VinFast Auto (VFS) AI Stock Analysis

• Market Cap: $7.34B
• Dividend Yield: N/A
• Average Volume (3M): 522.86K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.01
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 14,000
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Auto - Manufacturers
• EPS (TTM): -0.33
• Shares Outstanding: 2,338,695,800
• 10 Day Avg. Volume: 580,321
• 30 Day Avg. Volume: 522,855
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 19.46
• Price to Cash Flow (P/CF): N/A
• 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: $6.00
• Price Target Upside: 91.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

VinFast Auto's stock score reflects its financial struggles with unprofitability, high debt, and negative cash flows. Technical indicators suggest a bearish trend, and valuation metrics highlight risks due to negative earnings. The earnings call presented positive growth in EV deliveries and strategic investments, but challenges such as negative margins and cash flow concerns persist, weighing down the overall score.

Positive Factors

Capital Funding

Securing $3.5B in capital funding is crucial for scaling production and expanding the global manufacturing footprint.

EV Deliveries

The company reported significant growth in EV deliveries, showing strong market demand.

Negative Factors

Cash Flow

The company experienced a substantial cash burn, which could require additional capital raises.

Financial Performance

Revenue at ~$357M, which was below consensus of ~$438M while adjusted EBITDA was a loss of ~$480M versus a consensus loss of ~$324M.

Revenue

Revenue was below consensus expectations, which can impact investor confidence.

VinFast Auto Business Overview & Revenue Model

Company Description

VinFast Auto Ltd., an automotive manufacturer, engages in Automobiles and E-scooter related business in Vietnam and the United States. The company operates through Automobiles, E-scooter, Spare Parts, and Aftermarket Services segments. The Automobiles segment offers design, development, manufacturing, and sale of cars and electric buses. The E-scooter segment provides design, development, manufacturing, and sales of e-scooters. The Spare Parts, and Aftermarket Services segment engages in sale of spare parts and aftermarket services for automobiles and e-scooters. VinFast Auto Ltd. is based in Hai Phong City, Vietnam. The company operates as a subsidiary of Vingroup Joint Stock Company.

How the Company Makes Money

VinFast Auto makes money primarily through the sale of its electric vehicles, which include cars, scooters, and buses. The company's revenue model is centered around direct sales to consumers and businesses, leveraging showrooms, online platforms, and a network of dealerships. In addition to vehicle sales, VinFast may generate income from after-sales services, such as maintenance and repair, and the sale of parts and accessories. The company has also engaged in strategic partnerships and collaborations with global technology and automotive firms to enhance its product offerings and expand its market reach. These partnerships may contribute to revenue through technology licensing or joint ventures. Additionally, VinFast's focus on innovation and sustainable practices positions it to benefit from government incentives and support for electric vehicle adoption, which can further bolster its financial performance.

VinFast Auto Financial Statement Overview

Summary

VinFast Auto is facing significant financial difficulties characterized by unprofitability, high leverage, and negative cash flows. The company must address operational inefficiencies and improve its financial structure to enhance its long-term viability. Continuous reliance on external financing may not be sustainable without substantial operational improvements.

Income Statement

VinFast Auto's financials show a challenging scenario with negative gross profit margins and net income across multiple periods, indicating persistent unprofitability. The revenue growth rate is positive, suggesting some top-line improvement, but the continuous negative EBIT and EBITDA margins highlight ongoing operational inefficiencies.

Balance Sheet

The balance sheet shows a concerning financial structure with negative stockholders' equity, suggesting insolvency risks. The high total debt further exacerbates leverage concerns, leading to a negative equity ratio. The company's ability to manage and service debt effectively is highly questionable under these circumstances.

Cash Flow

VinFast Auto's cash flow position is strained, evidenced by consistently negative free cash flows and operating cash flows. While financing activities remain robust, potentially indicating external funding reliance, the lack of positive cash flow from operations raises sustainability concerns.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
38.68T	27.90T	14.97T	16.03T	13.69T
	Gross Profit
-16.19T	-13.33T	-12.27T	-9.26T	-6.70T
	EBIT
-42.58T	-40.41T	-42.26T	-27.07T	-13.25T
	EBITDA
-34.39T	-42.07T	-35.05T	-22.87T	-9.50T
	Net Income Common Stockholders
-62.30T	-57.35T	-49.78T	-32.18T	-18.95T
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.01T	4.01T	4.28T	3.03T	828.75B
	Total Assets
10.00T>	10.00T>	10.00T>	85.32T	92.91T
	Total Debt
77.86T	10.00T>	68.50T	75.75T	54.29T
	Net Debt
73.86T	10.00T>	64.23T	72.73T	53.46T
	Total Liabilities
10.00T>	10.00T>	10.00T>	10.00T>	86.73T
	Stockholders Equity
-10.00T>	-10.00T>	-10.00T>	-76.93T	6.15T
Cash Flow		Free Cash Flow
-55.31T	-78.60T	-53.31T	-34.98T	-19.02T
	Operating Cash Flow
-39.64T	-53.65T	-35.63T	-28.97T	-9.35T
	Investing Cash Flow
-14.11T	-23.02T	-16.04T	2.42T	-1.84T
	Financing Cash Flow
52.97T	77.42T	52.95T	28.86T	10.45T

VinFast Auto Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.13
• 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 VFS, the sentiment is Neutral. The current price of 3.13 is above the 20-day moving average (MA) of 3.11, below the 50-day MA of 3.36, and below the 200-day MA of 3.85, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 48.81 is Neutral, neither overbought nor oversold. The STOCH value of 81.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VFS.

VinFast Auto Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LI	73 Outperform	$22.41B	22.03	12.29%	―	15.50%	-32.48%
Sector *	60 Neutral	$7.23B	11.55	3.67%	4.04%	2.96%	-13.54%
XPEV	58 Neutral	$17.96B	―	-17.11%	―	32.32%	49.34%
RIVN	54 Neutral	$12.99B	―	-60.48%	―	12.09%	17.65%
NIO	44 Neutral	$7.10B	―	-142.49%	―	16.99%	12.99%
LCID	37 Underperform	$7.00B	―	-54.15%	―	35.71%	8.24%
VFS	32 Underperform	$7.34B	―	36.15%	―	―	―