Gogoro (GGR) AI Stock Analysis

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Gogoro

(NASDAQ:GGR)

46Neutral

Gogoro's overall stock score reflects significant financial challenges, including declining revenue and high debt levels, which are exacerbated by negative cash flow and ongoing losses. Technical indicators suggest bearish momentum, and the valuation is unattractive due to the negative P/E ratio. While strategic initiatives and subscription growth offer potential upside, they are overshadowed by current operational difficulties and market pressures.

Positive Factors

Cost Optimization

The strategic shift away from vehicle sales to optimize costs and improve cash flow is viewed as a positive move.

Revenue Growth

Battery swapping service revenue grew solidly at 10% year over year, accounting for 49% of total revenue.

Strategic Roadmap

The new leadership has outlined a strategic roadmap for sustainable long-term growth and profitability, targeting breakeven for Energy by FY26/FY27 and Vehicles by FY28.

Negative Factors

Leadership Uncertainty

Internal restructuring with the CEO and mastermind behind most of Gogoro’s previous strategies gone, adding to uncertainties.

Market Conditions

Revenue pressure stemmed from persistently soft market conditions in Taiwan coupled with delays in the recognition of revenue from new models.

Revenue Decline

Gogoro delivered disappointing results with revenue sliding 5% YoY and net loss of -US$18mn.

Gogoro (GGR) vs. S&P 500 (SPY)

Market Cap

$113.30M

Dividend YieldN/A

Average Volume (3M)1.06M

Price to Earnings (P/E)―

Beta (1Y)1.34

Revenue Growth-11.24%

EPS Growth-36.73%

CountryUS

Employees2,097

SectorConsumer Cyclical

Sector Strength60

IndustryAuto - Parts

Share Statistics

EPS (TTM)-0.45

Shares Outstanding295,353,300

10 Day Avg. Volume1,940,087

30 Day Avg. Volume1,057,626

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.31

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

$0.50

Price Target Upside38.89% Upside

Rating ConsensusHold

Number of Analyst Covering1

Gogoro Business Overview & Revenue Model

Company DescriptionGogoro Inc. manufactures two-wheeled electric vehicle. The company offers two-wheeled electric scooter that provides cloud connectivity and electric powertrain that utilizes swappable battery infrastructure for gathering, analyzing, and sharing riding data through a mobile application on the rider's smartphone. It also operates battery swapping infrastructure network for electric vehicles that can be deployed across the cities to provide portable power through battery vending machines. Gogoro Inc. has a strategic partnership with Foxconn Electronics Inc. The company was founded in 2011 and is based in Taoyuan City, Taiwan.

How the Company Makes MoneyGogoro generates revenue through the sale of its electric scooters and smart batteries, as well as from its battery swapping services. The company sells its electric scooters directly to consumers and through partnerships with local distributors in various markets. A key component of Gogoro's revenue model is its subscription-based battery swapping service, which allows users to exchange depleted batteries for fully charged ones at Gogoro's network of swapping stations. This service not only provides convenience to users but also creates a recurring revenue stream for the company. Additionally, Gogoro may engage in partnerships and collaborations with municipalities, energy companies, and other stakeholders to expand its battery swapping network, thereby increasing its market reach and revenue potential.

Gogoro Financial Statement Overview

Summary

Gogoro faces significant financial challenges, with declining revenues, negative EBIT and net income margins, high leverage, and negative free cash flow. These elements collectively indicate potential liquidity risks and the need for strategic improvements in cost management and growth initiatives.

Income Statement

Neutral

Gogoro's income statement reveals challenges with profitability, indicated by negative EBIT and net income margins in the TTM. Revenue has been declining, with a noticeable drop from previous years, highlighting a need for strategic initiatives to stimulate growth. The gross profit margin remains low, suggesting cost management issues.

Balance Sheet

Neutral

The balance sheet shows a mixed financial position. While the company maintains a reasonable level of stockholders' equity, it faces high leverage with a debt-to-equity ratio of 1.66. The equity ratio is moderate, indicating potential stability but also highlighting the risks associated with significant liabilities.

Cash Flow

Negative

The cash flow statement highlights negative free cash flow, which is a concern for future liquidity. Operating cash flow is positive but insufficient to cover capital expenditures, leading to reliance on external financing. The free cash flow growth rate is negative, indicating cash management issues.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
329.04M	349.85M	382.83M	366.01M	364.13M	439.24M
	Gross Profit
23.43M	50.94M	57.71M	61.09M	79.44M	93.21M
	EBIT
-97.38M	-88.37M	-89.18M	-55.30M	-39.34M	-3.58M
	EBITDA
30.13M	34.26M	8.57M	38.55M	37.98M	54.12M
	Net Income Common Stockholders
-78.96M	-76.04M	-98.91M	-70.33M	-49.28M	-13.09M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
183.72M	173.88M	236.10M	246.16M	230.88M	184.97M
	Total Assets
0.00	834.23M	873.42M	844.40M	790.59M	675.30M
	Total Debt
0.00	440.31M	402.65M	461.06M	378.96M	265.77M
	Net Debt
183.72M	266.42M	166.55M	243.63M	259.92M	82.05M
	Total Liabilities
0.00	585.54M	574.45M	720.69M	607.55M	457.38M
	Stockholders Equity
217.92M	248.69M	298.97M	123.71M	183.03M	217.92M
Cash Flow		Free Cash Flow
-62.56M	-59.19M	-188.06M	-47.61M	-144.93M	-151.59M
	Operating Cash Flow
40.87M	59.09M	-64.79M	80.79M	756.00K	25.37M
	Investing Cash Flow
-159.00M	-136.63M	-101.10M	-41.52M	-251.76M	-177.58M
	Financing Cash Flow
84.29M	15.15M	186.40M	61.76M	187.26M	32.24M

Gogoro Technical Analysis

Technical Analysis Sentiment

Negative

Last Price0.36

Price Trends

50DMA

0.37

Negative

100DMA

0.44

Negative

200DMA

0.70

Negative

Market Momentum

MACD

-0.02

Negative

RSI

45.71

Neutral

STOCH

63.36

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GGR, the sentiment is Negative. The current price of 0.36 is above the 20-day moving average (MA) of 0.28, below the 50-day MA of 0.37, and below the 200-day MA of 0.70, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 45.71 is Neutral, neither overbought nor oversold. The STOCH value of 63.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GGR.

Gogoro Risk Analysis

Gogoro disclosed 95 risk factors in its most recent earnings report. Gogoro 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

Gogoro Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$7.23B	11.55	3.67%	4.04%	2.96%	-13.54%
AEVA	53 Neutral	$426.77M	―	-92.90%	―	110.23%	12.96%
SRI	50 Neutral	$105.53M	―	-6.20%	―	-6.92%	-215.11%
KNDI	48 Neutral	$100.46M	―	-1.59%	―	-11.61%	-22.20%
GGR	46 Neutral	$113.30M	―	-57.97%	―	-11.24%	-36.73%
INVZ	40 Underperform	$128.61M	―	-81.61%	―	16.25%	32.95%
ECX	36 Underperform	$339.14M	―	102.04%	―	18.50%	0.28%

* Consumer Cyclical Sector Average

Performance Comparison

GGR

Gogoro

0.28

-1.15

-80.42%

KNDI

Kandi Technologies

1.16

-1.47

-55.89%

SRI

Stoneridge

3.78

-11.57

-75.37%

AEVA

Aeva Technologies

7.29

4.19

135.16%

INVZ

Innoviz Technologies

0.63

-0.43

-40.57%

ECX

ECARX Holdings

0.90

-0.75

-45.45%

Gogoro Earnings Call Summary

Earnings Call Date: Feb 13, 2025 | % Change Since: -21.74% | Next Earnings Date: May 8, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed outlook for Gogoro, with significant strategic shifts and cost reductions aimed at long-term growth and profitability. However, the company faced notable challenges, including a decline in revenue and increased losses. While there were achievements in subscriber growth and market recognition, the overall sentiment remains cautious, balancing both positive strategic moves and current operational difficulties.

Highlights

Growth in Subscription Business

Gogoro ended the fourth quarter with nearly 640,000 accumulated subscribers, up from 587,000 at the end of the same quarter last year. Battery swapping business revenue surpassed vehicle sales for the first time in Q4 2024.

Strategic Shift and Cost Reduction

Implemented a strategic shift towards energy business with R&D spending increased by 26% for energy initiatives. Significant reduction in fixed spending budget by more than 32%, from $120 million in 2024 to $82 million in 2025.

Recognition and Awards

Received global accolades such as Asia Pacific's #1 most Innovative Company by Fast Company, Change the World list by Fortune, and Global Battery Swapping Company of the Year by Frost & Sullivan.

Strong Market Position

Maintained a 72% market share in electric scooters despite a contraction in the overall 2-wheel market. International expansion with new services launched in Colombia, Singapore, and Nepal.

Adjusted EBITDA Increase

Adjusted EBITDA for 2024 was $46.5 million, a slight increase from 2023, reflecting cost optimizations and strategic realignments.

Lowlights

Revenue Decline

Total revenue for the fourth quarter was $73 million, down 20.2% year-over-year. Full-year revenue was $310.5 million, down 11.2% year-over-year.

Net Loss Increase

Net loss for the fourth quarter was $71.8 million, an increase from a net loss of $26.7 million in the same quarter last year.

Taiwan Market Decline

The overall market for 2-wheelers in Taiwan in 2024 declined by 13.6%, impacting Gogoro's vehicle sales.

International Market Challenges

International markets did not deliver revenue and unit growth at the anticipated pace, with Taiwan accounting for more than 95% of revenue.

Gross Margin Decline

Gross margin for the full year 2024 was 2.4%, down from 14.6% last year, with non-IFRS gross margin at 14.8%, down from 16%.

Company Guidance

During the 2024 Fourth Quarter and Full Year Earnings Call, Gogoro provided several metrics indicating its strategic direction and financial performance. The company reported a full-year revenue of $310.5 million, aligning with its forecast range, and a Q4 revenue of $73 million, marking a 20.2% year-over-year decline. Despite a net loss of $123.2 million for the year, the company achieved an adjusted EBITDA of $46.5 million, a slight increase from the previous year. Gogoro's battery swapping service revenue grew by 4.6% year-over-year, supported by its large subscriber base, which increased to nearly 640,000 by year-end. The company aims for its energy business to break even by 2026 and generate free cash flow by 2027, while the vehicle business is expected to break even by 2028. Additionally, Gogoro anticipates reducing its fixed spending from $120 million in 2024 to $82 million in 2025. The company is also focusing on international expansion, with 95% of its revenue still coming from Taiwan, and plans to enhance its energy storage solutions, projecting a 26% increase in R&D spending in 2025.

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.