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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#4284
Positioning
Market Dominance
Manufacturing
Computer Hardware
$2M
Asher Dahan
We are a growth company developing a non-invasive neural input interface in the form of a wrist wearable band for controlling digital devices using subtle finger movements. We are an Israeli corporation based in Yokne’am Illit, Israel and were incorporated in Israel in 2014 under the name Wearable Devices Ltd. Our principal executive offices are located at 2 Ha-Ta’asiya St., Yokne’am Illit, 2069803 Israel.
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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 | |
$WLDS Wearable Devices Ltd. | 33 | 25 | 22 | 34 | - | - | -816.5% | -527.4% | 16.3% | -1498.1% | -1509.4% | 536.6% | 0.0% | 20.0x | $2M | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -2.5% | -0.1% | 42.5% | 1.3% | -0.2% | 5.9% | 0.0% | 0.2x | - | REF |
Wearable Devices Ltd. (WLDS) receives a "Avoid" rating with a composite score of 33.2/100. It ranks #4284 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
Asher Dahan
Chief Executive Officer
Labor Force
20
25
62
16
Audit Verdict: Lower quality and stability scores may indicate governance concerns.
No recent insider transactions available for WLDS
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
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.
No analyst ratings for WLDS.
View All RatingsHigh margin volatility — erratic forensic earnings quality
ROE proxy -816.5% (sector -2.5%)
GM 16% vs sector 43%, OM -1498% vs sector 1%
Capital turnover N/A, R&D intensity 567.8%
Rev growth 537%, 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 Wearable Devices Ltd. with an Avoid rating, assigning a composite score of 33.2/100 and 1 out of 5 stars. Ranked #4284 of 7,333 stocks, WLDS falls in the bottom tier across key factors. Historically, stocks with this profile have faced elevated risk of underperformance and capital loss.
WLDS's quality score of 25/100 is below average, suggesting challenges with profitability or capital efficiency. The company reports a return on equity of -816.5% (sector avg: -2.5%), gross margins of 16.3% (sector avg: 42.5%), net margins of -1509.4% (sector avg: -0.2%). Investors should examine whether management is actively addressing these weaknesses or if they reflect structural industry headwinds.
WLDS registers a value score of just 22/100, suggesting the stock trades at a significant premium to its fundamental metrics. Key valuation metrics include a P/B ratio of 1.79x. High-premium valuations like this require strong future execution to avoid multiple compression, and downside risk is elevated if growth disappoints.
WLDS shows a solid investment score of 62/100, reflecting measured but productive capital allocation. Key growth metrics include revenue growth of 536.6% vs. a sector average of 5.9% and a return on assets of -527.4% (sector: -0.1%). This suggests the company is investing at an appropriate level to sustain growth without overextending its balance sheet.
WLDS is currently showing below-average momentum at 34/100, which may indicate weakening institutional interest or negative sentiment shifts. Revenue growth stands at 536.6% year-over-year, while a beta of 2.61 reflects its sensitivity to broader market moves. Investors should note that declining momentum can precede further price weakness, though contrarian opportunities sometimes emerge at these levels.
Wearable Devices Ltd. registers a low stability score of 16/100, indicating high volatility and potentially stressed financial conditions. Key stability metrics include a beta of 2.61 and a debt-to-equity ratio of 20.00x (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 53/100 for WLDS suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include high market sensitivity (beta: 2.61), elevated leverage (D/E: 20.00x), micro-cap liquidity risk. With a $2M market cap (micro-cap), Wearable Devices Ltd. may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
Wearable Devices Ltd. is a micro-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #4284 of 7,333 overall (42nd percentile). Key comparisons include ROE of -816.5% trailing the -2.5% sector median and operating margins of -1498.1% below the 1.3% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While WLDS 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 (16) would have the largest impact on the composite score.
ROE 32823% ABOVE SECTOR MEDIAN (FAVORABLE)
Gross Margin 62% BELOW SECTOR MEDIAN
Op. Margin 116230% BELOW SECTOR MEDIAN
AUDIT DATA AS OF DEC 31, 2024 (Q3 FY2024)
We rate Wearable Devices Ltd. (WLDS) as Avoid with a composite score of 33.2/100 at a current price of $0.81. 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 (62th percentile) and momentum (34th percentile), which together account for the majority of the composite score. Offsetting weakness in stability (16th percentile) and value (22th percentile) tempers our overall conviction. We assign a No Moat rating (34/100), 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.
Wearable Devices 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 33.2/100 places it at rank #4284 in our full 7,333-stock universe. At $2M in market capitalization, Wearable Devices 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 537%, though momentum at the 34th 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 16% (-26.2pp vs sector) narrow to operating margins of -1498% (-1499.4pp vs sector) and net margins of -1509.4%, yielding a gross-to-net conversion rate of -9271%. 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 $0.81, Wearable Devices Ltd. is trading at a premium to fundamental value. Our value factor score of 22/100 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 1.8x, P/S of 3.3x. We evaluate these multiples in the context of both absolute levels and sector-relative positioning to form our valuation view.
Revenue growth of 537% confirms the business is expanding its addressable market — growth at this level typically supports multiple expansion and attracts institutional capital.
A conservative balance sheet (20% D/E) provides financial flexibility for acquisitions, buybacks, or weathering economic downturns without dilution.
The Avoid rating (composite 33.2/100) reflects multi-factor weakness, and historically, stocks in this scoring range have underperformed the market by a meaningful margin.
Thin net margins of -1509.4% 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 (34th percentile) suggests institutional selling pressure and unfavorable technical dynamics that may persist.
We assign a Very High uncertainty rating to Wearable Devices Ltd.. The stock exhibits multiple compounding risk factors: elevated market sensitivity (beta of 2.61), current negative profitability (net margin -1509.4%), below-average price stability (16th 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 2.61); current negative profitability (net margin -1509.4%); below-average price stability (16th percentile); weak quality scores (25th 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 16th percentile and quality factor at the 25th percentile provide a quantitative summary of the overall risk landscape.
Key risk mitigants include: conservative leverage (20% 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 Wearable Devices Ltd.'s capital allocation as Poor. Key concerns include low returns on equity (-816.5%), negative profitability, weak asset returns (ROA -527.4%). Exemplary capital allocators generate ROE above 20% and maintain conservative leverage — Wearable Devices 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, Wearable Devices Ltd. receives a Avoid rating with a composite score of 33.2/100 (rank #4284 of 7,333). Our quantitative framework assigns a No Moat (34/100, trend: stable), Very High uncertainty, and Poor capital allocation. The average factor score across quality, value, momentum, stability, and investment is 32/100.
Our analysis does not support a constructive view on Wearable Devices Ltd. 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 Wearable Devices Ltd. a meaningful economic moat, scoring 34/100 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 (10.7/20). Capital turnover N/A, R&D intensity 567.8%. Rev growth 537%, 3yr history. These pillars form the core of Wearable Devices Ltd.'s competitive identity and are the primary drivers of excess returns in our framework.
Areas of relative weakness include margin superiority (0.8/20) and economic value creation (2.5/20). GM 16% vs sector 43%, OM -1498% 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 Wearable Devices 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 537% expanding the revenue base. The margin cascade from 16% gross to -1498% operating to -1509.4% 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 25th percentile.
The margin profile shows gross margins of 16%, operating margins of -1498%, net margins of -1509.4%. Return metrics include ROE of -816.5% and ROA of -527.4%. Relative to the Manufacturing sector, gross margins are 26.2 percentage points below the sector median of 43%, and ROE of -816.5% compares to a sector median of -2.5%.
The balance sheet reflects a conservatively managed balance sheet with D/E of 20%, revenue growth of 537%. The sector median D/E is 0%, putting Wearable Devices Ltd. at higher leverage than the typical peer. Overall balance sheet health is adequate for the current business environment.
Below-average quality (25th percentile) raises durability concerns about the fundamental profile and increases the risk of negative earnings surprises.
High beta of 2.61 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
This initiative harnesses the Company’s robust resources, including more than $20 million raised in 2025, to lead advancements in next-generation neural AI ecosystems and the potential acceleration of key AI breakthroughs Yokneam Illit, Israel, Feb. 24, 2026 (GLOBE NEWSWIRE) -- Wearable Devices Ltd. (Nasdaq: WLDS, WLDSW) (“Wearable Devices” or the “Company”), a technology growth company specializing in artificial intelligence (“AI”)-powered touchless sensing wearables, recently announced the lau
NEW YORK, Feb. 18, 2026 (GLOBE NEWSWIRE) -- via AINewsWire -- Wearable Devices Ltd. (NASDAQ: WLDS) today announces its placement in an editorial published by AINewsWire ("AINW"), one of 75+ brands within the Dynamic Brand Portfolio@IBN (InvestorBrandNetwork), a specialized communications platform with a focus on financial news and content distribution for private and public companies and the investment community.To view the full publication, “Closing the Intent-to-Execution Gap May Define Next W
Wearable technology is rapidly evolving, with companies developing AI-powered neural interface devices that enable touch-free, intuitive interactions across multiple digital platforms. Wearable Devices Ltd. is leading this innovation with its Mudra Band and Mudra Link products, offering cross-platform gesture control solutions.
The AI wearables market is projected to grow from $21.2 billion in 2022 to $166.5 billion by 2030, driven by innovations in neural interface technology, gesture control, and health monitoring across various device form factors.