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1. Company Snapshot

1.a. Company Description

Ocean Power Technologies, Inc.develops and commercializes proprietary systems that generate electricity by harnessing the renewable energy of ocean waves in North America, South America, Europe, and Asia.It offers PB3 PowerBuoy system that generates power for use independent of the power grid in offshore locations.


The company also provides hybrid PowerBuoy products; subsea battery systems; and software, controls, sensors, integration services, and marine installation services.In addition, it offers distributed offshore power and communications for remote surface and subsea applications in markets, such as defense and security, offshore oil and gas, science and research, and offshore wind.Further, the company provides Wave Adaptive Modular Vessel (WAM-V) technology, which enables roaming capabilities for uncrewed maritime systems in waters; leases WAM-V robotics and access information; maritime domain awareness solutions; and strategic consulting services.


Additionally, it offers offshore data collection, integration, analytics, and real time communication for various applications.The company serves public and private entities, and agencies that require remote offshore power.Ocean Power Technologies, Inc.


was incorporated in 1984 and is headquartered in Monroe Township, New Jersey.

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1.b. Last Insights on OPTT

The recent 3-month performance of Ocean Power Technologies, Inc. was negatively impacted by a wider year-over-year loss in Q3, despite a record backlog and reduced cash burn. The company's shares fell 22.7% post-earnings, indicating investor skepticism. Zacks' initiation of coverage with a neutral recommendation further underscores the company's execution and financial risks. Additionally, the recent expansion of year-round testing to both US coasts, while a positive development, may not have been enough to offset the negative sentiment surrounding the company's financial performance.

1.c. Company Highlights

2. OPT Delivers Record Revenue, Positions for Sustainable Growth

OPT's fiscal 2025 was marked by a record revenue of $5.9 million, a 7% increase over the prior year. The company's operating expenses, however, decreased by 27% to $23.4 million, reflecting efforts to optimize headcount and reduce costs. The loss for the year improved by 22% to $21.5 million. The actual EPS came out at '-21', beating estimates at '-37'. As of April 30, 2025, the total cash position stood at $6.7 million, and just after year-end, the company secured a $10 million unsecured debt financing.

Publication Date: Jul -29

📋 Highlights
  • Record Revenue: - Generated $5.9 million, a 7% increase from the prior year.
  • Reduced Operating Expenses: - Totaled $23.4 million, a 27% decrease from $32.2 million in FY '24.
  • Improved Net Loss: - Loss of $21.5 million, a 22% improvement from the previous year.
  • Strong Cash Position: - $6.7 million in cash as of April 30, 2025, with an additional $10 million debt financing secured post-year-end.
  • Record Backlog: - Entered FY '26 with $12.5 million in funded backlog, the highest in company history.

Operational Highlights

The company made significant strides in fiscal 2025, delivering real measurable value and positioning itself to lead in the sustainable data-driven blue economy. As Philipp Stratmann noted, "We entered fiscal '26 with $12.5 million in funded backlog, the highest in our history." The backlog is a healthy split between buoys, vehicles, and associated services, with an uptick in service revenues related to training.

Growth Prospects

OPT is confident about meeting demand, having redesigned its facilities to scale up more quickly. The company has also retooled its go-to-market engine, expanding internationally and matching talent to strategic growth corridors. Gross margin is expected to improve as the company transitions into operational use of the systems and delivers more service revenues.

Valuation

Using the current valuation metrics, the stock trades at a P/S Ratio of 18.08, EV/EBITDA of -4.57, and ROE of -86.05%. The current valuation appears to be pricing in significant growth expectations, and the company's ability to deliver on its backlog and expand its services will be crucial in justifying the current valuation.

Certifications and Partnerships

The company achieved ISO9001 certification for its quality management system, a globally recognized benchmark for excellence. This certification is expected to support OPT's growth strategy and deepen the confidence of its partners, investors, and customers.

3. NewsRoom

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Ocean Power Technologies Attending the 3rd Annual DealFlow Discovery Conference

Dec -05

Source: accessnewswire.com

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Ocean Power Technologies to Announce Fiscal 2026 Second Quarter Results on December 15, 2025

Dec -03

Source: globenewswire.com

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Ocean Power Technologies partners with Mythos AI to advance autonomous maritime systems

Nov -12

Source: proactiveinvestors.com

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Ocean Power Technologies now certified for USV operator training – ICYMI

Nov -08

Source: proactiveinvestors.com

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Ocean Power Technologies certified as AUVSI trusted maritime operator training provider

Nov -04

Source: proactiveinvestors.com

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Analyzing CBRE Acquisition (OTCMKTS:CBAHU) & Ocean Power Technologies (NASDAQ:OPTT)

Oct -24

Source: defenseworld.net

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Ocean Power Loss Widens Y/Y in Q1, Backlog Skyrockets 184%

Sep -18

Source: zacks.com

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Ocean Power Technologies highlights record backlog, pipeline growth in fiscal Q1

Sep -15

Source: proactiveinvestors.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.00%)

6. Segments

Wave Adaptive Modular Vessels

Expected Growth: 10.3%

Growing demand for renewable energy, increasing investment in offshore wind farms, and government incentives for ocean energy technologies drive the adoption of Wave Adaptive Modular Vessels, enabling Ocean Power Technologies, Inc. to capitalize on the emerging blue economy.

Services

Expected Growth: 12.4%

Growing demand for renewable energy, increasing adoption of ocean-based surveillance systems, and rising investments in offshore oil and gas exploration are expected to drive the growth of Ocean Power Technologies, Inc.'s services.

Buoy

Expected Growth: 10.3%

Growing demand for renewable energy, increasing investment in offshore wind farms, and government incentives for sustainable power sources drive the adoption of Ocean Power Technologies' buoy system, which harnesses ocean wave energy to generate electricity.

7. Detailed Products

PB3 PowerBuoy

A floating buoy that converts ocean wave energy into electricity, used for offshore oil and gas, ocean observing, and coastal security applications.

Mark 4 PowerBuoy

A next-generation PowerBuoy that provides higher power output and improved efficiency, used for offshore oil and gas, ocean observing, and coastal security applications.

Subsea Battery

A rechargeable battery system designed for underwater applications, used for offshore oil and gas, ocean observing, and coastal security applications.

Ocean Observing Systems

A suite of sensors and systems that provide real-time ocean data, used for ocean research, climate monitoring, and coastal protection applications.

Coastal Security Systems

A suite of sensors and systems that provide real-time coastal surveillance, used for coastal protection, border security, and search and rescue applications.

8. Ocean Power Technologies, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Ocean Power Technologies, Inc. faces moderate threat from substitutes as there are limited alternative sources of renewable energy that can replace its wave energy converters.

Bargaining Power Of Customers

The bargaining power of customers is low as Ocean Power Technologies, Inc. is one of the leading providers of wave energy converters, and customers have limited alternatives.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate as Ocean Power Technologies, Inc. relies on a few key suppliers for its components, but it also has some flexibility to switch suppliers if needed.

Threat Of New Entrants

The threat of new entrants is high as the renewable energy industry is growing rapidly, and new companies are entering the market with innovative technologies.

Intensity Of Rivalry

The intensity of rivalry is moderate as Ocean Power Technologies, Inc. faces competition from established players in the renewable energy industry, but it has a unique technology that differentiates it from competitors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 4.02%
Debt Cost 3.95%
Equity Weight 95.98%
Equity Cost 14.63%
WACC 14.21%
Leverage 4.19%

11. Quality Control: Ocean Power Technologies, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Pioneer Power Solutions

A-Score: 5.4/10

Value: 8.0

Growth: 4.2

Quality: 6.9

Yield: 10.0

Momentum: 2.0

Volatility: 1.0

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Flux Power

A-Score: 4.7/10

Value: 8.0

Growth: 6.9

Quality: 5.5

Yield: 0.0

Momentum: 7.5

Volatility: 0.3

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FuelCell Energy

A-Score: 4.5/10

Value: 9.2

Growth: 3.7

Quality: 3.8

Yield: 0.0

Momentum: 10.0

Volatility: 0.3

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Ocean Power Technologies

A-Score: 4.2/10

Value: 6.0

Growth: 5.2

Quality: 3.6

Yield: 0.0

Momentum: 10.0

Volatility: 0.3

1-Year Total Return ->

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Solid Power

A-Score: 4.1/10

Value: 6.6

Growth: 3.2

Quality: 4.0

Yield: 0.0

Momentum: 10.0

Volatility: 1.0

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Orion Energy Systems

A-Score: 3.4/10

Value: 7.8

Growth: 2.9

Quality: 3.2

Yield: 0.0

Momentum: 4.0

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.42$

Current Price

0.42$

Potential

-0.00%

Expected Cash-Flows