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Ehang Holdings (EH)
NASDAQ:EH
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Ehang Holdings
(NASDAQ:EH)
Rating:47Neutral
Price Target:
$16.50
▼(-2.65%Downside)
Positive Factors
Certification and Regulation
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.
Market Leadership
Ehang is recognized as the number one eVTOL aircraft brand in China, indicating its strong market presence and leadership position.
Technological Advantage
Ehang is expected to sustain its leadership in China’s eVTOL aircraft market due to its advanced technology and licensure head start.
Negative Factors
Financial Challenges
The 1Q25 non-GAAP net loss was worse than estimated, highlighting financial challenges for the company.
Financial Performance
Ehang reported disappointing 1Q25 results with sales down 58% year-over-year and 84% quarter-over-quarter, mainly due to fewer-than-expected eVTOL deliveries.
Regulatory Risks
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
$1.21B
Dividend YieldN/A
Average Volume (3M)1.49M
Price to Earnings (P/E)―
Beta (1Y)1.87
Revenue Growth167.99%
EPS Growth22.75%
CountryUS
Employees483
SectorIndustrials
Sector Strength87
IndustryAerospace & Defense
Share Statistics
EPS (TTM)-0.07
Shares Outstanding52,471,577
10 Day Avg. Volume1,596,474
30 Day Avg. Volume1,491,312
Financial Highlights & Ratios
PEG Ratio0.65
Price to Book (P/B)4.75
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
$26.10Price Target Upside53.98% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
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 primarily generates revenue through the sale of its autonomous aerial vehicles, including passenger and logistics drones. The company offers its AAVs to a range of sectors, including transportation, logistics, and emergency services, providing both direct sales and leasing options. Additionally, Ehang may generate revenue through partnerships with urban air mobility providers and infrastructure developers, as well as through service agreements for the maintenance and operation of its vehicles. The company's strategic collaborations with various industry and government entities also play a crucial role in promoting the integration of its AAVs into existing transportation ecosystems, thus contributing to its earnings.
Ehang Holdings Earnings Call Summary
Earnings Call Date:May 26, 2025
(Q1-2025)
| % Change Since: -24.50%|
Next Earnings Date:Aug 21, 2025
Earnings Call Sentiment Neutral
The earnings call indicates a mixture of optimistic progress with significant milestones achieved, such as regulatory approvals and product development, but also highlights challenges in current revenue and delivery volumes. The low revenue and delivery volumes in Q1 were primarily due to seasonal factors and anticipation of regulatory approvals, but the company remains optimistic about future growth and maintains its annual revenue guidance.Q1-2025 Updates
Positive Updates
First Air Operator Certificates Granted
EHang and its client Heyi Aviation received the first batch of Air Operator Certificates for human-carrying pilotless aerial vehicles from the Civil Aviation Administration of China, marking a significant regulatory breakthrough and allowing commercial operations to commence.
Launch of VT35 eVTOL
EHang completed the final assembly of its next-generation long-range pilotless eVTOL, VT35, which features significant upgrades. The aircraft is undergoing full-scale flight testing and its type certification application has been accepted.
Expansion of Yunfu Production Base
The main factory at Yunfu has doubled in size, supporting an annual production capacity of up to 1,000 units to meet future demand.
Strategic Partnerships and New Facilities
EHang entered a strategic partnership with JAC Motors and Guoxian Holdings for a next-generation eVTOL manufacturing base in Hefei. Additional assembly facilities are being built in Anhui and Shandong provinces.
Negative Updates
Decline in Q1 Revenue
Total revenues for Q1 2025 were RMB26.1 million, a decrease compared to Q1 last year and Q4 2024, primarily due to decreased sales volume of EH216 series products.
Challenges in Delivery Volumes
Only 11 units of EH216-S were delivered in Q1, attributed to seasonal slowdowns, government procurement delays, and customers waiting for Air Operator Certificates.
Company Guidance
During the earnings call for the first quarter of 2025, EHang provided guidance and updates on several key metrics. The company reported revenue of RMB26.1 million from the delivery of 11 EH216-S units, attributing the low delivery volume to seasonal slowdowns, internal client budgeting processes, and deferred orders due to the anticipation of operational certificates (OCs). Despite this, the company maintained its full-year revenue guidance of RMB900 million, citing strong underlying demand and significant order and delivery growth expected in the second quarter. EHang highlighted the milestone achievement of obtaining OCs for human-carrying pilotless aerial vehicles, advancing its Urban Air Mobility platform. The company's gross margin improved to 62.4% due to higher average selling prices and effective cost management. EHang also emphasized continued R&D investment, with over 700 patent assets, and noted its global expansion efforts, including successful demonstrations in Spain and Mexico. The company expressed confidence in its long-term growth trajectory and operational readiness, further supported by strategic partnerships and infrastructure expansions domestically and internationally.Ehang Holdings Financial Statement Overview
Summary
Ehang Holdings shows strong revenue growth but faces ongoing profitability challenges with negative net profits and cash flow issues. The balance sheet is stable with low leverage, but liquidity constraints highlight operational inefficiencies.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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 420.52M | 456.15M | 117.43M | 44.32M | 56.81M | 180.09M |
| Gross Profit | 258.05M | 279.95M | 75.31M | 29.22M | 36.03M | 106.18M |
| EBITDA | -243.22M | -240.16M | -264.26M | -304.74M | -312.76M | -85.10M |
| Net Income | -244.53M | -229.78M | -301.70M | -329.53M | -313.62M | -92.28M |
Balance Sheet | ||||||
| Total Assets | 1.60B | 1.58B | 598.64M | 530.87M | 535.43M | 484.55M |
| Cash, Cash Equivalents and Short-Term Investments | 1.08B | 1.12B | 300.14M | 249.31M | 311.97M | 187.11M |
| Total Debt | 305.60M | 233.50M | 163.55M | 200.06M | 30.00M | 15.00M |
| Total Liabilities | 678.26M | 628.68M | 384.43M | 406.19M | 201.39M | 206.85M |
| Stockholders Equity | 922.62M | 955.64M | 213.79M | 124.26M | 332.60M | 276.32M |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 117.88M | -97.50M | -187.28M | -137.32M | -162.78M |
| Operating Cash Flow | 0.00 | 157.96M | -88.41M | -173.46M | -121.63M | -153.70M |
| Investing Cash Flow | 0.00 | -482.51M | -128.69M | 56.40M | -33.40M | -66.21M |
| Financing Cash Flow | 0.00 | 701.36M | 195.48M | 106.74M | 266.95M | 44.68M |
Ehang Holdings Technical Analysis
Neutral
16.95
Price Trends
17.19
Negative
19.22
Negative
17.43
Negative
Market Momentum
-0.05
Negative
50.72
Neutral
62.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EH, the sentiment is Neutral. The current price of 16.95 is above the 20-day moving average (MA) of 16.66, below the 50-day MA of 17.19, and below the 200-day MA of 17.43, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 50.72 is Neutral, neither overbought nor oversold. The STOCH value of 62.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $10.65B | 15.52 | 5.51% | 1.92% | 2.72% | -26.34% | |
54 Neutral | $2.18B | ― | -451.56% | ― | 1.36% | -213.86% | |
49 Neutral | $6.26B | ― | -73.89% | ― | ― | 17.43% | |
48 Neutral | $117.24M | ― | -95.46% | ― | -34.33% | 52.30% | |
47 Neutral | $1.21B | ― | -43.18% | ― | 167.99% | 22.75% | |
43 Neutral | $1.96B | ― | -148.98% | ― | ― | -2.94% | |
25 Underperform | $539.77M | ― | 115.25% | ― | ― | 23.26% |
* Industrials Sector Average
Performance Comparison
EH
Ehang Holdings
16.95
2.36
16.18%
SPCE
Virgin Galactic Holdings
2.83
-5.41
-65.66%
EVTL
Vertical Aerospace
6.64
-0.66
-9.04%
EVEX
Eve Holding
7.43
4.07
121.13%
ACHR
Archer Aviation
9.98
5.58
126.82%
RDW
Redwire
15.60
8.75
127.74%
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.