Microvast Holdings (MVST) AI Stock Analysis

• Market Cap: $817.18M
• Dividend Yield: N/A
• Average Volume (3M): 3.72M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.93
• Revenue Growth: 19.82%
• EPS Growth: -7.14%
• Country: US
• Employees: 1,921
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.04
• Shares Outstanding: 328,182,830
• 10 Day Avg. Volume: 4,195,762
• 30 Day Avg. Volume: 3,721,070
• PEG Ratio: -0.04
• Price to Book (P/B): 1.70
• Price to Sales (P/S): 1.74
• P/FCF Ratio: -26.47
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 1.91
• Enterprise Value/Gross Profit: 5.23
• Enterprise Value/Ebitda: -7.57
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: $2.50 ▼(-25.15% Downside)

The score is held down primarily by weak financial performance (negative profitability and higher leverage), partly offset by improving margins/cash flow trends. Technicals are mixed with moderate momentum but negative MACD and price below key moving averages. The earnings call improves the outlook via reaffirmed revenue guidance and raised gross margin expectations, while valuation support is limited due to a negative P/E and no dividend yield provided.

Positive Factors

Near-term production capacity expansion (Huzhou Phase 3.2)

Adding up to 2 GWh of capacity by Q1 2026 materially increases Microvast’s ability to meet rising commercial EV and ESS demand. Sustained capacity expansion supports revenue scalability, improves unit economics through higher utilization, and reduces supply constraints that could limit long-term contract wins.

Improved gross margins and operational profitability

A sustained gross margin improvement to the high-30s reflects better manufacturing efficiency, pricing or product mix, and underpins the path from adjusted profitability to GAAP profitability. Higher gross margins strengthen cash generation potential and resilience to input-cost swings over the medium term.

Strengthened finance leadership & governance

Permanent CFO appointment and a new chief accounting officer improve continuity, financial controls and strategic capital allocation. Stronger finance leadership supports better reporting, budgeting and execution of expansion plans, reducing execution risk as the company scales production and commercial commitments.

Negative Factors

Negative net margins and GAAP losses

A deeply negative net margin indicates Microvast still fails to convert revenue into sustainable GAAP profits. Persistent net losses constrain reinvestment capacity, increase dependence on external financing for growth and capex, and present a structural hurdle to delivering durable shareholder returns.

Elevated leverage and poor returns on equity

High leverage combined with negative ROE raises financial risk and limits flexibility. Debt servicing can pressure cash flows during ramp or market softness, and negative equity returns signal the business has yet to generate acceptable returns on invested capital, hindering sustainable growth funding.

Low operating cash conversion relative to net income

A very low OCF-to-net-income ratio points to weak earnings quality and working capital drag. Even with free cash flow growth, poor cash conversion raises the risk that reported profits won’t translate to liquidity, potentially forcing reliance on external capital or dilutive financing to fund expansion.

Microvast Holdings Business Overview & Revenue Model

Company Description

Microvast 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 Money

Microvast generates revenue primarily through the sale of its battery systems and related components to original equipment manufacturers (OEMs) in the electric vehicle market. The company has established key partnerships with various vehicle manufacturers, which enable it to provide tailored battery solutions that meet specific performance and safety standards. Additionally, Microvast earns income from long-term contracts that ensure ongoing supply for large-scale projects. The company may also benefit from government incentives and funding for clean energy initiatives, further bolstering its revenue streams.

Microvast Holdings Financial Statement Overview

Summary

Mixed fundamentals: revenue is growing (5.18% TTM) and gross margin improved (35.46% TTM), but profitability remains weak with a negative net margin (-32.29%) and leverage is elevated (debt-to-equity 1.13; ROE -31.97%). Cash flow shows improvement with strong free cash flow growth (140.11% TTM), though cash conversion versus net income is still low (operating cash flow to net income 0.07).

Income Statement

Microvast Holdings shows a mixed performance in its income statement. The company has achieved a positive revenue growth rate of 5.18% TTM, indicating some growth momentum. However, profitability remains a concern with negative net profit and EBIT margins, reflecting ongoing operational challenges. The gross profit margin has improved to 35.46% TTM, which is a positive sign, but the net profit margin is still negative at -32.29%, highlighting significant profitability issues.

Balance Sheet

The balance sheet of Microvast Holdings reveals a high debt-to-equity ratio of 1.13 TTM, indicating a leveraged position which could pose financial risks. The return on equity is negative at -31.97%, reflecting poor profitability relative to shareholder equity. The equity ratio stands at 35.32%, suggesting a moderate level of equity financing, but the high leverage remains a concern.

Cash Flow

Cash flow analysis shows some positive trends with a significant free cash flow growth rate of 140.11% TTM, indicating improved cash generation. The operating cash flow to net income ratio is low at 0.07, suggesting limited cash flow relative to net income. However, the free cash flow to net income ratio of 0.49 indicates better cash flow management compared to previous periods.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	444.50M	379.80M	306.62M	204.50M	151.98M	107.52M
Gross Profit	162.67M	119.55M	57.23M	9.07M	-42.74M	17.14M
EBITDA	-112.39M	-154.91M	-80.85M	-134.48M	-180.36M	-11.09M
Net Income	-151.19M	-195.46M	-106.34M	-158.20M	-216.01M	-49.55M
Balance Sheet
Total Assets	1.01B	951.87M	1.10B	984.96M	995.29M	404.51M
Cash, Cash Equivalents and Short-Term Investments	90.75M	73.01M	87.65M	256.49M	480.93M	41.20M
Total Debt	156.66M	328.89M	205.18M	175.00M	147.40M	151.03M
Total Liabilities	655.50M	563.97M	532.54M	371.98M	308.59M	698.29M
Stockholders Equity	358.11M	387.89M	564.19M	612.98M	686.70M	-75.47M
Cash Flow
Free Cash Flow	46.04M	-24.91M	-262.09M	-204.81M	-132.90M	-3.09M
Operating Cash Flow	65.59M	2.81M	-75.30M	-53.93M	-45.04M	15.56M
Investing Cash Flow	-15.63M	-12.15M	-165.60M	-175.94M	-87.86M	-17.67M
Financing Cash Flow	-18.59M	37.59M	33.04M	4.97M	624.95M	-507.00K

Microvast Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: 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 3.34 is above the 20-day moving average (MA) of 2.92, above the 50-day MA of 3.08, and below the 200-day MA of 3.47, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 27.96 is Positive, neither overbought nor oversold. The STOCH value of 14.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MVST.

Microvast Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
EOSE	59 Neutral	$4.02B	―	―	―	324.10%	-214.91%
AMPX	58 Neutral	$1.62B	-40.68	-39.01%	―	234.14%	42.67%
TE	56 Neutral	$2.09B	-1.92	-55.98%	―	―	-394.37%
ENVX	54 Neutral	$1.38B	-6.96	-68.95%	―	45.98%	44.14%
MVST	52 Neutral	$817.18M	-4.83	-35.82%	―	19.82%	-7.14%
SLDP	45 Neutral	$881.53M	-6.99	-23.63%	―	25.24%	-12.96%

Microvast Holdings Corporate Events

Microvast Holdings Promotes Rodney Worthen to Chief Financial Officer

Microvast Holdings has strengthened its senior finance team with two key appointments, signaling a focus on bolstering its accounting, financial reporting and corporate strategy capabilities. The moves place experienced leadership at the helm of its finance function, which may support tighter financial oversight and execution of the company’s strategic and capital plans.

On January 5, 2025, Microvast entered into an employment offer with veteran accountant Eric N. Garcia, appointing him as chief accounting officer with an expected start date around January 9, 2025, on a $350,000 base salary plus performance-based bonus and equity awards vesting over three years. Separately, on January 7, 2026, the company promoted interim chief financial officer and vice president of corporate strategy Rodney Worthen to permanent chief financial officer, increasing his base salary to $400,000 and granting him a cash bonus and a multi-year restricted stock package, aligning his incentives with long-term company performance and providing continuity in financial leadership. Both executives have no disclosed related-party or conflict-of-interest relationships with the company’s directors or officers.

The most recent analyst rating on (MVST) stock is a Hold with a $3.50 price target. To see the full list of analyst forecasts on Microvast Holdings stock, see the MVST Stock Forecast page.