Polar Power (POLA) AI Stock Analysis

• Market Cap: $5.27M
• Dividend Yield: N/A
• Average Volume (3M): 25.81K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.82
• Revenue Growth: -8.64%
• EPS Growth: 46.67%
• Country: US
• Employees: 82
• Sector: Industrials
• Sector Strength: 65
• Industry: Electrical Equipment & Parts
• EPS (TTM): -1.86
• Shares Outstanding: 2,511,532
• 10 Day Avg. Volume: 11,582
• 30 Day Avg. Volume: 25,812
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.46
• Price to Cash Flow (P/CF): -2.90
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Polar Power's overall score is impacted significantly by its weak financial performance, characterized by declining revenues and negative profitability. Technical analysis also indicates bearish trends, with the stock trading below major moving averages and showing weak momentum. Valuation is further hampered by negative earnings and lack of dividends. The company needs to address key financial and operational challenges to improve its stock attractiveness.

Polar Power Business Overview & Revenue Model

Company Description

Polar Power, Inc. (POLA) is a company that specializes in the design, manufacture, and sale of direct current (DC) power systems. These systems are primarily used for telecommunications, military, and renewable energy applications. Polar Power's core products include DC generators, hybrid power systems, solar hybrid systems, and related accessories. The company focuses on providing efficient, reliable, and environmentally friendly power solutions.

How the Company Makes Money

Polar Power generates revenue through the sale of its DC power systems and related products. The company's key revenue streams include the telecommunications sector, where its generators are used to provide backup power to telecom towers; the military sector, where its systems are deployed for tactical and remote operations; and the renewable energy sector, where it integrates solar power solutions. Polar Power also benefits from partnerships with telecommunications companies and other industry players, enhancing its market reach and distribution capabilities. Revenue is driven by both direct sales and long-term service agreements, ensuring a steady flow of income from its installed base.

Polar Power Financial Statement Overview

Summary

Polar Power is facing significant financial challenges, with declining revenues and profitability. The balance sheet reflects increased leverage and reduced equity, while cash flow management shows some improvement. The company needs to address its operational inefficiencies and stabilize its financial position to improve its financial health.

Income Statement

Polar Power's income statement reflects a decline in revenue from $16.9M in 2021 to $13.97M in 2024. The gross profit margin is low at 9.41% in 2024, which is a decline from 20.37% in 2021. The company continues to operate at a loss, with a net profit margin of -33.5% in 2024. The EBIT and EBITDA margins are also negative, indicating operational challenges. However, there is a slight improvement in gross profit compared to 2023.

Balance Sheet

The balance sheet shows a weakened financial position with a debt-to-equity ratio of 0.81 in 2024, reflecting increased leverage compared to previous years. The equity ratio has decreased to 48.52%, indicating reduced financial stability. Return on equity remains negative due to continued losses. The decline in stockholders' equity from $23.25M in 2021 to $8.51M in 2024 highlights potential financial stress.

Cash Flow

Polar Power's cash flow statements show an improvement in free cash flow from -$3.62M in 2023 to -$536k in 2024. However, the operating cash flow remains negative at -$536k, indicating ongoing operational cash challenges. The company has managed to stabilize its cash outflows compared to previous years, but the free cash flow to net income ratio is negative, indicating inefficiencies.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
13.97M	15.29M	16.06M	16.90M	9.03M
	Gross Profit
1.31M	695.00K	2.13M	3.44M	-5.62M
	EBIT
-4.38M	-5.99M	-5.53M	-3.10M	-12.96M
	EBITDA
-3.86M	-5.60M	-5.02M	-805.00K	-12.33M
	Net Income Common Stockholders
-4.68M	-6.55M	-5.58M	-3.22M	-10.87M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
498.00K	549.00K	211.00K	5.10M	1.65M
	Total Assets
17.55M	25.26M	24.19M	27.18M	17.80M
	Total Debt
6.92M	7.54M	2.42M	1.50M	4.15M
	Net Debt
6.42M	6.99M	2.21M	-3.60M	2.51M
	Total Liabilities
9.03M	12.07M	6.01M	3.93M	6.31M
	Stockholders Equity
8.51M	13.19M	18.18M	23.25M	11.49M
Cash Flow		Free Cash Flow
-536.00K	-3.62M	-6.53M	-9.45M	-6.57M
	Operating Cash Flow
-536.00K	-3.43M	-6.51M	-9.38M	-6.55M
	Investing Cash Flow
-19.00K	-194.00K	-25.00K	-71.00K	-19.00K
	Financing Cash Flow
504.00K	3.96M	1.64M	12.91M	5.37M

Polar Power Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For POLA, the sentiment is Negative. The current price of 2.1 is below the 20-day moving average (MA) of 2.23, below the 50-day MA of 2.56, and below the 200-day MA of 2.98, indicating a bearish trend. The MACD of -0.14 indicates Negative momentum. The RSI at 40.73 is Neutral, neither overbought nor oversold. The STOCH value of 43.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for POLA.

Polar Power Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$4.16B	11.31	5.46%	215.65%	4.12%	-8.47%
FLUX	51 Neutral	$25.32M	―	-385.84%	―	-5.96%	-50.28%
POLA	44 Neutral	$5.27M	―	-43.10%	―	-8.64%	46.67%
XPON	40 Underperform	$2.57M	―	-342.64%	―	-5.96%	20.41%
DFLI	32 Underperform	$4.41M	―	-438.89%	―	-21.35%	-155.36%

Polar Power Corporate Events

Polar Power Clarifies Recent Disclosure Obligations

Polar Power has issued a statement clarifying that the information provided in their recent disclosures is not to be considered as filed under the Securities Exchange Act of 1934. The company has also disclaimed any obligation to publicly update or change its forward-looking statements unless legally required.