Zapp Electric Vehicles (ZAPP) AI Stock Analysis

• Market Cap: $1.23M
• Dividend Yield: N/A
• Average Volume (3M): 6.45M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.73
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 36
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Auto - Manufacturers
• EPS (TTM): -0.99
• Shares Outstanding: 7,939,729
• 10 Day Avg. Volume: 19,012,548
• 30 Day Avg. Volume: 6,446,896
• PEG Ratio: 2.42
• Price to Book (P/B): -0.10
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.82K
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $3.00
• Price Target Upside: 1900.00% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 28 Underperform
• Price Target: ―

Zapp Electric Vehicles scores low due to severe financial instability, characterized by minimal revenue and significant losses, negative equity, and high leverage. Technical analysis indicates a strong downtrend, exacerbated by the absence of earnings and dividends for valuation support. These factors pose high risks and challenge the company’s operational sustainability.

Positive Factors

Market Expansion

Zapp received approval to sell electric motorcycles in the U.K. and Thailand, and expects to expand sales to other European countries and India in the future.

Production Efficiency

Zapp's proprietary assembly process allows faster production, creating a competitive advantage in a growing global market.

Revenue Milestone

ZAPP achieved first revenue from selling electric urban motorcycles, marking a significant milestone for the company.

Negative Factors

Financial Challenges

As of March 31, 2024, Zapp had $0.5M in cash and $5.2M in debt, indicating financial challenges despite plans for a $50M equity purchase agreement.

Sales Forecast

Analyst reduces forecasts for initial sales and sales growth in Thailand, indicating potential challenges in market expansion.

Sales Uncertainty

ZAPP did not reiterate guidance for expected unit sales, suggesting uncertainty in meeting previous targets.

Zapp Electric Vehicles Business Overview & Revenue Model

Company Description

Zapp Electric Vehicles Limited operates an electric motorcycle company. Its i300 is the first in a suite of electric two-wheelers that the company plans to bring to market. It offers a direct-to-customer experience known as DSDTC (drop-ship-direct-to-customer). The company sells its product the i300, to customers online and delivered to the home, as well as provides at-home inspection, service, and support throughout the vehicle ownership lifecycle. The company was incorporated in 2017 and is based in Bangkok, Thailand, with additional office in Paris, France.

How the Company Makes Money

ZAPP makes money primarily through the sale of its electric scooters and motorcycles. The company's revenue model is based on direct sales to consumers through its online platform and authorized dealerships. Additionally, ZAPP may generate revenue from service and maintenance packages, as well as from selling accessories and replacement parts for its vehicles. Strategic partnerships with technology and automotive companies enhance its product offerings and expand its market reach, contributing to its earnings. The company may also explore revenue opportunities in fleet sales to businesses and ride-sharing services, leveraging the growing demand for electric mobility solutions in urban areas.

Zapp Electric Vehicles Financial Statement Overview

Summary

Zapp Electric Vehicles faces significant financial challenges with minimal revenue, substantial losses, and high leverage. Negative equity and reliance on external financing highlight financial instability.

Income Statement

Zapp Electric Vehicles has shown minimal revenue generation with a total revenue of $17,440 in the latest period, indicating a significant challenge in market penetration. The net profit margin is negative due to substantial net losses, reflecting high operational costs relative to revenues. Although the revenue growth is technically infinite due to zero revenue in the prior period, the financial performance remains weak with negative EBIT and EBITDA margins, suggesting operational inefficiencies.

Balance Sheet

The company's balance sheet is concerning with negative stockholders' equity of -$22,516,405, indicating that liabilities exceed assets. The debt-to-equity ratio is not applicable due to negative equity, and the equity ratio is also negative, highlighting financial instability. The company's high total debt level further exacerbates financial risk and leverage issues.

Cash Flow

Zapp Electric Vehicles reported negative free cash flow, although it has improved slightly compared to the previous year. The operating cash flow to net income ratio is negative, indicating that the company is not generating sufficient cash from operations to cover its net losses. The reliance on financing activities to support operations suggests potential liquidity challenges.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
0.00	17.44K	0.00	0.00	―	0.00
	Gross Profit
0.00	4.32K	-423.77K	0.00	―	0.00
	EBIT
―	-6.23M	-7.76M	-3.27M	-1.27M	―
	EBITDA
―	-7.41M	-221.11M	-809.96K	-1.52M	―
	Net Income Common Stockholders
―	-9.01M	-222.10M	-3.58M	-1.56M	―
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
42.86K	1.57M	823.22K	1.96M	159.72K	437.18K
	Total Assets
296.18M	5.40M	7.34M	4.23M	2.04M	1.97M
	Total Debt
100.00K	6.42M	5.13M	380.18K	589.54K	371.75K
	Net Debt
57.14K	4.85M	4.31M	-1.58M	429.82K	-65.43K
	Total Liabilities
16.17M	27.91M	25.78M	1.71M	2.26M	1.39M
	Stockholders Equity
280.01M	-22.52M	-18.44M	2.51M	-223.75K	575.89K
Cash Flow		Free Cash Flow
―	-4.92M	-6.80M	-3.50M	-653.11K	―
	Operating Cash Flow
―	-4.88M	-6.55M	-2.80M	-635.13K	―
	Investing Cash Flow
―	-37.00K	-295.16K	-466.25K	-261.63K	―
	Financing Cash Flow
―	5.60M	5.65M	5.07M	619.30K	―

Zapp Electric Vehicles Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZAPP, the sentiment is Negative. The current price of 0.15 is below the 20-day moving average (MA) of 0.32, below the 50-day MA of 0.55, and below the 200-day MA of 1.82, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 18.36 is Positive, neither overbought nor oversold. The STOCH value of 3.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZAPP.

Zapp Electric Vehicles Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$6.76B	11.06	2.80%	6.66%	2.68%	-24.89%
VLCN	46 Neutral	$2.79M	―	-213.60%	―	19.71%	99.98%
AYRO	42 Neutral	$3.42M	―	19.40%	―	-98.78%	92.98%
WKHS	42 Neutral	$9.33M	―	-188.79%	―	-53.55%	65.29%
EVTV	39 Underperform	$4.45M	―	-132.63%	―	-47.62%	8.34%
PEVM	38 Underperform	$8.23M	0.63		―	―	―
ZAPP	28 Underperform	$1.23M	―		―	―	―