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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#4659
Positioning
Market Dominance
Manufacturing
Automobiles And Trucks
$696M
Ali Kashani
Serve has developed an advanced, AI-powered robotics mobility platform, with last-mile delivery in cities as its first application.Our principal executive offices are located at 730 Broadway, Redwood City, California 94063.
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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 | |
$SERV Serve Robotics Inc. /DE/ | 28 | 23 | 28 | 29 | - | - | -26.5% | -25.1% | -371.6% | -3953.3% | -3665.9% | 46.7% | 0.0% | 5.0x | $696M | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -2.5% | -0.1% | 42.5% | 1.3% | -0.2% | 5.9% | 0.0% | 0.2x | - | REF |
Serve Robotics Inc. /DE/ (SERV) receives a "Avoid" rating with a composite score of 27.6/100. It ranks #4659 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
Financial leverage load
Direct cash return
Ali Kashani
Chief Executive Officer
23
21
18
Audit Verdict: Lower quality and stability scores may indicate governance concerns.
No recent insider transactions available for SERV
Lagging peers — losers tend to keep underperforming
Expensive relative to fundamentals — limited margin of safety
Weak fundamentals — higher risk of value trap
High volatility — wider range of outcomes increases timing risk
Aggressive spending — empire-building risk, dilutive growth
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.
No analyst ratings for SERV.
View All RatingsMaterial decline in asset turnover efficiency detected
High margin volatility — erratic forensic earnings quality
ROE proxy -26.5% (sector -2.5%)
GM -372% vs sector 43%, OM -3953% vs sector 1%
Capital turnover N/A, R&D intensity 1662.3%
Rev growth 47%, 3yr 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 Serve Robotics Inc. /DE/ with an Avoid rating, assigning a composite score of 27.6/100 and 1 out of 5 stars. Ranked #4659 of 7,333 stocks, SERV falls in the bottom tier across key factors. Historically, stocks with this profile have faced elevated risk of underperformance and capital loss.
Serve Robotics Inc. /DE/ registers a weak quality score of just 23/100, indicating significant profitability challenges. The company reports a return on equity of -26.5% (sector avg: -2.5%), gross margins of -371.6% (sector avg: 42.5%), net margins of -3665.9% (sector avg: -0.2%). Low quality scores are often associated with businesses in turnaround mode, early-stage growth, or structurally challenged industries.
SERV registers a value score of just 28/100, suggesting the stock trades at a significant premium to its fundamental metrics. Key valuation metrics include a P/B ratio of 2.49x. High-premium valuations like this require strong future execution to avoid multiple compression, and downside risk is elevated if growth disappoints.
Serve Robotics Inc. /DE/'s investment score of 21/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 46.7% vs. a sector average of 5.9% and a return on assets of -25.1% (sector: -0.1%). 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.
Serve Robotics Inc. /DE/ is experiencing notably weak momentum with a score of just 29/100. The stock has underperformed its peers and is trending below major moving averages. Revenue growth stands at 46.7% year-over-year, while a beta of 2.65 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.
Serve Robotics Inc. /DE/ registers a low stability score of 18/100, indicating high volatility and potentially stressed financial conditions. Key stability metrics include a beta of 2.65 and a debt-to-equity ratio of 5.00x (sector avg: 0.2x). Stocks at this level carry elevated capital loss risk and may be unsuitable for conservative portfolios without careful risk management.
The short interest score of 48/100 for SERV suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include high market sensitivity (beta: 2.65), elevated leverage (D/E: 5.00x), small-cap liquidity risk. With a $696M market cap (small-cap), Serve Robotics Inc. /DE/ may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
Serve Robotics Inc. /DE/ is a small-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #4659 of 7,333 overall (36th percentile). Key comparisons include ROE of -26.5% trailing the -2.5% sector median and operating margins of -3953.3% below the 1.3% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While SERV 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 Stability (18) would have the largest impact on the composite score.
ROE 967% ABOVE SECTOR MEDIAN (FAVORABLE)
Gross Margin 974% BELOW SECTOR MEDIAN
Op. Margin 306558% BELOW SECTOR MEDIAN
AUDIT DATA AS OF SEP 30, 2025 (Q2 FY2025)
We rate Serve Robotics Inc. /DE/ (SERV) as Avoid with a composite score of 27.6/100 at a current price of $9.66. 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 momentum (29th percentile) and value (28th percentile), which together account for the majority of the composite score. Offsetting weakness in stability (18th percentile) and investment (21th percentile) tempers our overall conviction. We assign a No Moat rating (30/100), Very 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.
Serve Robotics Inc. /DE/ 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 27.6/100 places it at rank #4659 in our full 7,333-stock universe. At $696M in market capitalization, Serve Robotics Inc. /DE/ 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 47%, though momentum at the 29th 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 -372% (-414.1pp vs sector) narrow to operating margins of -3953% (-3954.6pp vs sector) and net margins of -3665.9%, yielding a gross-to-net conversion rate of N/A%. 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 $9.66, Serve Robotics Inc. /DE/ is trading at a premium to fundamental value. Our value factor score of 28/100 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 P/B of 2.5x, P/S of 355.2x. We evaluate these multiples in the context of both absolute levels and sector-relative positioning to form our valuation view.
Revenue growth of 47% confirms the business is expanding its addressable market — growth at this level typically supports multiple expansion and attracts institutional capital.
A conservative balance sheet (5% D/E) provides financial flexibility for acquisitions, buybacks, or weathering economic downturns without dilution.
The Avoid rating (composite 27.6/100) reflects multi-factor weakness, and historically, stocks in this scoring range have underperformed the market by a meaningful margin.
Thin net margins of -3665.9% 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 (29th percentile) suggests institutional selling pressure and unfavorable technical dynamics that may persist.
We assign a Very High uncertainty rating to Serve Robotics Inc. /DE/. The stock exhibits multiple compounding risk factors: elevated market sensitivity (beta of 2.65), current negative profitability (net margin -3665.9%), below-average price stability (18th percentile). The extreme uncertainty around future cash flows makes precise valuation difficult, and the range of outcomes is exceptionally wide. Only investors with high risk tolerance and extended time horizons should consider this name.
Specific risk factors that inform our assessment include: elevated market sensitivity (beta of 2.65); current negative profitability (net margin -3665.9%); below-average price stability (18th percentile); weak quality scores (23th 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 18th percentile and quality factor at the 23th percentile provide a quantitative summary of the overall risk landscape.
Key risk mitigants include: conservative leverage (5% D/E) limits balance sheet risk. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile warrants caution and disciplined position management.
We rate Serve Robotics Inc. /DE/'s capital allocation as Poor. Key concerns include low returns on equity (-26.5%), negative profitability, weak asset returns (ROA -25.1%). Exemplary capital allocators generate ROE above 20% and maintain conservative leverage — Serve Robotics Inc. /DE/ 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, Serve Robotics Inc. /DE/ receives a Avoid rating with a composite score of 27.6/100 (rank #4659 of 7,333). Our quantitative framework assigns a No Moat (30/100, trend: stable), Very High uncertainty, and Poor capital allocation. The average factor score across quality, value, momentum, stability, and investment is 24/100.
Our analysis does not support a constructive view on Serve Robotics Inc. /DE/ at this time. The combination of limited competitive advantages, very 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 Serve Robotics Inc. /DE/ 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, growth durability, reached only 10.7/20.
The strongest moat sources are growth durability (10.7/20) and financial resilience (9.3/20). Rev growth 47%, 3yr history. Interest coverage N/A. These pillars form the core of Serve Robotics Inc. /DE/'s competitive identity and are the primary drivers of excess returns in our framework.
Areas of relative weakness include margin superiority (0/20) and economic value creation (2.7/20). GM -372% vs sector 43%, OM -3953% vs sector 1%. 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 Serve Robotics Inc. /DE/'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 47% expanding the revenue base. The margin cascade from -372% gross to -3953% operating to -3665.9% 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 23th percentile.
The margin profile shows gross margins of -372%, operating margins of -3953%, net margins of -3665.9%. Return metrics include ROE of -26.5% and ROA of -25.1%. Relative to the Manufacturing sector, gross margins are 414.1 percentage points below the sector median of 43%, and ROE of -26.5% compares to a sector median of -2.5%.
The balance sheet reflects a conservatively managed balance sheet with D/E of 5%, revenue growth of 47%. The sector median D/E is 0%, putting Serve Robotics Inc. /DE/ at higher leverage than the typical peer. Overall balance sheet health is adequate for the current business environment.
Below-average quality (23th percentile) raises durability concerns about the fundamental profile and increases the risk of negative earnings surprises.
High beta of 2.65 means amplified losses in market selloffs — in a broad market correction, this stock would likely decline more than the index.
Above 50MA
37.18%
Net New Highs
+51081
Serve Robotics has surged 40% in early 2026 after a 23% decline in 2025. The company is scaling its autonomous sidewalk delivery robots through partnerships with Uber Eats and DoorDash, targeting a $450 billion market opportunity by 2030. However, with a P/S ratio of 392 and mounting losses ($67M in first three quarters of 2025), the stock carries significant valuation risk despite revenue growth projections.
Serve Robotics saw a significant stock surge after reports emerged that the Trump administration is considering supporting the domestic robotics industry, with the company expecting 10x revenue growth in 2026.
Serve Robotics (NASDAQ: SERV) announced its acquisition of Diligent Robotics for $29.0 million in stock plus up to $5.3 million in earn-outs. The deal expands Serve's autonomous robotics platform from sidewalk delivery into healthcare, leveraging Diligent's Moxi hospital delivery robot deployed across 25+ facilities with over 1.25 million completed deliveries. The combined entity aims to create a unified autonomy stack and accelerate AI learning across both indoor and outdoor applications, with expected annual revenue per hospital facility ranging from $200k to $400k.
Serve Robotics received significant endorsement from Nvidia CEO Jensen Huang at CES, who praised the company's sidewalk delivery robots as an example of physical AI. The company operates the largest sidewalk delivery fleet in the U.S. with over 2,000 robots and partners with major companies like Uber and DoorDash. While revenue grew 209% in Q3, losses surged fourfold. Northland Capital Markets analyst Michael Latimore has a Street-high price target of $26, implying 77% upside, though investors should note the company is unprofitable and trades at over 400 times sales.
Serve Robotics stock surged 33% this week following multiple positive catalysts: Northland Securities raised its price target to $26 (implying 66% upside), Nvidia CEO Jensen Huang praised the company at CES 2026, and major robotics acquisitions by Grab and Mobileye boosted sector sentiment. The company is expected to grow revenue from $2.5M in 2025 to $25M in 2026, though it trades at a steep 40x forward sales multiple.