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Ecarx Holdings Inc. (ECX)
:ECX
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ECARX Holdings
(NASDAQ:ECX)
Rating:44Neutral
Price Target:―
ECARX Holdings (ECX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$807.26M
Dividend YieldN/A
Average Volume (3M)1.91M
Price to Earnings (P/E)―
Beta (1Y)1.44
Revenue Growth21.32%
EPS Growth17.48%
CountryUS
Employees1,800
SectorConsumer Cyclical
Sector Strength60
IndustryAuto - Parts
Share Statistics
EPS (TTM)-0.08
Shares Outstanding324,769,100
10 Day Avg. Volume3,081,299
30 Day Avg. Volume1,911,520
Financial Highlights & Ratios
PEG Ratio-0.10
Price to Book (P/B)-74.42
Price to Sales (P/S)0.00
P/FCF Ratio-24.72
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3.60Price Target Upside63.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
ECARX Holdings Business Overview & Revenue Model
Company DescriptionECARX Holdings, Inc. engages in the design, development, and delivery of vehicle technology. Its products include infotainment head units, digital cockpits, vehicle chip-set, operating system and software stack. The company was founded in 2017 and is based in Shanghai, China with an additional office in Europe.
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 Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 83.33%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The overall sentiment of the call is positive, with significant revenue growth, successful project launches, and strategic partnerships outweighing the challenges of global vehicle sales decline and increased operating expenses.Q1-2025 Updates
Positive Updates
Revenue Growth
Total revenue for the quarter was RMB1.2 billion, an increase of 30% year-over-year.
Operating Loss Improvement
Operating loss narrowed by 30% year-over-year to $24.6 million.
Gross Margin Stability
Gross margins remained firm at around 20%, reflecting progress in optimizing product costs.
Shipment Increase
Shipments surged to 684,000 units, a 35.8% increase year-over-year.
Geely Galaxy E8 Success
Geely's Galaxy E8 brand sold over 90,000 units in March, an increase of more than 290% year-over-year.
New Project Wins
Secured eight new project wins under Geely’s new foundation E/E architecture.
Successful Launch of New Products
Launch of Galaxy E8 and Xingyao 8 with integrated G-Pilot and Skyland Pro ADAS solution.
Technological Innovations
Integration of intelligent car driving and parking capabilities into the Antora 1000 Super Brain.
International Expansion
Successful delivery of the first digital cockpit sample to the Volkswagen Group.
Strategic Partnerships
Announced partnership with HERE Technologies for AI-powered in-vehicle navigation systems.
Negative Updates
Global Vehicle Sales Decline
Global vehicle sales fell 5.6% year-over-year, indicating supply chain challenges.
Operating Expenses
Total cost of revenue increased 34% year-over-year, driven by increased sales volume.
China Market Pressure
Despite growth, there are ongoing challenges due to competitive pricing pressures.
Company Guidance
During the ECARX First Quarter 2025 Earnings Conference Call, the company highlighted several key metrics and achievements. Despite a 5.6% year-over-year decline in global vehicle sales, ECARX reported a 12.9% increase in the China market, reflecting resilience in this region. The company's operating loss decreased by 30% year-over-year to $24.6 million, while total revenue rose by 30% to $168.5 million. Gross margins remained stable at around 20%, and shipments surged to 684,000 units. This growth brought the total number of vehicles equipped with ECARX technology to over 8.7 million, marking a 35.8% year-over-year increase. Notably, the Geely Galaxy E8 brand achieved significant success, with March sales exceeding 90,000 units, up over 290% year-over-year. Additionally, ECARX secured eight new project wins under Geely's new E/E architecture, launched innovative solutions like the Antora 1000 Super Brain, and held a successful 2025 Invest Day. They also completed a public offering, raising $45 million to support global expansion and R&D initiatives.ECARX Holdings Financial Statement Overview
Summary
ECARX Holdings demonstrates robust revenue growth but struggles with profitability, cash flow, and balance sheet health. Negative equity and high leverage are significant risks, requiring operational improvements and better cash management.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 |
| EBITDA | -796.40M | -814.87M | -1.42B | -973.15M | -321.69M |
| Net Income | -932.30M | -940.19M | -1.54B | -1.18B | -439.66M |
Balance Sheet | |||||
| Total Assets | 3.77B | 4.27B | 4.25B | 3.97B | 2.58B |
| Cash, Cash Equivalents and Short-Term Investments | 454.50M | 699.02M | 737.40M | 877.96M | 729.94M |
| Total Debt | 2.13B | 1.81B | 1.56B | 1.06B | 1.10B |
| 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
Positive
2.20
Price Trends
1.62
Positive
1.78
Positive
1.81
Positive
Market Momentum
0.15
Negative
67.64
Neutral
77.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ECX, the sentiment is Positive. The current price of 2.2 is above the 20-day moving average (MA) of 1.82, above the 50-day MA of 1.62, and above the 200-day MA of 1.81, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 67.64 is Neutral, neither overbought nor oversold. The STOCH value of 77.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 3 New Risks
1.
If we do not appropriately maintain effective internal control over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act of 2002, we may be unable to accurately report our financial results and the market price of our securities may be adversely affected. Q4, 2023
2.
Industry data, projections, and estimates are inherently uncertain and subject to change. Q4, 2023
3.
We are involved from time to time in legal proceedings and commercial or contractual disputes, which could have an adverse impact on our profitability and consolidated financial position. Q4, 2023
ECARX Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | AU$2.83B | 27.14 | 4.84% | 5.11% | 2.60% | -31.70% | |
55 Neutral | $1.70B | ― | -113.70% | ― | 95.90% | 10.38% | |
54 Neutral | $298.44M | ― | -65.19% | ― | 28.52% | 41.32% | |
54 Neutral | $323.60M | ― | -31.45% | ― | ― | -79.83% | |
47 Neutral | $245.33M | ― | -21.13% | ― | 451.93% | 49.23% | |
45 Neutral | $150.16M | ― | 146.24% | ― | -3.84% | 67.67% | |
44 Neutral | $807.26M | ― | 102.04% | ― | 21.32% | 17.48% |
* Consumer Cyclical Sector Average
Performance Comparison
ECX
ECARX Holdings
2.16
0.39
22.03%
LAZR
Luminar Technologies
3.03
-20.15
-86.93%
HYLN
Hyliion Holdings
1.44
-0.24
-14.29%
AEVA
Aeva Technologies
32.89
30.35
1194.88%
INVZ
Innoviz Technologies
1.44
0.49
51.58%
SES
SES AI Corporation Class A
0.88
-0.25
-22.12%
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.