3/17/2023 0 Comments Workhorse stock price today![]() ![]() In terms of valuation, ARVL looks undervalued compared to the sector based on P/S multiple, while the WKHS P/S figure significantly exceeds the sector median threshold. While ARVL is in a solid position to generate solid long-term returns because of its healthy balance sheet and key partnerships with industry leaders, WKHS’s weak financials, as well as lowered guidance, could limit its growth opportunities. Arrival also expected to be cash positive in 2023. Considering its revenue projections, the company’s three-year P/S ratio stands at around 0.9x which is substantially lower than the sector median. The company expects to generate revenues of $1 billion in FY2022 and expects this figure to increase five-fold and exceed $5 billion in 2023. We believe that this collaboration could bring a lot of benefits to ARVL shareholders on the long-term horizon. Following this release, shares gained around 7% during a pre-market session on May 4. The production of the Arrival car is expected to begin in Q3 2023. ![]() On May 4, the company announced its collaboration with Uber (UBER) to create “an affordable, purpose-built EV for ride-hailing”. ![]() Management expects to have four vehicles (“the Bus, Van, Large Van, and small vehicle platform”) on the market by the end of 2023. The company will use raised funds to produce its EV lineup using its proprietary state-of-the-art technologies. According to the company’s presentation, these orders are worth around $1.2 billion.Īrrival reported its Q1 results on May 13, ARVL’s cash and cash equivalents for the first quarter, ended March 31, stood at €516 million. Moreover, UPS ( UPS ) ordered 10000 units with an option for an additional 10000. Previously, the company had raised capital from BlackRock, Hyundai and Kia Motors, and UPS. Therefore, upside potential in the stock could be limited due to high valuations.Īrrival ( ARVL ) was listed on the Nasdaq stock exchange in March 2021, raising gross proceeds of ~$660 million (€560 million) at $22.80 per share. However, this estimate implies a P/S ratio of around 13.64x which is significantly higher than the sector median of 1.42x. Following this trend, analysts forecast that its F2021 revenue could increase to $74.1M. With that being said, a possible dilution of shareholders’ equity could negatively impact the WKHS stock.Ĭurrently, Wall Street expects WKHS’s earnings to grow 31.95% in fiscal 2021 to (1.64) per share. Management expects to achieve a positive gross-margin figure by the end of 2022. Additionally, cash burn will likely increase due to high operating costs and negative gross margin. In the first quarter of 2021, the company also increased its cash burn rate from $7.8M to $34.9M. That’s why we will not be surprised if the company will fail to achieve even this lowered guidance.Īs of March 31, 2021, the company had total cash of $205M and total debt of $182M, bringing its total net cash to $23M. However, even this conservative forecast depends on the supply shortages that are currently obstructing the whole EV industry. The company’s gross loss rose 356% from its year-ago value to $5.7M.Īlso, management decreased its 2021 production guidance to 1000 trucks, which is well below the previous quarter forecast of 1800 trucks. ![]() Also, the company reported GAAP loss per share of $0.98, missing Wall Street expectations by $0.81 (476.47%). However, the company failed to beat Wall Street consensus estimates of $2.3M (missed by $1.81M). In Q1, Workhorse’s revenue was up around 518% on a year-over-year basis to $518K. ![]()
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