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CBAK Energy Technology Inc (CBAT)
NASDAQ:CBAT

CBAK Energy Technology (CBAT) AI Stock Analysis

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CBAK Energy Technology

(NASDAQ:CBAT)

Rating:58Neutral
Price Target:
$1.00
▼(-11.50%Downside)
CBAK Energy Technology's overall stock score reflects significant challenges in financial performance and valuation, offset somewhat by positive technical momentum and strategic corporate actions. While there are growth prospects, particularly in the electric vehicle segments, the current financial situation and high valuation pose risks.

CBAK Energy Technology (CBAT) vs. SPDR S&P 500 ETF (SPY)

CBAK Energy Technology Business Overview & Revenue Model

Company DescriptionCBAK Energy Technology, Inc. (CBAT) is a leading manufacturer and developer in the lithium-ion battery industry. The company primarily focuses on the production and sale of high-powered lithium batteries and related products. Operating in the clean energy sector, CBAK Energy serves a variety of markets including electric vehicles, energy storage, and consumer electronics, providing essential energy solutions for modern technological applications.
How the Company Makes MoneyCBAK Energy Technology generates revenue through the manufacture and sale of lithium-ion batteries and related products. The company's key revenue streams include supplying batteries for electric vehicles, energy storage systems, and consumer electronics. CBAK Energy partners with automotive manufacturers and other industrial players to integrate its battery solutions into their products, which is a significant contributor to its earnings. By leveraging advancements in battery technology, the company positions itself to capitalize on the growing demand for sustainable energy solutions across the globe.

CBAK Energy Technology Earnings Call Summary

Earnings Call Date:May 19, 2025
(Q1-2025)
|
% Change Since: 29.89%|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant challenges with a decline in net revenues and a reported net loss. However, there are positive developments with growth in electric vehicle segments, successful product transitions, and expansion plans in Southeast Asia. The overall sentiment is cautiously optimistic, with significant efforts to regain growth momentum.
Q1-2025 Updates
Positive Updates
Growth in Electric Vehicle Segments
The electric vehicle business achieved an 11.9% increase, while the light electric vehicle segment experienced significant growth of 88.4%.
Successful Product Transition
CBAK Energy is transitioning from the outdated Model 26650 to the promising Model 40135, with construction expected to be completed in the second half of the year. Early feedback on Model 40135 has been very encouraging.
Expansion Plans in Southeast Asia
CBAK Energy is planning to establish an overseas manufacturing facility in Southeast Asia with a high-volume purchase agreement from a major customer, including substantial prepayments.
Full Capacity at Nanjing Facility
The Nanjing facility, focusing on Model 32140, is running at full capacity to meet robust market demand.
Negative Updates
Decline in Net Revenues
Net revenues declined by 41% year-over-year to $34.9 million. The battery business saw a 54.6% decrease in net revenue.
Net Loss Reported
CBAK Energy reported a net loss of $1.64 million compared to a net income of $9.8 million in the same period last year.
Decline in Battery Segment Income
Income in the battery segment declined significantly from $11.68 million to $0.34 million.
Tariff Challenges
CBAK Energy is facing current tariff challenges, requiring evaluation of overseas manufacturing options.
Company Guidance
During the first quarter of 2025 earnings call, CBAK Energy Technology reported a 41% year-over-year decline in net revenues to $34.9 million, with the battery business segment experiencing a 54.6% decrease in revenue to $20.36 million. Despite these declines, the company's electric vehicle and light electric vehicle segments saw growth of 11.9% and 88.4%, respectively. The company is transitioning its Dalian facility from the outdated Model 26650 to the promising Model 40135 and expects the new manufacturing line to be completed in the second half of the year. Meanwhile, the Nanjing facility's Model 32140 production, running at full capacity, remains a flagship product. CBAK is also considering establishing a manufacturing presence in Southeast Asia and potentially the United States to address tariff challenges, with plans for a new facility capable of producing both Model 32140 and Model 40135 cells. The company anticipates a significant recovery next year, driven by a large-scale order agreement and strategic expansions. Despite a net loss of $1.64 million, CBAK aims to maintain healthy gross margins and enhance its global production footprint across multiple facilities and models.

CBAK Energy Technology Financial Statement Overview

Summary
CBAK Energy Technology's financial performance is underwhelming, with low net profit margins and negative EBIT margins indicating profitability challenges. The balance sheet shows moderate leverage but limited returns for shareholders, and while cash flow generation is strong, the sustainability is uncertain.
Income Statement
45
Neutral
CBAK Energy Technology has shown fluctuations in its income statement over the years. The gross profit margin for the TTM (Trailing-Twelve-Months) is approximately 18.2%, indicating reasonable operational efficiency. However, the net profit margin is very low at 0.2%, reflecting challenges in controlling costs or generating sufficient revenue relative to expenses. The company has experienced a decline in revenue compared to the previous year, which poses a risk to its growth trajectory. Furthermore, negative EBIT margins in the TTM suggest difficulties in achieving profitability at the operating level.
Balance Sheet
55
Neutral
The balance sheet presents a mixed picture. The debt-to-equity ratio stands at approximately 0.31, indicating a manageable level of leverage. However, the return on equity (ROE) is notably low at 0.31% for the TTM, suggesting limited efficiency in generating returns for shareholders. The equity ratio is about 38.8%, providing a moderate buffer against liabilities. While the company maintains a stable equity position, the low profitability metrics may impact long-term financial health.
Cash Flow
60
Neutral
CBAK Energy Technology's cash flow statement reveals some positive aspects, despite overall profitability challenges. The operating cash flow to net income ratio is robust, indicating strong cash generation relative to reported profits. Despite a decline in free cash flow compared to the previous period, the company has been able to maintain positive operating cash flow. This suggests effective cash management practices, although the sustainability of these practices is uncertain given the company's overall financial performance.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue152.73M176.61M204.44M248.73M52.67M37.57M
Gross Profit27.80M41.78M31.72M18.10M5.11M2.71M
EBITDA5.98M20.59M10.15M3.44M-8.36M-3.08M
Net Income374.35K11.79M-2.45M-11.33M61.49M-6.50M
Balance Sheet
Total Assets311.46M302.42M281.16M244.03M262.62M142.77M
Cash, Cash Equivalents and Short-Term Investments9.58M10.96M4.75M6.52M8.15M11.92M
Total Debt37.33M30.14M35.74M17.62M15.17M14.99M
Total Liabilities192.72M182.15M167.70M119.65M121.73M90.36M
Stockholders Equity120.79M121.67M112.82M117.50M133.29M52.40M
Cash Flow
Free Cash Flow661.10K22.52M15.37M2.74M-23.48M-10.81M
Operating Cash Flow22.64M39.70M46.51M15.11M-4.27M-5.10M
Investing Cash Flow-20.50M-23.43M-42.31M-7.93M-38.08M-5.71M
Financing Cash Flow10.63M-11.69M18.62M5.61M48.27M25.83M

CBAK Energy Technology Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.13
Price Trends
50DMA
1.00
Positive
100DMA
0.90
Positive
200DMA
0.94
Positive
Market Momentum
MACD
0.04
Positive
RSI
53.22
Neutral
STOCH
13.04
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CBAT, the sentiment is Positive. The current price of 1.13 is below the 20-day moving average (MA) of 1.16, above the 50-day MA of 1.00, and above the 200-day MA of 0.94, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 53.22 is Neutral, neither overbought nor oversold. The STOCH value of 13.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CBAT.

CBAK Energy Technology Risk Analysis

CBAK Energy Technology disclosed 55 risk factors in its most recent earnings report. CBAK Energy Technology reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

CBAK Energy Technology Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$146.20M27.773.99%2.74%-50.31%
65
Neutral
$10.75B15.725.20%1.90%3.09%-27.42%
58
Neutral
$104.33M282.500.31%-30.85%-95.67%
44
Neutral
$113.33M-395.45%12.42%23.63%
GWGWH
39
Underperform
$18.28M-172.05%-58.05%-6.90%
26
Underperform
$12.65M-860.70%-12310.81%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CBAT
CBAK Energy Technology
1.13
-0.15
-11.72%
ULBI
Ultralife
8.75
-2.17
-19.87%
SKYX
SQL Technologies
1.03
0.23
28.75%
GWH
ESS Tech
1.71
-10.98
-86.52%
SDST
Stardust Power
0.24
-6.88
-96.63%

CBAK Energy Technology Corporate Events

Stock BuybackRegulatory Filings and Compliance
CBAK Energy Approves $20M Stock Repurchase Program
Positive
May 22, 2025

On May 20, 2025, CBAK Energy Technology‘s Board of Directors approved a stock repurchase program authorizing the buyback of up to $20 million of its common stock, set to conclude by May 20, 2026. This initiative aims to return value to shareholders and help the company regain compliance with Nasdaq’s minimum bid price requirement. The program reflects CBAK Energy’s confidence in its long-term value, supported by strong fundamentals such as high gross margins and a significant market share for its flagship product, the Model 32140 battery.

Executive/Board Changes
CBAK Energy Announces Board Changes Amid Leadership Shift
Neutral
May 21, 2025

On May 20, 2025, CBAK Energy Technology, a company involved in the energy sector, announced the resignation of Mr. Yunfei Li as a member and Chairman of the Board, a role he held after stepping down as CEO in October 2024. His departure was for personal reasons and not due to any disagreements with the company. Concurrently, Mr. Jiewei Li, the Chief Financial Officer, was appointed as a new director, a move supported by Mr. Yunfei Li to ensure continued leadership and growth. The Board will operate without a designated Chairman until further notice.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 28, 2025