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Workhorse Group (WKHS)
NASDAQ:WKHS

Workhorse Group (WKHS) AI Stock Analysis

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Workhorse Group

(NASDAQ:WKHS)

Rating:42Neutral
Price Target:
$1.00
▼(-1.96%Downside)
Workhorse Group's stock score is primarily impacted by severe financial instability, including significant losses and high leverage. Technical signals offer limited support, and valuation remains a key concern due to negative earnings. Earnings call highlights modest operational improvements, and regaining Nasdaq compliance is a positive, yet the overall outlook remains cautious.
Positive Factors
Government Contracts
Workhorse was awarded a General Service Administration (GSA) contract, enabling streamlined procurement of their vehicles by federal agencies.
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
Dependency on Government Policies
Workhorse's success may become dependent on the government upholding its previous new energy objectives and driving electrification, which is currently uncertain.
Financial Challenges
The forecasted adjusted EBITDA remains negative, indicating ongoing financial challenges.
Market Uncertainty
The stock is rated Neutral, reflecting uncertainty about its future performance.

Workhorse Group (WKHS) vs. SPDR S&P 500 ETF (SPY)

Workhorse Group Business Overview & Revenue Model

Company DescriptionWorkhorse Group Inc., a technology company, engages in design, manufacture, and sale of zero-emission commercial vehicles in the United States. The company offers electric and range-extended medium-duty delivery trucks under the Workhorse brand; and HorseFly Unmanned Aerial System, a custom-designed purpose-built all-electric drone system. It also provides Metron, an air delivery application that tracks the performance of various the vehicles deployed. The company was formerly known as AMP Holding Inc. and changed its name to Workhorse Group Inc. in April 2015. Workhorse Group Inc. was founded in 2007 and is headquartered in Loveland, Ohio.
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 Earnings Call Summary

Earnings Call Date:May 15, 2025
(Q1-2025)
|
% Change Since: 2.00%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
While Workhorse Group reported significant achievements in terms of orders, partnerships, cost reductions, and product expansions, the company also faced challenges with decreased sales, financial losses, and market uncertainties. The balance of these factors suggests a cautious optimism for future growth.
Q1-2025 Updates
Positive Updates
W56 Step Van Orders and Deliveries
Booked purchase orders for 27 W56 step vans, with deliveries expected in 60 to 120 days. Delivered FedEx's 2024 order of W56 step vans, expanding to 12 FedEx terminals.
Fleet Expansion and Partnerships
New partnerships with Gateway Fleets and various certified service networks. Expanded dealer and service networks with new partners in key metro markets.
Cost Reduction Achievements
Operating expenses reduced by $9.3 million year-over-year, and monthly operating cash reduced to below $3 million.
Product and Market Expansion
Expanded W56 lineup and received certification for sales in Canada. Completed a successful 2,400-mile cross-country trip with the W56.
Production and Delivery Milestones
Workhorse is the only North American OEM producing electric step vans in-house, with six Class 4 to 6 models in production.
Negative Updates
Decreased Sales and Revenue
Sales for Q1 2025 were $600,000, a decrease of $700,000 compared to $1.3 million in the prior year.
Loss and Financial Challenges
Continued net losses with interest expenses increasing due to higher convertible note balances.
Market Uncertainties and No Revenue Guidance
Cited uncertainty in the EV landscape and did not provide specific annual revenue guidance.
Company Guidance
During the Q1 2025 earnings call for Workhorse Group, key metrics were highlighted to illustrate the company's progress and strategic focus. Year-to-date, Workhorse secured purchase orders for 27 W56 step vans, marking a step towards their goal to ship more vehicles in Q2 than in all of the previous year. They reported a $9.3 million reduction in operating expenses year-over-year, reflecting significant cost-cutting measures. The company also noted an increase in sales momentum, with 18 trucks already shipped in the second quarter. Financially, they maintained a cash position of $2.6 million and reported $27.9 million in restricted cash as of March 31, 2025. Workhorse emphasized their unique position as a North American OEM producing electric step vans in-house, which provides them with a competitive edge in quality control and lead times. Despite prevailing market challenges, they continue to focus on disciplined execution, securing customer trust, and maintaining a lean operating environment to ensure long-term growth.

Workhorse Group Financial Statement Overview

Summary
Workhorse Group is experiencing severe financial difficulties with negative profitability and declining sales. High leverage and reduced equity raise concerns about financial stability, while negative cash flows highlight cash management issues.
Income Statement
10
Very Negative
Workhorse Group's income statement shows significant challenges. The gross profit margin remains negative, indicating cost of goods sold exceeds revenue, with a TTM gross loss of $20.6 million. Net profit margin is also deeply negative at -1576%, reflecting substantial losses. Revenue has decreased over time, with a 10.5% decline from the previous year, indicating potential struggles in market penetration and sales effectiveness. EBIT and EBITDA margins are negative, further emphasizing inefficiencies and high operational costs.
Balance Sheet
20
Very Negative
The balance sheet highlights financial instability, with a high debt-to-equity ratio of 1.62 in TTM, suggesting significant leverage. Stockholders' equity has decreased, leading to a low equity ratio of 27.2%, raising concerns about financial stability. However, the presence of cash and short-term investments is a positive aspect, though it has declined. Overall equity has been notably reduced, impacting the company's ability to withstand financial stress.
Cash Flow
15
Very Negative
Cash flow analysis reveals challenges, with negative free cash flow indicating cash outflows are not covered by operations. The operating cash flow to net income ratio is negative, showcasing inefficiencies in generating cash from operations. Financing activities have provided some liquidity, but reliance on external funding is high. The lack of free cash flow growth further underlines cash management issues.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
5.92M6.62M13.09M5.02M-851.92K1.39M
Gross Profit
-20.65M-22.23M-25.26M-32.65M-133.34M-11.67M
EBIT
-63.00M-73.89M-105.30M-129.08M-185.11M116.32M
EBITDA
-60.85M-71.76M-111.24M-113.90M-414.55M-40.17M
Net Income Common Stockholders
-93.28M-101.79M-123.92M-105.47M-401.34M69.78M
Balance SheetCash, Cash Equivalents and Short-Term Investments
23.87M4.12M25.85M99.28M201.65M46.82M
Total Assets
50.67M93.84M141.67M182.74M228.14M632.54M
Total Debt
39.02M16.32M29.02M10.13M26.26M199.11M
Net Debt
15.15M12.20M3.18M-89.15M-175.39M152.29M
Total Liabilities
85.59M49.55M58.56M74.16M53.45M237.34M
Stockholders Equity
-34.91M44.29M83.11M108.59M174.69M395.20M
Cash FlowFree Cash Flow
-38.84M-51.65M-141.71M-111.32M-137.89M-76.01M
Operating Cash Flow
-37.78M-47.59M-123.02M-93.82M-132.58M-70.28M
Investing Cash Flow
-1.06M-4.06M-18.69M-20.02M99.81M-5.73M
Financing Cash Flow
62.70M20.45M78.28M11.47M-6.82M292.37M

Workhorse Group Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1.02
Price Trends
50DMA
1.11
Negative
100DMA
3.20
Negative
200DMA
6.92
Negative
Market Momentum
MACD
-0.08
Negative
RSI
48.04
Neutral
STOCH
60.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WKHS, the sentiment is Neutral. The current price of 1.02 is above the 20-day moving average (MA) of 0.93, below the 50-day MA of 1.11, and below the 200-day MA of 6.92, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 48.04 is Neutral, neither overbought nor oversold. The STOCH value of 60.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$6.96B11.512.80%3.85%2.70%-24.43%
42
Neutral
$3.67M19.40%-98.78%92.98%
42
Neutral
$8.89M-188.79%-53.55%65.29%
40
Underperform
$5.13M-132.63%-47.62%8.34%
39
Underperform
$4.49M-3842.15%2136.62%99.30%
38
Underperform
$10.84M0.82
28
Underperform
$275.99K
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WKHS
Workhorse Group
1.02
-43.60
-97.71%
AYRO
AYRO
0.43
-0.39
-47.56%
MULN
Mullen Automotive
5.62
-169,800,074.38
-100.00%
EVTV
Envirotech Vehicles
0.20
-1.18
-85.51%
ZAPPF
Zapp Electric Vehicles
0.06
-0.69
-92.00%
PEVM
Phoenix Motor Inc
0.22
-0.53
-70.67%

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
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.