) reflects multi-factor weakness, and historically, stocks in this scoring range have underperformed the market by a meaningful margin.
Thin net margins of -1185.9% provide limited cushion against cost pressures, competitive pricing, or macroeconomic headwinds — even small changes in costs could swing the company to a loss.
Weak momentum (28th percentile) suggests institutional selling pressure and unfavorable technical dynamics that may persist.
We assign a High uncertainty rating to ParaZero Technologies Ltd.. Key risk factors include elevated market sensitivity (beta of 1.38), current negative profitability (net margin -1185.9%), below-average price stability (27th percentile). The wide range of potential outcomes widens our fair value estimate and increases the possibility of permanent capital impairment. Investors considering this name should size positions accordingly and demand a meaningful margin of safety before initiating.
Specific risk factors that inform our assessment include: elevated market sensitivity (beta of 1.38); current negative profitability (net margin -1185.9%); below-average price stability (27th percentile). Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 27th percentile and quality factor at the 38th percentile provide a quantitative summary of the overall risk landscape.
We identify limited risk mitigants at this time, which contributes to our high uncertainty assessment. Investors should monitor for improvement in balance sheet metrics, margin stability, and business predictability that could warrant a downgrade in our risk assessment over time.
We rate ParaZero Technologies Ltd.'s capital allocation as Poor. Key concerns include low returns on equity (-381.6%), negative profitability, weak asset returns (ROA -770.7%). Exemplary capital allocators generate ROE above 20% and maintain conservative leverage — ParaZero Technologies Ltd. significantly underperforms these benchmarks, raising questions about management's ability to create shareholder value.
Investors should scrutinize management's reinvestment decisions and balance sheet trajectory before committing capital. Poor capital allocation often compounds over time: overlevered balance sheets limit strategic flexibility, while low returns on capital destroy shareholder value. We would need to see sustained improvement in profitability metrics and balance sheet discipline before considering an upgrade.
In summary, ParaZero Technologies Ltd. receives a Avoid rating with a composite score of 37.2/100 (rank #3878 of 7,333). Our quantitative framework assigns a No Moat (30/100, trend: stable), High uncertainty, and Poor capital allocation. The average factor score across quality, value, momentum, stability, and investment is 34/100.
Our analysis does not support a constructive view on ParaZero Technologies Ltd. at this time. The combination of limited competitive advantages, high uncertainty, and poor capital allocation suggests unfavorable risk-reward at current levels. We recommend investors avoid new positions and existing holders consider reducing exposure.
Analysis derived from Blank Capital Research quantitative terminal. For informational purposes only. No trade solicitation. Past performance not indicative of future results. Consult a qualified advisor.
We do not assign ParaZero Technologies Ltd. a meaningful economic moat, scoring 30/100 on our composite assessment. Current fundamentals do not demonstrate the kind of durable competitive advantages — such as superior returns on invested capital, margin superiority, or reinvestment efficiency — that would protect the company from competitive erosion over the long term. The highest-scoring pillar, reinvestment efficiency, reached only 14/20.
The strongest moat sources are reinvestment efficiency (14/20) and growth durability (13/20). Capital turnover N/A, R&D intensity 229.9%. Rev growth 50%, 2yr history. These pillars form the core of ParaZero Technologies Ltd.'s competitive identity and are the primary drivers of excess returns in our framework.
Areas of relative weakness include financial resilience (0/20) and margin superiority (0.4/20). Interest coverage N/A. Improvement in these areas could meaningfully widen the moat over time, while deterioration would be an early warning of competitive erosion.
Our moat trend assessment is Stable. Multi-year ROIC and operating margin trajectories show neither meaningful improvement nor deterioration, suggesting the competitive position is steady. We expect ParaZero Technologies Ltd.'s moat profile to remain largely unchanged absent a material shift in return on capital or industry dynamics.
Key profit drivers include robust top-line growth of 50% expanding the revenue base. The margin cascade from 6% gross to -597% operating to -1185.9% net reveals the company's cost structure and reinvestment intensity. Our analysis indicates that profit quality raises some durability concerns, with the quality factor at the 38th percentile.
The margin profile shows gross margins of 6%, operating margins of -597%, net margins of -1185.9%. Return metrics include ROE of -381.6% and ROA of -770.7%. Relative to the Manufacturing sector, gross margins are 36.3 percentage points below the sector median of 43%, and ROE of -381.6% compares to a sector median of -2.5%.
The balance sheet reflects revenue growth of 50%. Overall balance sheet health is adequate for the current business environment.
Kfar Saba, Israel, Feb. 20, 2026 (GLOBE NEWSWIRE) -- ParaZero Technologies Ltd. (Nasdaq: PRZO) (the “company” or “ParaZero”), an aerospace defense company pioneering smart, autonomous solutions for the global manned and unmanned aerial systems (UAS) industry, today announced the receipt of an additional order from a second branch at an Israeli defense entity for its advanced DefendAir™ multi-layered Counter-UAS (C-UAS) solution. This additional order builds on the Company’s successful first depl
Kfar Saba, Israel, Feb. 18, 2026 (GLOBE NEWSWIRE) -- ParaZero Technologies Ltd. (Nasdaq: PRZO) (the “company” or “ParaZero”), an aerospace defense company pioneering smart, autonomous solutions for the global manned and unmanned aerial systems (UAS) industry, proudly announces outstanding results from an internal live testing of its DefendAir™ system. In the trial, DefendAir successfully intercepted a fast-moving drone traveling at 70 mph using its patented net-launching technology. This marks t
ParaZero Technologies Ltd. (NASDAQ: PRZO) stock rose Wednesday on breakthrough in drone interception technology.
Global defense spending is accelerating with India increasing its defense budget by 15% to $87 billion and the EU mobilizing $178 billion through its SAFE initiative. Multiple defense technology companies are securing major contracts for counter-drone systems, space-based intelligence, and AI-driven military platforms, with strong international demand driving significant backlog growth.
The U.S. Drone-as-a-Service market is projected to grow from $6.3 billion in 2024 to $8.2 billion in 2026, driven by AI, automation, and demand from agriculture, construction, and logistics sectors. The global drone services market is expected to reach $64.96 billion by 2029 and $225.09 billion by 2034. Key growth drivers include precision agriculture, cross-border security, government support, and entertainment industry demand. North America leads with 39.65% market share, while Asia Pacific and South America are fastest-growing regions.
Above 50MA
37.18%
Net New Highs
+51081