QuantumScape (QS) AI Stock Analysis

• Market Cap: $4.38B
• Dividend Yield: N/A
• Average Volume (3M): 30.66M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.81
• Revenue Growth: N/A
• EPS Growth: 9.21%
• Country: US
• Employees: 800
• Sector: Consumer Cyclical
• Sector Strength: 83
• Industry: Auto - Parts
• EPS (TTM): -0.20
• Shares Outstanding: 522,939,200
• 10 Day Avg. Volume: 12,448,955
• 30 Day Avg. Volume: 30,662,489
• 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: 0.70
• Enterprise Value/Revenue: 83.62
• Enterprise Value/Gross Profit: -205.21
• Enterprise Value/Ebitda: -7.00
• 1Y Price Target: $7.33
• Price Target Upside: -4.18% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 46 Neutral
• Price Target: ―

QuantumScape's stock is hindered by significant financial challenges, including no revenue and high net losses. Despite a strong balance sheet, ongoing cash burn and the need for external funding pose risks. The earnings call highlighted strategic progress, offering some optimism, but high expenses and uncertain customer engagements weigh on the outlook. Technicals indicate bearish trends, and valuation metrics are unfavorable due to lack of profitability.

Positive Factors

Cash Runway Extension

QuantumScape now expects that its cash runway will extend into 2029 from 2H28 based on the potential VW royalty prepayment, current liquidity, and the expanded PowerCo agreement.

Customer Collaboration

QuantumScape expanded its engagement with Volkswagen's in-house battery subsidiary, PowerCo, and added another auto OEM to the roster—both positive movements in customer collaboration.

Technology Development

QuantumScape's agreement with Murata could be fruitful for scaling the ceramic separator material, leveraging Murata's industry expertise.

Negative Factors

Competition

A key focus of the call was competition from Chinese giants like CATL and BYD and their diverse suite of chemistries.

Investor Concerns

The steep move in the stock is considered overdone as implementing Cobra was a known milestone and not a surprise to investors.

Market Risks

Several fundamental risks remain, including a long time to market, a diminished degree of differentiation with QSE-5 compared to initial targets, and a tougher EV industry environment.

QuantumScape Business Overview & Revenue Model

Company Description

QuantumScape Corporation, a development stage company, focuses on the development and commercialization of solid-state lithium-metal batteries for electric vehicles and other applications. The company was founded in 2010 and is headquartered in San Jose, California.

How the Company Makes Money

QuantumScape makes money through the development and future commercialization of its solid-state battery technology. The company aims to license its technology and establish partnerships with major automotive manufacturers to integrate its batteries into electric vehicles. Revenue is expected to be generated through these strategic partnerships and potential joint ventures. Additionally, QuantumScape may also explore direct sales of its battery products once they are commercially viable. Significant partnerships, such as the one with Volkswagen Group, play a crucial role in QuantumScape's business model by providing financial support and a pathway to market entry for their cutting-edge battery solutions.

QuantumScape Financial Statement Overview

Summary

QuantumScape faces significant financial challenges with no revenue generation, large net losses, and ongoing cash burn. While the balance sheet is strong due to high equity and low leverage, the lack of revenue and continued losses are concerning. Cash flow is negative and reliant on external funding, adding sustainability risks.

Income Statement

QuantumScape has consistently reported zero revenue over multiple years, indicating a lack of commercialized product sales. The company experiences high net losses, with increasing EBIT and EBITDA losses year over year, highlighting operational challenges. The absence of revenue growth is a significant concern.

Balance Sheet

QuantumScape maintains a strong equity position with a high equity ratio, indicating a stable financial foundation. The company's low debt-to-equity ratio suggests limited leverage, reducing financial risk. However, the consistent net losses are eroding equity over time, which is a potential long-term concern.

Cash Flow

The company has a negative free cash flow, which has shown some variability without a clear trend of improvement. Operating cash flow is consistently negative, indicating ongoing cash burn. The reliance on financing activities to cover cash flow deficits poses sustainability risks if external funding becomes less accessible.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	36.67M	0.00	0.00	0.00	0.00	0.00
Gross Profit	-14.94M	-57.78M	-41.96M	-36.12M	-14.70M	-8.08M
EBITDA	-437.84M	-525.21M	-400.74M	-373.37M	-29.86M	-1.65B
Net Income	-463.36M	-477.86M	-445.14M	-403.19M	-47.54M	-121.45M
Balance Sheet
Total Assets	1.17B	1.32B	1.50B	1.48B	1.72B	1.07B
Cash, Cash Equivalents and Short-Term Investments	797.49M	910.77M	1.07B	1.06B	1.45B	997.55M
Total Debt	89.36M	93.54M	100.63M	105.42M	77.37M	12.46M
Total Liabilities	143.59M	164.55M	161.80M	155.86M	107.06M	23.59M
Stockholders Equity	1.02B	1.16B	1.34B	1.32B	1.61B	1.04B
Cash Flow
Free Cash Flow	-317.28M	-336.69M	-324.54M	-376.87M	-255.09M	-85.36M
Operating Cash Flow	-274.05M	-274.56M	-240.03M	-218.02M	-127.91M	-61.26M
Investing Cash Flow	96.35M	128.87M	-152.53M	124.12M	-385.83M	-802.65M
Financing Cash Flow	153.76M	144.03M	300.21M	8.60M	736.56M	953.72M

QuantumScape Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.65
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QS, the sentiment is Neutral. The current price of 7.65 is below the 20-day moving average (MA) of 8.34, below the 50-day MA of 9.09, and above the 200-day MA of 5.76, indicating a neutral trend. The MACD of -0.35 indicates Positive momentum. The RSI at 43.02 is Neutral, neither overbought nor oversold. The STOCH value of 27.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for QS.

QuantumScape Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$17.97B	12.87	-5.29%	2.97%	1.26%	-14.45%
SES	54 Neutral	$384.01M	―	-34.37%	―	―	-63.15%
INVZ	53 Neutral	$315.22M	―	-72.45%	―	17.32%	37.70%
HSAI	53 Neutral	$3.58B	237.50	2.45%	―	36.76%	―
QS	46 Neutral	$4.38B	―	-42.03%	―	―	9.21%
AEVA	44 Neutral	$745.78M	―	-1441.64%	―	111.39%	-74.39%
LAZR	43 Neutral	$116.21M	―	146.24%	―	-5.22%	84.74%

QuantumScape Corporate Events

QuantumScape Appoints New Board Members and Chairman

QuantumScape Corporation has announced the appointment of Dennis Segers and Dr. Günther Mendl to its Board of Directors. Segers, a veteran in the semiconductor industry, will also serve as Chairman starting January 1, 2025, succeeding Jagdeep Singh, who is retiring. Dr. Mendl, who has extensive experience in battery technology, joins as a representative of Volkswagen Group. Both directors are part of the company’s standard compensation program, though Dr. Mendl has waived his compensation rights.