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Workhorse Group (WKHS)
NASDAQ:WKHS
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Workhorse Group
(NASDAQ:WKHS)
38Underperform
Positive Factors
Revenue Growth
The company's revenue estimates have been increased for FY2024 and FY2025, suggesting growth expectations.
Strategic Partnerships
Workhorse secured a three-year Master Framework Agreement with FedEx, under which they've already shipped 15 trucks and expect more orders in 2025.
Negative Factors
Financial Challenges
The forecasted adjusted EBITDA remains negative, indicating ongoing financial challenges.
Government Dependency
Workhorse's success may become dependent on the government upholding its previous new energy objectives and driving electrification, which is currently uncertain.
Market Uncertainty
The stock is rated Neutral, reflecting uncertainty about its future performance.
Workhorse Group (WKHS) vs. S&P 500 (SPY)
Market Cap
$6.36M
Dividend YieldN/A
Average Volume (3M)463.27K
Price to Earnings (P/E)―
Beta (1Y)2.44
Revenue Growth-49.47%
EPS Growth54.99%
CountryUS
Employees298
SectorConsumer Cyclical
Sector Strength60
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)-64.57
Shares Outstanding5,125,592
10 Day Avg. Volume593,063
30 Day Avg. Volume463,271
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.77
Price to Cash Flow (P/CF)-0.20
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$2.00Price Target Upside65.29% Upside
Rating ConsensusHold
Number of Analyst Covering1
Workhorse Group Business Overview & Revenue Model
Company DescriptionWorkhorse Group Inc. is a technology company focused on providing sustainable and cost-effective electric transportation solutions. Based in Loveland, Ohio, the company operates primarily in the automotive and aerospace sectors, specializing in the design and manufacture of high-performance, battery-electric vehicles and aircraft. Workhorse Group is known for its electric delivery vans and trucks, as well as its innovative unmanned aerial systems.
How the Company Makes MoneyWorkhorse Group generates revenue primarily through the sale of its electric vehicles and related products. The company designs and manufactures electric delivery vans and commercial trucks, catering to businesses seeking environmentally friendly transportation solutions. Additionally, Workhorse Group offers technology solutions for last-mile delivery, including its HorseFly drone system, which integrates with delivery vehicles to enhance efficiency. Key revenue streams include vehicle sales, technology licensing, and potential service contracts. Strategic partnerships with logistics companies and fleet operators also play a significant role in driving sales and expanding market reach. However, as the company is in a growth phase, it may also rely on capital raises and investments to fund operations and product development.
Workhorse Group Financial Statement Overview
Summary
Workhorse Group's financial statements indicate significant challenges with declining revenues, persistent losses, and high leverage impacting its liquidity and financial stability. The negative cash flow trends further underscore the need for strategic adjustments to improve profitability and financial health.Income Statement
Workhorse Group's income statement shows a concerning trend with negative profit margins and declining revenues. The TTM revenue growth rate is negative at -30.53%, indicating a decrease in total revenue. The gross profit margin is significantly negative, suggesting that cost of goods sold far exceeds revenue. The net profit margin is also heavily negative, reflecting substantial net losses, consistent with its negative EBIT and EBITDA margins. Overall, the financial performance indicates challenges in revenue generation and cost management.35
Negative
Balance Sheet
The balance sheet reveals a mixed picture. The debt-to-equity ratio appears moderate, but there is a high level of total liabilities relative to equity, suggesting potential leverage risks. The equity ratio has declined over the years, indicating a decrease in shareholder equity relative to total assets. The return on equity is negative, driven by significant net losses, which is a concern for investors. Overall, the financial stability is weakened by high leverage and declining equity.45
Neutral
Cash Flow
Workhorse Group's cash flow statement highlights cash flow challenges. The operating cash flow to net income ratio is negative, indicating inefficient cash generation from operations. Free cash flow is negative, and the free cash flow growth rate is also negative, showing a decline in available cash after capital expenditures. This suggests potential liquidity issues and challenges in sustaining operations without additional financing.40
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 9.10M | 13.09M | 5.02M | -851.92K | 1.39M | 376.56K | Gross Profit |
| -30.33M | -25.26M | -32.65M | -133.34M | -11.67M | -5.47M | EBIT |
| -93.58M | -105.30M | -129.08M | -185.11M | 116.32M | -8.02M | EBITDA |
| -86.61M | -111.24M | -113.90M | -414.55M | -40.17M | -30.06M | Net Income Common Stockholders |
| -125.87M | -123.92M | -105.47M | -401.34M | 69.78M | -65.92M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 58.68K | 25.85M | 99.28M | 201.65M | 46.82M | 23.87M | Total Assets |
| 104.36K | 141.67M | 182.74M | 228.14M | 632.54M | 50.67M | Total Debt |
| 150.00K | 29.02M | 10.13M | 26.26M | 199.11M | 39.02M | Net Debt |
| 91.32K | 3.18M | -89.15M | -175.39M | 152.29M | 15.15M | Total Liabilities |
| 1.01M | 58.56M | 74.16M | 53.45M | 237.34M | 85.59M | Stockholders Equity |
| -904.99K | 83.11M | 108.59M | 174.69M | 395.20M | -34.91M |
| Cash Flow | Free Cash Flow | ||||
| -73.78M | -141.71M | -111.32M | -137.89M | -76.01M | -38.88M | Operating Cash Flow |
| -67.59M | -123.02M | -93.82M | -132.58M | -70.28M | -36.87M | Investing Cash Flow |
| -6.19M | -18.69M | -20.02M | 99.81M | -5.73M | 1.65M | Financing Cash Flow |
| 38.16M | 78.28M | 11.47M | -6.82M | 292.37M | 58.57M |
Workhorse Group Technical Analysis
Negative
1.21
Price Trends
4.37
Negative
7.90
Negative
10.59
Negative
Market Momentum
-1.01
Negative
21.55
Positive
4.77
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WKHS, the sentiment is Negative. The current price of 1.21 is below the 20-day moving average (MA) of 1.99, below the 50-day MA of 4.37, and below the 200-day MA of 10.59, indicating a bearish trend. The MACD of -1.01 indicates Negative momentum. The RSI at 21.55 is Positive, neither overbought nor oversold. The STOCH value of 4.77 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WKHS.
Workhorse Group Risk Analysis
Workhorse Group disclosed 43 risk factors in its most recent earnings report. Workhorse Group 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
Workhorse Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
59 Neutral | $248.32M | ― | -19.07% | ― | 22.42% | 30.09% | |
59 Neutral | $10.97B | 9.83 | -1.56% | 4.06% | 1.31% | -16.49% | |
40 Underperform | $1.95M | ― | -72.67% | ― | 258.96% | 82.54% | |
38 Underperform | $6.36M | ― | -159.80% | ― | -49.47% | 54.99% | |
38 Underperform | $11.40M | ― | -129.17% | ― | 141.23% | 69.50% | |
37 Underperform | $225.52M | ― | -18.90% | ― | 124.55% | 56.35% | |
33 Underperform | $4.15M | ― | -9.34% | ― | -87.22% | 77.29% |
* Consumer Cyclical Sector Average
Performance Comparison
WKHS
Workhorse Group
1.21
-50.07
-97.64%
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0.12
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NIU
Niu Technologies
2.93
0.73
33.18%
GOEVQ
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0.14
-47.26
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HYLN
Hyliion Holdings
1.20
-0.30
-20.00%
Workhorse Group Earnings Call Summary
Earnings Call Date: Mar 31, 2025 | % Change Since: -37.63% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
Workhorse has made notable strides in product development and cost reduction but faces significant challenges with revenue decline and market uncertainties impacting EV adoption. The sentiment is balanced with both positive achievements and ongoing challenges.Highlights
Positive Customer Reception and New Orders
Workhorse launched the new W56 208-inch wheelbase truck and received a purchase order for 13 of these step vans, expected to begin delivery in Q2 2025. Additionally, they received approval for the sale of W750 and W56 step van models in Canada.
Operational Cost Reductions
Significant reductions in headcount and other spending activities resulted in lower SG&A expenses by $13.1 million and R&D expenses by $15.3 million compared to 2023.
Strong Product Performance
The W56 model consistently achieved uptime of 93% to 97% and demonstrated strong real-world performance with a range exceeding 150 miles in challenging conditions.
Lowlights
Revenue Decline
Sales net of returns and allowances decreased to $6.6 million for the full year 2024, compared to $13.1 million in 2023, primarily due to lower W4 CC truck sales.
Significant Net Loss
Net loss for the full year 2024 was $101.8 million, compared to a net loss of $123.9 million in 2023, indicating ongoing financial challenges.
Uncertain EV Market Adoption
Regulatory delays, shifting incentives, and other external factors have slowed the pace of EV adoption, affecting Workhorse's ability to secure large-scale orders.
Company Guidance
During the Workhorse Group's Fourth Quarter and Full Year 2024 Earnings Call, the company provided insight into its strategic and financial trajectory. Sales for 2024 were $6.6 million, a decrease from $13.1 million in 2023, attributed to lower W4 CC truck sales, offset by increased W56 sales. The company implemented significant cost-saving measures, reducing SG&A expenses by $13.1 million to $42.5 million and R&D expenses by $15.3 million to $9.1 million, largely due to headcount reductions. Despite a net loss of $101.8 million, an improvement from the $123.9 million loss in 2023, Workhorse maintained a focus on extending its financial runway, with $4.6 million in cash and $41.8 million in inventory. The company emphasized its commitment to advancing its product roadmap and securing orders for its commercial electric vehicles, while navigating challenges in the EV market.Workhorse Group Corporate Events
Delistings and Listing ChangesStock SplitRegulatory Filings and Compliance
Workhorse Group Regains Nasdaq Compliance After Stock Split
Positive
Apr 2, 2025
On April 2, 2025, Workhorse Group Inc. announced it had regained compliance with Nasdaq’s minimum bid price requirement, following a 1-for-12.5 reverse stock split on March 17, 2025. This compliance is crucial for maintaining its listing on the Nasdaq, which can impact the company’s market positioning and access to liquidity.
Delistings and Listing ChangesStock Split
Workhorse Group Announces Reverse Stock Split
Neutral
Mar 12, 2025
On March 12, 2025, Workhorse Group Inc. announced a 1-for-12.5 reverse stock split of its common stock, effective March 17, 2025. This move aims to regain compliance with Nasdaq’s minimum bid price requirement, although there is no assurance of success. The reverse split will reduce the number of authorized common shares and adjust stockholder positions automatically, without affecting voting rights or ownership percentages.
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.