FREYR Battery (FREY) AI Stock Analysis

• Market Cap: $189.66M
• Dividend Yield: N/A
• Average Volume (3M): 1.71M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.49
• Revenue Growth: N/A
• EPS Growth: -457.87%
• Country: US
• Employees: 263
• Sector: Industrials
• Sector Strength: 69
• Industry: Industrial Goods
• EPS (TTM): -0.77
• Shares Outstanding: 140,490,400
• 10 Day Avg. Volume: 1,672,655
• 30 Day Avg. Volume: 1,708,925
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -1.90
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $4.00
• Price Target Upside: 170.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

FREYR Battery's overall stock score is driven by its strategic expansion into the U.S. solar market, supported by positive technical momentum. However, substantial financial challenges and unfavorable valuation metrics weigh significantly on the stock, reflecting a moderate risk-reward balance. The lack of earnings call guidance and sentiment adds to the uncertainty, necessitating caution from investors.

Positive Factors

Cost Management

Cost control and cash burn focus is expected to extend liquidity to 3 years providing further financial flexibility.

Manufacturing Capabilities

FREY successfully produced more than 50 unit cells using its automated Casting Unit Cell Assembly Machine, showing promising characteristics.

Strategic Partnerships

FREY is in advanced discussions on potential agreements to develop a conventional battery tech in US and Europe.

Negative Factors

Business Strategy Shift

Analysts wait for greater clarity surrounding the shift in business strategy and commercial revenue opportunities.

Revenue and EBITDA Targets

FREY remains focused on accelerating its path to market, achieving first revenues and EBITDA by FY25.

Revenue Forecast

Forecasted revenue estimates for 2024 and 2025 have been lowered to nil and ~$1.3M respectively to take a conservative stance.

FREYR Battery Business Overview & Revenue Model

Company Description

FREYR Battery (FREY) is a publicly traded company specializing in the development and production of clean, sustainable battery solutions. Operating within the energy storage sector, FREYR focuses on advancing lithium-ion battery technology to support the growing demand for renewable energy integration and electrification across various industries. The company's core products include high-density, cost-effective battery cells designed for applications in electric vehicles, energy storage systems, and other industrial uses.

How the Company Makes Money

FREYR Battery generates revenue primarily through the sale of its lithium-ion battery products to manufacturers and end-users in the automotive, energy storage, and industrial sectors. The company leverages its cutting-edge production technologies and strategic partnerships to produce batteries that meet the high-performance and cost-efficiency demands of its clients. Significant partnerships with technology providers and raw material suppliers contribute to streamlined production processes and enhanced product value, supporting FREYR's ability to secure long-term contracts and expand its market presence. Additionally, the company's focus on sustainability and clean energy solutions positions it favorably within a market increasingly driven by environmental considerations and regulatory incentives.

FREYR Battery Financial Statement Overview

Summary

FREYR Battery is facing significant financial challenges, with substantial net losses and negative cash flows. Despite a strong equity position, the high cash burn and inability to generate revenue are critical risks that necessitate strategic changes.

Income Statement

FREYR Battery shows substantial net losses and negative EBIT across all periods with no revenue generation, indicating significant challenges in achieving profitability. The lack of revenue growth and negative margins highlight a critical need for a change in operational strategy or market conditions to drive growth.

Balance Sheet

The balance sheet reveals a strong equity position with a relatively low level of debt, indicating financial stability. However, the company's assets are not generating revenue, and the high cash burn is a concern. The equity ratio is strong, but the lack of asset utilization remains a significant challenge.

Cash Flow

Cash flow statements indicate negative free cash flow and operating cash flow, reflecting the company's struggle to generate cash from operations. Although there is some financing activity, the persistent negative cash flow raises concerns about sustainability without additional financing.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-6.80M	-4.70M	-478.00K	-120.00K	-15.00K	0.00
	EBIT
-130.10M	-142.99M	-122.49M	-75.63M	-8.92M	-121.07K
	EBITDA
-119.69M	-133.25M	-120.45M	-75.45M	-8.91M	209.71K
	Net Income Common Stockholders
-107.16M	-71.94M	-76.98M	-95.79M	-10.38M	209.71K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
179.00K	277.23M	443.06M	563.96M	14.75M	2.28M
	Total Assets
0.00	732.18M	827.70M	627.03M	15.93M	290.23M
	Total Debt
0.00	22.20M	14.40M	0.00	7.57K	80.00K
	Net Debt
179.00K	-231.14M	-428.66M	-563.96M	-14.74M	-2.20M
	Total Liabilities
0.00	97.47M	107.57M	81.55M	10.97M	10.07M
	Stockholders Equity
-949.00K	633.20M	717.46M	545.49M	4.96M	5.00M
Cash Flow		Free Cash Flow
-160.22M	-275.75M	-270.80M	-76.91M	-7.41M	-248.90K
	Operating Cash Flow
-78.57M	-87.93M	-90.01M	-63.14M	-7.34M	-228.90K
	Investing Cash Flow
-27.03M	-186.98M	-175.03M	-33.79M	-71.00K	-287.50M
	Financing Cash Flow
48.78M	0.00	250.07M	649.00M	20.46M	290.01M

FREYR Battery Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FREY, the sentiment is Negative. The current price of 1.48 is below the 20-day moving average (MA) of 1.63, below the 50-day MA of 1.99, and below the 200-day MA of 1.68, indicating a bearish trend. The MACD of -0.15 indicates Negative momentum. The RSI at 42.23 is Neutral, neither overbought nor oversold. The STOCH value of 55.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FREY.

FREYR Battery Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$8.17B	12.83	0.26%	3.07%	3.83%	-16.44%
FREY	59 Neutral	$189.66M	―	-18.30%	―	―	-457.87%
BLDP	49 Neutral	$520.99M	―	-33.54%	―	20.29%	-106.22%
SLDP	48 Neutral	$202.01M	―	-21.13%	―	15.67%	-45.59%
QS	46 Neutral	$2.32B	―	-38.29%	―	―	2.40%
ENVX	44 Neutral	$1.42B	―	-88.04%	―	1429.35%	-36.13%
NIO	43 Neutral	$10.15B	―	-155.53%	―	13.77%	17.85%

FREYR Battery Corporate Events

FREYR Battery Expands with Trina Solar Acquisition

FREYR Battery has completed the acquisition of Trina Solar’s U.S. manufacturing assets, marking a significant step in its strategy to establish a U.S.-based solar and battery storage company. The acquisition includes a 5 GW solar module manufacturing facility in Texas, expected to be fully operational by the second half of 2025, and is backed by firm offtake contracts with U.S. customers. This move is anticipated to create up to 1,800 jobs, satisfy local content requirements, and solidify FREYR’s position in the renewable energy sector.

FREYR Battery Appoints New COO Amid Leadership Change

FREYR Battery, Inc. has made a significant leadership change by terminating the employment of its COO, Michael Brose, effective November 7, 2024. The company has appointed David Gustafson as the new COO, pending the closing of its recent transaction with Trina Solar (Schweiz) AG, signaling a strategic shift following this development.

FREYR Battery Ends Licensing Agreements with 24M Technologies

FREYR and 24M Technologies have mutually terminated their licensing agreements, with FREYR agreeing to pay $3 million to 24M and forfeiting nearly 7 million shares of Series G preferred stock. This strategic move highlights the evolving dynamics in the financial markets, reflecting companies’ efforts to restructure and optimize their partnerships.

FREYR Battery Expands into U.S. Solar Market

FREYR Battery has announced its acquisition of Trina Solar’s U.S. manufacturing assets, marking a significant step in its expansion into the solar market. The transaction, valued at $340 million, includes cash, stock, and notes, and is expected to close by the end of 2024. This strategic move positions FREYR as a leading U.S. solar technology company, aiming to create jobs and meet local content requirements. The company also plans to construct a new solar cell manufacturing facility, with operations starting in 2026, further solidifying its presence in the renewable energy sector.