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ECD Automotive Design (ECDA)
NASDAQ:ECDA
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ECD Automotive Design (ECDA) AI Stock Analysis

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ECDA

ECD Automotive Design

(NASDAQ:ECDA)

Rating:44Neutral
Price Target:
$0.00
▼(-100.00%Downside)
ECD Automotive Design's overall score is adversely impacted by severe financial challenges, weak technical indicators, and valuation concerns. Despite positive aspects like revenue growth and strategic initiatives, the company's financial instability and reputational risks due to the SEC investigation weigh heavily on its stock score.

ECD Automotive Design (ECDA) vs. SPDR S&P 500 ETF (SPY)

ECD Automotive Design Business Overview & Revenue Model

Company DescriptionECD Automotive Design (ECDA) is a renowned company specializing in the restoration and customization of classic Land Rover Defender vehicles. Operating in the automotive sector, the company is known for its meticulous craftsmanship and attention to detail, delivering bespoke, high-performance off-road vehicles tailored to each client's specifications. ECDA combines traditional craftsmanship with modern technology to produce unique, luxury vehicles that cater to a global clientele.
How the Company Makes MoneyECD Automotive Design makes money by offering premium restoration and customization services for classic Land Rover Defenders. The company's primary revenue stream comes from sales of these fully customized vehicles, which are built according to the specific desires and requirements of each customer. The customization process includes modernizing the vehicle's performance, aesthetics, and technology, often incorporating luxury features and high-end materials. Additionally, ECDA may generate revenue through partnerships with automotive parts suppliers and accessory manufacturers, which provide the high-quality components necessary for their bespoke projects. The company's reputation for quality and exclusivity allows it to command premium pricing for its services, contributing significantly to its earnings.

ECD Automotive Design Earnings Call Summary

Earnings Call Date:Jun 27, 2025
(Q4-2024)
|
% Change Since: -12.00%|
Next Earnings Date:Aug 25, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a company with strong revenue growth and strategic initiatives such as a new retail strategy and vehicle models. However, these positives were balanced by significant financial challenges, including increased net losses, delayed revenue recognition, and a reduced cash position.
Q4-2024 Updates
Positive Updates
Revenue Growth
ECD Auto Design reported revenue growth of 29% for the fiscal year 2024, reaching $25.2 million, which is a record for the company.
Increased Gross Profit
Gross profit increased by 30%, further reflecting the company's improvements in processes and customer engagement.
Retail Strategy Launch
ECD Auto Design launched its retail strategy with the opening of two new locations, which are expected to enhance customer engagement and reduce marketing costs.
New Vehicle Models and Licensing Agreements
The company added new vehicle models, including Classic Toyota FJs and Classic Ford Mustangs, through licensing agreements.
Manufacturing Process Improvements
ECD Auto Design improved manufacturing processes by moving quality control within the line, which is expected to enhance build quality.
Negative Updates
Delayed Revenue Recognition
There was a delay in recognizing revenue for 12 vehicles due to delays in vehicle title transfers, impacting fourth-quarter results.
Increased Net Loss
The company reported a net loss of $10.8 million for the year, compared to a loss of $1.2 million in the previous year.
Decreased Cash Balance
ECD Auto Design's cash balance decreased significantly from $8.1 million to $1.5 million year-over-year.
Noncash Write-Downs
A noncash $1.1 million write-down of labor overhead allocation and raw materials affected gross profit negatively.
Company Guidance
During the ECD Auto Design Fourth Quarter 2024 Earnings Conference Call, the company provided several key metrics and guidance for future growth. ECD reported a 29% increase in revenue for 2024, reaching $25.2 million, and a 30% rise in gross profit, setting records for the company. The average selling price of their custom classic vehicles ranges from $300,000 to $400,000, with new orders sometimes exceeding $500,000. For the fourth quarter, revenue was $5.3 million, up from $4.8 million in the previous year, although gross profit decreased due to a $1.1 million noncash write-down. ECD's net loss for the year was $10.8 million, with a cash balance of $1.5 million as of December 31, 2024. The company plans to expand its retail presence, with two locations already operational, each expecting to sell two vehicles per month. This strategy aims to boost sales and fill the factory, with a target of 10 units per month for cash flow positivity. ECD is also addressing potential tariff impacts by adjusting upgrade pricing while maintaining base contract prices, leveraging the classic vehicle exemption from new automotive tariffs.

ECD Automotive Design Financial Statement Overview

Summary
ECD Automotive Design faces severe financial difficulties with negative profitability, high leverage, and negative cash flows. While revenue growth is strong, operational difficulties and substantial financial challenges indicate high risk.
Income Statement
10
Very Negative
The company has experienced significant revenue growth in 2024, yet it operates with negative profitability metrics such as net profit margin and EBIT margin. The negative net income and gross profit indicate substantial financial challenges. EBIT and EBITDA are also negative, suggesting operational difficulties.
Balance Sheet
5
Very Negative
ECD Automotive Design has a concerning financial structure with negative stockholders' equity, indicating liabilities exceed assets. The debt-to-equity ratio is irrelevant due to negative equity, and high leverage poses financial stability risks. The equity ratio is negative, further indicating financial distress.
Cash Flow
15
Very Negative
The cash flow situation is critical with negative operating and free cash flows, indicating the company is struggling to generate cash. Operating cash flow to net income ratio is negative, reflecting cash outflows in operations. Financing activities provide some relief but are unsustainable long-term.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue25.17M19.49M9.62M11.52M
Gross Profit5.89M4.52M964.95K2.56M
EBITDA-4.18M-885.00K-2.21M-533.00K
Net Income-10.77M-1.18M-2.44M882.91K
Balance Sheet
Total Assets19.18M25.29M12.44M7.30M
Cash, Cash Equivalents and Short-Term Investments1.48M8.13M3.51M2.81M
Total Debt17.81M14.73M4.99M500.00K
Total Liabilities38.16M35.31M15.45M10.19M
Stockholders Equity-18.98M-10.02M-3.01M-2.89M
Cash Flow
Free Cash Flow-9.76M-5.56M954.40K-82.59K
Operating Cash Flow-9.76M-5.01M1.49M-20.75K
Investing Cash Flow-17.05M-554.82K-509.73K-61.84K
Financing Cash Flow3.13B7.11M-278.16K661.63K

ECD Automotive Design Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.22
Price Trends
50DMA
0.29
Negative
100DMA
0.43
Negative
200DMA
0.69
Negative
Market Momentum
MACD
-0.02
Positive
RSI
35.59
Neutral
STOCH
12.66
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ECDA, the sentiment is Negative. The current price of 0.22 is below the 20-day moving average (MA) of 0.27, below the 50-day MA of 0.29, and below the 200-day MA of 0.69, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 35.59 is Neutral, neither overbought nor oversold. The STOCH value of 12.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ECDA.

ECD Automotive Design Risk Analysis

ECD Automotive Design disclosed 61 risk factors in its most recent earnings report. ECD Automotive Design 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 1 New Risks

ECD Automotive Design Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$17.10B11.449.70%3.58%11.11%-4.78%
44
Neutral
$11.92M-82.82%-2.83%-162.60%
44
Neutral
$19.42M-188.79%-53.55%65.29%
44
Neutral
$4.93M-132.63%-47.62%8.34%
41
Neutral
$30.74M-32.49%36.58%-62.75%
38
Underperform
$8.18M0.56-95.75%
11
Underperform
$77.40M86.35%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ECDA
ECD Automotive Design
0.22
-1.01
-82.11%
WKHS
Workhorse Group
2.08
-16.54
-88.83%
CENN
Cenntro Electric Group
0.63
-1.02
-61.82%
EVTV
Envirotech Vehicles
0.19
-1.49
-88.69%
CJET
Chijet Motor Company
2.59
-1.02
-28.25%
PEVM
Phoenix Motor Inc
0.17
-0.20
-54.05%

ECD Automotive Design Corporate Events

Shareholder MeetingsStock SplitBusiness Operations and Strategy
ECD Automotive Design Approves Key Proposals at Meeting
Neutral
Jul 23, 2025

On July 22, 2025, ECD Automotive Design, Inc. held its annual meeting of stockholders. During this meeting, several key proposals were approved, including a reverse stock split, share issuances, an amendment to the equity incentive plan, the election of a director, and the ratification of the company’s auditor. These approvals reflect strategic decisions aimed at enhancing the company’s financial structure and governance, potentially impacting its market positioning and stakeholder interests.

Private Placements and Financing
ECD Automotive Design Restructures Debt with Series C Conversion
Neutral
Jul 7, 2025

ECD Automotive Design, Inc. has entered into several agreements with a private lender to convert existing notes and preferred stock into a new Series C Convertible Preferred Stock, which can be converted into common stock. On June 20, 2025, the lender converted 4,000 shares of Series B Preferred Stock into Series C Preferred Stock. Additionally, on July 7, 2025, the lender converted $2,462,805 from a loan agreement into 5,000 shares of Series C Preferred Stock. These financial maneuvers are aimed at restructuring the company’s debt and potentially improving liquidity.

Business Operations and Strategy
ECD Automotive Design Announces Strategic Initiatives
Positive
Jun 23, 2025

ECD Automotive Design announced several strategic initiatives on June 23, 2025, aimed at enhancing operational efficiency and financial stability. The company completed a comprehensive review of its cost structure, negotiated a waiver with lenders to resolve existing defaults, and introduced a new Bitcoin treasury strategy. These efforts are intended to optimize working capital and support disciplined growth, positioning ECD to continue delivering high-quality custom vehicles while creating long-term value for shareholders.

Private Placements and FinancingM&A TransactionsRegulatory Filings and Compliance
ECD Automotive Design Secures $21.9 Million June Note
Neutral
Jun 11, 2025

ECD Automotive Design completed a business combination with Humble Imports Inc. and ECD Auto Design UK, issuing shares and warrants to former security holders, and securing a $15.8 million loan through a senior secured convertible note on December 12, 2023. The company faced several events of default related to its financial statements and filing obligations in 2024, leading to subsequent agreements with the lender to waive defaults and secure additional financing, including a $1.7 million loan in January 2025 and a $21.9 million note in June 2025.

M&A TransactionsLegal ProceedingsFinancial DisclosuresRegulatory Filings and Compliance
ECD Automotive Design Faces SEC Investigation in 2025
Negative
May 15, 2025

ECD Automotive Design, Inc. completed a significant business combination on December 12, 2023, involving multiple entities, which resulted in the issuance of various stocks and warrants to former security holders of Humble Imports Inc. This strategic move, alongside a series of financial agreements and securities purchase agreements, aims to strengthen the company’s financial position and expand its market presence. However, the company is currently under investigation by the SEC concerning its 2024 financial statement restatements and auditor changes, which may impact its reputation and stakeholder trust.

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: Jul 24, 2025