Sono Group (SSM) AI Stock Analysis

• Market Cap: $10.29M
• Dividend Yield: N/A
• Average Volume (3M): 30.13K
• Price to Earnings (P/E): <0.1
• Beta (1Y): -0.20
• Revenue Growth: -100.00%
• EPS Growth: N/A
• Country: US
• Employees: 34
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): -1.11
• Shares Outstanding: 1,424,186
• 10 Day Avg. Volume: 12,679
• 30 Day Avg. Volume: 30,133
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.36
• Enterprise Value/Market Cap: 2.79
• Enterprise Value/Revenue: 287.56
• Enterprise Value/Gross Profit: 668.75
• Enterprise Value/Ebitda: -202.51
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: ―

Sono Group's overall stock score reflects significant financial challenges, with persistent losses and high leverage impacting its financial health. Despite this, technical analysis shows some bullish indicators, and the stock's low P/E ratio suggests undervaluation. The recent partnership with Merlin Solar Technologies presents a strategic opportunity, but substantial risks remain due to the company's precarious financial position.

Positive Factors

Strategic Partnership

The partnership with Merlin Solar Technologies enhances Sono Group's product offerings and market presence, aligning with sustainability goals and potentially improving its competitive position in the solar-powered vehicle market.

Innovative Product Offering

The Sion's integration of solar panels represents a unique value proposition in the electric vehicle market, potentially attracting environmentally conscious consumers and differentiating Sono Group from traditional auto manufacturers.

Revenue Diversification

By licensing its solar technology to other manufacturers, Sono Group diversifies its revenue streams, reducing dependency on vehicle sales and potentially increasing its market reach and financial stability.

Negative Factors

Financial Instability

Negative stockholders' equity indicates insolvency issues, posing significant risks to Sono Group's financial health and its ability to sustain operations without external funding or restructuring.

Negative Cash Flow

Negative free cash flow suggests that Sono Group is not generating sufficient cash from operations to cover its expenses, which could lead to liquidity issues and limit its ability to invest in growth opportunities.

Declining Revenue

Declining revenue reflects challenges in market demand or competitive positioning, potentially impacting Sono Group's long-term growth prospects and ability to achieve profitability.

Sono Group Business Overview & Revenue Model

Company Description

Sono Group N.V. provides solar-powered mobility applications. It develops vehicle applied modules, including Solar Bus Kit, a business-to-business retrofit solution that reduces energy consumption and inner-city greenhouse gas emissions; and maximum power point trackers for manufacturers of trucks, commercial vehicle equipment, and public transport operators. Sono Group N.V. was founded in 2012 and is headquartered in Munich, Germany.

How the Company Makes Money

Sono Group primarily generates revenue through the sale of its solar electric vehicles, particularly the Sion model. The company also explores additional revenue streams by licensing its solar technology to other automotive manufacturers and integrating its solar systems into various mobility applications. Significant partnerships with automotive suppliers and technology firms contribute to its earnings by enhancing production capabilities and expanding market reach. The company may also benefit from government incentives and subsidies related to sustainable energy and electric vehicle adoption.

Sono Group Financial Statement Overview

Summary

Sono Group faces significant financial challenges, with negative margins and high leverage. The income statement reveals poor profitability with declining revenue, while the balance sheet shows insolvency concerns with negative equity. Cash flow is negative but shows slight improvement, indicating ongoing liquidity issues.

Income Statement

The income statement shows significant challenges with negative margins across the board. Gross profit margin and net profit margin are negative, indicating cost issues and unprofitable operations. Revenue growth is erratic and declining, as evidenced by the drop from 2022 to 2023. EBIT and EBITDA margins are also negative, reflecting poor operational performance.

Balance Sheet

The balance sheet reveals a concerning financial position with negative stockholders' equity, indicating insolvency issues. The company has high leverage, with a debt-to-equity ratio that is not computable due to negative equity. Return on equity is negative, reflecting net losses. Overall, the equity ratio is negative, indicating a precarious financial structure.

Cash Flow

Cash flow analysis highlights negative free cash flow, indicating operational cash flow shortages. However, there is an improvement in free cash flow from 2022 to 2023, suggesting some progress in cash management. The operating cash flow to net income ratio is not favorable, indicating inefficient cash generation relative to net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	100.00K	0.00	42.00K	229.00K	16.00K	0.00
Gross Profit	43.00K	0.00	-28.00K	-163.00K	-42.00K	-439.00K
EBITDA	-142.00K	65.04M	-45.62M	-181.70M	-60.08M	-62.74M
Net Income	15.25M	65.03M	-45.71M	-183.70M	-63.95M	-63.88M
Balance Sheet
Total Assets	3.96M	3.05M	9.55M	57.47M	147.30M	65.27M
Cash, Cash Equivalents and Short-Term Investments	2.25M	1.35M	7.41M	30.84M	138.95M	58.63M
Total Debt	588.00K	24.66M	26.31M	34.87M	6.83M	18.01M
Total Liabilities	1.45M	25.73M	97.24M	100.98M	63.86M	71.42M
Stockholders Equity	2.51M	-22.68M	-87.69M	-43.51M	83.44M	-6.15M
Cash Flow
Free Cash Flow	-7.41M	-14.77M	-15.26M	-186.82M	-48.79M	-1.40M
Operating Cash Flow	-7.35M	-14.69M	-11.42M	-139.59M	-47.14M	-1.35M
Investing Cash Flow	-71.00K	1.23M	-11.32M	-47.24M	-1.65M	-47.88K
Financing Cash Flow	12.32M	7.00M	6.00K	83.01M	138.56M	50.26M

Sono Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.76
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSM, the sentiment is Negative. The current price of 6.76 is above the 20-day moving average (MA) of 6.70, below the 50-day MA of 7.92, and below the 200-day MA of 7.52, indicating a bearish trend. The MACD of -0.41 indicates Negative momentum. The RSI at 38.94 is Neutral, neither overbought nor oversold. The STOCH value of 63.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SSM.

Sono Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SSM	48 Neutral	$10.29M	0.02	―	―	-100.00%	―
WKHS	45 Neutral	$16.77M	-0.03	-162.44%	―	16.74%	81.14%
CENN	40 Neutral	$14.61M	―	-30.79%	―	-56.89%	12.17%
EVTV	40 Underperform	$4.77M	-0.13	-267.76%	―	113.69%	-84.50%
EMPD	39 Underperform	$188.68M	―	-20.84%	―	-36.52%	99.81%
BINI	38 Underperform	$1.90M	―	―	―	5865.42%	98.16%

Sono Group Corporate Events

Sono Group Partners with Merlin Solar Technologies

On March 24, 2025, Sono Group N.V. announced a partnership with Merlin Solar Technologies to expand their global market presence and product offerings. The agreement allows Sono to incorporate Merlin’s solar panels into its European portfolio, while Merlin will include Sono’s solar charge controllers in its offerings across the Americas. This collaboration aims to deliver comprehensive solar solutions and support global sustainability goals.