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Kandi Technologies (KNDI)
NASDAQ:KNDI

Kandi Technologies (KNDI) AI Stock Analysis

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Kandi Technologies

(NASDAQ:KNDI)

Rating:46Neutral
Price Target:
$1.00
▼(-7.41%Downside)
Kandi Technologies is facing significant financial challenges with inconsistent revenue growth and negative profitability. Technical analysis indicates a bearish trend, and valuation metrics are unfavorable due to negative earnings and lack of dividend yield. These factors contribute to a low overall stock score.

Kandi Technologies (KNDI) vs. SPDR S&P 500 ETF (SPY)

Kandi Technologies Business Overview & Revenue Model

Company DescriptionKandi Technologies Group, Inc. designs, develops, manufactures, and commercializes electric vehicle (EV) products and parts, and off-road vehicles in the People's Republic of China and internationally. It offers off-road vehicles, including all-terrain vehicles, utility vehicles, go-karts, electric scooters, and electric self-balancing scooters, as well as related parts; and EV parts comprising battery packs, body parts, EV controllers, air conditioning units, and other auto parts. The company was formerly known as Kandi Technologies, Corp. and changed its name to Kandi Technologies Group, Inc. in December 2012. Kandi Technologies Group, Inc. was founded in 2002 and is headquartered in Jinhua, the People's Republic of China.
How the Company Makes MoneyKandi Technologies generates revenue through the sale of its electric vehicles, automotive parts, and off-road vehicles. The company's key revenue streams include direct sales to consumers and commercial clients, as well as partnerships with other automotive manufacturers for supplying parts and collaboration in the EV space. Kandi also benefits from government incentives and subsidies for electric vehicles in China, which support the adoption of EVs and contribute to the company's earnings. Additionally, Kandi has engaged in joint ventures to expand its market reach and enhance its production capabilities, further augmenting its revenue potential.

Kandi Technologies Earnings Call Summary

Earnings Call Date:Apr 28, 2025
(Q4-2024)
|
% Change Since: -9.24%|
Next Earnings Date:May 12, 2025
Earnings Call Sentiment Positive
The earnings call focused on Kandi Technologies' strategic enhancements, product expansions, and partnerships, with no significant challenges highlighted, indicating a strong position for future growth.
Q4-2024 Updates
Positive Updates
Modest Revenue Growth
Kandi Technologies delivered modest yet meaningful revenue growth in 2024, driven by steady demand for electric off-road vehicles and optimization of geographic footprint.
Product Portfolio Expansion
The company strengthened its product portfolio by introducing new models such as the innovator e10K utility vehicle and a new lineup of electric golf carts.
Operational Enhancements
Targeted upgrades to the Taiwan manufacturing footprint increased flexibility, responsiveness, and maintained high standards of quality and efficiency.
Management Incentive Program
Implemented a management incentive program aligning leadership rewards with key performance metrics, motivating improved results.
Strategic Partnership with CBAK Energy
A partnership with CBAK Energy was established to localize lithium cell and pack production in the US, positioning Kandi for sustainable long-term growth.
Negative Updates
Revenue Decline
Third quarter revenue was $29.9 million, a decrease from $36.4 million in the same period of 2023. Nine-month revenue totaled $89.8 million, down 5.7% year-over-year.
Challenges with Stock Price and Shareholder Concerns
The stock is trading at a 15-year low, with concerns about stock buyback and insider buying expressed by shareholders.
Concerns Over Electric Vehicle Segment
The electric off-road vehicle revenue in Q3 was $27.5 million, down 9.2% from the prior year quarter, with the first 9-months slipping 1% to $81.5 million.
Uncertainty in Battery Swap Business
Questions about the future of the battery swap business, with no significant alliances reported and concerns over past minimal revenues.
Company Guidance
In the Kandi Technologies Full Year 2024 Financial Results Call, CEO Feng Chen highlighted several key metrics and strategic initiatives that contributed to the company's performance. Kandi achieved modest yet meaningful revenue growth, driven by steady demand for their electric off-road vehicles and optimization of their geographic footprint. The company maintained profitability and a robust cash position, while investing in product portfolio enhancements and next-generation battery technology. The electric off-road segment remained central to their business, with the introduction of new models like the innovator e10K utility vehicle and electric golf carts, including a limited-edition NFL series. Kandi enhanced operational efficiency through upgrades to its Taiwan manufacturing facilities, and implemented a management incentive program aligned with key performance metrics to boost sales growth and new product development. Looking forward, the company aims to expand its dealer network, deepen strategic partnerships, and execute a US localization roadmap, supported by a partnership with CBAK Energy to localize lithium cell and pack production, leveraging clean energy incentives for sustainable growth.

Kandi Technologies Financial Statement Overview

Summary
Kandi Technologies faces significant financial challenges, with inconsistent revenue growth, negative profitability, and volatile cash flows. The balance sheet shows a low leverage level and a stable asset base, but the company struggles to generate positive returns for shareholders.
Income Statement
45
Neutral
Kandi Technologies has experienced inconsistent revenue growth, with a 3.2% increase in 2024. However, the company struggles with profitability, as indicated by a negative net profit margin and declining EBIT and EBITDA margins. The gross profit margin has slightly decreased over the years, reflecting challenges in maintaining cost efficiency.
Balance Sheet
55
Neutral
The company maintains a relatively low debt-to-equity ratio of 0.25, indicating conservative leverage. However, the return on equity is negative due to consistent net losses, impacting shareholder value. The equity ratio is stable, suggesting a solid asset base, albeit with declining total assets over time.
Cash Flow
40
Negative
Kandi Technologies demonstrates a volatile cash flow situation. The operating cash flow remains negative, reflecting challenges in generating cash from operations. Free cash flow is also negative, indicating potential liquidity concerns. Despite this, the company has managed to maintain positive investing and financing cash flows.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
118.15M127.57M123.60M117.81M91.49M76.92M
Gross Profit
37.00M39.27M41.37M19.52M16.25M13.49M
EBIT
-18.09M-68.78M-13.05M-27.68M1.34M754.40K
EBITDA
-2.72M-41.86M16.71M-379.00K39.66M-5.28M
Net Income Common Stockholders
-5.84M-50.50M7.13K-12.12M22.86M-10.39M
Balance SheetCash, Cash Equivalents and Short-Term Investments
94.16M42.79M67.70M165.25M184.27M142.08M
Total Assets
542.21M473.90M495.46M482.98M520.16M495.25M
Total Debt
83.91M84.86M41.53M24.69M11.36M92.44K
Net Debt
30.38M47.55M7.78M-59.37M-117.86M-141.99M
Total Liabilities
132.66M127.27M88.95M85.29M76.96M91.48M
Stockholders Equity
407.17M344.70M404.12M396.97M443.20M403.77M
Cash FlowFree Cash Flow
-116.04M-18.76M-114.41M27.66M-18.90M-69.07M
Operating Cash Flow
-115.85M-17.82M-101.16M31.48M241.69K-50.88M
Investing Cash Flow
77.56M25.72M32.28M-35.03M22.21M51.15M
Financing Cash Flow
-6.26M22.51M14.83M-4.33M747.93K126.45M

Kandi Technologies Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.08
Price Trends
50DMA
1.17
Negative
100DMA
1.26
Negative
200DMA
1.31
Negative
Market Momentum
MACD
-0.02
Negative
RSI
41.27
Neutral
STOCH
54.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KNDI, the sentiment is Negative. The current price of 1.08 is below the 20-day moving average (MA) of 1.12, below the 50-day MA of 1.17, and below the 200-day MA of 1.31, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 41.27 is Neutral, neither overbought nor oversold. The STOCH value of 54.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KNDI.

Kandi Technologies Risk Analysis

Kandi Technologies disclosed 49 risk factors in its most recent earnings report. Kandi Technologies reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Kandi Technologies Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$6.88B11.072.77%4.28%2.67%-24.94%
53
Neutral
$216.27M-45.59%
GAGAN
51
Neutral
$91.53M229.13%7.02%74.19%
50
Neutral
$146.43M-186.28%8.52%98.75%
47
Neutral
$22.40M47.49%0.60%36.38%
46
Neutral
$97.16M-13.49%3.21%-6985.88%
REREE
45
Neutral
$19.56M-220.85%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
KNDI
Kandi Technologies
1.08
-0.75
-40.98%
NEGG
Newegg Commerce
11.15
-6.06
-35.21%
GAN
GAN
1.97
0.56
39.72%
FFAI
Faraday Future Intelligent Electric
1.68
-17.26
-91.13%
REE
REE Automotive
0.65
-3.43
-84.07%
RENT
Rent the Runway
5.57
-13.59
-70.93%
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.