<div id="readability-page-1">Money Markets Ondas Acquisition Lifts Stock Higher. Now What?  ByTrefis Team ,  Contributor.  Forbes contributors publish independent expert analyses and insights. Building a platform to do the job of 1 million analysts for  Great Speculations Follow Author Nov 21, 2025, 05:00am EST Share Save Comment  CANADA - 2025/06/26: In this photo illustration, the Ondas Holdings logo is seen displayed on a smartphone screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images) SOPA Images/LightRocket via Getty Images Ondas (NASDAQ: ONDS) , a tech firm focused on autonomous drone systems and private wireless connectivity solutions for the industrial and government sectors, rose by 25% on Tuesday and is currently trading at nearly $7 per share. The increase follows the company’s announcement that it has finalized its acquisition of the Israeli counter-unmanned aerial systems (CUAS) company Sentrycs – a deal that was revealed earlier this month.  Sentrycs provides a valuable layer of capability for Ondas. Its systems have the ability to locate, track, and even take control of unauthorized drones—a crucial function as the risks associated with drones increase across airports, urban areas, and sensitive government locations. The technology is already in use in more than twenty-five countries, giving Ondas an immediate global presence without a prolonged ramp-up period. This is significant for the overall investment rationale: the counter-UAS (Unmanned Aerial System) market is transitioning towards integrated, end-to-end platforms instead of isolated tools. By merging Sentrycs’ cyber-based detection with Ondas’ Iron Drone autonomous interceptors, the company is working towards providing a cohesive detect-to-defeat framework. This more integrated product offering is what appears to be attracting investor interest, as it enhances Ondas' credibility in securing government, defense, and critical infrastructure contracts.  So what’s the conclusion on ONDS stock ? The outlook is mixed. The company is demonstrating significant momentum in technology and growth, however, its financial history is inconsistent and the stock still has a high valuation.  Below is our analysis:  Summary Trefis Rather than picking individual stocks, it makes more sense to create a portfolio designed to succeed across various market cycles. Our data indicates that High Quality Portfolio has effectively turned stock-picking ambiguity into consistent market outperformance.  MORE FOR YOU Let’s delve into the details of each of the assessed factors but prior to that, for quick background: With $2.4 Bil in market capitalization, Ondas offers private wireless, drone, and automated data solutions, including AI-driven drones, ruggedized base stations, and a software-defined radio platform for communication and data processing.  [1] Valuation Appears Excessive  ONDS Valuation Trefis The stock is trading at approximately 73x trailing earnings. However, based on FY'26 consensus revenue projections, the multiple decreases to around 25x, which might be more acceptable in light of the company's strong growth figures.  [2] Growth Is Exceptionally Strong  Ondas' top line has experienced an average annual growth of 155.5% over the past 3 years  Its revenues surged by 75%, increasing from $9.2 Mil to $16 Mil over the last year  Additionally, its quarterly revenues skyrocketed by 554.9%, reaching $6.3 Mil in the most recent quarter, up from $1.0 Mil a year prior.  ONDS Growth Trefis [3] Profitability Seems Very Weak  In the last 12 months, ONDS recorded an operating income of $-37 Mil, resulting in an operating margin of -227.7%  With a cash flow margin of -200.0%, it reported nearly $-32 Mil in operating cash flow during this time  During the same period, ONDS posted nearly $-45 Mil in net income, indicating a net margin of approximately -277.4%  That said, projections suggest that sales could exceed triple growth in 2026, potentially allowing for operating leverage gains to gradually improve margins.  ONDS Margins Trefis [4] Financial Stability Appears Very Robust  ONDS had $23 Mil in debt at the close of the latest quarter, while its current Market Cap stands at $2.4 Bil. This results in a Debt-to-Equity Ratio of 1.0%  ONDS Cash (including cash equivalents) comprises $68 Mil of its total $152 Mil in Assets. This yields a Cash-to-Assets Ratio of 44.5%  ONDS FInancial Stability Trefis [5] Downturn Resilience Is Quite Weak  ONDS has performed significantly worse than the S&amp;P 500 index during various economic downturns. We evaluate this based on (a) the extent of the stock's decline and, (b) the speed of its recovery.  2022 Inflation Shock  ONDS stock plummeted 97.8% from a peak of $15.40 on February 16, 2021, to $0.34 on October 25, 2023, whereas the S&amp;P 500 saw a peak-to-trough drop of 25.4%.  The stock has not yet returned to its pre-Crisis high.  The highest price the stock has achieved since then is $11.26 on October 8, 2025, and it currently trades near $7.  Trefis The Trefis High Quality (HQ) Portfolio , which consists of 30 stocks, has a history of consistently outperforming its benchmark, which includes the S&amp;P 500, S&amp;P mid-cap, and Russell 2000 indices. What’s the reason? As a collective group, HQ Portfolio stocks delivered superior returns with reduced risk compared to the benchmark index, providing a smoother investment experience, as shown in HQ Portfolio performance metrics .  Editorial Standards Reprints &amp; Permissions LOADING VIDEO PLAYER... FORBES’ FEATURED Video</div>

ONDS

<p>Ondas Holdings' stock rose by 25% following the acquisition of Israeli CUAS company Sentrycs. Sentrycs' technology enhances Ondas' capabilities in locating, tracking, and controlling unauthorized drones, providing a global presence. Despite strong growth and technological momentum, Ondas faces financial inconsistencies and high valuation. The stock trades at 73x trailing earnings, with a mixed outlook due to weak profitability and downturn resilience, but robust financial stability.</p>