Polar Power (POLA) AI Stock Analysis

• Market Cap: $9.29M
• Dividend Yield: N/A
• Average Volume (3M): 61.54K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.35
• Revenue Growth: -44.32%
• EPS Growth: -49.47%
• Country: US
• Employees: 82
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): -1.63
• Shares Outstanding: 2,511,532
• 10 Day Avg. Volume: 53,213
• 30 Day Avg. Volume: 61,540
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 0.57
• P/FCF Ratio: -14.47
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 1.34
• Enterprise Value/Gross Profit: -4.36
• Enterprise Value/Ebitda: -1.40
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: $2.00 ▼(-11.11% Downside)

Polar Power's overall stock score is primarily impacted by its weak financial performance and poor valuation. The technical analysis also indicates bearish momentum, further contributing to the low score. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Renewable Energy Focus

Polar Power's emphasis on renewable energy aligns with global trends and government incentives, potentially boosting long-term demand and market opportunities.

Cash Flow Improvement

The improvement in free cash flow indicates better cash management, which could enhance financial stability and support operational investments.

Diverse Revenue Streams

Diverse revenue streams from various sectors reduce dependency on a single market, providing resilience against sector-specific downturns.

Negative Factors

Declining Revenue

The decline in revenue over recent years suggests challenges in market penetration or competitive pressures, potentially impacting long-term growth.

Increased Leverage

Higher leverage can strain financial flexibility and increase risk, especially if revenue and profitability do not improve.

Low Profit Margins

Sustained low profit margins indicate potential pricing pressures or cost inefficiencies, which could hinder profitability and competitive positioning.

Polar Power Business Overview & Revenue Model

Company Description

Polar Power, Inc. (POLA) is a leading provider of renewable energy solutions, specializing in the design and manufacture of advanced power generation systems. The company operates primarily in the telecommunications, military, and renewable energy sectors, offering a range of products including hybrid power systems, DC generators, and energy storage solutions. Polar Power is committed to delivering efficient, reliable, and environmentally friendly energy solutions to its customers worldwide.

How the Company Makes Money

Polar Power generates revenue through the sale of its power generation systems and related services. Key revenue streams include the direct sale of hybrid power systems, which combine renewable energy sources with traditional generators, and DC generators utilized in various applications. Additionally, the company earns income from maintenance contracts and service agreements associated with its products. Significant partnerships with telecommunications companies and government agencies contribute to its earnings by providing stable, long-term contracts and expanding its market reach.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.33M	13.97M	15.29M	16.06M	16.90M	9.03M
Gross Profit	-2.55M	1.31M	695.00K	2.13M	3.44M	-5.62M
EBITDA	-7.92M	-3.86M	-5.60M	-5.02M	-805.00K	-11.70M
Net Income	-8.67M	-4.68M	-6.55M	-5.58M	-3.22M	-10.87M
Balance Sheet
Total Assets	12.35M	17.55M	25.26M	24.19M	27.18M	17.80M
Cash, Cash Equivalents and Short-Term Investments	4.00K	498.00K	549.00K	211.00K	5.10M	1.65M
Total Debt	1.35M	6.92M	7.54M	2.42M	1.50M	4.15M
Total Liabilities	9.45M	9.03M	12.07M	6.01M	3.93M	6.31M
Stockholders Equity	2.90M	8.51M	13.19M	18.18M	23.25M	11.49M
Cash Flow
Free Cash Flow	-971.00K	-555.00K	-3.62M	-6.53M	-9.45M	-6.57M
Operating Cash Flow	-971.00K	-536.00K	-3.43M	-6.51M	-9.38M	-6.55M
Investing Cash Flow	-1.00K	-19.00K	-194.00K	-25.00K	-71.00K	-19.00K
Financing Cash Flow	478.00K	504.00K	3.96M	1.64M	12.91M	5.37M

Polar Power Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 2.25 is below the 20-day moving average (MA) of 2.94, below the 50-day MA of 3.57, and below the 200-day MA of 2.51, indicating a bearish trend. The MACD of -0.38 indicates Positive momentum. The RSI at 32.60 is Neutral, neither overbought nor oversold. The STOCH value of 17.06 is Positive, 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 *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
POLA	41 Neutral	$9.29M	-2.03	-119.92%	―	-44.32%	-49.47%
OPTT	41 Neutral	$78.70M	-2.66	-105.15%	―	3.37%	59.52%
XPON	41 Neutral	$4.31M	-0.05	-35.47%	―	109.37%	99.34%
IPWR	38 Underperform	$29.88M	―	-74.44%	―	-69.65%	11.41%
SDST	26 Underperform	$31.52M	-0.84	―	―	―	61.78%

Polar Power Corporate Events

Polar Power Reports Q2 2025 Financial Decline

On August 14, 2025, Polar Power reported a significant decline in its financial performance for Q2 2025, with net sales dropping by 42% to $2.7 million and a net loss of $271,000 compared to a net income of $501,000 in the same period in 2024. Despite these setbacks, the company is restructuring its sales strategies, particularly focusing on the telecom market which remains its dominant customer base, and is expanding its presence in the Middle East and Africa. The company is also planning to release a new 30 kW mobile EV charger in the fourth quarter, as part of its efforts to diversify and improve sales and marketing proficiency.