Gogoro (GGR) AI Stock Analysis

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Gogoro

(NASDAQ:GGR)

Rating:41Neutral

Price Target:

$0.50

▲(100.00%Upside)

Gogoro's overall stock score reflects significant financial and operational challenges. The primary concerns are declining revenues, poor profitability, and high leverage. Technical analysis indicates a bearish trend, and valuation metrics are unattractive. Despite improvements noted in the earnings call, particularly in financial efficiency and the energy business, the overall outlook remains cautious due to ongoing challenges in revenue and vehicle business performance.

Positive Factors

Cost Optimization

The strategic shift away from vehicle sales to optimize costs and improve cash flow is viewed as a positive move.

Revenue Growth

Battery swapping service revenue grew solidly at 10% year over year, accounting for 49% of total revenue.

Strategic Roadmap

The new leadership has outlined a strategic roadmap for sustainable long-term growth and profitability, targeting breakeven for Energy by FY26/FY27 and Vehicles by FY28.

Negative Factors

Earnings Miss

Gogoro delivered disappointing results with revenue sliding 5% YoY and net loss of -US$18mn.

Market and Strategic Uncertainty

Internal restructuring with the CEO and mastermind behind previous strategies gone adds to uncertainties.

Revenue Pressure

Revenue pressure stemmed from persistently soft market conditions in Taiwan coupled with delays in the recognition of revenue from new models.

Gogoro (GGR) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$75.91M

Dividend YieldN/A

Average Volume (3M)337.98K

Price to Earnings (P/E)―

Beta (1Y)1.27

Revenue Growth-10.52%

EPS Growth-118.68%

CountryUS

Employees2,097

SectorConsumer Cyclical

Sector Strength56

IndustryAuto - Parts

Share Statistics

EPS (TTM)-0.06

Shares Outstanding295,353,300

10 Day Avg. Volume299,620

30 Day Avg. Volume337,984

Financial Highlights & Ratios

PEG Ratio0.36

Price to Book (P/B)2.36

Price to Sales (P/S)0.00

P/FCF Ratio-3.75

Enterprise Value/Market Cap11.49

Enterprise Value/Revenue0.68

Enterprise Value/Gross Profit144.31

Enterprise Value/Ebitda21.63

Forecast

1Y Price Target

$0.50

Price Target Upside100.00% Upside

Rating ConsensusHold

Number of Analyst Covering0

Gogoro Business Overview & Revenue Model

Company DescriptionGogoro Inc. is a Taiwanese technology company specializing in the design and manufacture of electric scooters and the development of a comprehensive battery swapping infrastructure. Operating primarily in the electric vehicle and clean energy sectors, Gogoro aims to revolutionize urban transportation through its eco-friendly and convenient solutions. The company's core products include electric scooters, smart batteries, and a network of battery swapping stations that provide an alternative to traditional fossil fuel-powered vehicles.

How the Company Makes MoneyGogoro generates revenue through the sale of its electric scooters and smart batteries, as well as from its battery swapping services. The company sells its electric scooters directly to consumers and through partnerships with local distributors in various markets. A key component of Gogoro's revenue model is its subscription-based battery swapping service, which allows users to exchange depleted batteries for fully charged ones at Gogoro's network of swapping stations. This service not only provides convenience to users but also creates a recurring revenue stream for the company. Additionally, Gogoro may engage in partnerships and collaborations with municipalities, energy companies, and other stakeholders to expand its battery swapping network, thereby increasing its market reach and revenue potential.

Gogoro Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q1-2025)

% Change Since: 0.00%|

Next Earnings Date:Aug 07, 2025

Earnings Call Sentiment Neutral

Gogoro's earnings call highlighted significant improvements in financial efficiency and growth in the energy business, supported by a new credit facility and international expansion plans. However, challenges in revenue decline and vehicle business performance, along with concerns about NASDAQ listing compliance, balance the sentiment.

Q1-2025 Updates

Positive Updates

Improved Financial Metrics

Non-IFRS gross margin increased to 18.2%, a 3.1% improvement from the first quarter of 2024. Operating expenses were reduced by $9.9 million, a 32.1% reduction compared to the same period last year. Adjusted EBITDA increased to $14.3 million, up from $10.2 million, marking a 40% increase.

Growth in Energy Business

Energy business revenue grew by 6.2% year-over-year, reaching $34.5 million. The subscriber base increased to 644,000, up 8% from the previous year.

New Credit Facility

Gogoro secured a NT$ 2 billion (approximately US$ 61.5 million) credit facility, indicating market confidence in the company's future plans.

International Expansion

Completed a joint venture agreement with Castrol for international expansion, with a pilot program expected in the second half of 2025.

Negative Updates

Revenue Decline

Overall revenue dropped by 8.7% year-over-year for the first quarter. Sales of hardware and other revenue decreased by 21.8% year-over-year.

Vehicle Business Challenges

Hardware sales revenue was $29.1 million, below expectations due to delayed vehicle launches and decreased sales volume.

NASDAQ Listing Concerns

Transferred listing to NASDAQ Capital Market to gain additional time to meet compliance requirements.

Company Guidance

In the first quarter of 2025, Gogoro reported significant financial improvements as outlined during their earnings call. The company achieved a non-IFRS gross margin of 18.2%, a notable increase from the previous year, alongside a 32.1% reduction in operating expenses amounting to $9.9 million. This strategic focus on efficiency also resulted in a 36.5% decrease in adjusted net loss to $10.9 million, compared to $17.2 million in Q1 2024. Despite an 8.7% drop in year-over-year revenue, Gogoro's adjusted EBITDA rose to $14.3 million from $10.2 million. The company's energy business recorded a revenue of $34.5 million, marking a 6.2% growth, with a subscriber base expanding to 644,000. Gogoro also secured a new NT$2 billion, approximately US$61.5 million, credit facility, reflecting market confidence in their strategy. Looking ahead, Gogoro expects to achieve breakeven in the energy business by 2026 and in the vehicle business by 2028, while maintaining a revenue forecast of $295 million to $315 million for the full year 2025.

Gogoro Financial Statement Overview

Summary

Gogoro faces significant financial challenges. The income statement indicates declining revenues and poor profitability, with a net profit margin of -42%. The balance sheet shows high leverage, and cash flow management is critical, with negative free cash flow exacerbating liquidity risks. Improvements are needed in operational efficiency and cash management.

Income Statement

Negative

Gogoro's income statement shows declining revenue and worsening profit margins over the past few years. The TTM data indicates a gross profit margin of approximately 2%, with a net profit margin of -42%, pointing to significant operational challenges. The revenue has also decreased from previous periods, reflecting a negative growth trajectory, which is a concern for future profitability. The company is struggling to manage costs effectively, as evidenced by negative EBIT and EBITDA margins.

Balance Sheet

Neutral

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage with total debt well above stockholders' equity. The equity ratio stands at about 24%, showing limited equity cushion against liabilities. However, the company maintains a reasonable level of total assets relative to equity. The financial stability is under pressure due to the high leverage, which could pose risks in adverse market conditions.

Cash Flow

Negative

The cash flow statement highlights severe cash management issues, with consistently negative free cash flow over recent periods. The TTM indicates a minimal operating cash flow, barely covering operational needs, and a free cash flow to net income ratio that signals insufficient cash generation to support financial obligations, exacerbating liquidity risks.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
304.43M	310.52M	349.85M	382.83M	366.01M	364.13M
	Gross Profit
6.05M	7.41M	50.94M	57.71M	61.09M	79.44M
	EBIT
-133.43M	-141.62M	-88.37M	-89.18M	-55.30M	-39.34M
	EBITDA
-21.35M	-11.61M	34.26M	8.57M	38.55M	37.98M
	Net Income Common Stockholders
-128.68M	-122.75M	-76.04M	-98.91M	-70.33M	-49.28M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
93.28M	117.15M	173.88M	236.10M	246.16M	230.88M
	Total Assets
657.58M	700.43M	834.23M	873.42M	844.40M	790.59M
	Total Debt
410.42M	393.18M	440.31M	402.65M	461.06M	378.96M
	Net Debt
317.14M	276.03M	266.42M	166.55M	243.63M	259.92M
	Total Liabilities
499.04M	523.89M	585.54M	574.45M	720.69M	607.55M
	Stockholders Equity
158.54M	176.54M	248.69M	298.97M	123.71M	183.03M
Cash Flow		Free Cash Flow
-107.84M	-114.65M	-59.19M	-188.06M	-47.61M	-144.93M
	Operating Cash Flow
104.00K	9.85M	59.09M	-64.79M	80.79M	756.00K
	Investing Cash Flow
-109.26M	-128.72M	-136.63M	-101.10M	-41.52M	-251.76M
	Financing Cash Flow
33.95M	33.81M	15.15M	186.40M	61.76M	187.26M

Gogoro Technical Analysis

Technical Analysis Sentiment

Negative

Last Price0.25

Price Trends

50DMA

0.26

Negative

100DMA

0.33

Negative

200DMA

0.46

Negative

Market Momentum

MACD

>-0.01

Negative

RSI

42.93

Neutral

STOCH

34.87

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GGR, the sentiment is Negative. The current price of 0.25 is below the 20-day moving average (MA) of 0.26, below the 50-day MA of 0.26, and below the 200-day MA of 0.46, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 42.93 is Neutral, neither overbought nor oversold. The STOCH value of 34.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GGR.

Gogoro Risk Analysis

Gogoro disclosed 95 risk factors in its most recent earnings report. Gogoro 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

Any breaches in data security, failure of information security systems or privacy concerns in India can adversely impact our financial condition or subject us to penalties, damage our reputation, and harm our business operations and cash flows. Q4, 2023

Computer malware, viruses, ransomware, hacking, phishing attacks and similar disruptions could result in security and privacy breaches and interruption in service, which could harm our business. Q4, 2023

Electric vehicles manufactured by us are subject to motor vehicle standards prescribed by the Automotive Research Association of India ("ARAI") and any changes in the standards prescribed or any failure to satisfy such standards can materially and adversely affect our business operations. Q4, 2023

Gogoro Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$6.80B	11.04	2.79%	4.42%	2.67%	-25.07%
AEVA	61 Neutral	$1.42B	―	-113.70%	―	95.90%	10.38%
SRI	58 Neutral	$170.14M	―	-6.63%	―	-8.90%	-346.80%
INVZ	54 Neutral	$185.67M	―	-65.19%	―	28.52%	41.32%
KNDI	46 Neutral	$92.86M	―	-13.49%	―	3.21%	-6985.88%
ECX	44 Neutral	$710.09M	―	102.04%	―	21.32%	17.48%
GGR	41 Neutral	$75.91M	―	-66.13%	―	-10.52%	-118.68%

* Consumer Cyclical Sector Average

Performance Comparison

GGR

Gogoro

0.25

-1.09

-81.34%

KNDI

Kandi Technologies

1.06

-0.72

-40.45%

SRI

Stoneridge

6.26

-9.35

-59.90%

AEVA

Aeva Technologies

27.61

25.05

978.52%

INVZ

Innoviz Technologies

1.32

0.46

53.49%

ECX

ECARX Holdings

1.82

0.42

30.00%

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.