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Lion Electric Company (LEVGQ)
OTHER OTC:LEVGQ
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Lion Electric Company
(OTC:LEVGQ)
38Underperform
Positive Factors
Business Strategy
LEV's plan to sell its batteries externally expands the opportunity set, although it has risks of its own.
Negative Factors
Financial Performance
Lion reported 3Q24 results that missed our/consensus expectations, with total deliveries of 89 vehicles — down from 101 units in 2Q24 and 245 units in 3Q23.
Liquidity
Lion’s liquidity position continues to prove uncertain, and the recent election results in the USA do add some risk to EPA program viability.
Lion Electric Company (LEVGQ) vs. S&P 500 (SPY)
Market Cap
$14.36M
Dividend YieldN/A
Average Volume (3M)246.09K
Price to Earnings (P/E)―
Beta (1Y)0.57
Revenue Growth-26.28%
EPS Growth-148.87%
CountryUS
Employees1,350
SectorIndustrials
Sector Strength74
IndustryIndustrial Machinery
Share Statistics
EPS (TTM)-0.58
Shares Outstanding226,217,540
10 Day Avg. Volume191,106
30 Day Avg. Volume246,088
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)0.70
P/FCF Ratio0.50
Enterprise Value/Market Cap35.87
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit-93.28
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$0.55Price Target Upside816.67% Upside
Rating ConsensusHold
Number of Analyst Covering0
Lion Electric Company Business Overview & Revenue Model
Company DescriptionLion Electric Company (LEV) is a leading manufacturer of all-electric medium and heavy-duty urban vehicles. Operating in the automotive sector, Lion Electric specializes in the design, development, and manufacture of zero-emission vehicles, including all-electric school buses, transit buses, and commercial trucks. The company's focus is on providing sustainable transportation solutions that reduce carbon emissions and contribute to cleaner urban environments.
How the Company Makes MoneyLion Electric Company generates revenue primarily through the sale of its all-electric vehicles to various sectors, including education, public transit, and commercial transportation. The company's key revenue streams include the direct sale of electric buses and trucks, as well as after-sales services, such as maintenance, repair, and parts replacement. Lion Electric also benefits from government incentives and subsidies for electric vehicle adoption, which can enhance sales and customer acquisition. Additionally, the company engages in strategic partnerships with battery suppliers and other technology providers to optimize vehicle performance and cost efficiency, further supporting its revenue growth.
Lion Electric Company Financial Statement Overview
Summary
The company is experiencing significant financial challenges with declining revenues, negative profitability, and high leverage. The income statement, balance sheet, and cash flow scores reflect persistent operational inefficiencies and cash flow difficulties, necessitating immediate strategic changes.Income Statement
The company has experienced declining revenue with negative growth over the last few periods, as seen in TTM (Trailing-Twelve-Months) data. The gross profit margin is negative, indicating cost of goods sold exceeds revenue. Additionally, net profit margin is also negative, with substantial net losses. Consistently negative EBIT and EBITDA margins highlight continued operational inefficiencies.35
Negative
Balance Sheet
The balance sheet shows high leverage, with a significant debt-to-equity ratio, indicating a risky capital structure. The return on equity is negative due to consistent net losses. The equity ratio is relatively stable but reflects a declining trend in stockholders' equity, which could pose risks if liabilities continue to increase.40
Negative
Cash Flow
Cash flow analysis reveals negative operating and free cash flow, indicating difficulties in generating cash from core operations. The free cash flow to net income ratio is poor, reflecting the company's inability to translate earnings into cash effectively. There is a slight improvement in financing cash flow, but this is primarily from increased debt.30
Negative
| Breakdown | ||||
| Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 253.50M | 139.91M | 57.71M | 23.42M | 30.86M | Gross Profit |
| -5.52M | -12.95M | 45.45K | 3.15M | 10.08M | EBIT |
| -114.08M | -80.76M | -106.10M | -72.52M | 1.12M | EBITDA |
| -62.79M | 32.41M | -29.45M | -90.80M | -498.15K | Net Income Common Stockholders |
| -103.77M | 116.32M | -49.87M | -101.21M | -3.07M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 29.89M | 88.27M | 241.70M | 624.28K | 1.00 | Total Assets |
| 841.12M | 710.41M | 590.60M | 320.35M | 65.92M | Total Debt |
| 316.90M | 174.19M | 75.29M | 82.14M | 31.49M | Net Debt |
| 287.01M | 85.93M | -166.42M | 81.51M | 31.49M | Total Liabilities |
| 482.21M | 273.29M | 221.92M | 12.27M | 61.03M | Stockholders Equity |
| 358.91M | 437.12M | 368.68M | 308.08M | 4.88M |
| Cash Flow | Free Cash Flow | |||
| -263.50M | -327.41M | -195.75M | -46.49M | -21.51M | Operating Cash Flow |
| -110.04M | -119.55M | -130.97M | -27.06M | -7.40M | Investing Cash Flow |
| -123.51M | -204.61M | -62.60M | -16.79M | -12.71M | Financing Cash Flow |
| 175.45M | 172.80M | 434.70M | 44.46M | 20.10M |
Lion Electric Company Technical Analysis
Negative
0.06
Price Trends
0.08
Negative
0.12
Negative
0.38
Negative
Market Momentum
>-0.01
Positive
41.43
Neutral
17.51
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LEVGQ, the sentiment is Negative. The current price of 0.06 is below the 20-day moving average (MA) of 0.10, below the 50-day MA of 0.08, and below the 200-day MA of 0.38, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.43 is Neutral, neither overbought nor oversold. The STOCH value of 17.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LEVGQ.
Lion Electric Company Risk Analysis
Lion Electric Company disclosed 64 risk factors in its most recent earnings report. Lion Electric Company 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
Lion Electric Company Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $4.27B | 11.36 | 5.38% | 214.64% | 4.14% | -9.01% | |
49 Neutral | $14.27B | ― | -60.48% | ― | 12.09% | 17.65% | |
40 Underperform | $1.74M | ― | -72.67% | ― | 258.96% | 82.54% | |
39 Underperform | $5.95M | ― | -159.80% | ― | -49.47% | 54.99% | |
38 Underperform | $14.36M | ― | -38.12% | ― | -26.28% | -148.87% | |
38 Underperform | $10.39M | ― | -129.17% | ― | 141.23% | 69.50% |
* Industrials Sector Average
Performance Comparison
LEVGQ
Lion Electric Company
0.06
-0.86
-93.48%
WKHS
Workhorse Group
1.16
-40.54
-97.22%
NKLAQ
Nikola
0.12
-19.47
-99.39%
GOEVQ
Canoo
0.12
-56.28
-99.79%
RIVN
Rivian Automotive
12.62
3.24
34.54%
Lion Electric Company Earnings Call Summary
Earnings Call Date:Feb 20, 2025
(Q3-2024)
| % Change Since: -25.00%|
Next Earnings Date:May 07, 2025
Earnings Call Sentiment Neutral
Lion Electric is implementing significant cost-saving measures and seeing positive developments in government programs, but faces challenges with revenue, liquidity, and production delays.Q3-2024 Updates
Positive Updates
Cost Reduction Initiatives
Implemented headcount reductions and other cost-saving measures expected to result in annualized savings of approximately $65 million.
Inventory Reduction Success
Achieved a $15 million inventory reduction in Q3 and a $35 million year-to-date reduction as of September 30, mostly related to raw materials.
Positive Momentum with EPA Program
Obtained $30 million in expense reimbursement payments under the EPA grant and received over 275 purchase orders related to the program.
Lion Electric Vehicle Mileage
Lion's electric vehicles have traveled over 32 million miles, demonstrating operational success and customer satisfaction.
Negative Updates
Revenue and Profitability Challenges
Recorded quarterly revenue of $30.6 million, with a negative gross margin of $16 million and EBITDA of negative $19.5 million, impacted by lower unit sales and increased manufacturing costs.
Liquidity Concerns and Going Concern Note
Signal of uncertainty about the company's ability to continue as a going concern over the next 12 months if no additional funding is raised.
Order Book Adjustments
Removed 515 bus orders from the order book due to the uncertainty related to delays in the ZETF application process.
Production Delays
Commercial production of the Lion AT pushed to 2025 due to headcount reductions and focus on liquidity.
Company Guidance
During Lion Electric's Q3 2024 earnings call, the company provided several key metrics and guidance as they navigate financial and operational challenges. They implemented cost reduction initiatives expected to save approximately $65 million annually and have reduced inventory by $15 million in Q3, contributing to a year-to-date reduction of $35 million. The company delivered 89 vehicles in Q3, including 71 buses and 18 trucks, and their vehicle order book stands at 1,590 vehicles, valued at about $420 million. Lion Electric aims to reduce their inventory by $50 million by the end of 2024. Despite liquidity constraints, with available liquidity of $27 million as of September 30, the company is actively seeking additional financing and working with lenders to address financial covenant relief. Additionally, they plan to start selling battery packs to third parties in 2025, while continuing to focus on maintaining a leadership position in the electric school bus market amidst evolving subsidy programs and market dynamics.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.