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NaaS Technology (NAAS)
NASDAQ:NAAS
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NaaS Technology
(NASDAQ:NAAS)
44Neutral
NaaS Technology (NAAS) vs. S&P 500 (SPY)
Market Cap
$6.43M
Dividend YieldN/A
Average Volume (3M)1.06M
Price to Earnings (P/E)―
Beta (1Y)0.51
Revenue Growth3.04%
EPS Growth17.46%
CountryUS
Employees611
SectorConsumer Cyclical
Sector Strength55
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-9.79
Shares Outstanding27,973,495
10 Day Avg. Volume304,317
30 Day Avg. Volume1,059,673
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.29
Price to Cash Flow (P/CF)N/A
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 TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
NaaS Technology Business Overview & Revenue Model
Company DescriptionNaaS Technology Inc. provides electric vehicle (EV) charging services in China. It serves charging station operators, charger manufacturers, EV OEMs, and other end-users. The company was founded in 2019 and is based in Beijing, China.
How the Company Makes MoneyNaaS Technology makes money primarily through the operation and management of electric vehicle charging stations. The company generates revenue by charging users for access to its charging infrastructure, typically through a combination of per-use fees and subscription models. Additionally, NaaS Technology may engage in strategic partnerships with automotive manufacturers, real estate developers, and energy companies to expand its network and enhance service offerings. These partnerships can provide additional revenue streams through joint ventures, technology licensing, or co-branded initiatives. The company also benefits from government incentives and regulatory support aimed at promoting the adoption of electric vehicles, which can contribute to its financial performance.
NaaS Technology Financial Statement Overview
Summary
NaaS Technology is experiencing rapid revenue growth but is challenged by significant profitability and financial stability issues. The high leverage and negative equity indicate substantial financial risk, while cash flow remains negative, raising concerns about long-term viability without strategic improvements or additional funding.Income Statement
NaaS Technology has seen significant revenue growth of over 244% from 2022 to 2023, indicating strong top-line expansion. However, the company remains unprofitable with negative EBIT and net income margins, reflecting operational inefficiencies and high costs relative to revenue.45
Neutral
Balance Sheet
The balance sheet shows a concerning negative stockholders' equity, indicating financial instability and potential insolvency risk. The high debt-to-equity ratio further exacerbates financial leverage concerns. However, cash reserves have increased, which may provide some short-term liquidity relief.30
Negative
Cash Flow
Cash flow analysis reveals negative free cash flow, though it has slightly improved from the previous year. The operating cash flow to net income ratio suggests cash burn is yet to be controlled effectively, posing a risk to sustainability without further financing.40
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 296.74M | 320.08M | 92.81M | 17.77M | 5.83M | 1.53B | Gross Profit |
| 96.66M | 88.76M | 6.17M | -1.09M | -2.79M | 834.75M | EBIT |
| -707.43M | -1.07B | -2.46B | -251.27M | -82.23M | -15.28M | EBITDA |
| -742.24M | -1.06B | -2.46B | -247.47M | -72.59M | -15.28M | Net Income Common Stockholders |
| -866.28M | -1.31B | -5.64B | -252.31M | -82.18M | 148.10M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.06B | 534.30M | 513.35M | 8.73M | 3.67M | 999.01M | Total Assets |
| 1.96B | 1.47B | 1.11B | 153.40M | 67.60M | 2.80B | Total Debt |
| 623.44M | 1.04B | 519.34M | 20.46M | 18.61M | 1.13B | Net Debt |
| -432.54M | 605.31M | 5.98M | 11.73M | 14.94M | 127.38M | Total Liabilities |
| 1.66B | 1.51B | 667.06M | 128.33M | 57.84M | 2.18B | Stockholders Equity |
| 310.13M | -47.04M | 438.87M | 25.07M | 9.76M | 608.90M |
| Cash Flow | Free Cash Flow | ||||
| 0.00 | -571.57M | -597.83M | -250.64M | -86.89M | -90.70M | Operating Cash Flow |
| 0.00 | -565.24M | -580.70M | -250.03M | -63.01M | -39.85M | Investing Cash Flow |
| 0.00 | -339.61M | -161.34M | -5.61M | 5.44M | -114.72M | Financing Cash Flow |
| 0.00 | 827.74M | 1.25B | 260.70M | 64.56M | -140.73M |
NaaS Technology Technical Analysis
Negative
0.49
Price Trends
1.10
Negative
1.66
Negative
2.74
Negative
Market Momentum
-0.17
Positive
27.70
Positive
10.55
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NAAS, the sentiment is Negative. The current price of 0.49 is below the 20-day moving average (MA) of 0.73, below the 50-day MA of 1.10, and below the 200-day MA of 2.74, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 27.70 is Positive, neither overbought nor oversold. The STOCH value of 10.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NAAS.
NaaS Technology Risk Analysis
NaaS Technology disclosed 69 risk factors in its most recent earnings report. NaaS Technology 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
NaaS Technology Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
59 Neutral | $11.76B | 10.11 | -0.70% | 3.92% | 1.27% | -16.30% | |
44 Neutral | $6.43M | ― | ― | 3.04% | 17.46% | ||
40 Underperform | $15.04M | ― | -60.46% | ― | -8.13% | 0.04% | |
39 Underperform | $18.28M | ― | -148.78% | ― | -11.06% | -175.45% | |
38 Underperform | $78.31M | ― | 229.13% | ― | 4.31% | 77.31% | |
24 Underperform | $93.61M | ― | -207.37% | ― | -31.25% | 98.68% | |
11 Underperform | $10.02M | ― | 86.35% | ― | ― | ― |
* Consumer Cyclical Sector Average
Performance Comparison
NAAS
NaaS Technology
0.49
-21.31
-97.75%
GAN
GAN
1.72
0.35
25.55%
FFAI
Faraday Future Intelligent Electric
1.04
-2.28
-68.67%
DTC
Solo Brands Inc Class A
0.15
-1.84
-92.46%
LVLU
Lulu's Fashion Lounge Holdings
0.43
-0.90
-67.67%
CJET
Chijet Motor Company
1.88
-9.22
-83.06%
NaaS Technology Earnings Call Summary
Earnings Call Date: Nov 20, 2024 | % Change Since: -84.88% | Next Earnings Date: Apr 18, 2025
Earnings Call Sentiment Positive
The earnings call highlighted NaaS's successful strategic shift towards high-margin core charging services, achieving its first positive non-IFRS net profit. Operational efficiency improved significantly with reduced costs and increased user activity. However, the shift away from energy solutions resulted in a decline in that segment's revenue.Highlights
First Positive Non-IFRS Net Profit
NaaS achieved a positive non-IFRS net profit of RMB 20.6 million for the first time in a single quarter through strategic iteration, cost reduction, and efficiency gains.
Core Charging Services Revenue Growth
Revenues from core charging services increased by 36% year-over-year to RMB 42.37 million, with an all-time high gross margin of 57%.
Reduction in Operating Costs
Selling and marketing expenses as a percentage of revenue decreased from 160% in Q3 2023 to 67% in Q3 2024, significantly improving operational efficiency.
Increase in Platform User Activity
The number of users transacting through the NaaS platform grew by 30% year-over-year, with user activity hitting a record high.
Expansion of Charging Network
Notable expansion in the charging network with a partnership in Fujian, adding 100 stations and 1,600 chargers.
Lowlights
Energy Solutions Revenue Decline
Revenue from Energy Solutions was only RMB 0.56 million due to a strategic shift away from low-margin, capital-intensive energy solutions.
Company Guidance
In the NaaS Third Quarter 2024 Earnings Call, the company announced achieving a positive non-IFRS net profit for the first time, marking a significant milestone. The non-IFRS net profit reached RMB 20.6 million, driven by strategic shifts, cost reductions, and efficiency gains. The core charging services business reported revenues of RMB 42.37 million, with a 36% year-over-year increase. The gross margin improved for the fourth consecutive quarter, reaching a record high of 57%. Operating costs were significantly reduced, with selling and marketing expenses decreasing to 67% of revenue, down from 160% the previous year. The number of users transacting through the NaaS platform increased by 30% year-over-year, contributing to enhanced profitability. Looking ahead, NaaS plans to focus on profitability, scale, and technology, leveraging AI and digitalized charging solutions to strengthen its market position.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.