Is Symbiotic Stock Worth Buying After Its Steep Decline? Key Factors to Consider

Symbiotic Inc. [SYM] has seen its stock price fall roughly 42% over the past 12 months, a sharp contrast to broader market gains and particularly notable against competitors’ outsized rallies. While such a dip might tempt value investors to dive in, understanding what’s really happening beneath the surface is crucial before making a move.

The Valuation Problem

Let’s start with the elephant in the room: Symbiotic stock is currently trading at 67.5 times forward earnings, significantly above the industry average of 39.8 times. This elevated multiple suggests the market is pricing in substantial future growth, leaving limited margin for disappointment. For context, Aurora Innovation and Allot Ltd. have delivered gains of 175.6% and 172.9% respectively over the same period, yet SYM remains under pressure—a sign that premium valuations alone can’t support the stock when growth expectations falter.

The stock has also dipped below its 50-day moving average, signaling bearish technicals that reinforce the bearish narrative despite the recent price decline.

Why the Deal Pipeline Actually Matters

However, dismissing SYM outright ignores some genuinely significant catalysts. The company’s January 2025 acquisition of Walmart’s advanced systems and robotics division represents a transformational moment. The agreement adds over $5 billion to Symbiotic’s backlog and positions the company to automate Walmart’s Accelerated Pickup and Delivery centers across multiple stores.

Store-fulfilled deliveries at Walmart are growing roughly 50% year-over-year, running at a $2.5 billion monthly pace. This expansion of the total addressable market through the Walmart relationship alone justifies management’s confidence, though it hinges on execution.

Beyond retail automation, SYM’s December 2024 acquisition of OhmniLabs brings autonomous disinfection and telepresence robots into the company’s portfolio, opening doors in healthcare settings. Internationally, the commercial arrangement with Walmex signals growing confidence in deploying Symbiotic’s warehouse systems in new markets.

What the Numbers Are Telling Us

For fiscal 2025, consensus expectations peg Symbiotic stock’s revenue growth at 21.9%, reaching $2.3 billion. More compelling: earnings are anticipated to more than double year-over-year, reaching 25 cents per share. If these projections hold, the current valuation might actually be justified by the underlying earnings trajectory.

That said, liquidity remains a consideration. SYM’s current ratio of 1.22 trails the industry average of 2.21, indicating tighter working capital management. While this doesn’t signal distress—a ratio above 1.0 confirms the company can meet short-term obligations—it does leave less cushion for operational surprises.

The Steel Tariff Wild Card

Here’s a less obvious risk: steel costs represent a meaningful portion of Symbiotic’s production expenses. While most contracts include pass-through clauses allowing the company to recover rising steel costs from customers, additional tariffs could compress margins if customers resist price increases. This could potentially impact project economics and returns on invested capital.

The Verdict

Symbiotic’s fundamental story has become more compelling thanks to its acquisitions and pipeline expansion, yet the current valuation leaves limited room for error. The decline to 42% below recent highs may eventually prove attractive, but current levels still appear to be pricing in near-flawless execution.

Rather than chasing the dip, a measured approach makes sense: wait for further consolidation in Symbiotic stock price before deploying capital. The company’s long-term prospects remain intact, but patience will likely reward cautious investors with better entry points down the road.