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Exro Technologies Inc (TSE:EXRO)
TSX:EXRO
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Exro Technologies
(TSX:EXRO)
42Neutral
Positive Factors
Acquisition and Profitability
Exro completed the acquisition of SEA Electric and expects to generate positive EBITDA and free cash flow.
Revenue Growth
Exro introduced 2025 revenue guidance of C$85M-C$110M, up 217%-310% year over year.
Negative Factors
Debt and Cash Burn
Exro had C$14.0M of cash, C$94.2M of debt, and a low working capital balance of C$8.2M after a significant quarterly cash burn of C$17.9M.
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 Price and Dilution
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 (EXRO) vs. S&P 500 (SPY)
Market Cap
$52.20M
Dividend YieldN/A
Average Volume (3M)315.55K
Price to Earnings (P/E)―
Beta (1Y)2.24
Revenue Growth179.10%
EPS Growth-132.23%
CountryCA
Employees151
SectorIndustrials
Sector Strength66
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)-0.67
Shares Outstanding549,436,400
10 Day Avg. Volume221,692
30 Day Avg. Volume315,553
Financial Highlights & Ratios
PEG RatioN/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 Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$0.50Price Target Upside404.05% Upside
Rating ConsensusHold
Number of Analyst Covering0
Exro Technologies Business Overview & Revenue Model
Company DescriptionExro Technologies Inc. is an innovative technology company focused on developing advanced control solutions for electric motors and powertrains. Operating primarily in the clean technology and renewable energy sectors, Exro aims to enhance the performance and efficiency of electric vehicles, energy storage systems, and other applications through its proprietary Coil Driver technology. This technology optimizes the power output and torque capabilities of electric motors, offering significant improvements in efficiency and performance.
How the Company Makes MoneyExro Technologies generates revenue primarily through the commercialization of its Coil Driver technology, which it licenses to manufacturers of electric vehicles, energy storage systems, and other industries requiring advanced motor control solutions. The company earns income through technology licensing agreements, partnerships, and collaborations with original equipment manufacturers (OEMs) and other businesses seeking to integrate Exro's innovations into their products. Additionally, Exro may engage in direct sales of its technology or related components to end users or industry partners. Key revenue streams include licensing fees, royalties, and potentially product sales, depending on the specific terms of its partnerships and commercial agreements.
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.20
Very Negative
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.30
Negative
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.25
Negative
| 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
Negative
0.10
Price Trends
0.10
Negative
0.13
Negative
0.26
Negative
Market Momentum
>-0.01
Positive
45.75
Neutral
26.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:EXRO, the sentiment is Negative. The current price of 0.1 is below the 20-day moving average (MA) of 0.10, below the 50-day MA of 0.10, and below the 200-day MA of 0.26, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.75 is Neutral, neither overbought nor oversold. The STOCH value of 26.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:EXRO.
Exro Technologies Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Neutral | C$191.32M | 16.78 | 16.43% | ― | 18.03% | -6.83% | |
63 Neutral | C$16.47M | ― | -5.60% | ― | -10.37% | 95.22% | |
62 Neutral | $8.06B | 13.61 | 3.91% | 3.11% | 3.80% | -14.06% | |
45 Neutral | $485.45M | ― | -38.88% | ― | -30.80% | -84.41% | |
42 Neutral | $52.20M | ― | -595.34% | ― | 179.10% | -132.23% | |
22 Underperform | C$2.93M | ― | 17.92% | ― | ― | 83.87% |
* Industrials Sector Average
Performance Comparison
TSE:EXRO
Exro Technologies
0.10
-0.80
-89.33%
TSE:BLDP
Ballard Power Systems
1.62
-2.83
-63.60%
TSE:NXO
NexOptic Technology
0.02
>-0.01
-33.33%
TSE:GRN
Greenlane Renewables Inc
0.09
-0.03
-25.00%
TSE:FTG
Firan Tech
7.60
1.59
26.46%
Exro Technologies Earnings Call Summary
Earnings Call Date: Nov 13, 2024 | % Change Since: -59.18% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant revenue growth and cost reductions, demonstrating strong operational improvements and innovation in power electronics. However, these positives are mitigated by the failure to meet initial production targets and a substantial non-cash impairment related to the SEA Electric acquisition.Highlights
Record Revenue Growth
Achieved a record revenue milestone of $11 million, more than double the $5.3 million posted in Q2. This was driven by the delivery of 74 electric propulsion systems to OEMs, marking a twofold increase sequentially.
Significant Cost Reductions
Achieved over 18% savings on the bill of materials since April, surpassing the initial goal of 5%. The cost of goods sold decreased by approximately 20% quarter-over-quarter.
Strategic Supplier Agreements
Implemented key quality metrics and improved processes, which enhanced relationships with strategic suppliers, aiding in doubling production from the previous quarter.
Innovation in Power Electronics
Exro's technology demonstrated the ability to achieve performance without compromising price, with systems that reduce charging infrastructure costs by 10% to 20%.
Operational Improvements
Reduced payroll and SG&A expenses by 7% and 35% respectively quarter-over-quarter. The company also reduced headcount by approximately 35% since April.
Lowlights
Failure to Meet Initial Production Targets
Initial expectations were to deliver 250 units post-SEA Electric merger, but only half of this target was achieved due to integration challenges.
Non-Cash Goodwill Impairment
A $211 million non-cash impairment was recorded due to the decline in share price and decreased volume outlook since the SEA Electric acquisition.
Supply Chain Challenges
Despite improvements, supply chain challenges persisted from Q2, impacting cost efficiency and production schedules.
Company Guidance
During the Q3 2024 earnings call for Exro Technologies, the company provided several key metrics and guidance for the future. Exro reported a remarkable 108% increase in revenue, achieving a record $11 million, driven by the delivery of 74 e-Propulsion systems, a 106% increase from Q2 2024. The company also highlighted substantial cost savings, achieving over 18% reduction in the bill of materials since April, with a goal of an additional 20% reduction by Q2 2025. Operational efficiencies led to a 20% decrease in unit costs quarter-over-quarter, while payroll and SG&A expenses were reduced by 7% and 35%, respectively. Exro's strategic initiatives include integrating their coil driver technology with OEM partners, aiming for full integration by the second half of 2025. Despite a $211 million noncash impairment due to share price depreciation, the company remains focused on achieving profitability, supported by a $25 million equity financing and ongoing efforts to secure non-dilutive capital. Exro anticipates continued quarter-over-quarter growth and is poised for further expansion heading into 2025.Exro Technologies Corporate Events
Exro Technologies Issues Shares for Debenture Interest
Dec 21, 2024
Exro Technologies Inc. has announced that it will settle interest payments on its secured convertible debentures by issuing 6,407,141 common shares at a price of $0.14 each. This decision is part of Exro’s strategy to manage its financial obligations while continuing to innovate in the clean-technology space.
Exro Technologies Advances Clean Energy with New Installation
Dec 12, 2024
Exro Technologies has successfully installed its first Cell Driver™ Energy Storage System at Red Deer Polytechnic, integrating it with a large solar system and a heat and power unit. This project demonstrates the potential for clean energy in commercial buildings and offers students hands-on experience with innovative technology.
Exro Technologies to Join Benchmark Investor Conference
Dec 10, 2024
Exro Technologies, a leader in clean technology for electric propulsion systems, is set to participate in The Benchmark Company’s 13th Annual Discovery Investor Conference in New York City. The company will engage with investors to showcase its innovative solutions and discuss strategic initiatives for future growth.
Exro Technologies Unveils Coil Driver at Analyst Day
Nov 14, 2024
Exro Technologies, a leader in clean technology, unveiled its Coil Driver technology integrated into OEM vehicles at its first Analyst Day. The company highlighted its strategic partnerships and outlined ambitious revenue growth targets for the coming years. Exro is set to transform the EV landscape with its innovative propulsion systems, aiming for profitability by the end of 2025.
Exro Technologies to Showcase Innovations at ROTH Conference
Nov 13, 2024
Exro Technologies, a leader in clean technology for e-mobility, will engage with institutional investors at the ROTH Technology Conference in New York City, showcasing their cutting-edge electric propulsion solutions. This participation underscores Exro’s commitment to advancing mobility through innovative technologies like Coil Driver, SEA-Drive, and Cell Driver, which enhance the performance and efficiency of electric motors and batteries.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.