With the oil and gas industry in turmoil alongside the pandemic, several electric vehicle companies have seen record numbers over the last several weeks, including NIO Inc. (NIO, Financial), Nikola Corp. (NKLA, Financial), BYD Co. Ltd. (BYDDF) and Tesla Inc. (TSLA, Financial).
GuruFocus' 52-Week High screener places the vehicles and parts industry 16th overall, with 123 stocks trading within 10% of their 52-week highs. The majority of these EV companies are trading at least 50% above their 52-week lows.
NIO
June 25 saw NIO trading at $6.97 per share with a market cap of $7.98 billion. The company is currently showing two severe warning signs of inventory build up and poor quality of earnings.
NIO operates in China's premium electric vehicle market. The company designs and jointly manufactures and sells smart and connected premium electric vehicles, driving innovations in next-generation technologies in connectivity, autonomous driving and artificial intelligence. Its model includes EP9 supercar, ES8, ES6 and EC6. The company sells vehicles through its own sales network, including NIO Houses, NIO Spaces and a mobile application. The majority of the revenue is earned from selling vehicles.
GuruFocus gives the company a financial strength rating of 1 out of 10 and does not calculate a profitability or valuation rank. The companies cash-to-debt ratio of 0.09 places it lower than 74.23% of the industry. However, the debt-to-equity ratio of -3.11 places it higher than 98.82% of the industry.
The company has faced recent issues with both sales and development of their EVs. However, according to InsideEVs.com, the company managed to sell more cars in the month of March 2020 than in 2019. Year to date, the company's per-share price is up 73.38%.
Tesla
With a market cap of $178.07 billion, Tesla was trading at $957.94 on June 25. The company currently shows three severe warning signs of declining gross margin percentage, asset growth faster than revenue growth and newly issued long-term debt.
Founded in 2003 and based in Palo Alto, California, Tesla is a vertically integrated sustainable energy company that also aims to transition the world to electric mobility by making electric vehicles. It sells solar panels and solar roofs for energy generation, plus batteries for stationary storage for residential and commercial properties including utilities. It also makes solar roofs and plans to enter the HVAC market. The Tesla Roadster debuted in 2008, Model S in 2012, Model X in 2015, Model 3 in 2017 and Model Y in 2020. Global deliveries in 2019 were 367,656 units. Tesla went public in 2010 and employs about 50,000 people.
GuruFocus gives the company a financial strength rating of 5 out of 10 and a profitability rank of 3 out of 10. The company has a cash-to-debt ratio lower than 53.06% of the industry and an operating margin that is worse than 58.51% of the industry. However, an Altman Z-Score of 4.56 places it safely away from bankruptcy.
Tesla prides itself as a giant in the world of EV technology. The company was one of the first on the scene and makes waves with the release of each new vehicle. Year to date, the company's stock is up 128.99%.
BYD
BYD was trading at $7.68 per share on June 25 with a market cap of $25.49 billion. GuruFocus shows the company with severe warning signs of a low Piotroski F-Score, new issuance of long-term debt and asset growth faster than revenue growth. The Peter Lynch chart shows the stock has been overvalued in recent years.
BYD is a Chinese automobile and electronics manufacturing company organized into three segments. The automobile segment, contributing about half of company revenue, manufactures and sells electric and internal combustion automobiles, primarily passenger vehicles and buses, and provides low-carbon urban rail transportation products. BYD's rechargeable battery and photovoltaic business manufactures batteries for mobile phone handsets, portable electronics and electric power tools. BYD derives the vast majority of its revenue domestically.
GuruFocus gives the company a financial strength rating of 4 out of 10, a profitability rank of 6 out of 10 and a valuation rank of 1 out of 10. The company has an operating margin of 4.99%, placing it above 56.63% of its competitors. An Altman Z-Score of 1.58 places it in distress and at risk.
Year to date, the shares are up 54.52% in price. The company has focused its EVs on public transportation buses and trucks in recent years rather than making passenger vehicles.
Nikola
Nikola went public with a bang and was trading at $71.22 on June 25 with a market cap of $25.77 billion. GuruFocus currently gives the company a financial strength rating of 5 out of 10 as it has no debt at the moment. A severe warning sign is issued with days sales outstanding building up.
The company is currently focused on developing long distance trucks alongside its consumer level off-highway vehicles and jetskis. The main product line of trucks includes three different models that are in the works. The company also has plans for a passenger pickup truck and is working on hydrogen fuel technology to support its trucking line.
The company went public at the beginning of June. On June 9, the stock hit its record high of $79.73. Year to date, the shares are up 111.02%.
Disclaimer: Author owns no companies mentioned.
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