Niu Technologies (NIU) AI Stock Analysis

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Niu Technologies

(NASDAQ:NIU)

59Neutral

Niu Technologies demonstrates strong sales and revenue growth, which is promising for future performance. However, significant financial challenges persist, including profitability issues, cash flow instability, and valuation concerns due to negative earnings. The technical indicators suggest positive short-term momentum, but the stock's overbought levels warrant caution. Overall, while there are growth prospects, the financial health and valuation challenges keep the stock score moderate.

Niu Technologies (NIU) vs. S&P 500 (SPY)

Market Cap

$223.48M

Dividend YieldN/A

Average Volume (3M)2.00M

Price to Earnings (P/E)―

Beta (1Y)1.34

Revenue Growth22.42%

EPS Growth30.09%

CountryUS

Employees550

SectorConsumer Cyclical

Sector Strength60

IndustryAuto - Manufacturers

Share Statistics

EPS (TTM)-0.34

Shares Outstanding69,327,446

10 Day Avg. Volume1,736,992

30 Day Avg. Volume2,002,537

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.82

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 Target

$2.00

Price Target Upside-31.27% Downside

Rating ConsensusHold

Number of Analyst Covering0

Niu Technologies Business Overview & Revenue Model

Company DescriptionNiu Technologies (NIU) is a leading provider of smart urban mobility solutions. The company specializes in the design, manufacture, and sale of high-performance electric scooters and motorcycles. Operating primarily in the electric vehicle (EV) sector, Niu Technologies aims to revolutionize urban commuting through its innovative and eco-friendly products. With a strong emphasis on technology and design, the company offers a range of smart e-scooters that cater to diverse urban mobility needs, integrating IoT technology for enhanced user experience.

How the Company Makes MoneyNiu Technologies generates revenue through the sale of its electric scooters and motorcycles. The company offers a variety of models tailored to different consumer needs and preferences, each equipped with smart features and IoT connectivity. Revenue streams include direct sales to consumers, as well as partnerships with distributors and retailers worldwide. Additionally, Niu Technologies may engage in after-sales services, software updates, and potential subscription services related to its IoT features, further contributing to its earnings. The company's focus on expanding its global distribution network and strategic partnerships enhances its revenue potential and market reach.

Niu Technologies Financial Statement Overview

Summary

Niu Technologies faces significant financial challenges, with ongoing operational losses and declining equity. The income statement shows negative net income and EBIT, while cash flow instability hinders sustainable growth. Despite a reasonable debt-to-equity ratio, the overall financial health is concerning.

Income Statement

Neutral

Niu Technologies has experienced fluctuating revenue trends, with a recent increase from 2023 to 2024. However, the company's profitability metrics are concerning, with consistent negative net income and EBIT over the years, indicating operational challenges. The decline in gross profit margin from previous years, coupled with negative EBITDA and EBIT margins, highlights ongoing profitability issues.

Balance Sheet

Neutral

The balance sheet of Niu Technologies shows a moderate debt-to-equity ratio, indicating a reasonable leverage level. However, the declining stockholders' equity and the negative return on equity signal potential risks in generating shareholder value. The equity ratio suggests a balanced capital structure, yet the trend of decreasing equity is concerning.

Cash Flow

Negative

Niu Technologies' cash flow reveals significant challenges, with periods of negative free cash flow and operating cash flow. The absence of substantial free cash flow growth and inconsistent cash flow generation relative to net income indicate financial instability. This could hinder the company's capacity to reinvest and grow sustainably.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
3.29B	2.65B	3.17B	3.70B	2.44B
	Gross Profit
498.76M	570.75M	669.68M	812.78M	559.15M
	EBIT
-250.63M	-317.52M	-89.28M	162.38M	129.18M
	EBITDA
-102.57M	-132.54M	53.43M	374.50M	247.36M
	Net Income Common Stockholders
-193.20M	-271.84M	-49.46M	225.82M	168.65M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
904.37M	970.13M	903.28M	1.08B	1.10B
	Total Assets
2.61B	2.19B	2.54B	2.44B	1.85B
	Total Debt
200.09M	272.66M	484.40M	337.54M	180.00M
	Net Debt
-429.93M	-599.92M	-49.89M	129.17M	-47.00M
	Total Liabilities
1.68B	1.10B	1.23B	1.18B	853.44M
	Stockholders Equity
931.28M	1.09B	1.31B	1.26B	993.37M
Cash Flow		Free Cash Flow
0.00	14.80M	-1.76B	48.43M	314.02M
	Operating Cash Flow
0.00	93.74M	-834.96M	334.17M	465.60M
	Investing Cash Flow
0.00	216.31M	2.73B	-295.06M	-535.23M
	Financing Cash Flow
0.00	-59.35M	-121.94M	6.25M	-13.16M

Niu Technologies Technical Analysis

Technical Analysis Sentiment

Negative

Last Price2.91

Price Trends

50DMA

2.96

Negative

100DMA

2.41

Positive

200DMA

2.26

Positive

Market Momentum

MACD

-0.07

Positive

RSI

43.45

Neutral

STOCH

25.22

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NIU, the sentiment is Negative. The current price of 2.91 is below the 20-day moving average (MA) of 3.60, below the 50-day MA of 2.96, and above the 200-day MA of 2.26, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 43.45 is Neutral, neither overbought nor oversold. The STOCH value of 25.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NIU.

Niu Technologies Risk Analysis

Niu Technologies disclosed 85 risk factors in its most recent earnings report. Niu Technologies 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

Niu Technologies Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$7.23B	11.55	3.67%	4.04%	2.96%	-13.54%
NIU	59 Neutral	$223.48M	―	-19.07%	―	22.42%	30.09%
CENN	41 Neutral	$23.10M	―	-34.12%	―	41.75%	-160.24%
EVTV	41 Neutral	$5.55M	―	-42.59%	―	-62.68%	80.29%
WKHS	38 Underperform	$6.71M	―	-159.80%	―	-49.47%	54.99%
PEV	38 Underperform	$5.01M	―	426.64%	―	―	―
FFAI	24 Underperform	$79.07M	―	-207.37%	―	-31.25%	98.68%

* Consumer Cyclical Sector Average

Performance Comparison

NIU

Niu Technologies

2.91

0.99

51.56%

WKHS

Workhorse Group

1.40

-38.92

-96.53%

CENN

Cenntro Electric Group

0.77

-0.76

-49.67%

EVTV

Envirotech Vehicles

0.24

-1.96

-89.09%

FFAI

Faraday Future Intelligent Electric

0.93

-1.42

-60.43%

PEV

Phoenix Motor Inc.

0.11

-0.57

-83.82%

Niu Technologies Earnings Call Summary

Earnings Call Date: Mar 17, 2025 | % Change Since: 6.99% | Next Earnings Date: May 26, 2025

Earnings Call Sentiment Neutral

The earnings call highlights strong sales volume growth and revenue increase, driven by innovative product launches and significant market expansion. However, challenges such as a decline in gross margin, impact from US tariffs, and a net loss for the year indicate areas of concern. The sentiment reflects a balance between positive growth and ongoing challenges.

Highlights

Record Sales Volume Growth

Niu Technologies achieved a total sales volume of 226,600 units in Q4 2024, marking a significant 65% year-over-year growth. For the full year, total sales volume reached 924,000 units, representing a 30% year-over-year increase.

Strong Revenue Increase

Total revenue for Q4 was RMB819 million, reflecting a 71% increase compared to the same period last year. Total revenue for the year reached RMB3.29 billion, up 24% from 2023.

China Market Performance

Sales volume in China reached 182,000 units in Q4 2024, with a robust product portfolio and strategic initiatives driving strong domestic performance.

Product Innovation and Safety Certifications

Niu became the first brand in the market to receive a five-star safety certification from China Merchant Vehicle Research Institute. The NX Hyper electric motorcycle was introduced, featuring advanced smart riding technologies.

Overseas Market Growth

The overseas market witnessed a substantial 54% growth in sales volume in Q4, with plans to expand the sales network to over 120 active dealers by year-end and double this number by the first half of 2025.

Retail and Channel Expansion

In 2024, approximately 900 new stores were opened, with plans to open another 1,000 to 1,500 stores in 2025, further strengthening market presence.

Lowlights

Gross Margin Decline

Gross margin for Q4 2024 was 12.4%, a decrease of 6.6 percentage points compared to the same period last year, primarily driven by product mix shifts and increased US tariffs.

US Tariff Impact on Micro Mobility

The US tariff increase on China exports, which rose from 0% to 25%, negatively impacted the micro mobility market, leading to a negative gross margin for the large part of the year 2024.

Net Loss for 2024

The company reported a net loss of RMB73 million for Q4 and a net loss of RMB193 million for the full year 2024.

Company Guidance

During the fourth quarter of 2024, Niu Technologies achieved a total sales volume of 226,600 units, marking a significant 65% year-over-year growth. In China, the sales volume increased by 65% to 182,000 units, while overseas sales rose by 64% to 44,000 units. Total revenue for the quarter was RMB819 million, reflecting a 71% increase compared to the same period last year. For the full year, total sales volume reached 924,000 units, a 30% growth from 2023, with total revenue amounting to RMB3.29 billion, up 24%. The company attributes this rebound to strategic initiatives, including product line expansion, sales channel strengthening, and market reach broadening. The N series alone accounted for 39% of total sales volume in China, a substantial increase from 5% in 2023. Looking forward to 2025, Niu Technologies aims to achieve sales of 1.3 million to 1.6 million units, leveraging their core product series, advanced smart technologies, and expanded sales channels both domestically and internationally.

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.