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Microvast Holdings (MVST)
NASDAQ:MVST
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Microvast Holdings
(NASDAQ:MVST)
61Neutral
Microvast Holdings (MVST) vs. S&P 500 (SPY)
Market Cap
$388.67M
Dividend YieldN/A
Average Volume (3M)4.74M
Price to Earnings (P/E)―
Beta (1Y)0.01
Revenue Growth39.03%
EPS Growth2.67%
CountryUS
Employees2,006
SectorIndustrials
Sector Strength70
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)-0.37
Shares Outstanding323,893,250
10 Day Avg. Volume3,580,966
30 Day Avg. Volume4,741,337
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.13
Price to Cash Flow (P/CF)-19.40
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
$3.00Price Target Upside160.87% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Microvast Holdings Business Overview & Revenue Model
Company DescriptionMicrovast Holdings (MVST) is a technology-driven company specializing in the design, development, and manufacturing of battery systems for electric vehicles and other energy storage solutions. Operating within the clean energy and electric vehicle sectors, Microvast offers a range of lithium-ion battery technologies that cater to various applications, including commercial vehicles, passenger vehicles, and energy storage systems. The company's solutions are recognized for their rapid charging capabilities, long cycle life, and high levels of safety.
How the Company Makes MoneyMicrovast Holdings generates revenue primarily through the sale of its advanced battery systems to original equipment manufacturers (OEMs) and other customers in the electric vehicle and energy storage sectors. The company's revenue streams include the design and manufacture of tailor-made battery solutions, which are then integrated into electric vehicles and energy storage systems. Additionally, Microvast engages in research and development partnerships to innovate and refine its technologies, which can lead to licensing agreements or joint ventures. Key factors contributing to its earnings include the growing demand for electric vehicles, advancements in battery technology, and strategic partnerships with automotive manufacturers and other stakeholders in the energy sector.
Microvast Holdings Financial Statement Overview
Summary
Microvast Holdings is showing growth in revenue and improved gross margins, yet faces significant profitability and cash flow challenges. The balance sheet is stable but marked by inefficiencies in generating profits from equity.Income Statement
Microvast Holdings has shown a consistent increase in total revenue over the years, with a notable revenue growth rate of 20.98% in the TTM (Trailing-Twelve-Months). However, the company is still facing challenges in achieving profitability, as evidenced by negative net and EBIT margins. The gross profit margin has improved to 27.25% in the TTM, indicating a better cost management, but the net profit margin remains negative at -30.88%, pointing to ongoing profitability challenges.45
Neutral
Balance Sheet
The balance sheet of Microvast Holdings reflects a moderate financial structure, with a debt-to-equity ratio of 0.52, showing a balanced approach to leveraging. However, the return on equity is negative at -22.49%, highlighting inefficiencies in generating profits from shareholder investments. The equity ratio of 49.86% indicates a stable capital structure, supported by a decent proportion of equity financing.55
Neutral
Cash Flow
Microvast's cash flow statement reveals ongoing challenges in cash generation, with negative operating and free cash flows in the TTM. The free cash flow growth rate remains negative, and the operating cash flow to net income ratio indicates that the company is not yet able to cover its net losses through operational cash flows. The financing activities have provided some relief, but substantial improvements are needed in cash flow management.40
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 370.99M | 306.62M | 204.50M | 151.98M | 107.52M | 76.43M | Gross Profit |
| 101.06M | 57.23M | 9.07M | -42.74M | 17.14M | -231.00K | EBIT |
| -115.11M | -108.68M | -159.95M | -194.06M | -29.11M | -53.86M | EBITDA |
| -74.58M | -80.85M | -132.26M | -180.36M | -11.09M | -38.81M | Net Income Common Stockholders |
| -114.56M | -106.34M | -158.20M | -211.49M | -33.63M | -59.66M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 809.14K | 51.13M | 256.49M | 480.93M | 21.50M | 140.30K | Total Assets |
| 277.26M | 1.10B | 984.96M | 995.29M | 404.51M | 280.50M | Total Debt |
| 0.00 | 202.77M | 173.07M | 147.40M | 151.03M | 150.15M | Net Debt |
| -809.14K | 158.23M | -58.35M | -333.53M | 129.53M | 150.01M | Total Liabilities |
| 141.27K | 532.54M | 371.98M | 308.59M | 698.29M | 296.12K | Stockholders Equity |
| 277.12M | 564.19M | 612.98M | 686.70M | -384.60M | 280.20M |
| Cash Flow | Free Cash Flow | ||||
| -77.81M | -262.09M | -204.81M | -132.90M | -3.09M | -6.89M | Operating Cash Flow |
| -23.31M | -75.30M | -53.93M | -45.04M | 15.56M | 13.37M | Investing Cash Flow |
| -24.46M | -165.60M | -175.94M | -87.86M | -17.67M | -3.95M | Financing Cash Flow |
| 82.60M | 29.53M | 4.97M | 624.95M | -507.00K | -52.18M |
Microvast Holdings Technical Analysis
Negative
1.15
Price Trends
1.67
Negative
1.46
Negative
0.89
Positive
Market Momentum
-0.14
Positive
33.40
Neutral
16.19
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MVST, the sentiment is Negative. The current price of 1.15 is below the 20-day moving average (MA) of 1.38, below the 50-day MA of 1.67, and above the 200-day MA of 0.89, indicating a neutral trend. The MACD of -0.14 indicates Positive momentum. The RSI at 33.40 is Neutral, neither overbought nor oversold. The STOCH value of 16.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $8.05B | 13.61 | 3.91% | 3.08% | 3.83% | -13.91% | |
61 Neutral | $388.67M | ― | -21.32% | ― | 39.03% | 2.67% | |
59 Neutral | $182.64M | ― | -26.15% | ― | ― | -457.87% | |
52 Neutral | $202.01M | ― | -21.13% | ― | 15.67% | -45.59% | |
46 Neutral | $2.47B | ― | -38.29% | ― | ― | 2.40% | |
44 Neutral | $1.43B | ― | -88.04% | ― | 1429.35% | -36.13% | |
39 Underperform | $2.09M | ― | -274.78% | ― | -33.71% | -311.25% |
* Industrials Sector Average
Performance Comparison
MVST
Microvast Holdings
1.15
0.25
27.78%
NVVE
Nuvve Holding
1.62
-6.15
-79.15%
TE
T1 Energy
1.30
-0.49
-27.37%
QS
QuantumScape
4.33
-1.80
-29.36%
ENVX
Enovix
7.48
-0.43
-5.44%
SLDP
Solid Power
1.08
-0.90
-45.45%
Microvast Holdings Earnings Call Summary
Earnings Call Date: Nov 12, 2024 | % Change Since: 538.89% | Next Earnings Date: Mar 31, 2025
Earnings Call Sentiment Positive
The earnings call highlights significant achievements in profitability, revenue growth, and product innovation, particularly in the EMEA region. However, challenges remain due to global policy uncertainties and future revenue expectations. The accomplishments in operational efficiency and market expansion outweigh the challenges.Highlights
Achieving Profitability
Microvast achieved a net profit of $13.2 million and adjusted EBITDA of $29 million in Q3 2024, marking a historical milestone for the company.
Record Third Quarter Revenue
The company posted a record third quarter revenue of $101.4 million, a 27% increase year-over-year, driven largely by sales increases in EMEA.
Substantial Gross Margin Improvement
Gross margin improved to 33.2%, a 10.9 percentage point increase year-over-year, with adjusted gross margin at 33.9%.
EMEA Business Growth
EMEA revenue grew by 212% year-over-year, now accounting for 59% of quarterly revenue, up from 24% a year ago.
Reduction in Operating Expenses
Operating expenses reduced by 38% to $27.5 million in Q3 2024 compared to $44.7 million in Q3 2023.
Innovative Product Development
Unveiled new silicon-based cell technology and ME6 LFP ESS containers, reflecting ongoing innovation.
Lowlights
Global Policy Uncertainty
Global uncertainty around policy shifts in Europe and the U.S. has decelerated the rollout of certain light commercial vehicle platforms.
Q4 Revenue Outlook
Projected Q4 revenue is expected to decrease from Q3, ranging between $90 million to $95 million.
Challenges in the American Segment
Focus on expansion and securing future orders, with ongoing efforts to find a full financing solution for the Clarksville facility.
Company Guidance
In the third quarter of 2024, Microvast achieved significant milestones, including a net profit of $13.2 million and an adjusted EBITDA of $29 million, marking a historic milestone for the company. Revenue reached $101.4 million, reflecting a 27% year-over-year growth, with EMEA sales experiencing a staggering 212% increase, accounting for 59% of the quarterly revenue. The gross margin improved to 33.2%, a 10.9 percentage point increase from the previous year. Operating expenses were reduced by 38% to $27.5 million, primarily due to cost control measures. For the fourth quarter, Microvast anticipates revenue between $90 million and $95 million, with full-year revenue growth projected at 15% to 18%. The company remains focused on operational efficiencies, maintaining a gross margin of at least 25%, and expanding its commercial vehicle footprint in the Americas while targeting 80% revenue growth in EMEA.Microvast Holdings Corporate Events
Executive/Board Changes
Microvast Announces Leadership Changes and Compensation Adjustments
Neutral
Dec 5, 2024
Microvast Holdings, Inc. announced the resignation of Lu Gao as Chief Accounting Officer for personal reasons, with no disagreements over company policies. The company also approved executive compensation adjustments, including salary increases, cash bonuses, and equity awards for key executives like Yang Wu, Isida Tushe, and Dr. Shengxian Wu to acknowledge their added responsibilities. This move reflects the company’s commitment to retaining leadership talent amidst ongoing operational demands.
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.