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SunCar Technology Group (SDA)
NASDAQ:SDA
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SunCar Technology Group
(NASDAQ:SDA)
Rating:42Neutral
Price Target:
$2.50
▼(-3.85%Downside)
Positive Factors
Market Position
SunCar has a leading market share in both of its main service lines and wide competitive moats.
Partnerships and Collaborations
Partnering with Deepseek will enhance AI capabilities to improve the automation and end-customer engagement that its enterprise clients can offer, which is evident by SDA’s 95% retention rate and improving FCF profile.
Revenue Growth
SDA generated $102.6MM in revenue in 1Q25, up 19.9% year-over-year, indicating strong growth momentum.
Negative Factors
Customer Concentration
Customer concentration poses a risk as a significant portion of revenue may depend on a few major clients.
Regulatory and Economic Risks
Key risks include: Regulation, foreign issuer, ownership concentration, customer concentration, economic downturn, competition, FX.
SunCar Technology Group (SDA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$266.87M
Dividend YieldN/A
Average Volume (3M)88.16K
Price to Earnings (P/E)―
Beta (1Y)0.08
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees560
SectorConsumer Cyclical
Sector Strength57
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)N/A
Shares Outstanding55,983,284
10 Day Avg. Volume72,348
30 Day Avg. Volume88,164
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)-7.60K
Price to Sales (P/S)0.00
P/FCF Ratio-2.59K
Enterprise Value/Market Cap0.27
Enterprise Value/Revenue0.04
Enterprise Value/Gross Profit0.51
Enterprise Value/Ebitda-0.59
Forecast
1Y Price Target
$7.75Price Target Upside198.08% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
SunCar Technology Group Business Overview & Revenue Model
Company DescriptionSunCar Technology Group Inc., through its subsidiaries, provides digitalized automotive after-sales service and online insurance intermediation services in the People's Republic of China. It operates through three segments: Insurance Intermediation Business; Automotive After-Sales Business; and Technology Business. The Insurance Intermediation Business segment provides traditional auto insurance renewal services and new energy vehicles insurance services. The Automotive After-Sales Business provides after-sales services to banking, insurance companies, and other customer types. The Technology Business segment provides auto insurance SaaS products and other technical services. SunCar Technology Group Inc. was founded in 2007 and is based in Shanghai, China.
How the Company Makes MoneySunCar Technology Group makes money primarily through the development and sale of software solutions and services that cater to the automotive industry's needs for connectivity and advanced telematics. Key revenue streams include licensing their software platforms to automotive manufacturers, offering subscription-based services to fleet management companies, and providing data analytics solutions to improve vehicle performance and safety. The company may also engage in strategic partnerships with automotive OEMs and technology firms to expand their market reach and enhance their service offerings, contributing to their overall earnings.
SunCar Technology Group Earnings Call Summary
Earnings Call Date:May 19, 2025
(Q4-2024)
| % Change Since: -14.19%|
Next Earnings Date:Sep 25, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant revenue growth and strategic partnerships, particularly in the auto insurance and technology services segments, driven by strong market demand and product innovation. However, the increase in operating costs, particularly due to share-based compensation, presents a challenge. Overall, the achievements in revenue and partnerships outweigh the cost challenges.Q4-2024 Updates
Positive Updates
Record Revenue and Growth
SunCar reported a total revenue of $441.9 million for the full year 2024, marking a 21.5% increase from 2023. Adjusted EBITDA increased by 492% to $9.8 million from $1.6 million in 2023.
Strong Auto Insurance Segment Performance
Auto insurance revenue increased by 44.4% to $170.5 million, driven by strong partnerships with automakers and an increase in insurance policy sales.
Expansion of Technology Services
Technology services revenue grew by 46.4% to $44.9 million, reflecting strong demand for SunCar's software and services.
Strategic Partnerships and New Products
SunCar expanded its partnership with Tesla to 48 cities and developed customized insurance products for Xiaomi and Zeekr, driving significant growth.
AI and Software Development Advancements
Investment in AI technology and software has resulted in significant ROI, enhancing customer engagement and operational efficiency.
Negative Updates
Increased Operating Costs and Expenses
Operating costs rose to $500.3 million from $379.2 million in 2023, with significant increases in general and administrative expenses and R&D expenses.
High Share-Based Compensation Expenses
General and administrative expenses and R&D expenses increased significantly due to a $31 million increase in share-based compensation under the 2024 equity incentive plan.
Company Guidance
During SunCar Technologies' full year 2024 earnings call, the company highlighted several key metrics demonstrating its robust performance and strategic direction. SunCar reported a total revenue of $441.9 million for 2024, marking a 21.5% increase from $363.7 million in 2023, with a notable 44.4% rise in auto insurance revenue to $170.5 million. The company's technology services revenue surged by 46.4% to $44.9 million, and auto services revenue grew by 5.3% to $226.5 million. Despite increased operating costs and expenses totaling $500.3 million, SunCar achieved an impressive 492% growth in adjusted EBITDA to $9.8 million. This growth underscores the effectiveness of SunCar's partnerships and its strategic focus on digitalization in China's automotive market. Looking ahead, SunCar plans to issue guidance with its first-quarter 2025 earnings release, contingent on market conditions and board approval.SunCar Technology Group Financial Statement Overview
Summary
SunCar Technology Group shows revenue growth but struggles with profitability and high leverage. Improvements in cash flow provide a positive outlook, yet high debt and negative equity remain concerns.Income Statement
SunCar Technology Group has shown revenue growth over recent years, with a 21.49% increase from 2023 to 2024. However, the company struggles with profitability, as indicated by negative EBIT and net income margins. The gross profit margin is moderate at 11.64% for 2024, but the consistent net losses highlight ongoing operational challenges.45
Neutral
Balance Sheet
The balance sheet shows a high debt-to-equity ratio due to low stockholders' equity, which could pose significant financial risks. The equity ratio is low at 4.82%, indicating heavy reliance on liabilities to finance assets. Despite some asset growth, the financial stability is compromised by high leverage and negative equity in previous years.35
Negative
Cash Flow
There is a positive shift in cash flow, with a move to positive free cash flow in 2024 from negative in 2023. The operating cash flow to net income ratio is positive, indicating some efficiency in converting income to cash, though the free cash flow to net income ratio shows room for improvement. Overall, cash management has improved but remains a concern given historical fluctuations.50
Neutral
| Breakdown | |||
| Dec 2024 | Dec 2023 | Dec 2022 | Jun 2020 |
|---|---|---|---|
| Income Statement | Total Revenue | ||
| 441.90M | 363.75M | 282.41M | 0.00 | Gross Profit |
| 51.46M | 41.69M | 50.12M | 0.00 | EBIT |
| -58.36M | -15.46M | -12.58M | 0.00 | EBITDA |
| -51.79M | -5.70M | -1.32M | 171.86K | Net Income Common Stockholders |
| -68.66M | -26.91M | -6.67M | -34.63K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||
| 47.85M | 52.45M | 47.74M | 76.32K | Total Assets |
| 246.73M | 223.24M | 191.97M | 76.32K | Total Debt |
| 84.16M | 84.28M | 74.97M | 0.00 | Net Debt |
| 57.30M | 53.43M | 53.77M | -76.32K | Total Liabilities |
| 180.49M | 155.25M | 155.19M | 85.94K | Stockholders Equity |
| 11.89M | 16.08M | -5.28M | -9.63K |
| Cash Flow | Free Cash Flow | ||
| 11.25M | -32.58M | -20.50M | -28.21K | Operating Cash Flow |
| 11.84M | -27.65M | -16.14M | -28.21K | Investing Cash Flow |
| -12.15M | -2.39M | -5.92M | 0.00 | Financing Cash Flow |
| -2.95M | 40.43M | 10.64M | 104.53K |
SunCar Technology Group Technical Analysis
Negative
2.60
Price Trends
2.80
Negative
4.14
Negative
6.92
Negative
Market Momentum
-0.08
Negative
43.01
Neutral
14.47
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SDA, the sentiment is Negative. The current price of 2.6 is below the 20-day moving average (MA) of 2.75, below the 50-day MA of 2.80, and below the 200-day MA of 6.92, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 43.01 is Neutral, neither overbought nor oversold. The STOCH value of 14.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SDA.
SunCar Technology Group Risk Analysis
SunCar Technology Group disclosed 29 risk factors in its most recent earnings report. SunCar Technology Group reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SunCar Technology Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $6.76B | 11.06 | 2.80% | 6.66% | 2.68% | -24.89% | |
55 Neutral | $460.80M | 6.63 | 0.12% | ― | 40.31% | -204.86% | |
47 Neutral | $78.37M | ― | -130.43% | ― | -14.45% | 78.09% | |
42 Neutral | $266.87M | ― | -167.38% | ― | ― | ― | |
40 Underperform | $789.63M | ― | 260.24% | ― | 9.33% | 50.69% | |
38 Underperform | $9.31M | ― | -86.66% | ― | ― | -447.71% | |
| $11.07M | ― | -71.66% | ― | ― | ― |
* Consumer Cyclical Sector Average
Performance Comparison
SDA
SunCar Technology Group
2.60
-6.12
-70.18%
RMBL
RumbleON
2.07
-2.34
-53.06%
KXIN
Kaixin Auto Holdings
0.85
-8.13
-90.53%
UXIN
Uxin
3.92
1.85
89.37%
CANG
Cango
4.45
2.83
174.69%
JZXN
Jiuzi Holdings
0.95
-3.73
-79.70%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.