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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#4296
Positioning
Market Dominance
Manufacturing
Defense
$110M
TJ Kennedy
Wrap Technologies, Inc., a public safety technology and services company, develops policing solutions to law enforcement and security personnel. The company develops BolaWrap 150, a hand-held remote restraint device that discharges a Kevlar cord to restrain noncompliant individuals.
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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 | |
$WRAP WRAP TECHNOLOGIES, INC. | 33 | 31 | 37 | 47 | - | - | -31.2% | -24.1% | 56.2% | -397.9% | -51.1% | -5.2% | 0.0% | 29.0x | $110M | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -2.5% | -0.1% | 42.5% | 1.3% | -0.2% | 5.9% | 0.0% | 0.2x | - | REF |
WRAP TECHNOLOGIES, INC. (WRAP) receives a "Avoid" rating with a composite score of 33.1/100. It ranks #4296 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
TJ Kennedy
Chief Executive Officer
Labor Force
70
31
18
33
Audit Verdict: Lower quality and stability scores may indicate governance concerns.
No recent insider transactions available for WRAP
In-line with peers — no strong momentum signal
Fair valuation relative to peers
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 WRAP.
View All RatingsHigh margin volatility — erratic forensic earnings quality
ROE proxy -31.2% (sector -2.5%)
GM 56% vs sector 43%, OM -398% vs sector 1%
Capital turnover N/A, R&D intensity 21.6%
Rev growth -5%, 8yr 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 WRAP TECHNOLOGIES, INC. with an Avoid rating, assigning a composite score of 33.1/100 and 1 out of 5 stars. Ranked #4296 of 7,333 stocks, WRAP falls in the bottom tier across key factors. Historically, stocks with this profile have faced elevated risk of underperformance and capital loss.
WRAP's quality score of 31/100 is below average, suggesting challenges with profitability or capital efficiency. The company reports a return on equity of -31.2% (sector avg: -2.5%), gross margins of 56.2% (sector avg: 42.5%), net margins of -51.1% (sector avg: -0.2%). Investors should examine whether management is actively addressing these weaknesses or if they reflect structural industry headwinds.
With a value score of 37/100, WRAP appears somewhat expensive relative to its fundamentals. Key valuation metrics include a P/B ratio of 6.60x. Investors paying a premium here are likely betting on above-average growth or margin expansion to justify current prices.
WRAP TECHNOLOGIES, INC.'s investment score of 18/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of -5.2% vs. a sector average of 5.9% and a return on assets of -24.1% (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.
WRAP is currently showing below-average momentum at 47/100, which may indicate weakening institutional interest or negative sentiment shifts. Revenue growth stands at -5.2% year-over-year, while a beta of 1.42 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.
WRAP's stability score of 33/100 signals elevated volatility and/or leverage concerns. Key stability metrics include a beta of 1.42 and a debt-to-equity ratio of 29.00x (sector avg: 0.2x). Investors should be prepared for wider-than-average price swings and consider position sizing accordingly to manage portfolio risk.
WRAP TECHNOLOGIES, INC.'s short interest score of 22/100 reveals significant bearish positioning, suggesting institutional investors are actively betting against the stock. Specific risk factors include above-average market sensitivity (beta: 1.42), elevated leverage (D/E: 29.00x), micro-cap liquidity risk. At $110M (micro-cap), WRAP carries meaningful risk and is best suited for investors with high risk tolerance who have thoroughly evaluated the bear thesis.
WRAP TECHNOLOGIES, INC. is a micro-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #4296 of 7,333 overall (41st percentile). Key comparisons include ROE of -31.2% trailing the -2.5% sector median and operating margins of -397.9% below the 1.3% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While WRAP 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.
View Top Manufacturing Alpha →Quant Factor Profile
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Improvement in Investment (18) would have the largest impact on the composite score.
ROE 1156% ABOVE SECTOR MEDIAN (FAVORABLE)
Gross Margin 32% ABOVE SECTOR MEDIAN (FAVORABLE)
Op. Margin 30944% BELOW SECTOR MEDIAN
AUDIT DATA AS OF SEP 30, 2025 (Q2 FY2025)
We rate WRAP TECHNOLOGIES, INC. (WRAP) as Avoid with a composite score of 33.1/100 at a current price of $1.70. 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 (47th percentile) and value (37th percentile), which together account for the majority of the composite score. Offsetting weakness in investment (18th percentile) and quality (31th percentile) tempers our overall conviction. We assign a No Moat rating (27/100), High uncertainty, and Poor capital allocation.
Key items to watch: the path to profitability. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is widening, which provides additional comfort in the durability of the competitive position.
WRAP TECHNOLOGIES, 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 33.1/100 places it at rank #4296 in our full 7,333-stock universe. At $110M in market capitalization, WRAP TECHNOLOGIES, INC. is a small-cap player in the Manufacturing space, which limits certain scale advantages but may allow for more agile strategic execution.
Revenue contraction of -5% combined with momentum at the 47th percentile paints a cautious picture of the near-term business outlook. The market appears to be pricing in continued challenges, and a catalyst for reversal is not clearly visible from current data.
The margin cascade tells an important story: gross margins of 56% (+13.7pp vs sector) narrow to operating margins of -398% (-399.2pp vs sector) and net margins of -51.1%, yielding a gross-to-net conversion rate of -91%. 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 $1.70, WRAP TECHNOLOGIES, INC. is trading at a premium to fundamental value. Our value factor score of 37/100 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 6.6x, P/S of 24.1x. We evaluate these multiples in the context of both absolute levels and sector-relative positioning to form our valuation view.
Gross margins of 56% signal strong pricing power and brand/IP advantages — businesses with margins above 40% have historically demonstrated more resilient earnings through economic cycles.
A conservative balance sheet (29% D/E) provides financial flexibility for acquisitions, buybacks, or weathering economic downturns without dilution.
The Avoid rating (composite 33.1/100) reflects multi-factor weakness, and historically, stocks in this scoring range have underperformed the market by a meaningful margin.
Revenue decline of -5% signals business deterioration — declining revenues make it difficult to grow into the current valuation and often precede further negative revisions.
Thin net margins of -51.1% provide limited cushion against cost pressures, competitive pricing, or macroeconomic headwinds — even small changes in costs could swing the company to a loss.
We assign a High uncertainty rating to WRAP TECHNOLOGIES, INC.. Key risk factors include elevated market sensitivity (beta of 1.42), current negative profitability (net margin -51.1%), below-average price stability (33th 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 1.42); current negative profitability (net margin -51.1%); below-average price stability (33th percentile); weak quality scores (31th 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 33th percentile and quality factor at the 31th percentile provide a quantitative summary of the overall risk landscape.
Key risk mitigants include: healthy gross margins of 56% provide a buffer against cost pressures; conservative leverage (29% 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 WRAP TECHNOLOGIES, INC.'s capital allocation as Poor. Key concerns include low returns on equity (-31.2%), negative profitability, weak asset returns (ROA -24.1%). Exemplary capital allocators generate ROE above 20% and maintain conservative leverage — WRAP TECHNOLOGIES, INC. 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, WRAP TECHNOLOGIES, INC. receives a Avoid rating with a composite score of 33.1/100 (rank #4296 of 7,333). Our quantitative framework assigns a No Moat (27/100, trend: widening), High uncertainty, and Poor capital allocation. The average factor score across quality, value, momentum, stability, and investment is 33/100.
Our analysis does not support a constructive view on WRAP TECHNOLOGIES, INC. 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 WRAP TECHNOLOGIES, INC. a meaningful economic moat, scoring 27/100 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, margin superiority, reached only 8.6/20.
The strongest moat sources are margin superiority (8.6/20) and financial resilience (7.2/20). GM 56% vs sector 43%, OM -398% vs sector 1%. Interest coverage N/A. These pillars form the core of WRAP TECHNOLOGIES, INC.'s competitive identity and are the primary drivers of excess returns in our framework.
Areas of relative weakness include economic value creation (0.1/20) and growth durability (4.4/20). ROE proxy -31.2% (sector -2.5%). 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 Widening. ROIC has trended upward at ~2094.3pp per year, and operating margin trajectory confirms strengthening economics. WRAP TECHNOLOGIES, INC.'s competitive position is improving on a fundamental basis. We expect the moat score to drift upward if these trends persist over the next 12–18 months.
Key profit drivers include gross margins of 56% providing a solid profitability foundation, declining revenues (-5%) that pressure the earnings outlook. The margin cascade from 56% gross to -398% operating to -51.1% 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 31th percentile.
The margin profile shows gross margins of 56%, operating margins of -398%, net margins of -51.1%. Return metrics include ROE of -31.2% and ROA of -24.1%. Relative to the Manufacturing sector, gross margins are 13.7 percentage points above the sector median of 43%, and ROE of -31.2% compares to a sector median of -2.5%.
The balance sheet reflects a conservatively managed balance sheet with D/E of 29%, revenue growth of -5%. The sector median D/E is 0%, putting WRAP TECHNOLOGIES, INC. at higher leverage than the typical peer. Overall balance sheet health is adequate for the current business environment.
Below-average quality (31th percentile) raises durability concerns about the fundamental profile and increases the risk of negative earnings surprises.
High beta of 1.42 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
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Agency-wide expansion to a standardized Non-Lethal Response program integrates non-lethal tools, training, and policy across all operational shifts and units.MIAMI, Feb. 13, 2026 (GLOBE NEWSWIRE) -- Wrap Technologies, Inc. (NASDAQ: WRAP) (“Wrap” or, the “Company”), a global leader in Non-Lethal Response (“NLR”) and public safety technology, today announced the full department-wide deployment of its BolaWrap® 150 device at the Loveland Police Department (“Loveland”) in Colorado, marking a milesto
Wrap Technologies has acquired W1 Global, a professional services and consulting firm led by former law enforcement and intelligence officials. The acquisition is expected to expand Wrap's managed services offerings and international reach.
Shares of companies specializing in non-lethal policing tools are surging amid rising civil unrest and heightened ICE enforcement actions, as law enforcement agencies seek safer and more publicly acceptable methods of managing large, resistant crowds.