U Power Limited (UCAR) AI Stock Analysis

• Market Cap: $2.46M
• Dividend Yield: N/A
• Average Volume (3M): 97.57K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.76
• Revenue Growth: 57.71%
• EPS Growth: 35.42%
• Country: US
• Employees: 77
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): -0.80
• Shares Outstanding: 4,864,856
• 10 Day Avg. Volume: 95,894
• 30 Day Avg. Volume: 97,568
• 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: 7.67
• Enterprise Value/Revenue: 0.42
• Enterprise Value/Gross Profit: 2.06
• Enterprise Value/Ebitda: -0.46
• 1Y Price Target: $3.00
• Price Target Upside: 57.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 42 Neutral
• Price Target: $2.00 ▲(4.71% Upside)

U Power Limited's overall stock score is primarily impacted by its financial performance challenges, including profitability and cash flow issues. The technical analysis further highlights bearish market sentiment, while the valuation metrics indicate unattractiveness due to ongoing losses.

Positive Factors

Revenue Growth

U Power Limited's significant revenue growth indicates strong market demand for its electric vehicle platforms and technology solutions, suggesting a robust business model and potential for future expansion.

Strategic Partnerships

The partnership to deploy battery-swapping electric trucks in Thailand and explore other markets enhances U Power's market position and technological capabilities, supporting long-term growth and diversification.

Low Leverage

U Power's low leverage indicates financial stability and flexibility, allowing the company to invest in growth opportunities without significant financial strain, supporting sustainable long-term operations.

Negative Factors

Profitability Challenges

Ongoing profitability challenges with negative net income suggest operational inefficiencies and high costs, which could hinder U Power's ability to reinvest in growth and innovation over the long term.

Cash Flow Issues

Negative cash flows indicate difficulties in generating cash from operations, which could limit U Power's ability to fund new projects and manage financial obligations, impacting long-term viability.

Increasing Liabilities

Rising liabilities could pose a risk to U Power's financial health, potentially leading to increased interest expenses and reduced financial flexibility, affecting the company's ability to sustain growth.

U Power Limited Business Overview & Revenue Model

Company Description

U Power Limited develops, manufactures, and sells new energy vehicles and battery swapping stations in the People's Republic of China. It also offers battery swapping and sourcing services. The company was founded in 2013 and is based in Shanghai, the People's Republic of China.

How the Company Makes Money

U Power Limited generates revenue primarily through the sale of electric vehicle platforms and related technology solutions. The company's key revenue streams include licensing its electric vehicle technologies to automotive manufacturers and partnering with other companies to develop smart transportation systems. Additionally, it might receive income from strategic alliances and joint ventures that expand its market reach and technological capabilities. However, specific data on significant partnerships or detailed financial contributions to its earnings is not available.

U Power Limited Financial Statement Overview

Summary

U Power Limited shows strong revenue growth and a solid equity position. However, it faces significant challenges in profitability and cash flow management, with negative net income and cash flows indicating operational inefficiencies.

Income Statement

U Power Limited has shown significant revenue growth over the years, with a notable increase from $1.46 million in 2020 to $44.29 million in 2024. However, the company has consistently reported negative net income, indicating ongoing profitability challenges. The gross profit margin has been positive, but the net profit margin remains negative due to high operating expenses and negative EBIT and EBITDA margins.

Balance Sheet

The company's balance sheet reflects a strong equity position with a debt-to-equity ratio of approximately 0.11 in 2024, indicating low leverage. The equity ratio is also robust at around 75.6%, suggesting financial stability. However, the consistent increase in total liabilities over the years poses a potential risk.

Cash Flow

U Power Limited's cash flow situation is concerning, with negative operating and free cash flows indicating challenges in generating cash from operations. The free cash flow has deteriorated over the years, and the operating cash flow to net income ratio is unfavorable, reflecting inefficiencies in cash management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	44.29M	19.76M	7.80M	8.01M	1.46M
Gross Profit	10.46M	12.17M	2.66M	2.87M	1.46M
EBITDA	-46.45M	-12.67M	-49.19M	-40.56M	-4.59M
Net Income	-47.92M	-19.34M	-45.92M	-41.40M	-5.51M
Balance Sheet
Total Assets	385.71M	428.99M	281.85M	353.67M	328.71M
Cash, Cash Equivalents and Short-Term Investments	23.43M	3.75M	4.88M	14.79M	121.43M
Total Debt	32.44M	45.25M	36.09M	26.83M	26.81M
Total Liabilities	64.73M	84.37M	76.84M	95.99M	38.63M
Stockholders Equity	291.47M	306.67M	165.94M	211.86M	239.19M
Cash Flow
Free Cash Flow	-73.18M	-66.32M	-20.69M	-93.22M	-23.73M
Operating Cash Flow	-73.17M	-65.44M	-12.89M	-82.23M	-22.39M
Investing Cash Flow	49.09M	-84.08M	-11.39M	-14.76M	-133.14M
Financing Cash Flow	12.96M	179.40M	4.50M	-4.00M	275.62M

U Power Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.91
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UCAR, the sentiment is Negative. The current price of 1.91 is below the 20-day moving average (MA) of 2.01, below the 50-day MA of 2.02, and below the 200-day MA of 3.12, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 36.42 is Neutral, neither overbought nor oversold. The STOCH value of 13.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UCAR.

U Power Limited 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%
CANG	58 Neutral	$733.88M	6.63	-31.61%	―	348.38%	-1821.85%
RDNW	46 Neutral	$123.67M	―	-246.90%	―	-14.27%	67.06%
UCAR	42 Neutral	$2.46M	―	-15.12%	―	57.71%	35.42%
UXIN	42 Neutral	$620.57M	―	―	―	―	―
KXIN	38 Underperform	$9.97M	―	-94.86%	―	-99.25%	90.38%
VRM	38 Underperform	$135.76M	―	-45.88%	―	-90.19%	79.52%

U Power Limited Corporate Events

U Power Limited Releases H1 2025 Financial Results

On October 10, 2025, U Power Limited announced its financial results for the first half of 2025, ending June 30. The unaudited financial statements reveal the company’s financial position, highlighting assets, liabilities, and equity. This announcement provides stakeholders with insights into the company’s financial health and operational prospects, potentially impacting its market positioning and investor confidence.

U Power Limited Appoints New Independent Auditor

U Power Limited, a company incorporated in the Cayman Islands, has announced a change in its independent auditor. On July 25, 2025, the company’s audit committee recommended, and the board approved, replacing Onestop Assurance PAC with HHL LLP as the independent auditor, effective July 24, 2025. This change follows a period during which there were no disagreements or reportable events with Onestop regarding the company’s financial statements. The transition to HHL LLP is expected to proceed smoothly without impacting the company’s financial reporting or stakeholder relations.

U Power Limited Secures $1.4 Million in Registered Direct Offering

On July 24, 2025, U Power Limited entered into a securities purchase agreement with an institutional investor to issue and sell 445,000 Class A ordinary shares and pre-funded warrants in a registered direct offering, alongside unregistered common warrants in a private placement. The transaction, closed on July 25, 2025, raised approximately $1.4 million in gross proceeds, which the company plans to use for market expansion, business development, and general corporate purposes. This move is expected to enhance U Power’s market positioning and support its strategic growth initiatives.