NEON (Neonode) Moat Score: 3/10 (As of Jul. 01, 2026)


NEON Neonode Inc NEON
54 GF Score
Price $0.98
GF Value $2.27
Valuation Possible Value Trap
! 2 Warning Signs
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What is Neonode Moat Score?

Neonode NEON +4.90% 54 Moat Score is 3 as of Jul. 01, 2026. GuruFocus rates NEON with a GF Score™ of 54/100 and a GF Value™ of $2.27 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 2,471 Hardware companies, Neonode ranks better than 91.66% on this metric.

Neonode has the Moat Score of 3, which implies that the company might have No Moat - Very weak/transient advantages.

Neonode has No Moat: Neonode operates in a competitive tech space with limited market share and weak brand strength. It lacks significant customer switching costs, regulatory barriers, or a strong distribution network, resulting in transient advantages.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Neonode might have No Moat - Very weak/transient advantages.

Neonode  (NAS:NEON) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Neonode Moat Score Related Terms

NEON vs WETH, MTEK, MSAI: Moat Score Comparison

For the Electronic Components subindustry, Neonode's Moat Score, along with its competitors' market caps and Moat Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Neonode Moat Score vs Hardware Industry

For the Hardware industry and Technology sector, Neonode's Moat Score distribution charts can be found below:

* The bar in red indicates where Neonode's Moat Score falls into.


NEON
54GF Score
Neonode Inc NEON
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 3 mean?
Neonode (NEON) has a Moat Score of 3 as of Jul. 01, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Neonode ranks #206 out of 2471 companies in the Hardware industry, placing it in the top 8.3%.
Is Neonode's Moat Score too high?
Neonode's current Moat Score is 3. Based on the distribution chart, Neonode ranks #206 out of 2471 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Neonode has a GF Score™ of 54/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Neonode's Moat Score compare to WETH and MTEK?
According to the Hardware industry distribution chart, Neonode ranks #206 out of 2471 companies for Moat Score. This places Neonode in the top 8% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Hardware company?
A good Moat Score depends on the Hardware industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Neonode's current Moat Score is 3. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Neonode stock overvalued right now?
Based on GuruFocus' analysis, Neonode (NEON) is currently considered Possible Value Trap. The stock's GF Value™ is $2.27, compared to a current price of $0.98 — trading 57% below its estimated fair value. The current Moat Score is 3. Neonode's overall GF Score™ is 54/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Neonode (NEON), the current Moat Score is 3 as of Jul. 01, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Neonode (NEON) Overvalued in 2026?

Based on GuruFocus' analysis, Neonode stock appears to be undervalued. The current stock price of $0.98 is trading 57% below its estimated GF Value™ of $2.27. GuruFocus considers Neonode to be Possible Value Trap.

Key valuation signals for NEON:

  • Moat Score: 3
  • GF Value™: $2.27 vs. price of $0.98 (57% below fair value)
  • GF Score™: 54/100 with 2 warning signs

No single metric tells the full story. See the NEON stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Neonode Business Description

Address Karlavagen 100, Stockholm, SWE, 115 26
Neonode Inc provides software solutions for machine perception that feature machine learning algorithms to detect and track persons and objects in video streams from cameras and other types of imagers. Its machine perception solutions are based on the MultiSensing technology platform. The company also offers optical sensing solutions for contactless touch and gesture sensing. It markets and sells its solutions mainly to customers in the automotive sector, along with other markets such as office equipment, industrial automation, medical, military, and avionics. Geographically, the company operates in Japan, South Korea, Germany, Sweden, China, and other regions, with a majority of its revenue generated from Japan.
54GF Score

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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$0.98
Price
$2.27
GF Value