Wrap Technologies Inc. Common Stock (WRAP)

FairStock Score: 51/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I wear two hats when I look at Wrap Technologies: Buffett's search for durable earning power and Graham's insistence on a margin of safety. Wrap sells non-lethal policing tools such as BolaWrap and Wrap Reality training. The niche could be sticky if agencies standardize on the platform, but with only 25 employees and FY2025 revenue of $4.7M, it is a tiny business, not yet a proven franchise. Revenue did rise from $3.6M in FY2024 to $4.7M in FY2025, and in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $2.1M. But that quarter still produced a $2.3M net loss, and FY2025 had a $10.3M net loss. The company has lost money in each of the last four years, which is why the Lynch category is none. FairStock's calculations show a trailing P/E of -4.75, P/B of 5.54, ROE of -107.65%, ROCE of -53.07%, and free cash flow yield of -12.5% at the 2026-10-13 close of $1.33. The Piotroski F-Score is 4/9, Altman Z-Score 11.70, and debt/equity is 0.03. Low debt is a real positive, but negative free cash flow of $9.3M and no profits mean the valuation relies on future promises. I see no margin of safety in the accounts as filed, and I would need evidence of sustainable positive cash earnings before calling this a sound investment.

In plain English: Wrap Technologies makes non-lethal devices and virtual reality training for police and security officers. The company is growing sales, but it is still losing money every year and burning cash. At $1.33 a share, the price looks expensive for a business with no profits and weak returns, even though it has very little debt.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer