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ECARX Holdings (ECX)
NASDAQ:ECX
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ECARX Holdings
(NASDAQ:ECX)
38Underperform
ECARX Holdings (ECX) vs. S&P 500 (SPY)
Market Cap
$560.60M
Dividend YieldN/A
Average Volume (3M)5.16M
Price to Earnings (P/E)―
Beta (1Y)0.80
Revenue Growth17.89%
EPS Growth0.41%
CountryUS
Employees1,918
SectorConsumer Cyclical
Sector Strength50
IndustryAuto - Parts
Share Statistics
EPS (TTM)-0.39
Shares Outstanding324,769,100
10 Day Avg. Volume7,955,743
30 Day Avg. Volume5,160,419
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.49
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3.50Price Target Upside133.33% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
ECARX Holdings Business Overview & Revenue Model
Company DescriptionECARX Holdings (ECX) is a leading player in the automotive technology sector, focusing on developing cutting-edge solutions that enhance the connected and intelligent vehicle experience. The company specializes in creating hardware and software solutions, including digital cockpits, infotainment systems, and autonomous driving technologies that integrate seamlessly into modern vehicles. ECARX aims to revolutionize the automotive industry by providing innovative, high-quality products that improve safety, efficiency, and user experience.
How the Company Makes MoneyECARX Holdings primarily generates revenue through the sale and licensing of its automotive hardware and software solutions to vehicle manufacturers. The company partners with leading automotive brands to integrate its digital cockpits and infotainment systems into a wide range of vehicles. Additionally, ECARX earns income through strategic collaborations and alliances with industry giants, which help expand its market reach and technological capabilities. Revenue is further supported by continuous advancements in autonomous driving technology, which enhances the value proposition of ECARX's offerings to its clientele.
ECARX Holdings Financial Statement Overview
Summary
ECARX Holdings shows growth in revenue but faces substantial profitability and cash flow challenges. The negative equity and high leverage raise concerns about the company's financial stability. Continued focus on improving operational efficiency and cash flow management is crucial to enhance its financial health.Income Statement
ECARX Holdings has exhibited a steady revenue growth over the years, increasing from $2.24 billion in 2020 to $5.56 billion in 2024. However, the company has been consistently unprofitable with negative net incomes throughout the period, culminating in a net loss of $932.3 million in 2024. The gross profit margin has shown some stability, but the EBIT and EBITDA margins are concerningly negative, indicating ongoing operational challenges.35
Negative
Balance Sheet
The balance sheet presents a worrying picture with consistent negative stockholders' equity, which worsened to -$1.76 billion in 2024. The high debt-to-equity ratio reflects significant leverage, increasing financial risk. Total liabilities exceed total assets, highlighting a negative equity ratio, which is a critical concern for financial stability.25
Negative
Cash Flow
ECARX Holdings has struggled with cash flow management, as seen by negative free cash flow figures in recent years, reflecting inadequate cash generation to cover capital expenditures. The operating cash flow has also been negative, indicating that the company is not generating sufficient cash from its core operations to cover its expenses.30
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 5.56B | 4.67B | 3.56B | 2.78B | 2.24B | Gross Profit |
| 1.15B | 1.27B | 990.50M | 817.19M | 551.39M | EBIT |
| -882.20M | -917.71M | -1.47B | -981.68M | -430.48M | EBITDA |
| -796.40M | -814.87M | -1.42B | -973.15M | -321.69M | Net Income Common Stockholders |
| -932.30M | -940.19M | -1.54B | -1.18B | -439.66M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 454.50M | 699.02M | 737.40M | 877.96M | 729.94M | Total Assets |
| 3.77B | 4.27B | 4.25B | 3.97B | 2.58B | Total Debt |
| 1.99B | 1.81B | 1.56B | 1.06B | 1.10B | Net Debt |
| 1.67B | 1.25B | 824.60M | 181.34M | 371.45M | Total Liabilities |
| 5.52B | 5.10B | 4.43B | 8.04B | 4.41B | Stockholders Equity |
| -1.76B | -921.41M | -177.20M | -4.10B | -1.84B |
| Cash Flow | Free Cash Flow | |||
| -544.93M | -1.31B | -533.54M | -951.19M | -437.16M | Operating Cash Flow |
| -430.28M | -1.24B | -405.76M | -872.33M | -368.05M | Investing Cash Flow |
| 0.00 | 592.08M | -283.53M | -1.39B | -91.11M | Financing Cash Flow |
| 261.64M | 296.83M | 537.77M | 2.19B | 1.14B |
ECARX Holdings Technical Analysis
Negative
1.50
Price Trends
2.16
Negative
2.02
Negative
1.88
Negative
Market Momentum
-0.09
Positive
29.70
Positive
5.32
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ECX, the sentiment is Negative. The current price of 1.5 is below the 20-day moving average (MA) of 2.53, below the 50-day MA of 2.16, and below the 200-day MA of 1.88, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 29.70 is Positive, neither overbought nor oversold. The STOCH value of 5.32 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ECX.
ECARX Holdings Risk Analysis
ECARX Holdings disclosed 77 risk factors in its most recent earnings report. ECARX Holdings 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
ECARX Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
59 Neutral | $12.26B | 11.12 | -0.55% | 3.78% | 1.42% | -20.63% | |
49 Neutral | $296.46M | ― | -134.07% | ― | -35.31% | -2.18% | |
43 Neutral | $254.97M | ― | 146.24% | ― | 8.05% | 58.44% | |
40 Underperform | $131.10M | ― | -81.61% | ― | 16.25% | 32.95% | |
39 Underperform | $103.03M | ― | -152.72% | ― | -47.76% | -1.39% | |
38 Underperform | $560.60M | ― | 102.04% | ― | 17.89% | 0.41% |
* Consumer Cyclical Sector Average
Performance Comparison
ECX
ECARX Holdings
1.26
-0.72
-36.36%
MVIS
Microvision
1.24
-0.56
-31.11%
LAZR
Luminar Technologies
5.39
-26.11
-82.89%
INVZ
Innoviz Technologies
0.65
-0.82
-55.78%
ARBE
Arbe Robotics
1.03
-1.04
-50.24%
ECARX Holdings Earnings Call Summary
Earnings Call Date: Mar 11, 2025 | % Change Since: -43.82% | Next Earnings Date: Jun 16, 2025
Earnings Call Sentiment Positive
The earnings call reflected a positive sentiment with significant revenue growth, new project wins, and achieving breakeven EBITDA. However, there were concerns around declining service revenue, software license revenue, and gross margin pressures.Highlights
Revenue Growth
Revenue during the quarter and the year was up 4% and 18% respectively with gross margin of 21.2% and 20.8% respectively.
Record Shipments
Total shipments reached a record high of 2 million last year, up 33% year-over-year, with over 700,000 shipped during the fourth quarter alone.
Volkswagen Project Win
Secured a new project with Volkswagen Group, expanding the global customer base to 18 automakers across 28 brands.
Positive EBITDA
Achieved breakeven at EBITDA level during the quarter, with a full year breakeven targeted for 2025.
New Product Launches
Launched several new vehicles and integrated advanced technologies like AutoGPT and Cloudpeak into products, showcasing innovation and expanding market reach.
Lowlights
Software License Revenue Decline
Software license revenue decreased by 3% year-over-year, attributed to a decrease in the volume of legacy project software sales.
Service Revenue Decrease
Service revenue decreased by 31% year-over-year, reflecting a challenging market for service-based income.
Gross Margin Pressure
Gross margin decreased due to pricing strategies and a shift in the overall revenue mix, with expectations for continued pressure on hardware product margins.
Cash Position
As of the end of the year, cash and restricted cash stood at RMB367 million, indicating a need for capital raise strategies.
Company Guidance
During ECARX's Fourth Quarter and Full Year 2024 Earnings Conference Call, key financial metrics and guidance were discussed, highlighting significant achievements and future expectations. ECARX reported a 4% increase in quarterly revenue and an 18% rise for the full year, with gross margins of 21.2% and 20.8%, respectively. The company achieved breakeven at the EBITDA level in the fourth quarter, with expectations of full-year breakeven in 2025. Total shipments reached a record high of 2 million units, marking a 33% year-over-year increase, with over 700,000 units shipped in the fourth quarter alone. The company secured a new project with Volkswagen Group, expanding its global customer base to 18 automakers across 28 brands. Looking ahead, ECARX is optimistic about achieving positive EBITDA for the full year 2025 and announced a USD 20 million share repurchase program, reflecting confidence in their growth prospects amid the growing prominence of software-defined vehicles.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.