ODD Stock Risk & Deep Value Analysis
Oddity Tech Ltd
Technology • Software - Infrastructure
DVR Score
out of 10
What You Need to Know About ODD Stock
We analyzed Oddity Tech Ltd using our deep value framework. Sign in to see our full verdict and DVR Score.
We ran ODD through our deep value framework — analyzing financial health, distress signals, competitive moat, and risk factors. Our risk assessment: Aggressive. Here's what we found.
ODD Risk Analysis & Red Flags
What Could Go Wrong
The company's core technology-driven customer acquisition model, which fueled its initial growth, may be permanently damaged or too costly to repair. This could lead to prolonged revenue declines, increasing operational losses, and a rapid burn of its cash reserves, potentially necessitating highly dilutive capital raises or even bankruptcy if the situation is not stabilized quickly.
Risk Matrix
Overall
Aggressive
Financial
High
Market
Medium
Competitive
High
Execution
High
Regulatory
High
Red Flags
- ⚠
Securities class action lawsuits alleging fraud during a key growth period.
- ⚠
Management warning of a 30% Q1 2026 revenue decline due to ad algorithm issues.
- ⚠
Insider (Lindsay Drucker Mann) selling shares for $150,432 on April 30, 2026.
- ⚠
Lack of actual Q1 2026 revenue/EPS figures in the public earnings summary on report day.
Upcoming Risk Events
- 📅
Unfavorable outcomes in securities class action lawsuits
- 📅
Continued decline in Q2 2026 revenue or worsening losses
- 📅
Failure to resolve the ad algorithm 'dislocation' issue
- 📅
Further insider selling or executive resignations
When to Reconsider
- 🚪
If quarterly revenue continues to decline in Q2 2026 and beyond.
- 🚪
If legal rulings against the company are substantial or costly.
- 🚪
If the cash position significantly deteriorates without clear path to FCF positivity.
Unlock ODD Risk Analysis & Red Flags
Create a free account to see the full analysis
What Does Oddity Tech Ltd (ODD) Do?
Market Cap
$798.86M
Sector
Technology
Industry
Software - Infrastructure
Employees
489
Oddity Tech Ltd. operates as a consumer tech company that builds digital-first brands for the beauty and wellness industries in the United States and internationally. It serves consumers through its AI-driven online platform, which uses data science, machine learning, and computer vision capabilities to identify consumer needs, and develop solutions in the form of beauty, wellness, and technology products. The company provides a portfolio of products, including face and complexion, eye, brow and lip products, makeup tools, skincare, haircare, and supplements under the IL MAKIAGE and SpoiledChild brands. In addition, it operates ODDITY LABS, a biotechnology center, which deploys AI-based molecule discovery technology to identify and launch novel ingredients that delivers performance and outcomes for consumers in beauty and wellness. Oddity Tech Ltd. was incorporated in 2013 and is headquartered in Tel Aviv, Israel.
Visit Oddity Tech Ltd WebsiteInvestment Thesis
Investment in ODDITY Tech at this juncture is a highly speculative turnaround play. The bull case rests entirely on the company's ability to swiftly resolve its core customer acquisition algorithm issues, successfully navigate multiple class action lawsuits without significant financial penalties, and re-establish its past growth trajectory by leveraging its proprietary AI and brand equity. This requires exceptional operational execution and legal favorable outcomes.
Is ODD Stock Undervalued?
Unlock the full AI analysis for ODD
Get the complete DVR score, risk analysis, and more
Unlock the full report
Create a free account to see the DVR score, risk flags, and AI analysis.
ODD Price Targets & Strategy
12-Month Target
$18.00
Bull Case
$25.00
Bear Case
$8.00
Valuation Basis
Based on a speculative recovery to a forward EV/Sales multiple of ~1.5x on a stabilized (but reduced) FY26 revenue, assuming resolution of core operational issues.
Entry Strategy
Highly speculative entry. Consider only on significant positive news regarding legal resolution or ad algorithm fix, ideally below $10.00 (historical support prior to major run-up).
Exit Strategy
Take profit at $20-$25 if significant recovery occurs; implement a strict stop-loss below $10.00 if legal or operational issues worsen.
Portfolio Allocation
1% for aggressive, high-risk tolerance portfolios only. This is a pure turnaround bet.
Price Targets & Strategy
Sign up free to unlock price targets and entry/exit strategies
Is ODD Financially Healthy?
Valuation
P/E Ratio
7.21
Forward P/E
25.00
EV/EBITDA
50.00
PEG Ratio
4.82
Price/Book
4.00
Price/Sales
9.80
Profitability
Gross Margin
72.69%
Operating Margin
14.67%
Net Margin
13.67%
Return on Equity
30.38%
Revenue Growth
25.16%
EPS
$1.80
Balance Sheet
Current Ratio
5.24
Quick Ratio
3.75
Debt/Equity
1.47
Cash & Equivalents
$402.00M
Cash Flow
Operating Cash Flow
$87.60M
Free Cash Flow
$70.00M
EBITDA
$129.50M
Other
Beta (Volatility)
2.57
Does ODD Have a Competitive Moat?
Sign in to unlockMoat Rating
⚪ Eroding
Moat Trend
Eroding
Moat Sources
2 Identified
The durability of Oddity's moat, particularly its technology-driven competitive advantage, is highly questionable given the recent issues with its 'dislocated' ad partner algorithm. If this core system is compromised, its ability to efficiently acquire customers and leverage its AI advantage is severely weakened.
Moat Erosion Risks
- •Failure to repair or replace the compromised ad algorithm, leading to unsustainable customer acquisition costs.
- •Increased competition from traditional and new DTC beauty brands leveraging similar AI/personalization tech.
- •Damage to brand reputation and consumer trust due to legal issues.
ODD Competitive Moat Analysis
Sign up to see competitive advantages
ODD Market Intelligence
Sentiment & Insider Activity
Social Sentiment
Bearish, with significant concern over the ongoing lawsuits and operational challenges.
Institutional Sentiment
Negative, reflected by previous analyst downgrades and the active securities class action lawsuits.
Insider Activity (Form 4)
Lindsay Drucker Mann (Insider) sold 9,600 Class A Ordinary shares for $150,432.00 on April 30, 2026.
Options Flow
Normal options activity; no specific unusual directional activity noted in the provided research.
Earnings Intelligence
Next Earnings
2026-08-06
Surprise Probability
Medium
Historical Earnings Pattern
The stock previously plummeted ~49% following management's warning of the Q1 2026 revenue decline, indicating extreme sensitivity to operational and financial news.
Key Metrics to Watch
Competitive Position
Top Competitor
e.l.f. Beauty (ELF)
Market Share Trend
Likely losing market share due to compromised customer acquisition and brand trust issues.
Valuation vs Peers
Difficult to compare directly due to ODD's current unprofitability and operational distress, but currently trades at a significant discount reflecting high risk.
Competitive Advantages
- •Proprietary AI and machine learning for personalized beauty recommendations.
- •Strong direct-to-consumer (DTC) digital infrastructure.
- •Established brands (Il Makiage, SpoiledChild) with loyal customer base.
Market Intelligence
Sign up free to unlock sentiment, earnings intel, and peer analysis
What Could Drive ODD Stock Higher?
Near-Term (0-6 months)
- •Q2 2026 Earnings Report (Expected August 6, 2026)
- •Updates on securities class action lawsuits
- •Management commentary on ad algorithm recovery
Medium-Term (6-18 months)
- •Resolution of primary legal disputes
- •Demonstrated stabilization and recovery of customer acquisition costs (CAC)
- •Diversification of marketing channels beyond the problematic algorithm
Long-Term (18+ months)
- •Rebuilding of investor and consumer trust
- •Successful expansion into new product categories or geographies
- •Leveraging AI/tech for sustained competitive advantage
Catalysts & Growth Drivers
Sign up free to see growth catalysts
What's the Bull Case for ODD?
- ✓
Clear and consistent communication from management regarding the ad algorithm fix and its impact on CAC.
- ✓
Significant and sustained sequential revenue growth and positive commentary on future guidance.
- ✓
Favorable legal developments or settlement news regarding the class action lawsuits.
Bull Case Analysis
Sign up free to see the bull case
Competing with ODD
See how Oddity Tech Ltd compares to related companies
| Company | Market Cap | DVR Score | P/E | Revenue | Profit Margin | Rev Growth | |
|---|---|---|---|---|---|---|---|
Oddity Tech Ltd ODD | $798.9M | 5.5 | 7.2 | $809.8M | 13.7% | 25.2% | |
Apple Inc AAPL | $4.4T | 1.6 | 36.0 | $391.0B | 27.1% | 12.8% | Compare → |
Alphabet Inc GOOGL | $4.5T | 1.0 | 27.9 | — | 37.9% | 17.4% | Compare → |
Meta Platforms Inc META | $1.6T | 5.8 | 22.6 | $201.0B | 32.8% | 26.2% | Compare → |
Microsoft Corp MSFT | $3.2T | 0.5 | 25.6 | $281.7B | 39.3% | 17.9% | Compare → |
NVIDIA Corp NVDA | $5.3T | 6.2 | 33.1 | $130.5B | 63.0% | 70.7% | Compare → |
📊 Explore More Stock Analysis
Get comprehensive Deep Value Reports for thousands of stocks. Research risk, financial health, and investment potential with our AI-powered analysis.
How Oddity Tech Ltd Makes Money
Oddity Tech operates as a direct-to-consumer (DTC) beauty and wellness company, primarily through its brands Il Makiage and SpoiledChild. The company leverages proprietary artificial intelligence (AI) and machine learning technologies to offer personalized product recommendations and optimize customer acquisition through digital channels. Its primary method of generating revenue is through the online sale of its beauty and wellness products directly to individual consumers.
Read Full Business Model BreakdownFAQ
What is the DVR Score for Oddity Tech Ltd (ODD)?
As of May 12, 2026, Oddity Tech Ltd has a DVR Score of 5.5 out of 10, placing it in the "Proceed with Caution" category. This score is generated by our AI-powered deep value analysis framework that evaluates growth potential, financial health, competitive moat, and risk factors.
What is the market capitalization of Oddity Tech Ltd?
Oddity Tech Ltd's market capitalization is approximately $798.9M. The company operates in the Technology sector within the Software - Infrastructure industry.
What ticker symbol does Oddity Tech Ltd use?
ODD is the ticker symbol for Oddity Tech Ltd. The company trades on the NGM.
What is the risk level for ODD stock?
Our analysis rates Oddity Tech Ltd's overall risk as Aggressive. This assessment considers execution risk, market risk, financial risk, competitive risk, and regulatory risk. For a full breakdown, see the risk analysis section above.
What is the P/E ratio of ODD?
Oddity Tech Ltd currently has a price-to-earnings (P/E) ratio of 7.2. This is below the market average, which could indicate the stock is undervalued or facing headwinds.
Is Oddity Tech Ltd's revenue growing?
Oddity Tech Ltd has reported revenue growth of 25.2%. The company is showing strong top-line momentum.
Is ODD stock profitable?
Oddity Tech Ltd has a profit margin of 13.7%. The company is profitable but margins are modest.
How often is the ODD DVR analysis updated?
Our AI-powered analysis of Oddity Tech Ltd is refreshed regularly to incorporate the latest financial data, market conditions, and news. The most recent update was on May 12, 2026.
Important Disclaimer – Not Financial Advice
Deep Value Reports is an independent research platform for educational and informational purposes only. We are not financial advisors, investment advisors, or licensed professionals. The analysis, scores, and information provided on this page for ODD (Oddity Tech Ltd) should not be construed as personalized investment advice, a recommendation to buy or sell any security, or an offer to provide investment advisory services.
All investments involve risk, including the potential loss of principal. Past performance does not guarantee future results. Always conduct your own research, consider your financial situation, and consult with a qualified financial advisor before making any investment decisions.