WeRide Inc. Sponsored ADR (WRD) AI Stock Analysis

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WeRide Inc. Sponsored ADR

(NASDAQ:WRD)

Rating:46Neutral

Price Target:

$8.50

▼(-3.63%Downside)

The overall stock score is primarily impacted by financial instability and valuation concerns. Despite positive strategic partnerships and segment growth, the financial performance and technical indicators suggest caution.

Positive Factors

Investor Sentiment

The strong stock reaction in WeRide serves as a clear indication of investor enthusiasm surrounding self-driving technology.

Operational Expansion

Steady progress in scaling robotaxi operations both overseas and in China keeps the analyst's recommendation at Overweight.

Strategic Alliances

Nvidia's investment in WeRide is drawing substantial positive attention to the company.

Negative Factors

Government Spending

Near-term uncertainties in robobus/robosweeper businesses are due to potentially delayed project launches and slowing government spending.

Market Risks

Uncertainties around ADR de-listing could lead the market to apply a greater equity risk premium.

WeRide Inc. Sponsored ADR (WRD) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$2.51B

Dividend YieldN/A

Average Volume (3M)22.18M

Price to Earnings (P/E)―

Beta (1Y)1.83

Revenue Growth-11.37%

EPS Growth-23.51%

CountryUS

Employees2,913

SectorConsumer Cyclical

Sector Strength63

IndustrySoftware - Infrastructure

Share Statistics

EPS (TTM)N/A

Shares Outstanding266,257,420

10 Day Avg. Volume19,799,481

30 Day Avg. Volume22,177,800

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

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

$13.00

Price Target Upside47.39% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

WeRide Inc. Sponsored ADR 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 Moneynull

WeRide Inc. Sponsored ADR Earnings Call Summary

Earnings Call Date:Mar 14, 2025

(Q1-2025)

% Change Since: 4.38%|

Next Earnings Date:May 21, 2025

Earnings Call Sentiment Positive

The earnings call highlighted significant achievements such as the expanded partnership with Uber, successful launches of autonomous services in new cities, and strong revenue growth in the RoboTaxi segment. However, these positive aspects were somewhat offset by a slight decline in service revenue, increased operating expenses, and a substantial increase in net loss on a non-IFRS basis. Overall, the sentiment is positive, driven by the strategic milestones and growth potential.

Q1-2025 Updates

Positive Updates

Expanded Partnership with Uber

WeRide has committed to providing Robotaxi service in 15 additional cities internationally and received an additional $100 million equity investment from Uber.

Launch of Driverless Robotaxi Testing

WeRide launched the first driverless Robotaxi testing in Abu Dhabi, the first of its kind in the Middle East.

First Autonomous Mobility Service in Central Guangzhou

WeRide rolled out China’s first 24/7 autonomous ride-hailing network in Guangzhou, covering more than 250 kilometers of public roads.

Strong RoboTaxi Revenue Growth

RoboTaxi revenue for the first quarter was RMB16.1 million, contributing 22.3% to total revenue, up from 11.9% in the same period of 2024.

Product Revenue Growth

Product revenue increased by 46.7% to RMB9.5 million, driven by a substantial increase in sales of RoboTaxis and RoboSweepers.

Strong R&D Investment

R&D expenses represent 70.3% of operating expenses, focusing on strategic investment in talent acquisition and retention, increasing by 17.3% to RMB325.7 million.

Strong Cash Position

As of March 31st, 2025, WeRide held a total capital reserve of RMB6.2 billion, including RMB4.4 billion in cash and cash equivalents.

Negative Updates

Slight Decline in Service Revenue

Total revenue increase was partially offset by a slight decline in service revenue.

Increase in Operating Expenses

Operating expenses rose by 14.2% to RMB463.5 million, driven by a 48.4% rise in personnel-related expenses.

Net Loss Increase on Non-IFRS Basis

On a non-IFRS basis, net loss increased by 108.2% to RMB294.6 million, primarily due to continuous investment in R&D.

Company Guidance

During the WeRide First Quarter 2025 Earnings Conference Call, the management provided several key metrics and guidance related to their ongoing operations and future plans. WeRide reported a total revenue increase of 1.8% to RMB72.4 million for Q1 2025, with RoboTaxi contributing RMB16.1 million, accounting for 22.3% of the group revenue, a notable rise from 11.9% in the same period last year. Product revenue saw a robust growth of 46.7% to RMB9.5 million, primarily driven by sales of RoboTaxi and RoboSweepers. Despite a 14.2% rise in operating expenses to RMB463.5 million, the net loss decreased by 17.7% to RMB385.1 million. The company holds a strong capital reserve of RMB6.2 billion and has announced a share repurchase program of up to $100 million, reflecting confidence in their long-term growth trajectory. Additionally, WeRide emphasized their strategic partnership with Uber, including a commitment to expand their Robotaxi service to 15 additional international cities and an additional $100 million equity investment from Uber.

WeRide Inc. Sponsored ADR Financial Statement Overview

Summary

WeRide Inc. faces significant financial challenges with declining revenue, negative profitability metrics, and negative cash flows. A strong cash position is overshadowed by negative equity, indicating financial instability and reliance on external financing.

Income Statement

Neutral

The company's revenue has decreased over the past year with a notable decline from 2023 to 2024. Gross profit margin is also declining, indicating reduced efficiency in generating profit from sales. EBIT and EBITDA margins are negative, reflecting high operating losses. The net profit margin is significantly negative, highlighting ongoing financial challenges.

Balance Sheet

Neutral

The company shows a strong cash position, with cash and equivalents exceeding total debt, resulting in negative net debt. However, the total liabilities exceed total assets, leading to negative stockholders' equity, which raises concerns about financial stability. The debt-to-equity ratio is not meaningful due to negative equity, and ROE cannot be calculated.

Cash Flow

Neutral

Operating cash flow is negative, indicating cash burn from operations. Despite a strong financing cash flow, largely due to external financing, free cash flow remains negative, suggesting the company is not yet generating sustainable cash flow from its core operations. The free cash flow to net income ratio cannot be calculated due to negative values.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2017
Breakdown
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
	EBIT
403.02M	-2.19B	-1.57B	-779.23M	-500.50M	105.47M
	EBITDA
662.23M	-2.41B	-1.85B	-1.21B	-935.86M	273.79M
	Net Income Common Stockholders
-104.28M	-2.52B	-1.95B	-1.30B	-1.01B	49.88M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
22.22M	6.57B	4.53B	4.51B	2.78B	226.00K
	Total Assets
427.85M	7.69B	5.61B	5.39B	3.31B	2.78B
	Total Debt
118.00M	143.02M	53.41M	0.00	0.00	770.60M
	Net Debt
95.78M	-4.13B	-1.61B	-2.23B	-2.73B	770.37M
	Total Liabilities
153.72M	627.75M	8.67B	7.47B	4.27B	1.63B
	Stockholders Equity
274.13M	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 Inc. Sponsored ADR Risk Analysis

WeRide Inc. Sponsored ADR disclosed 29 risk factors in its most recent earnings report. WeRide Inc. Sponsored ADR 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 Inc. Sponsored ADR Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INFA	78 Outperform	$8.39B	5,134.04	0.09%	―	2.28%	―
TOST	76 Outperform	$24.77B	187.68	11.06%	―	26.72%	―
PATH	71 Outperform	$7.07B	―	-3.62%	―	7.21%	23.13%
S	64 Neutral	$6.02B	―	-26.98%	―	32.25%	20.56%
Sector *	62 Neutral	$6.88B	11.32	2.95%	3.87%	2.70%	-24.57%
RZLV	47 Neutral	$497.09M	―		―	―	-1012.30%
WRD	46 Neutral	$2.51B	―	-130.17%	―	-11.37%	-23.51%

* Consumer Cyclical Sector Average

Performance Comparison

WRD

WeRide Inc. Sponsored ADR

8.82

-8.18

-48.12%

PATH

UiPath

13.21

1.20

9.99%

SentinelOne

18.36

0.67

3.79%

TOST

Toast Inc

44.01

21.45

95.08%

INFA

Informatica

24.13

-4.47

-15.63%

RZLV

Rezolve AI

2.04

-9.51

-82.34%

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.