Polar Power (POLA) AI Stock Analysis

• Market Cap: $5.08M
• Dividend Yield: N/A
• Average Volume (3M): 61.54K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.61
• 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: 2,658,676
• 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: 1.91
• Enterprise Value/Revenue: 1.16
• Enterprise Value/Gross Profit: -3.80
• Enterprise Value/Ebitda: -1.22
• 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: 40 Neutral
• Price Target: $2.00 ▲(5.82% Upside)

Polar Power's overall stock score reflects significant financial and operational challenges. The company's declining financial performance, negative valuation metrics, and bearish technical indicators are major concerns. While there is some optimism about future growth, the current financial and market conditions weigh heavily on the stock's outlook.

Positive Factors

Market Expansion

Expanding market presence through increased sales personnel can enhance revenue opportunities and strengthen market position over time.

Product Diversification

Product diversification can reduce dependency on specific markets and enhance resilience against sector-specific downturns.

Backlog Increase

An increased backlog indicates strong future demand, providing revenue visibility and potential for improved financial performance.

Negative Factors

Revenue Decline

A declining revenue trend suggests challenges in market demand or competitive positioning, impacting long-term growth potential.

High Leverage

High leverage can strain financial flexibility and increase risk, especially if revenue growth does not support debt servicing.

Low Profit Margins

Sustained low profit margins indicate operational inefficiencies and can hinder the company's ability to reinvest and grow.

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 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	6.08M	6.92M	7.54M	2.42M	1.50M	4.15M
Total Liabilities	9.52M	9.03M	12.07M	6.01M	3.93M	6.31M
Stockholders Equity	2.82M	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: 1.89
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 1.89 is below the 20-day moving average (MA) of 2.15, below the 50-day MA of 2.98, and below the 200-day MA of 2.45, indicating a bearish trend. The MACD of -0.28 indicates Negative momentum. The RSI at 30.82 is Neutral, neither overbought nor oversold. The STOCH value of 15.76 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%
OPTT	45 Neutral	$69.58M	-1.89	-141.20%	―	-47.10%	41.03%
IPWR	44 Neutral	$26.22M	-2.62	-74.44%	―	-69.65%	11.41%
POLA	40 Neutral	$5.08M	-0.55	-119.92%	―	-44.32%	-49.47%
XPON	38 Underperform	$8.68M	-1.07	-35.47%	―	109.37%	99.34%
SDST	26 Underperform	$32.06M	-0.79	―	―	―	61.78%

Polar Power Corporate Events

Polar Power Approves Key Proposals at Annual Meeting

On December 15, 2025, Polar Power held its Annual Meeting where several key proposals were approved. These included the election of four directors, the ratification of Weinberg & Company, P.A. as the independent accounting firm for 2025, and the approval of the 2026 Equity Incentive Plan. Additionally, a non-binding advisory vote approved the compensation for the company’s executive officers and determined that future votes on executive compensation will occur annually.

Polar Power Reports Q3 2025 Financial Decline

Polar Power reported a significant decline in its financial performance for the third quarter of 2025, with net sales dropping by 74% compared to the same period last year, resulting in a net loss of $4.08 million. The company attributed these losses to geopolitical and tariff issues, as well as excess inventory held by its largest telecommunications customer. Despite these challenges, Polar Power is optimistic about future growth, with an increased backlog and plans to renegotiate contracts to mitigate tariff impacts. The company is also expanding its market presence by adding sales personnel in various regions and investing in product diversification and marketing strategies.