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Weride Inc. (WRD)
:WRD
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WeRide
(NASDAQ:WRD)
Rating:48Neutral
Price Target:
$9.00
▼(-5.26% Downside)
Positive Factors
Global Expansion
WeRide is on the right track to roll out its global robotaxi ecosystem with recent project breakthroughs and continued operational expansion.
Market Position
A first-mover advantage and existing scale in L4 autonomous driving should bode well for further robotaxi order wins.
Operational Growth
Steady progress in scaling robotaxi operations both overseas and in China keeps the analyst's recommendation at Overweight.
Negative Factors
Business Uncertainties
Near-term uncertainties in robobus/robosweeper businesses are due to potentially delayed project launches and slowing government spending.
Regulatory Risks
Uncertainties around ADR de-listing could lead the market to apply a greater equity risk premium.
WeRide (WRD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.78B
Dividend YieldN/A
Average Volume (3M)7.45M
Price to Earnings (P/E)―
Beta (1Y)2.04
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees2,913
SectorConsumer Cyclical
Sector Strength81
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.19
Shares Outstanding266,257,420
10 Day Avg. Volume5,122,753
30 Day Avg. Volume7,446,696
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.52
Enterprise Value/Revenue1.65
Enterprise Value/Gross Profit1.95
Enterprise Value/Ebitda2.20
Forecast
1Y Price Target
$14.50Price Target Upside52.63% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
WeRide Business Overview & Revenue Model
Company DescriptionWeRide, Inc. engages in the development of an autonomous driving technology platform. It offers Robotaxi, Robobus, Robovan, Robosweeper, and advanced driving solutions, providing smart services in online ride-hailing, on-demand transport, urban logistics, and environmental sanitation. The company was founded by Xu Han and Yan Li in February 2017 and is headquartered in Guangzhou, China.
How the Company Makes MoneyWeRide generates revenue through multiple streams, primarily by licensing its autonomous driving technology to automotive manufacturers and receiving fees for software integration services. The company also earns income from partnerships with ride-hailing services and other mobility platforms that utilize its self-driving solutions. Additionally, WeRide may receive funding and investments from strategic partnerships and government initiatives aimed at advancing autonomous vehicle development, contributing to its overall revenue growth.
WeRide Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Nov 28, 2025
Earnings Call Sentiment Neutral
The earnings call presented a strong expansion strategy with significant partnerships and technological advancements. However, challenges such as increased operating expenses and a decline in certain revenue streams were noted. The company is focused on global expansion, particularly with its Uber partnership, while maintaining a strong cash position.Q1-2025 Updates
Positive Updates
Partnership Expansion with Uber
WeRide expanded its partnership with Uber, committing to provide Robotaxi services in 15 additional cities internationally and receiving an additional $100 million equity investment from Uber.
Driverless Robotaxi Testing in Abu Dhabi
WeRide launched the first driverless Robotaxi testing in Abu Dhabi, marking the first of its kind in the Middle East without safety drivers.
Expansion in China
WeRide expanded its Robotaxi services in Beijing and launched China's first 24/7 autonomous ride-hailing network in Guangzhou, covering over 250 kilometers of public roads.
International Market Expansion
WeRide's Robobus received operational approvals in five countries, including China, UAE, Singapore, France, and the U.S.
Robust Financials
Total revenue for Q1 2025 increased by 1.8% to RMB72.4 million, with RoboTaxi revenue rising to RMB16.1 million, contributing 22.3% of group revenue.
Gross Margin Improvement
The company reported a group-level gross margin of 35%, with product and service gross margins at 49.9% and 32.8%, respectively.
Negative Updates
Decline in Service Revenue
There was a slight decline in service revenue, primarily due to a reduction of RMB33.5 million in revenue from ADAS and R&D services after completing a project in 2024.
Increased Operating Expenses
Operating expenses rose by 14.2% to RMB463.5 million, driven by a 48.4% rise in personnel-related expenses and increased R&D efforts.
Increased Net Loss on Non-IFRS Basis
On a non-IFRS basis, the net loss increased by 108.2% to RMB294.6 million, mainly due to continuous investment in R&D.
Company Guidance
During the call, WeRide provided guidance that highlighted several key metrics and developments. The company reported a 1.8% year-over-year increase in total revenue for the first quarter of 2025, reaching RMB72.4 million. RoboTaxi revenue was a significant growth driver, contributing RMB16.1 million and representing 22.3% of total revenue, up from 11.9% in the same period of 2024. Product revenue saw a substantial increase of 46.7%, reaching RMB9.5 million, primarily fueled by sales of RoboTaxi and RoboSweepers. The company's gross margin was reported at 35%, with product and service gross margins at 49.9% and 32.8%, respectively. Operating expenses rose by 14.2% to RMB463.5 million, driven mainly by a 48.4% increase in personnel-related expenses. Despite these increases, WeRide achieved a 17.7% reduction in net loss, which amounted to RMB385.1 million. The company also highlighted a robust capital reserve of RMB6.2 billion, including RMB4.4 billion in cash and cash equivalents. Additionally, WeRide announced a share repurchase program of up to USD 100 million, reflecting confidence in its business fundamentals and long-term outlook.WeRide Financial Statement Overview
Summary
WeRide Inc. faces significant financial challenges, including declining revenues, persistent losses, and negative cash flows. While there is some improvement in equity and asset management, the company needs to address its operational inefficiencies and reliance on external financing to improve its financial health.Income Statement
WeRide Inc. has experienced a declining revenue trend over the past years, with a significant drop from 2022 to 2023. The company has consistently reported negative net income, leading to negative net profit margins. Additionally, both EBIT and EBITDA margins are negative, indicating operational inefficiencies and challenges in covering operating expenses.25
Negative
Balance Sheet
The balance sheet shows a strong equity position with stockholders' equity turning positive in 2024. However, the company has a high debt-to-equity ratio due to substantial liabilities in previous years. The equity ratio has improved, but the company still faces challenges in asset utilization and financial stability.30
Negative
Cash Flow
WeRide Inc. has consistently reported negative free cash flow, indicating cash outflows exceed inflows from operations. The operating cash flow to net income ratio is unfavorable, reflecting difficulties in converting revenue into cash. Despite positive financing cash flow, the reliance on external financing is a concern.20
Very Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2017 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 882.60M | 361.13M | 401.84M | 527.54M | 138.17M | 427.19M |
| Gross Profit | 745.60M | 110.72M | 183.48M | 232.54M | 51.66M | 375.52M |
| EBITDA | 662.23M | -2.41B | -1.85B | -1.21B | -935.86M | 273.79M |
| Net Income | -104.28M | -2.52B | -1.95B | -1.30B | -1.01B | 49.88M |
Balance Sheet | ||||||
| Total Assets | 3.06B | 7.69B | 5.61B | 5.39B | 3.31B | 2.78B |
| Cash, Cash Equivalents and Short-Term Investments | 1.75M | 6.57B | 4.53B | 4.51B | 2.78B | 226.00K |
| Total Debt | 1.09B | 143.02M | 53.41M | 0.00 | 0.00 | 770.60M |
| Total Liabilities | 2.04B | 627.75M | 8.67B | 7.47B | 4.27B | 1.63B |
| Stockholders Equity | 1.03B | 7.07B | -3.05B | -2.08B | -966.11M | 1.15B |
Cash Flow | ||||||
| Free Cash Flow | -619.71M | -679.10M | -511.84M | -753.07M | -532.30M | -990.38M |
| Operating Cash Flow | 581.55M | -593.60M | -474.89M | -670.38M | -506.67M | 277.37M |
| Investing Cash Flow | -1.01B | 325.50M | -546.94M | -2.20B | 460.90M | -1.27B |
| Financing Cash Flow | 421.03M | 2.82B | 446.95M | 2.18B | 2.60B | 986.60M |
WeRide Technical Analysis
Positive
9.50
Price Trends
8.95
Positive
8.86
Positive
12.80
Negative
Market Momentum
0.13
Positive
53.32
Neutral
61.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WRD, the sentiment is Positive. The current price of 9.5 is above the 20-day moving average (MA) of 9.30, above the 50-day MA of 8.95, and below the 200-day MA of 12.80, indicating a neutral trend. The MACD of 0.13 indicates Positive momentum. The RSI at 53.32 is Neutral, neither overbought nor oversold. The STOCH value of 61.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WRD.
WeRide Risk Analysis
WeRide disclosed 29 risk factors in its most recent earnings report. WeRide 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
WeRide Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $25.58B | 127.91 | 14.51% | ― | 26.11% | ― | |
72 Outperform | $8.66B | 5,259.57 | -0.32% | ― | 1.16% | -104.62% | |
65 Neutral | $5.79B | ― | -3.62% | ― | 7.21% | 23.13% | |
64 Neutral | $5.46B | ― | -26.98% | ― | 28.19% | -31.34% | |
61 Neutral | $17.75B | 12.56 | -5.49% | 3.02% | 1.43% | -14.12% | |
54 Neutral | $748.07M | ― | ― | ― | ― | ||
48 Neutral | $2.78B | ― | -130.17% | ― | ― | ― |
* Consumer Cyclical Sector Average
Performance Comparison
WRD
WeRide
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-7.43
-43.71%
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11.14
-1.70
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SentinelOne
17.61
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TOST
Toast Inc
44.95
20.32
82.50%
INFA
Informatica
24.95
-0.16
-0.64%
RZLV
Rezolve AI
3.60
-3.69
-50.62%
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.