Nio (NIO) AI Stock Analysis

• Market Cap: $9.89B
• Dividend Yield: N/A
• Average Volume (3M): 65.91M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.01
• Revenue Growth: 23.39%
• EPS Growth: 3.93%
• Country: US
• Employees: 45,635
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Auto - Manufacturers
• EPS (TTM): -0.42
• Shares Outstanding: 1,946,478,900
• 10 Day Avg. Volume: 66,278,012
• 30 Day Avg. Volume: 65,910,197
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 0.15
• Enterprise Value/Gross Profit: 1.49
• Enterprise Value/Ebitda: -0.46
• 1Y Price Target: $4.62
• Price Target Upside: 3.82% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11

• Rating: 47 Neutral
• Price Target: $4.50 ▲(1.12% Upside)

Nio's overall stock score is primarily impacted by its financial performance, which presents significant risks due to high leverage and negative profitability. Technical analysis provides some positive signals, but valuation concerns due to negative earnings weigh heavily. The earnings call highlights both opportunities and challenges, with strategic initiatives offering potential future growth.

Positive Factors

Product Launch

NIO's deliveries are projected to increase significantly with the introduction of refreshed and new EV models, driving demand.

Sales Volume

NIO targets 72-75k units of car delivery, showing a significant increase in both year-over-year and quarter-over-quarter figures.

Negative Factors

Operational Loss

Operational loss was higher than forecasted, indicating financial challenges in the recent quarter.

Profitability Challenges

Overall gross profit margin was worse than expected, falling short of the forecasted figures.

Nio Business Overview & Revenue Model

Company Description

NIO Inc. designs, develops, manufactures, and sells smart electric vehicles in China. It offers five and six-seater electric SUVs, as well as smart electric sedans. The company also offers power solutions, including Power Home, a home charging solution; Power Swap, a battery swapping service; Power Charger and Destination Charger; Power Mobile, a mobile charging service through charging vans; Power Map, an application that provides access to a network of public chargers and their real-time information; and One Click for Power valet service. In addition, it provides repair, maintenance, and bodywork services through its NIO service centers and authorized third-party service centers; statutory and third-party liability insurance, and vehicle damage insurance through third-party insurers; repair and routine maintenance; roadside assistance; courtesy vehicle services; data packages; and auto financing and financial leasing services. Further, the company involved in the provision of energy and service packages to its users; design and technology development activities; manufacture of e-powertrains, battery packs, and components; and sales and after sales management activities. Additionally, it offers NIO Certified, a used vehicle inspection, evaluation, acquisition, and sales service. The company was formerly known as NextEV Inc. and changed its name to NIO Inc. in July 2017. NIO Inc. was incorporated in 2014 and is headquartered in Shanghai, China.

How the Company Makes Money

Nio generates revenue primarily through the sale of its electric vehicles, which includes models such as the ES8, ES6, EC6, and ET7. In addition to vehicle sales, the company has established a unique battery-as-a-service (BaaS) model, allowing customers to purchase vehicles without the battery and subscribe to battery services for a lower upfront cost. This model not only provides recurring revenue through subscription fees but also encourages more customers to adopt electric vehicles. Furthermore, Nio earns revenue from its service offerings, including maintenance, warranty services, and software updates. The company has formed strategic partnerships with various suppliers and technology firms to enhance its manufacturing capabilities and expand its technology portfolio, contributing to its revenue growth. Additionally, Nio has been actively expanding its presence in international markets, which could further diversify and increase its revenue streams.

Nio Financial Statement Overview

Summary

Nio faces significant financial challenges with negative EBIT and net income, high leverage, and negative cash flows. The company's revenue growth is a positive aspect, but the overall financial risk is high due to low profitability and a high debt-to-equity ratio.

Income Statement

Nio shows consistent revenue growth with a 18.2% increase from 2023 to 2024. However, profitability remains a challenge as evidenced by negative EBIT and net income. The gross profit margin stands at 9.9% in 2024, down from 5.5% in 2023, indicating some improvement but still low for the industry.

Balance Sheet

The balance sheet reveals high leverage with a debt-to-equity ratio of 5.67 in 2024, up significantly from 1.98 in 2023. Stockholders' equity has decreased, and the equity ratio is only 5.5%, suggesting increased financial risk. Return on equity is negative due to ongoing losses.

Cash Flow

Operating cash flow is negative, reflecting operational challenges. Free cash flow also remains negative, with a decline from 2023 to 2024, indicating strained liquidity. The ratio of operating cash flow to net income is below 1, suggesting inefficiency in converting income into cash.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	65.73B	55.62B	49.27B	36.14B	16.26B
Gross Profit	6.49B	3.05B	5.14B	6.82B	1.87B
EBITDA	-13.93B	-15.15B	-12.79B	-985.36M	-3.33B
Net Income	-22.66B	-21.15B	-14.44B	-4.02B	-5.30B
Balance Sheet
Total Assets	107.60B	117.38B	96.26B	82.88B	54.64B
Cash, Cash Equivalents and Short-Term Investments	22.09B	49.75B	39.06B	52.39B	39.51B
Total Debt	33.82B	34.73B	23.71B	20.10B	9.43B
Total Liabilities	94.10B	87.79B	68.62B	44.82B	27.47B
Stockholders Equity	5.97B	25.55B	23.87B	34.71B	27.17B
Cash Flow
Free Cash Flow	-16.99B	-15.72B	-10.84B	-2.11B	823.21M
Operating Cash Flow	-7.85B	-1.38B	-3.87B	1.97B	1.95B
Investing Cash Flow	-4.96B	-10.89B	10.39B	-39.76B	-5.07B
Financing Cash Flow	1.77B	27.66B	-1.62B	18.13B	41.36B

Nio Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NIO, the sentiment is Positive. The current price of 4.45 is below the 20-day moving average (MA) of 4.71, above the 50-day MA of 4.07, and above the 200-day MA of 4.27, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 49.40 is Neutral, neither overbought nor oversold. The STOCH value of 14.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NIO.

Nio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LI	68 Neutral	$24.02B	23.59	12.22%	―	10.28%	-29.75%
Sector *	56 Neutral	HK$25.46B	5.05	-2.69%	5.69%	-0.43%	-53.15%
XPEV	53 Neutral	$19.89B	―	-15.52%	―	50.45%	49.81%
NIO	47 Neutral	$9.89B	―	-240.42%	―	23.39%	3.93%
VFS	44 Neutral	$8.16B	―	36.15%	―	110.83%	-66.73%
RIVN	44 Neutral	$14.52B	―	-54.42%	―	2.73%	45.63%
LCID	44 Neutral	$6.97B	―	-54.39%	―	39.01%	7.11%