Volcon (VLCN) AI Stock Analysis

• Market Cap: $3.04M
• Dividend Yield: N/A
• Average Volume (3M): 161.60K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.05
• Revenue Growth: 23.80%
• EPS Growth: 99.03%
• Country: US
• Employees: 35
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Auto - Manufacturers
• EPS (TTM): -2659.39
• Shares Outstanding: 3,850,824
• 10 Day Avg. Volume: 55,983
• 30 Day Avg. Volume: 161,603
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.12
• Price to Cash Flow (P/CF): 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Volcon's overall score is weighed down by severe financial difficulties, persistent losses, and cash flow issues. Technical indicators show a bearish trend, and valuation metrics are unfavorable due to lack of earnings. The need for strategic changes is imperative to improve financial health and investor confidence.

Volcon Business Overview & Revenue Model

Company Description

Volcon Inc. (VLCN) is an innovative company specializing in the design and manufacturing of all-electric, off-road powersports vehicles. Based in the United States, Volcon targets outdoor enthusiasts by offering a range of electric motorcycles, utility terrain vehicles (UTVs), and other related products. The company's mission is to provide eco-friendly mobility solutions without compromising on performance or excitement.

How the Company Makes Money

Volcon Inc. generates revenue primarily through the sale of its all-electric off-road vehicles. Key revenue streams include direct sales to consumers and dealerships, as well as potential subscription-based services or aftermarket parts and accessories. Additionally, partnerships with retailers and distributors help expand the company's market reach. Volcon may also explore strategic collaborations with technology companies to enhance vehicle features and increase sales potential. The company's earnings are influenced by factors such as market demand for sustainable transportation, brand recognition, and the expanding infrastructure for electric vehicles.

Volcon Financial Statement Overview

Summary

Volcon is facing substantial financial challenges, with significant losses, high leverage, and liquidity constraints. The income statement shows a lack of profitability, the balance sheet highlights leverage risks, and the cash flow statement indicates liquidity issues. Strategic initiatives are necessary to stabilize financial health.

Income Statement

Volcon's income statement reveals significant challenges with profitability. The company has consistently reported negative gross profit and net income, indicating a lack of profitability. Revenue growth is present but insufficient to cover escalating losses, as evidenced by substantial negative EBIT and EBITDA margins. The company's financials highlight an urgent need for strategic adjustments to improve cost management and enhance revenue streams to move toward profitability.

Balance Sheet

The balance sheet shows a concerning financial position with a high debt-to-equity ratio, due in part to negative equity in recent periods. While the company has managed to reduce total liabilities, it still faces significant leverage risks. The equity ratio has improved due to a reduction in liabilities, but the company's overall financial stability remains at risk without a clearer path to profitability and improved equity.

Cash Flow

Volcon's cash flow statement reflects ongoing struggles with negative operating and free cash flow, indicating liquidity issues. Despite some financing activities providing cash inflows, the company remains dependent on external financing. The free cash flow to net income ratio is negative, underscoring the challenge of converting revenue into cash. Improvement in cash flow operations is critical for long-term viability.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.13M	3.26M	4.55M	448.82K	0.00
	Gross Profit
-17.18M	-8.13M	-8.87M	-10.06M	-2.52K
	EBIT
-31.79M	-29.79M	-32.06M	-39.18M	-1.37M
	EBITDA
-40.66M	-39.48M	-30.78M	-39.45M	-1.36M
	Net Income Common Stockholders
-43.71M	-45.07M	-36.41M	-39.36M	-1.37M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.19M	7.98M	10.99M	5.57M	536.08K
	Total Assets
22.13M	22.13M	22.73M	14.62M	1.85M
	Total Debt
31.41M	31.41M	18.96M	2.31M	824.56K
	Net Debt
23.22M	23.43M	7.97M	-3.26M	288.48K
	Total Liabilities
41.76M	41.76M	22.09M	8.32M	3.00M
	Stockholders Equity
-19.63M	-19.63M	635.01K	6.30M	-1.14M
Cash Flow		Free Cash Flow
-25.45M	-30.52M	-34.45M	-25.00M	-1.40M
	Operating Cash Flow
-25.04M	-29.57M	-33.65M	-24.16M	-1.16M
	Investing Cash Flow
-329.97K	-860.72K	-799.41K	-838.03K	-249.04K
	Financing Cash Flow
28.31M	27.08M	40.41M	30.03M	1.94M

Volcon Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.79
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VLCN, the sentiment is Negative. The current price of 0.79 is below the 20-day moving average (MA) of 0.83, below the 50-day MA of 0.90, and below the 200-day MA of 7.10, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 41.36 is Neutral, neither overbought nor oversold. The STOCH value of 50.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VLCN.

Volcon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$6.55B	11.40	3.24%	4.25%	2.38%	-21.28%
AYRO	35 Underperform	$4.23M	―	-9.34%	―	-87.22%	77.29%
EVTV	34 Underperform	$5.58M	―	-42.59%	―	-34.68%	34.15%
ZAPP	28 Underperform	$4.22M	―		―	―	―
VLCN	27 Underperform	$3.04M	―	-864.11%	―	23.80%	99.03%
MULN	21 Underperform	$2.06M	―	-950.02%	―	996.94%	98.82%
DMN	18 Underperform	$617.45K	―		―	―	―

Volcon Corporate Events

Volcon Enters Supplier Agreement with Venom-EV

Volcon, Inc. has entered into a Supplier Agreement with Venom-EV, appointing Volcon as Venom’s supply representative for its gold carts. The agreement allows Volcon to purchase up to $3 million worth of products from Venom’s manufacturer, with payment terms set at net 90 days. Venom will handle shipping, tariffs, and product liability, while Volcon will issue shares to Venom based on product purchases, subject to shareholder approval. The agreement, effective February 25, 2025, has a one-year term with possible extensions and includes provisions for termination in case of insolvency or breach. Additionally, Volcon’s Board of Directors approved new committee appointments on February 21, 2025.