Workhorse Group (WKHS) AI Stock Analysis

• Market Cap: $17.83M
• Dividend Yield: N/A
• Average Volume (3M): 1.14M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.33
• Revenue Growth: 11.73%
• EPS Growth: 74.79%
• Country: US
• Employees: 143
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): -1.67
• Shares Outstanding: 15,373,266
• 10 Day Avg. Volume: 1,269,371
• 30 Day Avg. Volume: 1,139,055
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.66
• Enterprise Value/Revenue: 2.75
• Enterprise Value/Gross Profit: -1.37
• Enterprise Value/Ebitda: -0.54
• 1Y Price Target: $1.50
• Price Target Upside: 33.93% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 45 Neutral
• Price Target: $1.50 ▲(33.93% Upside)

Workhorse Group's overall stock score is primarily impacted by its weak financial performance, characterized by persistent losses and high leverage. While the strategic merger with Motiv Power Systems and recent operational improvements offer some positive outlook, the technical indicators and valuation metrics remain unfavorable. The company's reliance on external financing and increased costs further weigh on the score.

Positive Factors

Strategic Merger

The merger with Motiv Power Systems is expected to enhance Workhorse's market position, financial stability, and operational scale, allowing for a broader portfolio of commercial electric vehicles at lower costs.

Revenue Growth

The significant increase in sales from higher shipments of W56 step vans indicates strong demand and operational success, contributing to revenue growth and market expansion.

Cost Reductions

The reduction in SG&A expenses demonstrates effective cost management, which can improve profitability and financial health over time, supporting long-term business sustainability.

Negative Factors

High Leverage

High leverage indicates significant financial risk, potentially limiting financial flexibility and increasing vulnerability to economic downturns, which could impact long-term stability.

Cash Flow Challenges

Negative cash flows highlight ongoing financial challenges, limiting the company's ability to reinvest in growth opportunities and potentially affecting its long-term viability.

Dependence on External Financing

Reliance on external financing underscores financial instability, which can hinder strategic initiatives and increase risk, affecting the company's ability to sustain operations and growth.

Workhorse Group Business Overview & Revenue Model

Company Description

Workhorse Group Inc. is an American technology company focused on providing sustainable and efficient electric delivery vehicles and drones. The company operates primarily in the transportation sector, targeting commercial fleet operators by designing and manufacturing electric vehicles, including last-mile delivery vans and trucks. Workhorse is also engaged in the development of drone technology for package delivery, aiming to enhance logistics and distribution efficiency.

How the Company Makes Money

Workhorse Group generates revenue primarily through the sale of its electric delivery vehicles to commercial clients, including fleet operators and logistics companies. The company has established key partnerships with various organizations to enhance its distribution capabilities and expand its market presence. Additionally, Workhorse may earn revenue from service agreements, maintenance contracts, and potential licensing of its drone technology. The company is also involved in research and development (R&D) initiatives, which could lead to future revenue streams through innovative products and solutions in the electric vehicle and drone delivery markets.

Workhorse Group Financial Statement Overview

Summary

Workhorse Group faces significant financial challenges across all verticals. The income statement shows persistent losses despite revenue growth, the balance sheet indicates high leverage and low equity, and cash flow statements reflect ongoing cash deficits. The company needs to address these issues to improve financial health and stability.

Income Statement

Workhorse Group's income statement shows significant challenges with negative gross and net profit margins, indicating unprofitability. Despite a notable revenue growth rate of 81.57% in the TTM, the company continues to incur substantial losses, as evidenced by negative EBIT and EBITDA margins. The trajectory suggests ongoing operational difficulties.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 1.61 in the TTM, indicating significant leverage and potential financial risk. The return on equity is negative, highlighting the company's inability to generate profits from shareholders' equity. The equity ratio is low, suggesting limited financial stability.

Cash Flow

Cash flow analysis reveals negative operating and free cash flows, with a declining free cash flow growth rate. The operating cash flow to net income ratio is negative, indicating cash flow challenges. The free cash flow to net income ratio is slightly above 1, but overall cash flow health remains weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.75M	6.62M	13.09M	5.02M	-851.92K	1.39M
Gross Profit	-21.57M	-22.23M	-25.26M	-32.65M	-133.34M	-11.67M
EBITDA	-55.04M	-71.76M	-111.24M	-113.90M	-414.55M	-40.17M
Net Income	-81.74M	-101.79M	-123.92M	-105.47M	-401.34M	69.78M
Balance Sheet
Total Assets	99.25M	93.84M	141.67M	182.74M	228.14M	632.54M
Cash, Cash Equivalents and Short-Term Investments	2.19M	4.12M	25.85M	99.28M	201.65M	46.82M
Total Debt	44.54M	16.32M	29.02M	10.13M	26.26M	199.11M
Total Liabilities	76.91M	49.55M	58.56M	74.16M	53.45M	237.34M
Stockholders Equity	22.35M	44.29M	83.11M	108.59M	174.69M	395.20M
Cash Flow
Free Cash Flow	-31.86M	-51.65M	-141.71M	-111.32M	-137.89M	-76.01M
Operating Cash Flow	-31.55M	-47.59M	-123.02M	-93.82M	-132.58M	-70.28M
Investing Cash Flow	-304.94K	-4.06M	-18.69M	-20.02M	99.81M	-5.73M
Financing Cash Flow	51.27M	20.45M	78.28M	11.47M	-6.82M	292.37M

Workhorse Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.12
• 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 WKHS, the sentiment is Negative. The current price of 1.12 is below the 20-day moving average (MA) of 1.20, below the 50-day MA of 1.54, and below the 200-day MA of 3.61, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 35.00 is Neutral, neither overbought nor oversold. The STOCH value of 29.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WKHS.

Workhorse Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WKHS	45 Neutral	$17.83M	―	-201.87%	―	11.73%	74.79%
EVTV	44 Neutral	7.31M	-0.20	-42.29%	―	2.97%	-11.17%
SBLX	41 Neutral	4.67M	-0.10	-14.31%	―	-98.22%	49.35%
PEVM	38 Underperform	8.23M	-0.40	―	―	―	―
BINI	37 Underperform	117.52K	―	1600.57%	―	5865.42%	99.51%
ZAPPF	28 Underperform	1.41M	―	―	―	―	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Workhorse Group Corporate Events

Workhorse Group Announces Merger with Motiv

On August 19, 2025, Workhorse Group Inc. will present to industry analysts about transactions detailed in a recent report, highlighting a merger with Motiv. This announcement is significant for Workhorse as it could impact their market positioning and operational strategies, with potential implications for stakeholders, including regulatory approvals and market reactions.

Workhorse Group Announces Merger with Motiv Power Systems

On August 15, 2025, Workhorse Group Inc. entered into a merger agreement with Motiv Power Systems, Inc., aiming to create a leading medium-duty electric truck OEM in North America. The merger, which involves an all-stock transaction, positions Motiv’s controlling investor as the majority owner of the combined company, while Workhorse shareholders retain a significant equity stake. The merger is expected to enhance the combined company’s financial profile and operational scale, allowing it to offer a broader portfolio of commercial electric vehicles at lower costs. The transaction also includes a $20 million sale leaseback of Workhorse’s Union City plant and a $5 million convertible note, providing liquidity to fund operations and repay existing debt. The merger is anticipated to drive cost synergies and strengthen the company’s market position in the electric vehicle industry.

Workhorse Group Reenters Exclusivity Agreement for Merger

On August 4, 2025, Workhorse Group Inc. announced that it has reentered an exclusivity agreement with a privately held U.S.-based manufacturer of electric commercial vehicles. This agreement reinstates restrictions from a previous agreement, which expired on July 28, 2025, and is part of ongoing discussions about a potential merger where the manufacturer would be merged into a newly created subsidiary of Workhorse in exchange for newly issued shares. The potential transaction could impact the company’s operations and market positioning, but it is subject to various risks and uncertainties, including regulatory approvals and market reactions.

Workhorse Group Engages in Merger Discussions

On July 14, 2025, Workhorse Group announced ongoing discussions with a U.S.-based electric commercial vehicle manufacturer about a potential merger. This transaction could lead to the Manufacturer’s investors holding a majority of Workhorse’s stock. The deal also involves refinancing existing notes and a sale-leaseback of a manufacturing facility. However, no definitive agreements have been reached, and the transaction is subject to various approvals and conditions.