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Ehang Holdings Ltd (EH)
:EH
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Ehang Holdings
(NASDAQ:EH)
Rating:52Neutral
Price Target:
$18.00
▲( 6.13% Upside)
Positive Factors
Financial Performance
EHang’s revenue surged 2.9x YoY to RMB456mn while net loss narrowed 24% YoY to RMB230mn.
Market Leadership
Ehang is expected to sustain its leadership in China’s eVTOL aircraft market due to its advanced technology and licensure head start.
Regulatory Advantage
EHang obtained the first-ever Operator Certificate (OC) issued by the Civil Aviation Administration of China, allowing it to conduct commercial operations for its pilotless passenger-carrying eVTOL aircrafts.
Negative Factors
Mechanical Risks
Potential downside risks include slower-than-expected regulation relaxation in China and the risk of aircraft mechanical failure.
Regulatory Challenges
Downside risks include slower-than-expected regulation relaxation in China and the risk of aircraft mechanical failure.
Ehang Holdings (EH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.22B
Dividend YieldN/A
Average Volume (3M)1.31M
Price to Earnings (P/E)―
Beta (1Y)2.12
Revenue Growth285.43%
EPS Growth32.57%
CountryUS
Employees483
SectorIndustrials
Sector Strength92
IndustryAerospace & Defense
Share Statistics
EPS (TTM)-0.05
Shares Outstanding52,471,577
10 Day Avg. Volume1,567,483
30 Day Avg. Volume1,311,324
Financial Highlights & Ratios
PEG Ratio5.82
Price to Book (P/B)5.57
Price to Sales (P/S)0.00
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
$27.28Price Target Upside60.85% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Ehang Holdings Business Overview & Revenue Model
Company DescriptionEHang Holdings Limited operates as an autonomous aerial vehicle (AAV) technology platform company in the People's Republic of China, East Asia, Europe, and internationally. It designs, develops, manufactures, sells, and operates AAVs, as well as their supporting systems and infrastructure for various industries and applications, including passenger transportation, logistics, smart city management, and aerial media solutions. The company was incorporated in 2014 and is headquartered in Guangzhou, the People's Republic of China.
How the Company Makes MoneyEHang Holdings makes money primarily through the sale of its autonomous aerial vehicles. The company's revenue streams are diversified across several sectors, including passenger transportation, logistics, and aerial media solutions. Key revenue sources include the sale and leasing of passenger drones for urban air mobility, providing logistics solutions through drones designed for cargo delivery, and offering aerial media services such as light shows and tourism experiences. Additionally, EHang engages in strategic partnerships with governments and corporations to integrate its technology into urban planning and infrastructure projects, further enhancing its revenue potential. The company also invests in research and development to innovate and expand its product offerings, ensuring a competitive edge in the growing market for autonomous aerial solutions.
Ehang Holdings Financial Statement Overview
Summary
Ehang Holdings shows strong revenue growth but remains unprofitable with significant cash flow challenges. Despite a stable balance sheet, efficiency and liquidity issues persist, highlighting the need for improved operational efficiency and cash flow generation.Income Statement
Ehang Holdings demonstrates a volatile revenue trend with a recent significant increase in revenue from 2023 to 2024. However, the company remains unprofitable, with negative net profit and EBIT margins, indicating ongoing operational challenges. Despite increased gross profit, the consistent net losses reflect difficulties in controlling operating expenses.45
Neutral
Balance Sheet
The balance sheet shows a relatively low debt-to-equity ratio, indicating conservative leverage. The equity ratio is moderate, suggesting a balanced capital structure. However, the substantial accumulated losses affect the return on equity negatively, highlighting efficiency challenges in utilizing shareholder funds.50
Neutral
Cash Flow
Ehang Holdings faces cash flow difficulties with negative free and operating cash flows, reflecting operational challenges. The lack of positive cash flow growth and low free cash flow to net income ratio suggest liquidity constraints and limited operational cash generation capabilities.30
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 456.15M | 117.43M | 44.32M | 56.81M | 180.09M | Gross Profit |
| 279.95M | 75.31M | 29.22M | 36.03M | 106.18M | EBIT |
| -253.39M | -296.25M | -303.95M | -320.54M | -91.30M | EBITDA |
| -240.16M | -264.26M | -304.74M | -312.76M | -85.10M | Net Income Common Stockholders |
| -229.78M | -301.70M | -329.53M | -313.62M | -92.28M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.12B | 300.14M | 249.31M | 311.97M | 187.11M | Total Assets |
| 1.58B | 598.64M | 530.87M | 535.43M | 484.55M | Total Debt |
| 233.50M | 163.55M | 200.06M | 30.00M | 15.00M | Net Debt |
| -377.38M | -64.70M | -49.24M | -216.86M | -122.84M | Total Liabilities |
| 628.68M | 384.43M | 406.19M | 201.39M | 206.85M | Stockholders Equity |
| 955.64M | 213.79M | 124.26M | 332.60M | 276.32M |
| Cash Flow | Free Cash Flow | |||
| 0.00 | -97.50M | -187.28M | -137.32M | -162.78M | Operating Cash Flow |
| 0.00 | -88.41M | -173.46M | -121.63M | -153.70M | Investing Cash Flow |
| 0.00 | -128.69M | 56.40M | -33.40M | -66.21M | Financing Cash Flow |
| 0.00 | 195.48M | 106.74M | 266.95M | 44.68M |
Ehang Holdings Technical Analysis
Negative
16.96
Price Trends
18.63
Negative
19.06
Negative
16.95
Positive
Market Momentum
-0.11
Positive
42.22
Neutral
9.57
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EH, the sentiment is Negative. The current price of 16.96 is below the 20-day moving average (MA) of 18.18, below the 50-day MA of 18.63, and above the 200-day MA of 16.95, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 42.22 is Neutral, neither overbought nor oversold. The STOCH value of 9.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EH.
Ehang Holdings Risk Analysis
Ehang Holdings disclosed 97 risk factors in its most recent earnings report. Ehang 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
Ehang Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $4.39B | 11.81 | 5.20% | 249.38% | 3.96% | -12.36% | |
52 Neutral | $1.22B | ― | -39.62% | ― | 285.43% | 32.57% | |
51 Neutral | $1.00B | ― | -451.56% | ― | 1.36% | -213.86% | |
49 Neutral | $5.81B | ― | -73.89% | ― | ― | 17.43% | |
48 Neutral | $154.66M | ― | -95.46% | ― | -34.33% | 52.30% | |
43 Neutral | $1.31B | ― | -148.98% | ― | ― | -2.94% | |
25 Underperform | $455.16M | ― | 115.25% | ― | ― | 23.26% |
* Industrials Sector Average
Performance Comparison
EH
Ehang Holdings
16.96
0.94
5.87%
SPCE
Virgin Galactic Holdings
3.72
-13.41
-78.28%
EVTL
Vertical Aerospace
5.38
-1.73
-24.33%
EVEX
Eve Holding
4.38
-1.40
-24.22%
ACHR
Archer Aviation
10.59
7.29
220.91%
RDW
Redwire
13.00
7.97
158.45%
Ehang Holdings Earnings Call Summary
Earnings Call Date:Mar 12, 2025
(Q4-2024)
| % Change Since: -24.45%|
Next Earnings Date:May 26, 2025
Earnings Call Sentiment Positive
EHang reported strong revenue growth and a significant increase in deliveries, achieving positive adjusted net income for the first time. The company expanded its international presence and maintained a solid cash flow position. However, there were slight declines in gross margins and challenges in achieving GAAP profitability, along with pending regulatory approvals for operator certificates.Q4-2024 Updates
Positive Updates
Record-Breaking Revenue and Growth
EHang achieved record revenues of RMB164.3 million in Q4 2024, representing a 190% year-over-year growth. For the full year, total revenues reached RMB456.2 million, marking a 289% increase year-over-year.
Significant Increase in Deliveries
EHang delivered 78 units of the EH216 series in Q4, a 239% year-over-year increase, with total annual deliveries reaching 216 units, up 315% from 2023.
Positive Adjusted Net Income
For the first time, EHang achieved positive adjusted net income of RMB43.1 million for the full year 2024, a significant improvement from an adjusted net loss of RMB139 million in 2023.
Strong Cash Flow and Liquidity
EHang reported its first-ever annual positive operating cash flow of approximately RMB160 million in 2024, with a solid cash balance of RMB1,155 million at the end of Q4.
Successful International Market Expansion
EHang expanded its global footprint to 19 countries and achieved Europe's first autonomous eVTOL flight in an urban environment in Benidorm, Spain.
Negative Updates
Gross Margin Slight Decline
EHang's gross margin for Q4 2024 was 60.7%, down from 64.7% in the same period of 2023, primarily due to changes in revenue mix and higher unit costs for the EH216-S.
Challenges in Achieving GAAP Profitability
EHang expects to achieve GAAP profitability quarterly in the second half of 2025, and for the full year by 2026.
Pending Regulatory Approvals
EHang is awaiting final regulatory approval from the Civil Aviation Administration of China for operator certificates, which are essential for commercial eVTOL operations.
Company Guidance
During the earnings call for EHang's fourth quarter and fiscal year 2024, the company reported significant growth, surpassing their guidance with a 239.1% year-over-year increase in Q4 revenues to RMB164 million, driven by the delivery of 78 units of the EH216 series. For the full fiscal year, EHang delivered 216 units, achieving a total revenue of RMB456 million, a 288.5% increase from the previous year. Notably, the company reached positive adjusted net income and operating cash flow for the first time, marking a milestone in its history. Looking forward, EHang expects 2025 revenues to reach RMB900 million, representing a 97% increase year-over-year, as they expand their production capacity and continue to innovate in AI and eVTOL technology. The company also highlighted its strategic partnerships and global footprint expansion, emphasizing their leadership in the urban air mobility industry.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.