U Power Limited (UCAR) AI Stock Analysis

• Market Cap: $8.28M
• Dividend Yield: N/A
• Average Volume (3M): 97.57K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.03
• 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: 4,971,484
• 10 Day Avg. Volume: 95,894
• 30 Day Avg. Volume: 97,568
• PEG Ratio: -0.36
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 3.12
• P/FCF Ratio: -1.89
• Enterprise Value/Market Cap: 6.54
• Enterprise Value/Revenue: 1.11
• Enterprise Value/Gross Profit: 3.08
• Enterprise Value/Ebitda: -1.48
• 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: 47 Neutral
• Price Target: $1.50 ▼(-3.23% Downside)
• Action: Upgraded Date: 01/27/26
• Date: Action: Upgraded 01/27/26

The score is held back primarily by ongoing unprofitability and weak cash flows despite strong revenue growth. Technicals are mixed with only modest near-term momentum and a weaker longer-term trend. Valuation is also constrained by the negative P/E and lack of dividend yield data.

Positive Factors

Sustained Revenue Growth

Multi-year, high revenue growth demonstrates expanding product adoption and market penetration in a capital-intensive industry. Durable top-line expansion supports scaling network effects, improves negotiating leverage with partners, and provides a platform to pursue margin improvements as fixed costs are spread over higher volumes.

Low Financial Leverage

Very low leverage and a robust equity ratio provide financial flexibility for infrastructure investment and buffer against macro shocks. This capital structure reduces refinance risk, supports continued capex for charging network rollout, and preserves optionality to fund growth without excessive interest burdens.

Favorable Structural Industry Tailwinds

Operating in EV charging and battery swapping positions the company within a secular transition to electric mobility. Recurring service contracts, OEM and energy-provider partnerships, plus policy incentives create a growing addressable market and steady long-term demand for core products and services.

Negative Factors

Persistent Unprofitability

Ongoing net losses indicate the business has not yet achieved sustainable profitability. Continued unprofitability forces reliance on external capital, limits retained-earnings reinvestment, and raises execution risk until operating leverage or structural margin improvements are realized.

Negative Operating and Free Cash Flow

Persistent negative OCF and weakening FCF constrain the firm’s ability to self-fund network expansion and maintenance. This cash generation shortfall increases dependence on short-term financing, heightens refinancing and liquidity risk, and can curtail strategic investments if not remedied.

Governance Consolidation Risk

Proposed increases in Class B voting power and share consolidations can entrench controlling shareholders and reduce minority influence. Weaker governance oversight may impair accountability, bias strategic decisions toward insiders, and elevate long-term governance and shareholder-alignment risks.

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 through multiple streams, primarily by selling and leasing its EV charging stations and battery swapping systems to consumers and businesses. The company also earns money from service contracts associated with the maintenance and operation of its charging infrastructure. Additionally, UCAR partners with automobile manufacturers and energy providers to develop integrated solutions, which can include shared revenue models based on usage rates. Government incentives for electric vehicle adoption and sustainability initiatives further bolster UCAR's earnings by expanding market opportunities and encouraging investment in their technologies.

U Power Limited Financial Statement Overview

Summary

Strong revenue growth and low leverage support stability, but persistent net losses and weak cash generation (negative operating and free cash flow) materially weaken overall financial quality.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	48.83M	44.29M	19.76M	7.80M	8.01M	1.46M
Gross Profit	17.57M	10.46M	12.17M	2.66M	2.87M	1.46M
EBITDA	-36.58M	-46.45M	-12.67M	-49.19M	-40.56M	-4.59M
Net Income	-46.40M	-47.92M	-19.34M	-45.92M	-41.40M	-5.51M
Balance Sheet
Total Assets	396.02M	385.71M	428.99M	281.85M	353.67M	328.71M
Cash, Cash Equivalents and Short-Term Investments	25.81M	23.43M	3.75M	4.88M	14.79M	121.43M
Total Debt	29.67M	32.44M	45.25M	36.09M	26.83M	26.81M
Total Liabilities	69.05M	64.73M	84.37M	76.84M	95.99M	38.63M
Stockholders Equity	302.87M	291.47M	306.67M	165.94M	211.86M	239.19M
Cash Flow
Free Cash Flow	-77.08M	-73.18M	-66.32M	-20.69M	-93.22M	-23.73M
Operating Cash Flow	-77.33M	-73.17M	-65.44M	-12.89M	-82.23M	-22.39M
Investing Cash Flow	35.69M	49.09M	-84.08M	-11.39M	-14.76M	-133.14M
Financing Cash Flow	22.96M	12.96M	179.40M	4.50M	-4.00M	275.62M

U Power Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1.55 is above the 20-day moving average (MA) of 1.43, above the 50-day MA of 1.53, and below the 200-day MA of 2.30, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 48.23 is Neutral, neither overbought nor oversold. The STOCH value of 81.35 is Negative, 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%
UCAR	47 Neutral	$8.28M	-0.83	-15.12%	―	57.71%	35.42%
KXIN	46 Neutral	$14.74M	>-0.01	-94.86%	―	-99.25%	90.38%
CTNT	43 Neutral	$4.62M	-0.69	―	―	―	―
AZI	40 Underperform	$15.67M	-0.05	―	―	32.90%	―

U Power Limited Corporate Events

U Power Limited Appoints HCL, PLLC as New Independent Auditor After Terminating HHL LLP

On January 20, 2026, the audit committee and board of U Power Limited approved a change in the company’s independent auditor, appointing HCL, PLLC to replace HHL LLP, with both the termination of HHL and the engagement of HCL effective as of January 13, 2026. HHL had conducted a limited review of U Power’s interim financial statements for the six months ended June 30, 2025, and the company reported that during this period and up to January 13, 2026 there were no disagreements with HHL on accounting principles, financial statement disclosure, or audit procedures, nor were there any reportable events; U Power also stated it had not previously consulted HCL on accounting or auditing matters prior to the engagement, and HHL subsequently confirmed its agreement with the company’s disclosure in a letter to the U.S. Securities and Exchange Commission dated January 27, 2026, suggesting the auditor transition is not being driven by disclosed disputes over financial reporting.

The most recent analyst rating on (UCAR) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on U Power Limited stock, see the UCAR Stock Forecast page.

U Power Limited Secures $2.5 Million Investment Through Promissory Notes

On December 1, 2025, U Power Limited entered into a placement agency agreement with Maxim Group LLC and a securities purchase agreement with an institutional investor, resulting in the issuance of senior secured promissory notes worth $2,517,000. The transaction, which closed on the same day, involved a 20% original issue discount and no interest unless a default occurs, with a maturity date of March 1, 2026. This agreement strengthens U Power Limited’s financial position by securing significant investment, potentially impacting its market operations and stakeholder interests positively.

The most recent analyst rating on (UCAR) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on U Power Limited stock, see the UCAR Stock Forecast page.

U Power Limited Announces Key Resolutions for 2025 AGM

U Power Limited, a company incorporated in the Cayman Islands, has announced its 2025 Annual General Meeting (AGM) scheduled for December 5, 2025, in Shanghai, China. The meeting will address several key resolutions, including a significant change in the voting power of Class B ordinary shares from 20 votes to 100 votes per share, the adoption of a new memorandum and articles of association, and a series of share consolidations aimed at adjusting the company’s share structure. These changes are intended to enhance the company’s governance and operational flexibility, potentially impacting shareholder influence and the company’s market positioning.

The most recent analyst rating on (UCAR) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on U Power Limited stock, see the UCAR Stock Forecast page.