Microvast Holdings (MVST) AI Stock Analysis

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Microvast Holdings

(NASDAQ:MVST)

Rating:66Neutral

Price Target:

$3.50

▼(-2.51%Downside)

Microvast Holdings shows promising potential with record revenue growth and achieving profitability as significant strengths. However, ongoing profitability challenges and a negative P/E ratio weigh down the valuation. Technical indicators show strong momentum, though caution is warranted due to overbought signals. The positive earnings call offsets some financial weaknesses, making the stock moderately attractive.

Positive Factors

Revenue Growth

Microvast reported revenues of $116.5M, up 43.2% YoY, significantly beating expectations.

Technology Innovation

The company highlighted its solid-state battery 3D printing technology that allows for cell fabrication with varying sizes, shapes, and design adaptability, which should open new applications.

Negative Factors

Risks

Risks include dilution risk, customer concentration risk, execution risk, regulatory risk, raw material supply risk, competition risk, technological risks, and uncertainty related to macroeconomic conditions.

Microvast Holdings (MVST) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$1.17B

Dividend YieldN/A

Average Volume (3M)9.99M

Price to Earnings (P/E)―

Beta (1Y)-0.63

Revenue Growth21.69%

EPS Growth-28.26%

CountryUS

Employees1,921

SectorIndustrials

Sector Strength94

IndustryElectrical Equipment & Parts

Share Statistics

EPS (TTM)0.05

Shares Outstanding325,341,400

10 Day Avg. Volume9,316,982

30 Day Avg. Volume9,986,663

Financial Highlights & Ratios

PEG Ratio-0.24

Price to Book (P/B)2.83

Price to Sales (P/S)0.00

P/FCF Ratio472.08

Enterprise Value/Market Cap1.28

Enterprise Value/Revenue0.99

Enterprise Value/Gross Profit10.30

Enterprise Value/Ebitda-3.19

Forecast

1Y Price Target

$3.00

Price Target Upside-16.43% Downside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Microvast Holdings Business Overview & Revenue Model

Company DescriptionMicrovast Holdings, Inc. designs, develops, and manufactures battery systems for electric vehicles and energy storage systems. The company offers a range of cell chemistries, such as lithium titanate oxide, lithium iron phosphate, and nickel manganese cobalt version 1 and 2.It also designs, develops, and manufactures battery components, such as cathode, anode, electrolyte, and separator. In addition, the company offers battery solutions for commercial vehicles and energy storage systems. Its commercial vehicle markets cover buses, trains, mining trucks, marine and port applications, and automated guided and specialty vehicles, as well as light, medium, heavy-duty trucks in the United States and internationally. The company was incorporated in 2006 and is based in Stafford, Texas.

How the Company Makes MoneyMicrovast Holdings generates revenue primarily through the sale of its lithium-ion battery products, which are utilized in electric vehicles, energy storage systems, and other industrial applications. The company's key revenue streams include the production and sale of battery cells, modules, and packs to original equipment manufacturers (OEMs) and other industrial clients. Microvast also engages in significant partnerships and collaborations with automotive manufacturers and technology firms to co-develop and integrate advanced battery solutions into their products, further contributing to its income. Additionally, the company's focus on research and development enables it to innovate and enhance its product offerings, thus maintaining its competitive edge in the energy storage market.

Microvast Holdings Earnings Call Summary

Earnings Call Date:May 12, 2025

(Q1-2025)

% Change Since: 50.21%|

Next Earnings Date:Aug 07, 2025

Earnings Call Sentiment Positive

The earnings call reflects a strong positive sentiment with record-breaking revenue, significant improvements in gross margin, profitability achievements, and substantial growth in EMEA contributing to a positive outlook. However, challenges such as global supply chain uncertainties and a slight revenue decrease in the APAC region were noted.

Q1-2025 Updates

Positive Updates

Record First-Quarter Revenue

Microvast posted record first-quarter revenue with 43% growth year-over-year, delivering $116.5 million.

Significant Gross Margin Improvement

The company achieved a gross margin of 36.9%, a 15.7 point improvement year-over-year.

Triple-Digit Growth in EMEA

EMEA sales saw a year-over-year growth of 108%, contributing significantly to revenue.

Achieved Profitability

Microvast achieved profitability this quarter, booking a net profit of $61.8 million and an adjusted net profit of $19.3 million.

Strong Performance in Commercial Vehicle Sector

Reported significant traction in the commercial vehicle sector, particularly within EMEA, with over 100% growth year-over-year.

Advancements in Battery Technologies

Significant strides made in proprietary 3D-printing capabilities for all solid-state batteries, and promising early results from bipolar stock cell architecture.

Negative Updates

Global Supply Chain Uncertainties

Faced headwinds due to global supply chain uncertainties and trade disruptions, impacting rollout timelines for certain light commercial vehicle platforms.

APAC Revenue Decrease

APAC region saw a decrease of less than 1% year-over-year as the company targets higher-margin opportunities.

Company Guidance

In the first quarter of 2025, Microvast achieved record revenue growth of 43% year-over-year, amounting to $116.5 million, with a gross margin improvement of 15.7 percentage points to 36.9%. The company attained a net profit of $61.8 million and an adjusted EBITDA of $28.5 million, reflecting a significant turnaround from previous losses. EMEA sales experienced a remarkable 108% increase, contributing to 52% of the quarterly revenue. Operating expenses saw a 38% decline to $25.5 million, driven by cost control measures and reduced share-based compensation. Looking ahead, Microvast anticipates a full-year revenue growth of 18% to 25%, targeting $450 million to $475 million, while maintaining a gross margin of approximately 30%. The company aims to expand its Huzhou facility's capacity by up to 2 gigawatt-hours annually to meet increasing demand and continues to focus on innovation and strategic partnerships to drive sustainable growth.

Microvast Holdings Financial Statement Overview

Summary

Microvast Holdings has shown revenue growth, but struggles with profitability due to negative profit margins and net losses. The balance sheet is moderately healthy with a manageable debt level, yet lacks a positive return on equity. Cash flows have improved but need further strengthening to ensure sustainable positive cash generation.

Income Statement

Neutral

Microvast Holdings shows a pattern of growing revenues, with a TTM (Trailing-Twelve-Months) revenue increase of approximately 9.25% from the previous year. However, the company is struggling with profitability, as indicated by negative net profit margins and declining EBIT and EBITDA margins. This implies operational inefficiencies and challenges in achieving profitability.

Balance Sheet

Neutral

The balance sheet reflects a moderate financial position with a debt-to-equity ratio of 0.33 in the TTM, which shows improvement from previous years and indicates a relatively lower reliance on debt financing. However, the company has yet to achieve positive return on equity (ROE) due to persistent net losses, which impacts overall financial health.

Cash Flow

Neutral

Cash flow analysis shows some improvement, with positive free cash flow in the TTM, although the growth rate from the previous year is minimal. The operating cash flow to net income ratio is strong, suggesting efficient cash generation relative to reported losses. However, free cash flow remains constrained, reflecting the challenge in achieving sustainable cash profitability.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
414.94M	379.80M	306.62M	204.50M	151.98M	107.52M
	Gross Profit
145.34M	119.55M	57.23M	9.07M	-42.74M	17.14M
	EBIT
-74.04M	-116.09M	-108.68M	-159.95M	-194.06M	-29.11M
	EBITDA
-120.55M	-154.91M	-80.85M	-132.26M	-180.36M	-11.09M
	Net Income Common Stockholders
-108.84M	-195.46M	-106.34M	-158.20M	-211.49M	-33.63M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
73.01M	73.01M	51.13M	256.49M	480.93M	21.50M
	Total Assets
951.87M	951.87M	1.10B	984.96M	995.29M	404.51M
	Total Debt
328.89M	328.89M	202.77M	173.07M	147.40M	151.03M
	Net Debt
255.88M	255.88M	158.23M	-58.35M	-333.53M	129.53M
	Total Liabilities
563.97M	563.97M	532.54M	371.98M	308.59M	698.29M
	Stockholders Equity
387.89M	387.89M	564.19M	612.98M	686.70M	-384.60M
Cash Flow		Free Cash Flow
2.74M	-24.91M	-262.09M	-204.81M	-132.90M	-3.09M
	Operating Cash Flow
22.56M	2.81M	-75.30M	-53.93M	-45.04M	15.56M
	Investing Cash Flow
-9.96M	-12.15M	-165.60M	-175.94M	-87.86M	-17.67M
	Financing Cash Flow
32.26M	37.59M	29.53M	4.97M	624.95M	-507.00K

Microvast Holdings Technical Analysis

Technical Analysis Sentiment

Positive

Last Price3.59

Price Trends

50DMA

2.24

Positive

100DMA

2.02

Positive

200DMA

1.32

Positive

Market Momentum

MACD

0.49

Negative

RSI

64.32

Neutral

STOCH

55.19

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MVST, the sentiment is Positive. The current price of 3.59 is above the 20-day moving average (MA) of 3.05, above the 50-day MA of 2.24, and above the 200-day MA of 1.32, indicating a bullish trend. The MACD of 0.49 indicates Negative momentum. The RSI at 64.32 is Neutral, neither overbought nor oversold. The STOCH value of 55.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MVST.

Microvast Holdings Risk Analysis

Microvast Holdings disclosed 81 risk factors in its most recent earnings report. Microvast 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

Microvast 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
MVST	66 Neutral	$1.17B	―	-26.38%	―	21.69%	-28.26%
Sector *	65 Neutral	$4.46B	12.18	5.23%	249.77%	4.11%	-12.28%
SLDP	61 Neutral	$279.80M	―	-20.64%	―	3.22%	-33.20%
ENVX	49 Neutral	$1.46B	―	-85.86%	―	77.59%	2.01%
AMPX	49 Neutral	$341.15M	―	-68.88%	―	209.20%	4.24%
EOSE	44 Neutral	$946.78M	―	125.43%	―	37.60%	-161.38%
ADSE	42 Neutral	$711.83M	―	-279.62%	―	173.83%	-76.24%

* Industrials Sector Average

Performance Comparison

MVST

Microvast Holdings

3.59

3.24

925.71%

EOSE

Eos Energy Enterprises

4.16

3.42

462.16%

ENVX

Enovix

7.62

-3.03

-28.45%

ADSE

ADS-TEC Energy

12.50

1.25

11.11%

SLDP

Solid Power

1.56

-0.17

-9.83%

AMPX

Amprius Technologies Inc

2.69

1.31

94.93%

Microvast Holdings Corporate Events

Executive/Board Changes

Microvast Holdings Appoints New CFO Carl T. Schultz

Neutral

Apr 9, 2025

On April 7, 2025, Fariyal Khanbabi stepped down as Chief Financial Officer of Microvast Holdings, Inc., and Carl T. ‘Pat’ Schultz was appointed as the new CFO, effective April 21, 2025. Schultz, with over 20 years of financial leadership experience, previously served as CFO for Air Liquide North America and is expected to play a crucial role in achieving Microvast’s growth and long-term financial objectives.

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.