Polar Power (POLA) AI Stock Analysis

• Market Cap: $4.75M
• Dividend Yield: N/A
• Average Volume (3M): 189.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.49
• Revenue Growth: 8.08%
• EPS Growth: 59.60%
• Country: US
• Employees: 82
• Sector: Industrials
• Sector Strength: 91
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.50
• Shares Outstanding: 2,511,532
• 10 Day Avg. Volume: 551,864
• 30 Day Avg. Volume: 189,946
• PEG Ratio: 0.04
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.78
• Enterprise Value/Market Cap: 2.40
• Enterprise Value/Revenue: 0.21
• Enterprise Value/Gross Profit: 5.59
• Enterprise Value/Ebitda: -0.66
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 47 Neutral
• Price Target: $2.00 ▲(6.95%Upside)

The overall stock score is primarily influenced by weak financial performance and poor valuation. While corporate events highlight some operational improvements, the technical analysis presents a cautious outlook. The absence of earnings call data limits additional insights.

Polar Power Business Overview & Revenue Model

Company Description

Polar Power, Inc. designs, manufactures, and sells direct current (DC) power generators, renewable energy, and cooling systems in the United States and internationally. The company offers DC base power systems, DC hybrid power systems, DC solar hybrid power systems, and mobile power systems. Its DC power systems are available in diesel, natural gas, LPG/propane, and renewable fuel formats. The company serves customers in the telecommunications, military, commercial, industrial, and marine markets. It sells its products through a direct sales force, and a network of independent service providers and dealers. The company was formerly known as Polar Products, Inc. and changed its name to Polar Power, Inc. in October 1991. Polar Power, Inc. was incorporated in 1979 and is based in Gardena, California.

How the Company Makes Money

Polar Power generates revenue through the sale of its DC power systems and related products. The company's revenue model is centered around manufacturing and supplying these systems to industries that require reliable and efficient power solutions, such as telecommunications companies needing backup power for cell sites, and military applications requiring portable power in remote locations. Significant revenue streams include product sales, service contracts, and maintenance agreements. Polar Power may also engage in partnerships with telecommunications carriers and other entities to expand its market reach and enhance its product offerings.

Polar Power Financial Statement Overview

Summary

Polar Power's financial performance is weak with declining revenues and profitability. The income statement shows a decrease in revenue and margins, while the balance sheet reflects increased leverage and reduced financial stability. Cash flow management shows slight improvement, but operational cash challenges persist.

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
EBITDA	-3.86M	-5.60M	-5.02M	-805.00K	-12.33M
Net Income	-4.68M	-6.55M	-5.58M	-3.22M	-10.87M
Balance Sheet
Total Assets	17.55M	25.26M	24.19M	27.18M	17.80M
Cash, Cash Equivalents and Short-Term Investments	498.00K	549.00K	211.00K	5.10M	1.65M
Total Debt	6.92M	7.54M	2.42M	1.50M	4.15M
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	-555.00K	-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: Positive
• Last Price: 1.87
• 50DMA: Positive
• 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 Positive. The current price of 1.87 is above the 20-day moving average (MA) of 1.78, above the 50-day MA of 1.82, and below the 200-day MA of 2.64, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 57.51 is Neutral, neither overbought nor oversold. The STOCH value of 30.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for POLA.

Polar Power Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	67 Neutral	CHF6.74B	26.33	14.57%	2.73%	-2.26%	-28.96%
FLUX	56 Neutral	$32.12M	―	-1582.76%	―	-1.45%	-15.76%
POLA	47 Neutral	$4.75M	―	-41.53%	―	8.08%	59.60%
DFLI	39 Underperform	$5.98M	―	-3420.59%	―	-11.38%	-9.63%
PITEF	―	$575.35K	―		―	―	―
XPON	46 Neutral	$3.07M	―	-362.03%	―	23.07%	50.04%
NXUR	―	$455.58K	―	-236.01%	―	―	―

Polar Power Corporate Events

Polar Power Reports Q1 2025 Financial Results

On May 16, 2025, Polar Power reported its financial results for the first quarter of 2025, highlighting a stable net sales figure of $1.7 million compared to the previous year. The company achieved a gross profit of $320,000, marking a significant improvement from a gross loss in the same period last year. Operating expenses decreased by 10%, and the net loss was reduced by 41% to $1.2 million. The company saw increased sales in aftermarket parts and services, which accounted for 28% of total sales, and expanded its customer base with new orders. Polar Power’s telecom sector sales rose to 82% of total sales, while international market sales increased to 18%. The company also benefited from improved manufacturing efficiencies and plans to implement remote monitoring systems on legacy units to boost aftermarket revenue.