Symbotic Inc. (SYM): A Bull Case Theory

We came across a bullish thesis on Symbotic Inc. on Valueinvesting subreddit by jackandjillonthehill. In this article, we will summarize the bulls’ thesis on SYM. Symbotic Inc.'s share was trading at $53.08 as of July 28^th. SYM’s  forward P/E was 263.16 according to Yahoo Finance.

Symbotic (SYM), an industrial robotics company, is in a rapid growth phase, expanding revenue at 40% YoY while trading at a trailing EV/Sales of 2.26x, notably lower than industrial robotics peers such as Rockwell Automation (5.5x), ABB (3.7x), and Fanuc (3.7x). These peers, though boasting stronger gross margins in the high-30% range and EBIT margins of 15–20%, have much slower growth rates, reflecting their mature scale.

Teradyne, which operates primarily in chip testing but derives 13% of its revenue from robotics supporting Amazon’s distribution centers, trades at a 5x EV/Sales multiple with a 60% gross margin and EBIT margins above 20%, though its robotics profitability is enhanced by the higher-margin chip testing business. Symbotic’s gross margin, by contrast, has lagged at 16–18%, with a recent uptick to 19.6%.

This margin gap stems from its highly customized deployments, which carry higher costs, and a deliberate focus on hypergrowth over near-term profitability, resulting in deployment cost overruns. A key strategic milestone was Symbotic’s acquisition of Walmart’s robotics division in January 2025, securing a 12-year exclusive agreement (2025–2037) to supply robotics for Walmart’s accelerated pickup and delivery centers. This contract provides a durable growth runway and positions the company as a critical supplier in a large, recurring demand environment.

If Symbotic’s margins can converge toward peer levels as it scales, investors could benefit from a powerful combination of sustained top-line growth and potential multiple expansion. However, after adjusting for the dual-share structure and Class V shares, the EV/Sales ratio appears closer to 15.3x, reducing its perceived valuation appeal.

Previously, we covered a bullish thesis on NANO Nuclear Energy Inc. (NNE) by Charly AI in May 2025, which highlighted its vertically integrated platform in the emerging microreactor market. The company’s stock price has appreciated by approximately 45% since our coverage, as enthusiasm for advanced nuclear solutions persisted. The thesis still stands with execution risk as a key overhang. jackandjillonthehill shares a similar view on Symbotic Inc. (SYM) but emphasizes high-growth industrial robotics with scaling margin potential.

Symbotic Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held SYM at the end of the first quarter which was 16 in the previous quarter. While we acknowledge the potential of SYM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.