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Microvast Holdings (MVST)
NASDAQ:MVST
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Microvast Holdings
(NASDAQ:MVST)
51Neutral
Positive Factors
Operational Efficiency
The company continues to show gross margin strength supported by operational improvements including better capacity utilization.
Revenue Growth
Strong revenue performance in 2024 was primarily supported by 123% growth in the EMEA region.
Negative Factors
Risks and Challenges
Risks include dilution risk, customer concentration risk, execution risk, regulatory risk, raw material supply risk, competition risk, technological risks, and uncertainty related to macroeconomic conditions.
Microvast Holdings (MVST) vs. S&P 500 (SPY)
Market Cap
$562.61M
Dividend YieldN/A
Average Volume (3M)6.78M
Price to Earnings (P/E)―
Beta (1Y)-1.19
Revenue Growth23.87%
EPS Growth-100.53%
CountryUS
Employees2,006
SectorIndustrials
Sector Strength70
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)-0.69
Shares Outstanding325,209,080
10 Day Avg. Volume13,036,136
30 Day Avg. Volume6,779,999
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.13
Price to Cash Flow (P/CF)-19.40
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
$3.00Price Target Upside73.41% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Microvast Holdings Business Overview & Revenue Model
Company DescriptionMicrovast Holdings, Inc. is a technology-driven company engaged in the design, development, and manufacture of lithium-ion battery solutions tailored for electric vehicles and other applications. Operating within the energy storage and electric vehicle sectors, Microvast offers a range of battery cells, modules, and packs that are known for their fast charging capabilities, high energy density, and long cycle life. The company is committed to advancing sustainable energy technologies and supporting the transition to cleaner transportation solutions.
How the Company Makes MoneyMicrovast Holdings generates revenue primarily through the sale of its lithium-ion battery products, which are utilized in electric vehicles, energy storage systems, and other industrial applications. The company's key revenue streams include the production and sale of battery cells, modules, and packs to original equipment manufacturers (OEMs) and other industrial clients. Microvast also engages in significant partnerships and collaborations with automotive manufacturers and technology firms to co-develop and integrate advanced battery solutions into their products, further contributing to its income. Additionally, the company's focus on research and development enables it to innovate and enhance its product offerings, thus maintaining its competitive edge in the energy storage market.
Microvast Holdings Financial Statement Overview
Summary
Microvast Holdings is showing growth in revenue and improved gross margins, yet faces significant profitability and cash flow challenges. The balance sheet is stable but marked by inefficiencies in generating profits from equity.Income Statement
Microvast Holdings has shown a consistent increase in total revenue over the years, with a notable revenue growth rate of 20.98% in the TTM (Trailing-Twelve-Months). However, the company is still facing challenges in achieving profitability, as evidenced by negative net and EBIT margins. The gross profit margin has improved to 27.25% in the TTM, indicating a better cost management, but the net profit margin remains negative at -30.88%, pointing to ongoing profitability challenges.45
Neutral
Balance Sheet
The balance sheet of Microvast Holdings reflects a moderate financial structure, with a debt-to-equity ratio of 0.52, showing a balanced approach to leveraging. However, the return on equity is negative at -22.49%, highlighting inefficiencies in generating profits from shareholder investments. The equity ratio of 49.86% indicates a stable capital structure, supported by a decent proportion of equity financing.55
Neutral
Cash Flow
Microvast's cash flow statement reveals ongoing challenges in cash generation, with negative operating and free cash flows in the TTM. The free cash flow growth rate remains negative, and the operating cash flow to net income ratio indicates that the company is not yet able to cover its net losses through operational cash flows. The financing activities have provided some relief, but substantial improvements are needed in cash flow management.40
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 370.99M | 306.62M | 204.50M | 151.98M | 107.52M | 76.43M | Gross Profit |
| 101.06M | 57.23M | 9.07M | -42.74M | 17.14M | -231.00K | EBIT |
| -115.11M | -108.68M | -159.95M | -194.06M | -29.11M | -53.86M | EBITDA |
| -74.58M | -80.85M | -132.26M | -180.36M | -11.09M | -38.81M | Net Income Common Stockholders |
| -114.56M | -106.34M | -158.20M | -211.49M | -33.63M | -59.66M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 809.14K | 51.13M | 256.49M | 480.93M | 21.50M | 140.30K | Total Assets |
| 277.26M | 1.10B | 984.96M | 995.29M | 404.51M | 280.50M | Total Debt |
| 0.00 | 202.77M | 173.07M | 147.40M | 151.03M | 150.15M | Net Debt |
| -809.14K | 158.23M | -58.35M | -333.53M | 129.53M | 150.01M | Total Liabilities |
| 141.27K | 532.54M | 371.98M | 308.59M | 698.29M | 296.12K | Stockholders Equity |
| 277.12M | 564.19M | 612.98M | 686.70M | -384.60M | 280.20M |
| Cash Flow | Free Cash Flow | ||||
| -77.81M | -262.09M | -204.81M | -132.90M | -3.09M | -6.89M | Operating Cash Flow |
| -23.31M | -75.30M | -53.93M | -45.04M | 15.56M | 13.37M | Investing Cash Flow |
| -24.46M | -165.60M | -175.94M | -87.86M | -17.67M | -3.95M | Financing Cash Flow |
| 82.60M | 29.53M | 4.97M | 624.95M | -507.00K | -52.18M |
Microvast Holdings Technical Analysis
Positive
1.73
Price Trends
1.62
Positive
1.59
Positive
0.95
Positive
Market Momentum
-0.11
Negative
54.88
Neutral
42.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MVST, the sentiment is Positive. The current price of 1.73 is above the 20-day moving average (MA) of 1.48, above the 50-day MA of 1.62, and above the 200-day MA of 0.95, indicating a bullish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 54.88 is Neutral, neither overbought nor oversold. The STOCH value of 42.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MVST.
Microvast Holdings Risk Analysis
Microvast Holdings disclosed 81 risk factors in its most recent earnings report. Microvast 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
Microvast 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 |
|---|---|---|---|---|---|---|---|
62 Neutral | $7.62B | 13.01 | 3.19% | 3.32% | 3.77% | -14.28% | |
52 Neutral | $205.65M | ― | -21.13% | ― | 15.67% | -45.59% | |
51 Neutral | $286.56M | ― | -70.24% | ― | 166.95% | -3.40% | |
51 Neutral | $562.61M | ― | -45.91% | ― | 23.87% | -100.53% | |
44 Neutral | $1.13B | ― | -88.04% | ― | 1429.35% | -36.13% | |
42 Neutral | $643.82M | ― | -279.62% | ― | 173.83% | -76.24% | |
32 Underperform | $876.94M | ― | 125.43% | ― | -4.71% | -117.58% |
* Industrials Sector Average
Performance Comparison
MVST
Microvast Holdings
1.73
1.25
260.42%
EOSE
Eos Energy Enterprises
4.23
3.40
409.64%
ENVX
Enovix
5.98
-0.72
-10.75%
ADSE
ADS-TEC Energy
12.19
1.75
16.76%
SLDP
Solid Power
1.13
-0.45
-28.48%
AMPX
Amprius Technologies Inc
2.43
0.65
36.52%
Microvast Holdings Earnings Call Summary
Earnings Call Date: Mar 31, 2025 | % Change Since: 47.86% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Neutral
Microvast demonstrated strong revenue growth and improved gross margins in 2024, particularly in the EMEA region, and achieved positive adjusted EBITDA. However, these successes were offset by a substantial GAAP net loss and revenue declines in the APAC region due to strategic repositioning and competition. The company also faced challenges related to financing.Highlights
Record Annual Revenue and Growth
Microvast achieved record annual revenue of $380 million, marking a 24% increase year-over-year. The fourth quarter revenue was also a record at $113.4 million.
Improved Gross Margin
The overall gross margin improved to 31.5% from 18.7% year-over-year, with a fourth-quarter gross margin of 36.6%.
Significant EMEA Market Growth
Revenue in EMEA increased by 123% year-over-year, driven by strong demand in Italy, Germany, and other Western European markets.
Positive Adjusted EBITDA
The company delivered an adjusted EBITDA of $8.6 million in the fourth quarter, demonstrating effective strategic execution.
Technological Advancements
Microvast made significant advancements in silicon-based cell technologies and progress toward all-solid-state batteries.
Lowlights
Increased GAAP Net Loss
GAAP net loss for the full-year 2024 was $195.5 million, compared to a net loss of $106.4 million in 2023.
Revenue Decline in APAC
Revenue in Asia Pacific declined 19% year-over-year, from $219.1 million in 2023 to $177.7 million in 2024 due to strategic repositioning away from low-margin segments.
Challenges in Financing and Competition
Microvast faced a difficult financing environment and increased competition in the APAC region.
Company Guidance
During Microvast's fourth quarter and full-year 2024 earnings call, the company highlighted several key metrics and provided guidance for 2025. In 2024, Microvast achieved record annual revenue of $379.8 million, marking a 24% increase from the previous year, with the fourth quarter alone bringing in $113.4 million. The company saw significant growth in the EMEA region with a 123% increase in revenue. Gross margin improved to 31.5% for the year and 36.6% for the fourth quarter, up from 18.7% and 22% in 2023, respectively. Despite recording a GAAP net loss of $195.5 million for the year, Microvast reported an adjusted EBITDA of $8.6 million in Q4. For 2025, the company projects revenue growth of 18% to 25%, targeting a range of $450 million to $475 million, with a maintained gross margin target of 30%. The expansion of production capacity, especially in the APAC region, and continued innovation in battery technologies are central to their strategy to drive growth and profitability.Microvast Holdings Corporate Events
Executive/Board Changes
Microvast Holdings Appoints New CFO Carl T. Schultz
Neutral
Apr 9, 2025
On April 7, 2025, Fariyal Khanbabi stepped down as Chief Financial Officer of Microvast Holdings, Inc., and Carl T. ‘Pat’ Schultz was appointed as the new CFO, effective April 21, 2025. Schultz, with over 20 years of financial leadership experience, previously served as CFO for Air Liquide North America and is expected to play a crucial role in achieving Microvast’s growth and long-term financial objectives.
Spark’s Take on MVST Stock
According to Spark, TipRanks’ AI Analyst, MVST is a Neutral.
Microvast Holdings shows promising revenue growth and improved operational efficiency, particularly in the EMEA market. However, challenges persist with significant net losses and a negative valuation profile, impacting overall financial health. The technical indicators suggest moderate stability, but the lack of dividend and competitive pressures in the APAC region remain concerns. Strategic improvements in profitability and market repositioning are crucial for enhancing investor confidence.
To see Spark’s full report on MVST stock, click here.
Executive/Board Changes
Microvast Holdings Announces New Principal Accounting Officer
Neutral
Feb 6, 2025
Microvast Holdings has announced a significant change in its executive team. On December 5, 2024, the company disclosed that Lu Gao would resign from her position as Chief Accounting Officer effective January 31, 2025. Subsequently, Fariyal Khanbabi, who has been serving as the Chief Financial Officer since October 2024, has been appointed as the Principal Accounting Officer. Ms. Khanbabi brings extensive financial leadership experience from her previous roles as CEO and CFO at Dialight PLC, and CFO at Harvest Energy and Britannia Bulk Inc. This transition reflects Microvast’s efforts to leverage her expertise for its financial strategy and operations moving forward.
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.