Polar Power (POLA) AI Stock Analysis

• Market Cap: $5.32M
• Dividend Yield: N/A
• Average Volume (3M): 25.96K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.58
• Revenue Growth: 0.13%
• EPS Growth: 45.00%
• Country: US
• Employees: 82
• Sector: Industrials
• Sector Strength: 79
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.11
• Shares Outstanding: 2,511,532
• 10 Day Avg. Volume: 29,437
• 30 Day Avg. Volume: 25,961
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.09
• Enterprise Value/Revenue: 0.93
• Enterprise Value/Gross Profit: 9.81
• Enterprise Value/Ebitda: -2.88
• 1Y Price Target: $2.00
• Price Target Upside: -5.66% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 45 Neutral
• Price Target: $2.00 ▼(-5.66% Downside)

Polar Power's overall stock score is primarily impacted by its weak financial performance and valuation. The company's ongoing losses and declining revenues are significant concerns. While technical indicators show some short-term stability, the long-term outlook remains challenging. Corporate events indicate efforts to restructure and expand, but these have yet to translate into financial improvement.

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 energy solutions, including fuel cells, solar systems, and hybrid systems, which are tailored for telecommunications, military, and industrial applications. The company also earns income from providing maintenance services and support for its installed systems. Key revenue streams include direct product sales to end-users, contracts with government and military agencies, and partnerships with telecom companies for power infrastructure solutions. Additionally, Polar Power benefits from its focus on renewable energy trends and government incentives for clean energy, which enhance its market opportunities and customer demand.

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	11.97M	13.97M	15.29M	16.06M	16.90M	9.03M
Gross Profit	1.13M	1.31M	695.00K	2.13M	3.44M	-5.62M
EBITDA	-3.87M	-3.86M	-5.60M	-5.02M	-805.00K	-12.33M
Net Income	-4.57M	-4.68M	-6.55M	-5.58M	-3.22M	-10.87M
Balance Sheet
Total Assets	16.55M	17.55M	25.26M	24.19M	27.18M	17.80M
Cash, Cash Equivalents and Short-Term Investments	175.00K	498.00K	549.00K	211.00K	5.10M	1.65M
Total Debt	6.93M	6.92M	7.54M	2.42M	1.50M	4.15M
Total Liabilities	9.56M	9.03M	12.07M	6.01M	3.93M	6.31M
Stockholders Equity	6.98M	8.51M	13.19M	18.18M	23.25M	11.49M
Cash Flow
Free Cash Flow	-1.96M	-555.00K	-3.62M	-6.53M	-9.45M	-6.57M
Operating Cash Flow	-1.96M	-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	1.02M	504.00K	3.96M	1.64M	12.91M	5.37M

Polar Power Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.12
• 50DMA: Positive
• 100DMA: Positive
• 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 2.12 is above the 20-day moving average (MA) of 1.92, above the 50-day MA of 1.91, and below the 200-day MA of 2.43, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.23 is Neutral, neither overbought nor oversold. The STOCH value of 56.16 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 *	64 Neutral	$10.95B	16.10	8.81%	1.99%	2.59%	-16.41%
XPON	61 Neutral	$5.52M	―	-504.67%	―	68.33%	78.66%
DFLI	50 Neutral	$20.59M	―	-3420.59%	―	4.80%	16.72%
POLA	45 Neutral	$5.32M	―	-49.34%	―	0.13%	45.00%
FLUX	45 Neutral	$27.61M	―	-1582.76%	―	-1.45%	-15.76%
PITEF	―	$1.14M	―		―	―	―
NXUR	―	$359.35K	―	-236.01%	―	―	―

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.