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 ongoing securities class action lawsuits alleging fraud could result in significant financial penalties, legal costs, and severe reputational damage, potentially jeopardizing the company's long-term viability or forcing a substantial dilution to fund settlements, especially if combined with continued revenue decline and rising customer acquisition costs.
Risk Matrix
Overall
Aggressive
Financial
Medium
Market
Medium
Competitive
High
Execution
High
Regulatory
High
Red Flags
- ⚠
Multiple securities class action lawsuits alleging fraud and undisclosed advertising 'dislocation'
- ⚠
Q1 2026 revenue guidance of ~30% YoY decline due to rising customer acquisition costs
- ⚠
Widespread analyst downgrades post Q4 2025 earnings disclosure
- ⚠
Shares fell 49% on Feb 25, 2026, after disclosure of advertising issues
Upcoming Risk Events
- 📅
Q1 2026 revenue decline worse than projected 30% YoY
- 📅
Adverse legal rulings or substantial financial penalties from lawsuits
- 📅
Further deterioration of gross margins due to increased customer acquisition costs
When to Reconsider
- 🚪
Adverse legal rulings or settlements requiring significant unbudgeted payments
- 🚪
Q1 2026 revenue decline significantly exceeds the 30% YoY guidance
- 🚪
Gross margins consistently fall below 65% for two consecutive quarters
- 🚪
Management announces a significant capital raise leading to substantial share dilution
Unlock ODD Risk Analysis & Red Flags
Create a free account to see the full analysis
What Does Oddity Tech Ltd (ODD) Do?
Market Cap
$749.00M
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
Oddity Tech represents a highly speculative investment, predicated on its ability to overcome significant legal challenges, a major disruption in its advertising-driven customer acquisition model, and restore its growth narrative. The long-term upside depends on management's successful pivot and the underlying tech's ability to drive profitable growth amidst intense scrutiny, positioning it as a potential high-reward turnaround if risks are deftly navigated.
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
$17.00
Bull Case
$22.00
Bear Case
$8.00
Valuation Basis
Based on the median revised analyst price targets ($10-$23 range) post Q4 2025 earnings and Q1 2026 guidance, reflecting a challenging outlook.
Entry Strategy
Extreme caution advised. Consider dollar-cost averaging only after clear stabilization of revenue trends and significant progress on legal matters, potentially around the $10-$12 support zone if it materializes.
Exit Strategy
Consider taking profits above $20.00 if legal and operational clarity emerges; implement a stop-loss at $10.00 if legal risks escalate or revenue outlook deteriorates further.
Portfolio Allocation
1-2% for aggressive risk tolerance only, given the highly speculative nature and significant downside risks.
Price Targets & Strategy
Upgrade to Premium for price targets and entry/exit strategies
Is ODD Financially Healthy?
Valuation
P/E Ratio
39.10
Forward P/E
24.90
EV/EBITDA
7.12
PEG Ratio
0.84
Price/Book
12.60
Price/Sales
5.90
Profitability
Gross Margin
72.40%
Operating Margin
14.00%
Net Margin
13.68%
Return on Equity
29.84%
Revenue Growth
23.80%
EPS
$1.00
Balance Sheet
Current Ratio
2.05
Quick Ratio
1.79
Debt/Equity
-0.32
Cash & Equivalents
$228.00M
Cash Flow
Operating Cash Flow
$87.45M
Free Cash Flow
-$139.99M
EBITDA
$85.35M
Other
Beta (Volatility)
0.27
Does ODD Have a Competitive Moat?
Sign in to unlockMoat Rating
🛡️ Narrow
Moat Trend
Eroding
Moat Sources
3 Identified
While the core AI and data assets are proprietary, their effectiveness and durability are severely challenged by the current issues in customer acquisition and the potential for legal and reputational damage to brand trust.
Moat Erosion Risks
- •Failure to adapt to shifting advertising platform algorithms and regain profitable customer acquisition
- •Loss of customer trust and brand loyalty due to legal allegations of fraud
- •Competitors leveraging diversified marketing channels to gain market share
ODD Competitive Moat Analysis
Sign up to see competitive advantages
ODD Market Intelligence
Sentiment & Insider Activity
Social Sentiment
Bearish, reflecting the significant stock price drop and ongoing legal concerns.
Institutional Sentiment
Negative, indicated by widespread analyst downgrades from Buy/Outperform to Neutral/Hold/Underperform post Q4 2025 earnings.
Insider Activity (Form 4)
An individual filed Form 144 for the sale of 9,604 Class A shares (acquired via RSUs on 2026-03-06) for approximately $123,603.48, planned around March 31, 2026.
Options Flow
Normal options activity.
Earnings Intelligence
Next Earnings
Estimated early-May 2026 for Q1 2026
Surprise Probability
Medium-High (for negative surprise on revenue and guidance, given prior disclosures)
Historical Earnings Pattern
Recent pattern shows extreme volatility, with a 49% stock drop on Q4 2025 earnings disclosure and Q1 2026 guidance, indicating high sensitivity to future guidance and operational updates.
Key Metrics to Watch
Competitive Position
Top Competitor
Not specified in provided data. A strong competitor would be one with diversified, profitable customer acquisition channels.
Market Share Trend
Likely losing ground or facing significant pressure due to increased customer acquisition costs and projected revenue decline.
Valuation vs Peers
Unclear due to lack of comparable valuation metrics (P/E, EV/EBITDA, etc.) for ODD and its sector peers in the provided data. Significant recent stock decline has reset its valuation.
Competitive Advantages
- •Proprietary AI and data analytics for personalized product recommendations
- •Established direct-to-consumer brands (IL MAKIAGE, SpoiledChild)
- •Biotech integration into product development
Market Intelligence
Get sentiment, earnings intel, and peer analysis with Premium
What Could Drive ODD Stock Higher?
Near-Term (0-6 months)
- •Q1 2026 Earnings release (expected ~30% YoY revenue decline)
- •Updates/developments in the securities class action lawsuits
- •Signs of stabilization or improvement in advertising partner efficiency
Medium-Term (6-18 months)
- •Successful adaptation to new advertising landscape and restoration of profitable customer acquisition
- •Potential settlement or dismissal of ongoing lawsuits
- •Launch of new brands or significant geographic expansion (if strategy permits)
Long-Term (18+ months)
- •Full resolution of all legal challenges and restoration of investor confidence
- •Sustained, diversified profitable growth channels beyond current advertising issues
- •Leveraging AI/data analytics to redefine beauty tech industry standards
Catalysts & Growth Drivers
Upgrade to Premium to see catalysts
What's the Bull Case for ODD?
- ✓
Clear, positive resolution or significant progress in the ongoing lawsuits
- ✓
Evidence of stabilization or recovery in customer acquisition costs and efficiency
- ✓
Improved future revenue and margin guidance from management
Bull Case Analysis
See what could go right with Premium
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 | $749.0M | 5.8 | 39.1 | $966.0M | 13.7% | 23.8% | |
Apple Inc AAPL | $3.9T | 1.5 | 33.2 | $391.0B | 27.0% | 10.1% | Compare → |
Alphabet Inc GOOGL | $4.7T | 1.0 | 29.1 | $402.8B | 37.9% | 17.4% | Compare → |
Meta Platforms Inc META | — | 5.1 | 15.7 | — | 30.1% | 22.2% | Compare → |
Microsoft Corp MSFT | — | 0.5 | — | — | — | — | Compare → |
NVIDIA Corp NVDA | $4.4T | 5.3 | 38.5 | $215.9B | 55.6% | 65.0% | 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 technology-driven beauty and wellness company, leveraging artificial intelligence, deep data analytics, and biotech to personalize product recommendations for its customers. Through its direct-to-consumer (DTC) brands, such as IL MAKIAGE and SpoiledChild, it sells a range of beauty and wellness products online. The business model focuses on high-margin direct sales, repeat purchases, and a tech-enabled approach to customer engagement and product development.
Read Full Business Model BreakdownFAQ
What is the DVR Score for Oddity Tech Ltd (ODD)?
As of April 7, 2026, Oddity Tech Ltd has a DVR Score of 5.8 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 $749.0M. 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 39.1. This is above the market average, suggesting the stock may be priced for high growth expectations.
Is Oddity Tech Ltd's revenue growing?
Oddity Tech Ltd has reported revenue growth of 23.8%. 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 April 7, 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.