Ehang Holdings (EH) AI Stock Analysis

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Ehang Holdings

(NASDAQ:EH)

55Neutral

EHang's overall score reflects robust revenue growth and positive financial milestones achieved in the earnings call. However, ongoing challenges in profitability, cash flow, and valuation weigh on the score, alongside technical indicators that suggest moderate upward momentum.

Positive Factors

Financial Performance

EHang’s revenue surged 2.9x YoY to RMB456mn while net loss narrowed 24% YoY to RMB230mn.

Market Position

EHang is the first manufacturer in China to obtain the three essential certificates for the mass production of eVTOL aircraft, making it 1-2 years ahead of its competitors.

Regulatory Approvals

EHang obtained the first-ever Operator Certificate issued by the Civil Aviation Administration of China, allowing it to conduct commercial operations for its pilotless passenger-carrying eVTOL aircrafts.

Negative Factors

Profitability Timeline

Ehang is forecasted to achieve net profit in 2026, driven by strong volume growth and economies of scale helping to offset costs.

Ehang Holdings (EH) vs. S&P 500 (SPY)

Market Cap

$917.74M

Dividend YieldN/A

Average Volume (3M)2.11M

Price to Earnings (P/E)―

Beta (1Y)2.14

Revenue Growth285.43%

EPS Growth32.34%

CountryUS

Employees367

SectorIndustrials

Sector Strength70

IndustryAerospace & Defense

Share Statistics

EPS (TTM)-0.48

Shares Outstanding44,042,460

10 Day Avg. Volume2,253,784

30 Day Avg. Volume2,114,458

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)90.53

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

$30.17

Price Target Upside108.93% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering3

Ehang Holdings Business Overview & Revenue Model

Company DescriptionEHang Holdings (EH) is a pioneering technology company that specializes in autonomous aerial vehicles (AAVs). Headquartered in Guangzhou, China, EHang is at the forefront of developing and manufacturing passenger and logistics AAVs, positioning itself within the emerging sectors of urban air mobility and smart city solutions. The company's core products include the EHang 216, an autonomous passenger drone, and the Falcon logistics drone, both of which aim to transform the transportation landscape by offering innovative solutions for passenger travel, air logistics, and smart city management.

How the Company Makes MoneyEHang Holdings makes money primarily through the sale of its autonomous aerial vehicles. The company's revenue streams are diversified across several sectors, including passenger transportation, logistics, and aerial media solutions. Key revenue sources include the sale and leasing of passenger drones for urban air mobility, providing logistics solutions through drones designed for cargo delivery, and offering aerial media services such as light shows and tourism experiences. Additionally, EHang engages in strategic partnerships with governments and corporations to integrate its technology into urban planning and infrastructure projects, further enhancing its revenue potential. The company also invests in research and development to innovate and expand its product offerings, ensuring a competitive edge in the growing market for autonomous aerial solutions.

Ehang Holdings Financial Statement Overview

Summary

Ehang Holdings shows strong revenue growth but remains unprofitable with significant cash flow challenges. Despite a stable balance sheet, efficiency and liquidity issues persist, highlighting the need for improved operational efficiency and cash flow generation.

Income Statement

Neutral

Ehang Holdings demonstrates a volatile revenue trend with a recent significant increase in revenue from 2023 to 2024. However, the company remains unprofitable, with negative net profit and EBIT margins, indicating ongoing operational challenges. Despite increased gross profit, the consistent net losses reflect difficulties in controlling operating expenses.

Balance Sheet

Neutral

The balance sheet shows a relatively low debt-to-equity ratio, indicating conservative leverage. The equity ratio is moderate, suggesting a balanced capital structure. However, the substantial accumulated losses affect the return on equity negatively, highlighting efficiency challenges in utilizing shareholder funds.

Cash Flow

Negative

Ehang Holdings faces cash flow difficulties with negative free and operating cash flows, reflecting operational challenges. The lack of positive cash flow growth and low free cash flow to net income ratio suggest liquidity constraints and limited operational cash generation capabilities.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
456.15M	117.43M	44.32M	56.81M	180.09M
	Gross Profit
279.95M	75.31M	29.22M	36.03M	106.18M
	EBIT
-253.39M	-296.25M	-303.95M	-320.54M	-91.30M
	EBITDA
-240.16M	-264.26M	-304.74M	-312.76M	-85.10M
	Net Income Common Stockholders
-229.78M	-301.70M	-329.53M	-313.62M	-92.28M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.12B	300.14M	249.31M	311.97M	187.11M
	Total Assets
1.58B	598.64M	530.87M	535.43M	484.55M
	Total Debt
233.50M	163.55M	200.06M	30.00M	15.00M
	Net Debt
-377.38M	-64.70M	-49.24M	-216.86M	-122.84M
	Total Liabilities
628.68M	384.43M	406.19M	201.39M	206.85M
	Stockholders Equity
955.64M	213.79M	124.26M	332.60M	276.32M
Cash Flow		Free Cash Flow
0.00	-97.50M	-187.28M	-137.32M	-162.78M
	Operating Cash Flow
0.00	-88.41M	-173.46M	-121.63M	-153.70M
	Investing Cash Flow
0.00	-128.69M	56.40M	-33.40M	-66.21M
	Financing Cash Flow
0.00	195.48M	106.74M	266.95M	44.68M

Ehang Holdings Technical Analysis

Technical Analysis Sentiment

Negative

Last Price14.44

Price Trends

50DMA

21.46

Negative

100DMA

18.40

Negative

200DMA

16.39

Negative

Market Momentum

MACD

-0.24

Positive

RSI

38.82

Neutral

STOCH

13.23

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EH, the sentiment is Negative. The current price of 14.44 is below the 20-day moving average (MA) of 20.17, below the 50-day MA of 21.46, and below the 200-day MA of 16.39, indicating a bearish trend. The MACD of -0.24 indicates Positive momentum. The RSI at 38.82 is Neutral, neither overbought nor oversold. The STOCH value of 13.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EH.

Ehang Holdings Risk Analysis

Ehang Holdings disclosed 97 risk factors in its most recent earnings report. Ehang 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

Ehang Holdings Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$7.62B	13.01	3.19%	3.32%	3.77%	-14.28%
EH	55 Neutral	$917.74M	―	-39.63%	―	285.43%	32.34%
ACHR	44 Neutral	$3.81B	―	-95.88%	―	―	17.43%
SPCE	42 Neutral	$90.60M	―	-83.78%	―	3.47%	53.31%
RDW	38 Underperform	$712.24M	―	-451.56%	―	24.73%	-219.97%
EVEX	37 Underperform	$1.02B	―	-95.63%	―	―	-2.94%
EVTL	25 Underperform	$282.41M	―	115.25%	―	―	23.26%

* Industrials Sector Average

Performance Comparison

Ehang Holdings

14.44

-1.93

-11.79%

SPCE

Virgin Galactic Holdings

2.58

-17.82

-87.35%

EVTL

Vertical Aerospace

3.43

-4.07

-54.27%

EVEX

Eve Holding

3.61

-1.34

-27.07%

ACHR

Archer Aviation

7.03

3.14

80.72%

RDW

Redwire

9.24

5.68

159.55%

Ehang Holdings Earnings Call Summary

Earnings Call Date: Mar 12, 2025 | % Change Since: -35.68% | Next Earnings Date: May 29, 2025

Earnings Call Sentiment Positive

EHang reported strong revenue growth and a significant increase in deliveries, achieving positive adjusted net income for the first time. The company expanded its international presence and maintained a solid cash flow position. However, there were slight declines in gross margins and challenges in achieving GAAP profitability, along with pending regulatory approvals for operator certificates.

Highlights

Record-Breaking Revenue and Growth

EHang achieved record revenues of RMB164.3 million in Q4 2024, representing a 190% year-over-year growth. For the full year, total revenues reached RMB456.2 million, marking a 289% increase year-over-year.

Significant Increase in Deliveries

EHang delivered 78 units of the EH216 series in Q4, a 239% year-over-year increase, with total annual deliveries reaching 216 units, up 315% from 2023.

Positive Adjusted Net Income

For the first time, EHang achieved positive adjusted net income of RMB43.1 million for the full year 2024, a significant improvement from an adjusted net loss of RMB139 million in 2023.

Strong Cash Flow and Liquidity

EHang reported its first-ever annual positive operating cash flow of approximately RMB160 million in 2024, with a solid cash balance of RMB1,155 million at the end of Q4.

Successful International Market Expansion

EHang expanded its global footprint to 19 countries and achieved Europe's first autonomous eVTOL flight in an urban environment in Benidorm, Spain.

Lowlights

Gross Margin Slight Decline

EHang's gross margin for Q4 2024 was 60.7%, down from 64.7% in the same period of 2023, primarily due to changes in revenue mix and higher unit costs for the EH216-S.

Challenges in Achieving GAAP Profitability

EHang expects to achieve GAAP profitability quarterly in the second half of 2025, and for the full year by 2026.

Pending Regulatory Approvals

EHang is awaiting final regulatory approval from the Civil Aviation Administration of China for operator certificates, which are essential for commercial eVTOL operations.

Company Guidance

During the earnings call for EHang's fourth quarter and fiscal year 2024, the company reported significant growth, surpassing their guidance with a 239.1% year-over-year increase in Q4 revenues to RMB164 million, driven by the delivery of 78 units of the EH216 series. For the full fiscal year, EHang delivered 216 units, achieving a total revenue of RMB456 million, a 288.5% increase from the previous year. Notably, the company reached positive adjusted net income and operating cash flow for the first time, marking a milestone in its history. Looking forward, EHang expects 2025 revenues to reach RMB900 million, representing a 97% increase year-over-year, as they expand their production capacity and continue to innovate in AI and eVTOL technology. The company also highlighted its strategic partnerships and global footprint expansion, emphasizing their leadership in the urban air mobility industry.

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.