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ECARX Holdings (ECX)
NASDAQ:ECX
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ECARX Holdings
(NASDAQ:ECX)
39Underperform
ECARX Holdings (ECX) vs. S&P 500 (SPY)
Market Cap
$854.39M
Dividend YieldN/A
Average Volume (3M)2.78M
Price to Earnings (P/E)―
Beta (1Y)0.61
Revenue Growth25.46%
EPS Growth28.81%
CountryUS
Employees2,000
SectorConsumer Cyclical
Sector Strength50
IndustryVehicles
Share Statistics
EPS (TTM)-0.39
Shares Outstanding294,168,850
10 Day Avg. Volume4,374,672
30 Day Avg. Volume2,784,153
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.29
Price to Cash Flow (P/CF)N/A
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
$3.20Price Target Upside-1.54% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering1
ECARX Holdings Business Overview & Revenue Model
Company DescriptionCOVA Acquisition Corp is a blank check company.
How the Company Makes MoneyECARX Holdings generates revenue through the sales and licensing of its automotive technology solutions to vehicle manufacturers. The company partners with automakers to integrate its intelligent cockpit systems and digital platforms into new car models, providing a continuous revenue stream from these partnerships. Additionally, ECARX may engage in strategic collaborations and joint ventures to expand its market reach and technological capabilities, further contributing to its earnings. The company's focus on innovation and adaptation to emerging trends in the automotive industry also plays a crucial role in its revenue generation strategy.
ECARX Holdings Financial Statement Overview
Summary
ECARX Holdings exhibits consistent revenue growth; however, profitability and cash flow generation challenges persist. The financial position is precarious with negative equity and high leverage, indicating significant financial risks.Income Statement
ECARX Holdings has shown steady revenue growth over the years, with a notable increase from 2020 to 2023. However, the company continues to face significant profitability challenges, reflected in negative EBIT, EBITDA, and net profit margins. The gross profit margin is relatively stable, but the inability to turn revenue into profit remains a critical concern.35
Negative
Balance Sheet
The balance sheet of ECARX Holdings reveals a precarious financial position with negative stockholders' equity, indicating potential solvency issues. The debt-to-equity ratio is concerning due to negative equity, suggesting high leverage. This, combined with a low equity ratio, underscores significant financial instability and risk.25
Negative
Cash Flow
ECARX Holdings has consistently reported negative free cash flow, highlighting ongoing challenges in generating positive cash flow from operations. The operating cash flow to net income ratio is unfavorable, further emphasizing cash flow difficulties. Despite some positive movements in investing and financing cash flows, overall cash flow management remains weak.30
Negative
| Breakdown | ||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 5.13B | 4.67B | 3.56B | 2.78B | 2.24B | Gross Profit |
| 1.26B | 1.27B | 990.50M | 817.19M | 551.39M | EBIT |
| -1.02B | -917.71M | -1.47B | -981.68M | -430.48M | EBITDA |
| -1.13B | -814.87M | -1.42B | -956.90M | -321.69M | Net Income Common Stockholders |
| -1.13B | -940.19M | -1.54B | -1.18B | -439.66M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 729.94M | 699.02M | 737.40M | 877.96M | 729.94M | Total Assets |
| 0.00 | 4.27B | 4.25B | 3.97B | 2.58B | Total Debt |
| 0.00 | 1.81B | 1.56B | 1.06B | 1.10B | Net Debt |
| 729.94M | 1.25B | 824.60M | 181.34M | 371.45M | Total Liabilities |
| 0.00 | 5.10B | 4.43B | 8.04B | 4.41B | Stockholders Equity |
| -1.83B | -921.41M | -177.20M | -4.10B | -1.84B |
| Cash Flow | Free Cash Flow | |||
| 36.52M | -1.31B | -533.54M | -951.19M | -437.16M | Operating Cash Flow |
| 36.52M | -1.24B | -405.76M | -872.33M | -368.05M | Investing Cash Flow |
| 0.00 | 592.08M | -283.53M | -1.39B | -91.11M | Financing Cash Flow |
| 0.00 | 296.83M | 537.77M | 2.19B | 1.14B |
ECARX Holdings Technical Analysis
Positive
3.25
Price Trends
2.05
Positive
1.94
Positive
1.79
Positive
Market Momentum
0.24
Negative
73.16
Negative
71.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ECX, the sentiment is Positive. The current price of 3.25 is above the 20-day moving average (MA) of 2.31, above the 50-day MA of 2.05, and above the 200-day MA of 1.79, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 73.16 is Negative, neither overbought nor oversold. The STOCH value of 71.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ECX.
ECARX Holdings Risk Analysis
ECARX Holdings disclosed 77 risk factors in its most recent earnings report. ECARX Holdings 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
ECARX Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
59 Neutral | $12.41B | 10.34 | 1.32% | 3.61% | 1.65% | -18.04% | |
56 Neutral | $135.89M | ― | -81.61% | ― | 339.99% | 29.91% | |
55 Neutral | $245.23M | ― | -103.99% | ― | 277.53% | 1.16% | |
52 Neutral | $52.17M | ― | -44.91% | ― | 84.61% | 50.50% | |
51 Neutral | $112.57M | ― | -152.72% | ― | -20.13% | 11.36% | |
39 Underperform | $854.39M | ― | 102.04% | ― | 25.46% | 28.81% | |
27 Underperform | $157.49M | ― | 146.24% | ― | 27.61% | 40.95% |
* Consumer Cyclical Sector Average
Performance Comparison
ECX
ECARX Holdings
2.83
0.91
47.40%
MVIS
Microvision
1.13
-0.95
-45.67%
LAZR
Luminar Technologies
4.68
-21.80
-82.33%
INVZ
Innoviz Technologies
0.63
-0.67
-51.54%
ARBE
Arbe Robotics
1.13
-0.61
-35.06%
CPTN
Cepton
3.25
0.69
26.95%
ECARX Holdings Earnings Call Summary
Earnings Call Date: Mar 11, 2025 | % Change Since: 21.72% | Next Earnings Date: Jun 16, 2025
Earnings Call Sentiment Positive
The earnings call reflected a positive sentiment with significant revenue growth, new project wins, and achieving breakeven EBITDA. However, there were concerns around declining service revenue, software license revenue, and gross margin pressures.Highlights
Revenue Growth
Revenue during the quarter and the year was up 4% and 18% respectively with gross margin of 21.2% and 20.8% respectively.
Record Shipments
Total shipments reached a record high of 2 million last year, up 33% year-over-year, with over 700,000 shipped during the fourth quarter alone.
Volkswagen Project Win
Secured a new project with Volkswagen Group, expanding the global customer base to 18 automakers across 28 brands.
Positive EBITDA
Achieved breakeven at EBITDA level during the quarter, with a full year breakeven targeted for 2025.
New Product Launches
Launched several new vehicles and integrated advanced technologies like AutoGPT and Cloudpeak into products, showcasing innovation and expanding market reach.
Lowlights
Software License Revenue Decline
Software license revenue decreased by 3% year-over-year, attributed to a decrease in the volume of legacy project software sales.
Service Revenue Decrease
Service revenue decreased by 31% year-over-year, reflecting a challenging market for service-based income.
Gross Margin Pressure
Gross margin decreased due to pricing strategies and a shift in the overall revenue mix, with expectations for continued pressure on hardware product margins.
Cash Position
As of the end of the year, cash and restricted cash stood at RMB367 million, indicating a need for capital raise strategies.
Company Guidance
During ECARX's Fourth Quarter and Full Year 2024 Earnings Conference Call, key financial metrics and guidance were discussed, highlighting significant achievements and future expectations. ECARX reported a 4% increase in quarterly revenue and an 18% rise for the full year, with gross margins of 21.2% and 20.8%, respectively. The company achieved breakeven at the EBITDA level in the fourth quarter, with expectations of full-year breakeven in 2025. Total shipments reached a record high of 2 million units, marking a 33% year-over-year increase, with over 700,000 units shipped in the fourth quarter alone. The company secured a new project with Volkswagen Group, expanding its global customer base to 18 automakers across 28 brands. Looking ahead, ECARX is optimistic about achieving positive EBITDA for the full year 2025 and announced a USD 20 million share repurchase program, reflecting confidence in their growth prospects amid the growing prominence of software-defined vehicles.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.