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Owlet

OWLT
28
Medical - Devices · Healthcare
Price
$5.60
-0.19 (-3.28%)
Market Cap
$101.3M
Winston Score
28
Winston is worried
Below-average fundamentals — multiple weak pillars.

Share count rising — dilution

+7043.8% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 7.9M (2021) → 562.5M (2025)

Owlet makes smart baby monitors and health-tracking devices for parents of newborns and infants. Its main product is the Dream Sock, a wearable sensor that clips onto a baby's foot and tracks heart rate, oxygen levels, and sleep patterns. The company sells directly to parents and competes in the consumer baby health market in the United States and a handful of international markets.

Owlet earns most of its revenue from hardware sales of its sock and camera monitor products, with some recurring revenue from a subscription app that gives parents access to detailed health data and trend reports. The company is small, with a market cap around $100 million, and its main advantage is brand recognition among new parents in a niche category it helped create. However, Owlet has faced regulatory scrutiny from the FDA over health claims on its devices, and returning to consistent profitability remains the central challenge as it balances product development costs against a limited and slowly growing customer base.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+6.4% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

<−1,000% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$14M/ year

Rising (+44% vs prior year)

13.3% of revenue

Below sector average (18%)

Investing heavily in future products and technology

Insider Activity

39.4%ownership

Flat

Insiders holding steady — not selling despite ability to

Cash Runway

~12 months

$41M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Adequate runway but may need to raise capital within 2 years

Growth context

Owlet is growing revenue at 6% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
54.3%
Healthy — 54.3% gross margin
Operating Margin
-24.2%
Losing money on operations — -24.2%
ROCE
-10.0%
Weak — -10.0% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY
+26.8%
Fast-growing sales (26.8% YoY)
EPS YoY
N/A
Data not available
EPS Consistency
2/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
N/A
Data not available
FCF Margin
-14.7%
Burning cash (-14.7%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity
0.52
Conservative — low debt load (0.52)
Interest Cover
N/A
Data not available

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Valuation

P/E Ratio (TTM)
N/M
Negative earnings — P/E not meaningful
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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