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WEAV:NYSEWeave Communications, Inc. Analysis

Data as of 2026-05-10 - not real-time

$5.94

Latest Price

7/10Risk

Risk Level: Medium

Executive Summary

Weave Communications (WEAV) trades at $5.94, roughly 47% below its DCF-derived fair value of $13.94, offering a sizable upside. The stock shows a bullish technical backdrop – the MACD line sits above its signal line (0.256 vs 0.150) and the 14‑day RSI is at 63, indicating momentum without being overbought. Volume is increasing and the price is comfortably above the identified support of $4.55, though still below the near‑term resistance of $6.27. Fundamentally, revenue is projected to hit $275‑$278 million in 2026, reflecting 17.4% growth and a gross margin of 72%. The company’s AI‑Receptionist rollout and expanded omnichannel capabilities, highlighted in recent earnings calls, underpin this growth narrative. However, operating margins remain negative (‑8.8%) and ROE is -33%, while cash balances ($72.7 M) comfortably cover debt ($51.3 M), yielding a debt‑to‑equity of 61%.

Market Outlook

Short Term

< 1 year
Positive
Model confidence: 7/10

Key Factors

  • Bullish MACD and RSI indicating upward momentum
  • Current price well below DCF fair value, offering immediate upside
  • Increasing volume supporting price stability above support level

Medium Term

1–3 years
Positive
Model confidence: 8/10

Key Factors

  • Strong 2026 revenue guidance (17.4% growth) and AI product expansion
  • Positive free cash flow despite operating losses
  • Undervaluation relative to peers (PE forward 25.3 vs industry 26.4)

Long Term

> 3 years
Positive
Model confidence: 7/10

Key Factors

  • Long‑term upside to fair value (~$14) suggests substantial capital appreciation
  • High gross margins and scalable SaaS model in a regulated healthcare niche
  • Improving cash position and manageable debt levels

Key Metrics & Analysis

Financial Health

Revenue Growth17.40%
Profit Margin-10.05%
P/E Ratio25.3
ROE-32.92%
ROA-8.19%
Debt/Equity61.59
P/B Ratio5.7
Op. Cash Flow$12.1M
Free Cash Flow$39.8M
Industry P/E26.4

Technical Analysis

TrendNeutral
RSI63.3
Support$4.55
Resistance$6.27
MA 20$5.36
MA 50$5.08
MA 200$6.43
MACDBullish
VolumeIncreasing
Fear & Greed Index90.73

Valuation

Fair Value$13.94
Target Price$8.75
Upside/Downside47.31%
GradeUndervalued
TypeGrowth

Risk Assessment

Beta1.57
Volatility75.03%
Sector RiskMedium
Reg. RiskHigh
Geo RiskLow
Currency RiskLow
Liquidity RiskMedium

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.