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VinFast Auto (VFS)
NASDAQ:VFS
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VinFast Auto
(NASDAQ:VFS)
39Underperform
Positive Factors
Cost Management
Gross margins improved significantly compared to the previous quarter, indicating better cost management.
EV Deliveries
VinFast Auto Ltd. has seen a significant increase in EV deliveries, with 53.1k units delivered, marking a 342% year-over-year growth, mainly driven by the Vietnam market.
Market Leadership
The company's forecast for 2025 indicates a potential doubling of EV deliveries compared to 2024, highlighting its strong market leadership in Vietnam.
Negative Factors
Cash Burn
The company experienced a substantial cash burn, which could require additional capital raises.
Financial Outlook
VinFast is projected to face continuing financial losses with EBITDA losses expected to persist through 2026, driven by lower pricing and a shift towards more affordable models.
Profitability Concerns
Profitability remains a major concern as EV pricing is declining globally, delaying VinFast's breakeven point to 2027.
VinFast Auto (VFS) vs. S&P 500 (SPY)
Market Cap
$8.35B
Dividend YieldN/A
Average Volume (3M)481.50K
Price to Earnings (P/E)―
Beta (1Y)1.75
Revenue Growth139.64%
EPS Growth-159.15%
CountryUS
Employees17,823
SectorConsumer Cyclical
Sector Strength75
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)N/A
Shares Outstanding2,338,812,700
10 Day Avg. Volume489,467
30 Day Avg. Volume481,500
Financial Highlights & Ratios
PEG Ratio-0.12
Price to Book (P/B)-1.38
Price to Sales (P/S)0.00
P/FCF Ratio-4.80
Enterprise Value/Market Cap44.27K
Enterprise Value/Revenue2.43
Enterprise Value/Gross Profit-14.74
Enterprise Value/Ebitda-2.41
Forecast
1Y Price Target
$5.50Price Target Upside55.37% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
VinFast Auto Business Overview & Revenue Model
Company DescriptionVinFast 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 MoneyVinFast Auto generates revenue primarily through the sale of its electric vehicles, which include a range of electric cars and scooters appealing to both domestic and international markets. The company also earns from its electric buses, catering to public and private transportation sectors. Key revenue streams include vehicle sales, after-sales services, and maintenance. VinFast may also benefit from strategic partnerships with global technology and automotive leaders to enhance its product offerings and expand its market reach, although specific partnership details are not explicitly available.
VinFast Auto Financial Statement Overview
Summary
VinFast Auto is experiencing rapid revenue growth; however, it struggles with high costs leading to persistent losses and negative margins. The balance sheet reveals significant leverage and negative equity, raising concerns about financial sustainability. Cash flow challenges persist, with negative free cash flow and insufficient operational cash generation. The company's financial health is precarious, with an urgent need for cost control and improved operational efficiency.Income Statement
VinFast Auto has shown significant revenue growth of 57.7% from 2022 to 2023 and 57.7% from 2023 to 2024, indicating a strong upward trend. However, the company has consistently reported negative gross profit margins, with the most recent being -57.4% in 2024, suggesting challenges in managing production costs. The net profit margin has deteriorated to -175.5% in 2024, reflecting persistent losses. EBIT and EBITDA margins are also deeply negative, showing ongoing operational inefficiencies.20
Very Negative
Balance Sheet
VinFast Auto exhibits a concerning financial structure with a negative stockholders' equity of -164.7 trillion in 2024. The debt-to-equity ratio cannot be calculated due to negative equity, but the high total debt of 146.4 trillion indicates significant leverage. The equity ratio is negative, highlighting an imbalance between assets and liabilities, posing a risk to financial stability.10
Very Negative
Cash Flow
The company has reported negative free cash flow, which has worsened to -47.2 trillion in 2024. While operating cash flows have improved slightly from 2023 to 2024, they remain negative, indicating ongoing cash consumption. The free cash flow to net income ratio is negative, suggesting that the company is not generating cash from its operations to cover its losses.15
Very Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 44.02T | 27.90T | 14.97T | 16.03T | 13.69T | Gross Profit |
| -25.28T | -13.33T | -12.27T | -9.26T | -6.70T | EBIT |
| -55.40T | -40.41T | -42.26T | -27.07T | -13.25T | EBITDA |
| -51.85T | -42.07T | -35.05T | -22.87T | -9.50T | Net Income Common Stockholders |
| -77.27T | -57.35T | -49.78T | -32.18T | -18.95T |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 4.13T | 4.01T | 4.28T | 3.03T | 828.75B | Total Assets |
| 10.00T> | 10.00T> | 10.00T> | 85.32T | 92.91T | Total Debt |
| 10.00T> | 10.00T> | 68.50T | 75.75T | 54.29T | Net Debt |
| 10.00T> | 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 | |||
| -47.16T | -78.60T | -53.31T | -34.98T | -19.02T | Operating Cash Flow |
| -30.47T | -53.65T | -35.63T | -28.97T | -9.35T | Investing Cash Flow |
| -16.03T | -23.02T | -16.04T | 2.42T | -1.84T | Financing Cash Flow |
| 49.00T | 77.42T | 52.95T | 28.86T | 10.45T |
VinFast Auto Technical Analysis
Neutral
3.54
Price Trends
3.30
Positive
3.60
Negative
3.76
Negative
Market Momentum
0.10
Positive
54.17
Neutral
26.62
Neutral
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 3.54 is above the 20-day moving average (MA) of 3.53, above the 50-day MA of 3.30, and below the 200-day MA of 3.76, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 54.17 is Neutral, neither overbought nor oversold. The STOCH value of 26.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VFS.
VinFast Auto Risk Analysis
VinFast Auto disclosed 100 risk factors in its most recent earnings report. VinFast Auto reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
VinFast Auto Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $28.07B | 26.92 | 12.29% | ― | 15.50% | -32.48% | |
62 Neutral | $6.98B | 11.38 | 2.86% | 3.90% | 2.64% | -22.07% | |
56 Neutral | $18.68B | ― | -53.82% | ― | 0.58% | 35.39% | |
50 Neutral | $18.85B | ― | -17.11% | ― | 32.32% | 49.34% | |
48 Neutral | $8.21B | ― | -142.49% | ― | 16.99% | 12.99% | |
43 Neutral | $8.17B | ― | -50.06% | ― | 40.67% | 3.40% | |
39 Underperform | $8.35B | ― | 36.15% | ― | 139.64% | -159.15% |
* Consumer Cyclical Sector Average
Performance Comparison
VFS
VinFast Auto
3.54
-1.13
-24.20%
NIO
Nio
3.96
-1.28
-24.43%
LI
Li Auto
28.25
7.48
36.01%
XPEV
XPeng, Inc. ADR
19.69
10.94
125.03%
LCID
Lucid Group
2.96
0.07
2.42%
RIVN
Rivian Automotive
16.92
6.22
58.13%
VinFast Auto Earnings Call Summary
Earnings Call Date:Apr 24, 2025
(Q1-2025)
| % Change Since: 9.60%|
Next Earnings Date:Jun 09, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted VinFast's impressive growth in deliveries, international expansion, and strategic initiatives. However, challenges such as gross margin pressures, increased operating expenses, and ongoing net losses were also evident. The company remains optimistic about its 2025 outlook, driven by product innovation and market expansions.Q1-2025 Updates
Positive Updates
Exceeding Delivery Targets
VinFast achieved a total delivery of 97,399 EVs globally in 2024, surpassing the initial target of 80,000. Q4 2024 saw a significant increase with 53,139 vehicles delivered, marking a 143% quarter-over-quarter and 342% year-over-year growth.
International Expansion
International sales grew by 10x year-over-year, increasing from 3% to 10% of total deliveries. VinFast expanded its showroom presence significantly with a 160% growth in the number of showrooms as of March 2025.
Improved Gross Margin
Full-year gross margin excluding NRV and one-off accounting charges improved to -32% from -40% in 2023. Q4 2024 saw a decrease in average unit BOM and production costs for EVs by 16% and 43% respectively.
Strategic Partnerships and Ecosystem Development
VinFast launched new entities like GSM and V-Green to form a green mobility ecosystem. This ecosystem aims to overcome consumer skepticism by offering low-risk exposure to EVs before purchase.
Capital Support and Liquidity
VinFast strengthened its balance sheet with over $1.5 billion in disbursements from its founder and loans, with a liquidity position of approximately $3 billion as of March 2025.
Negative Updates
Gross Margin Challenges
Q4 2024 gross margin was impacted by an accounting charge related to the free charging program, leading to a reported gross margin of -79% for the quarter.
High Operating Costs
Q4 2024 SG&A expenses increased by 89% quarter-over-quarter and by 108% year-over-year, partly due to scaling sales operations and impairment charges.
Continued Net Loss
Full-year 2024 net loss stood at -$3.2 billion, despite improvements in some financial metrics.
High Cash Burn
Despite improvements, the company still experienced significant cash burn, with operating cash burn only slightly reduced to $1.25 billion in 2024.
Tariff and Market Challenges
The potential impact of new U.S. tariffs poses a risk to VinFast's sales and market strategy, although the company has taken steps to mitigate this.
Company Guidance
During VinFast's Q4 2024 and full-year earnings call, the company provided guidance for 2025, emphasizing a target to double the previous year's deliveries, with a strong focus on expanding market share in Vietnam and international markets, particularly in Asia. The company reported 97,399 EV deliveries in 2024, surpassing its 80,000 target, and projected further growth driven by new CKD plants in Asia, expected to add a capacity of up to 300,000 vehicles annually. VinFast also highlighted a 160% growth in showrooms, from 123 in December 2023 to 322 by March 2025. The guidance underscored an ongoing commitment to product innovation, with a focus on affordability and quality, aiming for a full-year EBITDA profitability while navigating macroeconomic uncertainties.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.