Symbotic (SYM) ZACKS·2025-02-28 18:45Core Viewpoint - Symbiotic Inc. (SYM) shares have decreased by 41.9% over the past year, underperforming its industry and the broader market, raising questions about the timing for potential investment in the company [1][4]. Group 1: Stock Performance - SYM's stock is currently trading below its 50-day moving average, indicating bearish sentiment among investors [4]. - In contrast, industry peers Aurora Innovation, Inc. (AUR) and Allot Ltd. (ALLT) have seen significant gains of 175.6% and 172.9% respectively over the same period [4]. Group 2: Strategic Acquisitions and Expansion - Symbiotic completed the acquisition of Walmart's advanced systems and robotic business in January 2025, which is expected to enhance its backlog by over 2.3 billion, reflecting a year-over-year growth of 21.9% [9]. - The consensus estimate for SYM's fiscal 2025 earnings is 25 cents per share, indicating a more than 100% year-over-year increase [9]. Group 4: Liquidity and Cost Considerations - SYM's current ratio of 1.22 is below the industry average of 2.21, although it still suggests the company can meet its short-term obligations [10]. - Steel prices significantly impact SYM's cost of goods sold, with management implementing pass-through clauses to recover costs from customers [12]. - Rising steel prices due to tariffs could increase project costs for retailers, potentially affecting SYM's return on investment [13]. Group 5: Valuation and Investment Considerations - SYM's stock is currently considered expensive, trading at 67.5 times forward 12-month earnings per share, which is higher than the industry average of 39.8 times [14]. - Despite the recent stock decline, the company's long-term prospects appear solid due to its acquisitions and strategic expansions, though a cautious investment approach is recommended [16].