Exro Technologies (EXRO) AI Stock Analysis

• Market Cap: $90.68M
• Dividend Yield: N/A
• Average Volume (3M): 351.30K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.73
• Revenue Growth: 322.75%
• EPS Growth: -93.21%
• Country: CA
• Employees: 160
• Sector: Industrials
• Sector Strength: 70
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.60
• Shares Outstanding: 549,567,300
• 10 Day Avg. Volume: 576,407
• 30 Day Avg. Volume: 351,297
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.27
• Price to Cash Flow (P/CF): -0.60
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $0.11
• Price Target Upside: -30.57% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

Exro Technologies' financial performance presents challenges with high leverage and negative cash flows, impacting its financial stability. While technical indicators show short-term upward momentum, the stock's valuation is under pressure. Earnings call insights provide some optimism with revenue growth and operational improvements, but they are offset by production shortfalls and significant impairments. Overall, the stock score reflects these mixed signals, focusing on financial weaknesses and potential risks.

Positive Factors

Acquisition Benefits

Exro completed the acquisition of SEA Electric and expects to generate positive EBITDA and free cash flow.

Revenue Growth

Exro introduced 2024 revenue guidance of C$24M-C$28M, up meaningfully from C$5.7M the prior year.

Negative Factors

Capital Needs

Exro faces challenges in raising capital due to recent events in the EV industry, including bankruptcies and debt restructurings among other companies.

Financial Performance

Exro's projected revenue for 2025 has been reduced to C$82.0M, which is below the company's guidance and consensus estimates.

Stock Performance

Exro's stock price has decreased by 50% quarter-to-date, and there is anticipation of issuing equity to raise capital, which could be incrementally dilutive.

Exro Technologies Business Overview & Revenue Model

Company Description

Exro Technologies Inc. focuses on developing and commercializing patented coil driver technology and proprietary system architecture for power electronics. The company's technology expands the capabilities of electric motors, generators, and batteries. It also develops the battery control system that provides energy storage system solutions for first and second life batteries. Exro Technologies Inc. was incorporated in 2014 and is headquartered in Calgary, Canada.

How the Company Makes Money

Exro Technologies makes money primarily through the sale and licensing of its proprietary Coil Driver technology to manufacturers of electric vehicles and energy storage systems. The company also generates revenue from partnerships and collaborations with automotive and renewable energy companies that integrate Exro's technology into their products. Key revenue streams include product sales, licensing fees, and potential royalties from long-term agreements with strategic partners. Exro's focus on innovation and strategic alliances in the rapidly growing electric vehicle and renewable energy sectors plays a significant role in its earnings potential.

Exro Technologies Financial Statement Overview

Summary

Exro Technologies exhibits strong revenue growth but struggles with profitability and cost management. High leverage and negative cash flow indicate financial instability and reliance on external funding.

Income Statement

Exro Technologies shows a significant increase in revenue over the years, particularly in the TTM with total revenue of 18.44 million compared to 5.74 million in 2023. However, the company consistently reports negative gross profit, EBIT, EBITDA, and net income, indicating ongoing operational inefficiencies and profitability challenges. The net profit margin is negative, and gross profit margin is significantly low, reflecting high cost structures. Despite growth, profitability remains a major concern.

Balance Sheet

The balance sheet indicates a high debt burden with a debt-to-equity ratio of 2.27 in TTM. The company's stockholders' equity has increased over time, showing some improvement in financial stability. However, the equity ratio is relatively low at 23.88%, suggesting potential risk from high leverage. The company needs to manage liabilities better to achieve financial health.

Cash Flow

Exro Technologies has shown a negative free cash flow in TTM, worsening from previous years, indicating cash management issues. The operating cash flow to net income ratio is negative, highlighting inefficiencies in converting revenue to cash flow. While financing cash flow is positive, largely due to financing activities, reliance on external funding raises sustainability concerns.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
18.44M	5.74M	2.19M	0.00	0.00	0.00
	Gross Profit
-15.70M	2.53M	284.76K	-700.86K	-194.29K	-51.25K
	EBIT
-44.46M	-40.67M	-37.24M	-36.83M	-10.64M	-4.63M
	EBITDA
-260.13M	-42.80M	-36.92M	-30.29M	-10.44M	-4.61M
	Net Income Common Stockholders
-282.79M	-50.62M	-42.81M	-18.51M	-11.00M	-4.67M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
193.72K	6.24M	17.44M	15.35M	48.30M	496.64K
	Total Assets
404.96K	60.14M	60.88M	45.99M	50.17M	888.10K
	Total Debt
200.00K	18.94M	18.84M	5.18M	388.11K	39.41K
	Net Debt
6.28K	12.70M	1.40M	-10.16M	-47.91M	-457.23K
	Total Liabilities
42.43K	27.57M	25.46M	8.22M	2.17M	314.12K
	Stockholders Equity
362.53K	32.57M	35.42M	37.77M	48.01M	573.98K
Cash Flow		Free Cash Flow
-63.36M	-51.44M	-41.57M	-30.31M	-8.21M	-3.94M
	Operating Cash Flow
-58.72M	-42.61M	-31.34M	-20.24M	-7.22M	-3.94M
	Investing Cash Flow
-4.70M	-9.06M	-9.51M	-15.79M	-802.70K	-11.05K
	Financing Cash Flow
56.15M	39.83M	43.66M	3.11M	55.83M	3.69M

Exro Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:EXRO, the sentiment is Positive. The current price of 0.16 is above the 20-day moving average (MA) of 0.09, above the 50-day MA of 0.10, and below the 200-day MA of 0.21, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 78.00 is Negative, neither overbought nor oversold. The STOCH value of 58.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:EXRO.

Exro Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTG	76 Outperform	C$200.88M	14.89	17.82%	―	15.25%	48.96%
Sector *	63 Neutral	$4.28B	11.33	5.43%	214.88%	4.12%	-8.65%
GRN	58 Neutral	C$14.12M	―	-5.60%	―	-10.37%	95.22%
EXRO	47 Neutral	$90.68M	―	-1039.46%	―	322.75%	-93.21%
NXO	22 Underperform	C$2.93M	―	17.92%	―	―	83.87%

Exro Technologies Corporate Events

Exro Technologies Addresses Unusual Market Activity Amid Strategic Focus

Exro Technologies Inc. has responded to recent market activity, clarifying that there is no undisclosed material change in its business or operations that would explain the increase in share price and trading volume. The company continues to explore financing alternatives to support its business plan and remains focused on executing its strategic initiatives, which could have implications for its market positioning and stakeholder interests.

Spark’s Take on TSE:EXRO Stock

According to Spark, TipRanks’ AI Analyst, TSE:EXRO is a Neutral.

Exro Technologies’ overall score is influenced by its impressive revenue growth and cost reduction efforts which are promising for future performance. However, significant financial instability, negative valuation metrics, and operational challenges limit the stock’s attractiveness. The mixed technical signals and negative P/E ratio further weigh on the score, while the positive earnings call provides some optimism for potential improvement.

To see Spark’s full report on TSE:EXRO stock, click here.

Exro Technologies Reports Record Revenue and Strategic Advancements in 2024

Exro Technologies reported a transformative year in 2024, marked by record revenue of $23.1 million following its merger with SEA Electric Inc. The company implemented strategic cost reductions and advanced its Coil Driver™ and Cell Driver™ programs, positioning itself for future growth. Despite macroeconomic challenges, Exro demonstrated resilience by delivering 153 electric propulsion systems and launching innovation programs with major OEMs, including Stellantis. The company is poised for expansion in the battery-electric and hybrid markets, with ongoing commercial discussions in energy storage and continued progress in passenger vehicle partnerships.

Exro Technologies Outlines Strategic Progress and Future Goals for 2025

Exro Technologies has released a shareholder letter detailing its strategic and operational progress as it enters 2025. The company highlights successful OEM partnerships, particularly following its merger with SEA Electric, and ongoing developments in both commercial and passenger vehicle sectors. Exro is also making strides in energy storage, with projects set for delivery in 2025. The company is committed to innovation and improving operational efficiency with the aim of achieving profitability. Despite the resignation of SEA Electric founder Tony Fairweather from the board, Exro remains confident in its financial stability and ongoing support from major shareholders.