MicroVision Stock Forecast

MicroVision Stock Forecast: MicroVision offers innovations in fields like laser scanning, 3D sensing and various types of imaging technology. Its flagship product, a MEMS scanning micro-mirror, has obvious medical applications, and has won contracts for equipping military surgical personnel in the U.S.

As a firm heavily concentrated on this technology, and with specific customers, MicroVision provides a somewhat unique play in an emerging market.

Is MicroVision An Acquistion Target?

Some analysts argue that MicroVision only has a moat as deep as the buzz around its products and their applications to other enterprise efforts. Indeed, MicroVision has been seen over the past few years as an acquisition target.

Reports that Microsoft may have been planning to acquire MicroVision did not ultimately pan out, but outside observers have continued to suggest that MicroVision may be more valuable as an acquisition than as an independent enterprise; some referring to it as a “walking dead” company.

Still, the firm continues to pursue its overall objectives with somewhat stable results, though some contend the stock is overbought, with a recent Nasdaq analysis citing sentiment that today’s MVIS price is “unsupported by its current financial metrics and near-term growth prospects.”

Is MicroVision Growing Revenues?

MicroVision revenues have not been increasing or decreasing at any accelerated pace, but are just hovering at the same level of around $1 million quarterly.

At the end of 2019, MicroVision recorded a $5 million revenue which represents a spike in that chart entry. That $5 million was an outlier as prior numbers are quite a bit lower in general.

What Rate Are MicroVision Earnings Growing?

During its last quarter, MicroVision reported earnings of two cents per share. For the upcoming quarter, some analysts are suggesting a break-even EPS of zero cents.

Understanding that many bioscience companies, startups and new innovators often report negative EPS, the number is not particularly frightening to investors. However, it obviously indicates no actual profits.

For investors who desire dividends or even short term capital returns, EPS is important and the lack of earnings makes valuation particularly difficult.

Looking further back at EPS for the company, we see that MicroVision actually reported the same value of two cents per share in two prior quarters: in reports August 5 and October 29 of 2020.

Only one of those, the August report, beat analyst projections consensus, as the community had predicted one cent. Prior to that, in May of 2020, we saw MVIS nearly strike at consensus projection, with a gap between the predicted four cents and the reported 3.7 cents.

Then, prior to this, historic EPS shows how the current numbers represent a relatively shallow end to the attached earnings values. Through 2019 and early 2020, EPS numbers came in from three to five to eight cents per share.

Many of the trends of the next quarters will be determined by prospects around company’s product development and applications. As experienced investors know, and more information coming from the soon-to-close quarter will clarify a number of big questions around the stock’s short-term value.

MicroVision Management

In looking at management efficiency metrics, Macroaxis reports that MicroVision represents a projected 27.4 return on investment ratio, and a return on average assets of 1.21, as well as a return on average equity of 11.82, and a return on invested capital estimated at 2.63.

Do these numbers match the EPS and revenue numbers detailed above? It seems that volatility is the name of the game with MVIS and mass technological adoption is required to boost its share price long term.

What Challenges Does MicroVision Face?

Despite all of the feathers in MicroVision’s cap, some concerns around its emerging equity picture are related to market factors beyond the company’s direct control.

One of the biggest potential scenarios looming on the horizon is the idea that populist traders associated with WallStreetBets could get involved in MicroVision stock.

Analysts have warned of a suspected short squeeze, where hedge fund managers and others may theoretically move in to short the stock, and WallStreetBets and their merry band move to the rescue.

What we saw with Gamestock (GME) and AMC, in other words, may not be a fluke, but a feature of limited liquidity equities, with all that entails. The regulatory response, predictably, has been rather unsubstantial, which makes sense because there’s not a lot that federal agencies can do about this kind of organic investment trend.

In addition, MicroVision faces the obvious challenge to garner applications for its flagship product. When a proposed partnership doesn’t happen, or a contract isn’t won, investors can see MVIS stock respond negatively, and this can further entrench these obstacles for long term growth moving forward as well.

Is MicroVision Stock A Buy?

MicroVision has risen over 322% in the past 52 weeks as buoyant traders jumped on board for a wild ride higher.

MVIS share price doubled February 16 of this year, and again on April 26, both spikes encouraging bullish sentiment and drawing more analyst attention toward the company. Prior to that, in May of last year, MVIS exploded in value, bringing its own short-term interest.

At the time, prominent voices were involved in “takeover chatter” around the company. In evaluating current buzz on MVIS, it’s worth asking if the difference between existing acquisition rumors creates a fundamental disparity between that 2020 spike and those MVIS experienced earlier this year.

Also, as noted with so many stocks, additional increases consecutive to the kind of rise we have seen in four months are sometimes dubiously painted by analyst consensus.

Despite all of that, the numbers indicate that this is a safer time to buy MVIS, if you have interest in this corner of the healthcare technology market.

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The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.