Ondas Surges 25% On Sentrycs Deal. What Next For The Stock?

Ondas (NASDAQ: ONDS), a technology company specializing in autonomous drone systems and private wireless connectivity solutions for industrial and government sectors, surged by 25% on Tuesday, and is currently trading at close to $7 per share. The gains come as the company announced that it closed its acquisition of Israeli counter-unmanned aerial systems (CUAS) company Sentrycs – a deal that was announced just in early November.

Image by Bernd Thomas from Pixabay

Sentrycs adds a meaningful layer of capability for Ondas. Its systems can locate, track, and even take control of unauthorized drones—a critical function as drone-related risks rise across airports, cities, and sensitive government sites. The technology is already deployed in more than twenty-five countries, giving Ondas an immediate global footprint rather than a long ramp-up period. This is important for the broader investment case: the counter-UAS (Unmanned Aerial System) market is shifting toward integrated, end-to-end platforms rather than standalone tools. By combining Sentrycs’ cyber-based detection with Ondas’ Iron Drone autonomous interceptors, the company moves closer to offering a unified detect-to-defeat architecture. That tighter product stack is what investors appear to be excited about, as it positions Ondas more credibly to win government, defense, and critical-infrastructure contracts.

So what’s the verdict on ONDS stock? The picture is mixed. The company is showing impressive momentum on the technology and growth side, but its financial track record is uneven and the stock still carries a steep valuation.

Below is our assessment:

Summary

Instead of stock picking, it makes more sense to build a portfolio that is designed to win across cycles. Our numbers show that High Quality Portfolio has turned stock-picking uncertainty into market-beating consistency.

Let’s get into details of each of the assessed factors but before that, for quick background: With $2.4  Bil in market cap, Ondas provides private wireless, drone, and automated data solutions, including AI-powered drones, ruggedized base stations, and a software-defined radio platform for communication and data processing.

[1] Valuation Looks Very High

ONDS Valuation

The stock trades at about 73x trailing earnings. That said, based on FY’26 consensus revenue numbers, the multiple declines to about 25x, which could be more acceptable, given its strong growth figures.

[2] Growth Is Very Strong

• Ondas has seen its top line grow at an average rate of 155.5% over the last 3 years
• Its revenues have grown 75% from $9.2 Mil to $16 Mil in the last 12 months
• Also, its quarterly revenues grew 554.9% to $6.3 Mil in the most recent quarter from $1.0 Mil a year ago.

ONDS Growth

[3] Profitability Appears Very Weak

• ONDS last 12 month operating income was $-37 Mil representing operating margin of -227.7%
• With cash flow margin of -200.0%, it generated nearly $-32 Mil in operating cash flow over this period
• For the same period, ONDS generated nearly $-45 Mil in net income, suggesting net margin of about -277.4%
• That said, with consensus projecting that sales could grow by over 3x in 2026, operating leverage gains could gradually kick in and help margins.

ONDS Margins

[4] Financial Stability Looks Very Strong

• ONDS Debt was $23 Mil at the end of the most recent quarter, while its current Market Cap is $2.4 Bil. This implies Debt-to-Equity Ratio of 1.0%
• ONDS Cash (including cash equivalents) makes up $68 Mil of $152 Mil in total Assets. This yields a Cash-to-Assets Ratio of 44.5%

ONDS Financials

[5] Downturn Resilience Is Very Weak

ONDS has fared much worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

• ONDS stock fell 97.8% from a high of $15.40 on 16 February 2021 to $0.34 on 25 October 2023 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• The stock is yet to recover to its pre-Crisis high
• The highest the stock has reached since then is $11.26 on 8 October 2025 , and currently trades near  $7.

2022 Inflation Shock

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all three – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.

Invest with Trefis Market-Beating Portfolios

See all Trefis Price Estimates