Worksport (WKSP) AI Stock Analysis

• Market Cap: $22.52M
• Dividend Yield: N/A
• Average Volume (3M): 492.09K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.91
• Revenue Growth: 232.13%
• EPS Growth: 41.77%
• Country: US
• Employees: 80
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): -0.71
• Shares Outstanding: 6,642,038
• 10 Day Avg. Volume: 954,482
• 30 Day Avg. Volume: 492,086
• 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: 0.74
• Enterprise Value/Revenue: 1.63
• Enterprise Value/Gross Profit: 13.17
• Enterprise Value/Ebitda: -1.13
• 1Y Price Target: $7.33
• Price Target Upside: 116.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 53 Neutral
• Price Target: $3.50 ▲(3.24% Upside)

Worksport's strong revenue growth and improved gross margins are significant positives. However, profitability challenges, cash flow concerns, and a negative P/E ratio weigh on the overall score. The technical indicators suggest short-term momentum, but longer-term trends remain uncertain.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and successful product adoption, positioning Worksport for continued expansion in the auto parts industry.

Gross Margin Improvement

Consistent improvement in gross margins suggests effective cost management and pricing strategies, enhancing long-term profitability potential.

Product Innovation

The introduction of new products like HD3, SOLIS, and COR is expected to diversify revenue streams and strengthen Worksport's competitive position in the market.

Negative Factors

Profitability Challenges

Ongoing profitability issues reflect challenges in managing costs and achieving economies of scale, potentially impacting long-term financial health.

Cash Flow Concerns

Negative cash flows indicate potential liquidity issues, which could constrain the company's ability to invest in growth and innovation.

Operating Expenses

Rising operating expenses without corresponding revenue increases can pressure margins and hinder profitability, requiring strategic cost management.

Worksport Business Overview & Revenue Model

Company Description

Worksport Ltd., through its subsidiary, designs, manufactures, and distributes truck tonneau covers in Canada and the United States. The company offers soft cover (SC) and tough cover (TC) tonneau covers, including SC3, a tri-fold cover that seals around the truck bed with a rubber gasket designed to protect cargo from moisture and debris; SC3pro that allows the operator to open the cover by pulling a release cable; and TC3, a thick aluminum tri-cover panel with a honey-comb core coated in a durable black scratch-resistant powder coating. It is also developing TerraVis, a solar cover tonneau cover that gives rechargeable portable power to pickup truck owners. The company distributes its products through wholesalers and online retail channels. It serves private labels and original equipment manufacturers. Worksport Ltd. has a collaboration agreement with Greatcell Energy Pty Ltd. The company was formerly known as Franchise Holdings International, Inc. and changed its name to Worksport Ltd. in May 2020. Worksport Ltd. is based in Vaughan, Canada.

How the Company Makes Money

Worksport generates revenue primarily through the sale of its products, which include premium tonneau covers and solar technology accessories. The company employs a direct-to-consumer sales model, leveraging e-commerce platforms and its own website to reach customers. Additionally, Worksport forms strategic partnerships with automotive retailers and distributors to expand its market reach. The company may also explore licensing agreements or collaborations with automotive manufacturers to incorporate its technology into new vehicle models, further diversifying its revenue streams. Seasonal promotions and marketing campaigns also play a role in driving sales, particularly during peak truck-buying seasons.

Worksport Financial Statement Overview

Summary

Worksport shows significant revenue growth potential but struggles with profitability and cash flow management. The balance sheet is stable with low leverage, yet the company needs to convert revenue growth into sustainable profits and positive cash flow.

Income Statement

Worksport's revenue has shown significant growth, evidenced by the impressive revenue growth rate from 2023 to 2024 and continuing into TTM (Trailing-Twelve-Months). However, the company struggles with profitability, as indicated by negative net profit margins and EBIT margins. Despite revenue growth, the firm is yet to achieve operational efficiency, reflected in continued losses at the EBIT and EBITDA levels.

Balance Sheet

The balance sheet reveals a moderate financial position. The company has a relatively low debt-to-equity ratio, indicating manageable leverage levels. However, the return on equity remains negative due to persistent net losses. The equity ratio shows a decent proportion of assets financed by equity, which suggests financial stability despite ongoing losses.

Cash Flow

Worksport's cash flow situation is concerning, with negative free cash flow persisting over the years. Operating cash flow is negative, and there is a high reliance on financing activities to cover cash shortfalls. The free cash flow to net income ratio reflects the company's struggle to generate cash from operations, highlighting a need for improved cash management and cost control.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.21M	8.48M	1.53M	116.50K	303.75K	346.14K
Gross Profit	1.26M	905.65K	240.51K	59.53K	-46.95K	47.15K
EBITDA	-14.74M	-13.68M	-13.20M	-11.56M	-7.39M	-774.41K
Net Income	-16.91M	-16.16M	-14.93M	-12.53M	-7.90M	-1.19M
Balance Sheet
Total Assets	26.66M	25.74M	25.95M	32.76M	36.29M	1.90M
Cash, Cash Equivalents and Short-Term Investments	5.08M	4.88M	4.86M	15.32M	28.57M	1.11M
Total Debt	781.87K	5.62M	6.24M	6.62M	857.06K	712.79K
Total Liabilities	6.54M	8.32M	7.78M	8.65M	2.11M	1.73M
Stockholders Equity	20.13M	17.41M	18.18M	24.12M	34.18M	169.47K
Cash Flow
Free Cash Flow	-11.96M	-10.67M	-15.62M	-19.13M	-5.18M	-734.27K
Operating Cash Flow	-11.18M	-10.14M	-11.93M	-7.98M	-4.05M	-726.30K
Investing Cash Flow	-773.61K	-528.24K	-3.76M	-11.15M	-1.13M	-16.73K
Financing Cash Flow	13.50M	12.18M	4.43M	5.18M	32.64M	1.81M

Worksport Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.39
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WKSP, the sentiment is Neutral. The current price of 3.39 is above the 20-day moving average (MA) of 3.30, below the 50-day MA of 3.47, and below the 200-day MA of 5.01, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 50.56 is Neutral, neither overbought nor oversold. The STOCH value of 20.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WKSP.

Worksport Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LIDR	55 Neutral	102.65M	-0.89	-339.23%	―	-23.62%	71.09%
WKSP	53 Neutral	$22.52M	―	-91.21%	―	232.13%	41.77%
SYPR	51 Neutral	50.90M	-20.11	-12.98%	―	-6.71%	37.34%
CVGI	50 Neutral	69.53M	-1.65	-26.84%	―	-27.36%	-218.40%
MKDW	49 Neutral	31.64M	3.81	59.82%	―	0.00%	0.00%
FRSX	44 Neutral	8.80M	-0.06	-183.61%	―	-12.27%	57.49%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Worksport Corporate Events

Worksport Achieves Fourth Consecutive Monthly Sales Record

In July 2025, Worksport Ltd. achieved its fourth consecutive monthly sales record, with revenue reaching $1.71 million and gross margin expanding to 31%, achieving its year-end target one quarter early. This growth underscores the success of its U.S. manufacturing model and positions the company for sustained profitability and long-term shareholder value, as it anticipates further growth with upcoming product launches.

The most recent analyst rating on (WKSP) stock is a Hold with a $3.50 price target. To see the full list of analyst forecasts on Worksport stock, see the WKSP Stock Forecast page.

Worksport Partners with Octagon for Investor Outreach

On September 2, 2025, Worksport Ltd. entered into a Marketing Services Agreement with Octagon Media Corp., known as Wall Street Reporter, to enhance its investor outreach through a six-month marketing program. The agreement, effective from September 3, 2025, involves a $125,000 payment and issuance of warrants for 200,000 shares, aiming to bolster Worksport’s market presence and attract investor interest.

The most recent analyst rating on (WKSP) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Worksport stock, see the WKSP Stock Forecast page.

Worksport Highlights Growth at Wall Street Livestream

On September 4, 2025, Worksport Ltd. announced its participation in the Wall Street Reporter’s ‘Next Super Stock’ livestream, where CEO Steven Rossi highlighted the company’s significant growth and strategic advancements. Worksport reported record revenue growth in Q2 2025, a substantial increase in gross margins, and an expanding dealer network. The company is scaling its U.S. manufacturing operations and preparing to launch innovative products like the SOLIS solar-integrated tonneau cover and COR portable power system, which are expected to enhance its market position and drive future growth.

The most recent analyst rating on (WKSP) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Worksport stock, see the WKSP Stock Forecast page.

Worksport Announces Record Q2 2025 Financial Results

On August 13, 2025, Worksport Ltd. announced record financial results for Q2 2025, with a 173% increase in gross profit and an 83% rise in revenue. The company also reaffirmed its revenue target of at least $20 million for 2025 and highlighted its path to achieving operational cash flow positivity. Worksport achieved its highest quarterly revenue in company history, with net sales of $4.10 million, and expanded its gross margin to 26.4%. The company is focusing on launching new products and managing costs effectively to drive future growth and profitability.

The most recent analyst rating on (WKSP) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Worksport stock, see the WKSP Stock Forecast page.