Long-established in the Vehicles & Parts industry, XPeng Inc (XPEV, Financial) has enjoyed a stellar reputation. However, it has recently witnessed a daily loss of 9.82%, juxtaposed with a three-month change of 16.91%. Fresh insights from the GF Score hint at potential headwinds. Notably, its diminished rankings in financial strength, growth, and valuation suggest that the company might not live up to its historical performance. Join us as we dive deep into these pivotal metrics to unravel the evolving narrative of XPeng Inc.
Understanding the GF Score
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 6/10
- Profitability rank: 1/10
- Growth rank: 0/10
- GF Value rank: 4/10
- Momentum rank: 9/10
Based on the above method, GuruFocus assigned XPeng Inc the GF Score of 56 out of 100, which signals poor future outperformance potential.
XPeng Inc: A Snapshot
Founded in 2015, XPeng Inc is a leading Chinese smart electric vehicle, or EV, company that designs, develops, manufactures, and markets EVs in China. Its products primarily target the growing base of technology-savvy middle-class consumers in the midrange to high-end segment in China's passenger vehicle market. The company sold over 120,000 EVs in 2022, accounting for about 2% of China's passenger new energy vehicle market. It is also a leader in autonomous driving technology. With a market cap of $14.19 billion and sales of $3.01 billion, XPeng Inc operates with a margin of -49.24%.
Profitability Concerns
XPeng Inc's low Profitability rank can also raise warning signals. With a Piotroski F-Score of 1, XPeng Inc's financial health appears concerning. This score, rooted in Joseph Piotroski's nine-point scale, evaluates a firm's profitability, liquidity, and operating efficiency. Given its rating, XPeng Inc might be facing challenges in these areas.
Growth Prospects
A lack of significant growth is another area where XPeng Inc seems to falter, as evidenced by the company's low Growth rank.
Conclusion
Given XPeng Inc's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential underperformance. While the company has made significant strides in the EV market, its financial health and profitability raise concerns about its ability to sustain growth and deliver returns to investors. Therefore, investors should exercise caution and conduct thorough research before investing in XPeng Inc.
GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: GF Score Screen
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
