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Nio (NIO)
NYSE:NIO
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Nio
(NYSE:NIO)43Neutral
Positive Factors
Financial Health
Operational cash flow turned positive, reflecting improved financial health and efficient management of resources.
Sales Growth
Nio brand volume projected to grow 10%-20% year over year, indicating a strong market presence and increasing demand.
Negative Factors
Revenue Concerns
Weaker demand for core NIO brand and a slower Onvo production ramp led to an 18% miss for the 4Q revenue guidance midpoint vs consensus.
Nio (NIO) vs. S&P 500 (SPY)
Market Cap
$9.39B
Dividend YieldN/A
Average Volume (3M)54.46M
Price to Earnings (P/E)―
Beta (1Y)1.67
Revenue Growth13.77%
EPS Growth17.85%
CountryUS
Employees32,820
SectorConsumer Cyclical
Sector Strength53
IndustryVehicles
Share Statistics
EPS (TTM)-1.49
Shares Outstanding1,941,934,800
10 Day Avg. Volume74,249,929
30 Day Avg. Volume54,461,503
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.26
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
$5.25Price Target Upside24.41% Upside
Rating ConsensusHold
Number of Analyst Covering6
Nio Business Overview & Revenue Model
Company DescriptionNio Inc. is a Chinese automobile manufacturer specializing in designing and developing electric vehicles. Founded in 2014 and headquartered in Shanghai, Nio operates primarily within the automotive sector, focusing on smart, connected, and autonomous vehicles. The company's core products include premium electric SUVs and sedans, along with a suite of services such as battery swapping, charging solutions, and a digital ecosystem for its customers.
How the Company Makes MoneyNio generates revenue primarily through the sale of its electric vehicles, which include models like the ES8, ES6, and EC6 SUVs, as well as the ET7 sedan. In addition to vehicle sales, Nio creates income through its innovative Battery-as-a-Service (BaaS) program, which allows customers to subscribe to battery packs separately from the vehicle purchase, offering flexibility and cost savings. Another revenue stream comes from its proprietary charging solutions, including Power Swap stations that enable rapid battery swaps. The company also monetizes its digital ecosystem, which includes software updates and connected car services. Strategic partnerships with technology firms and suppliers, as well as government incentives for electric vehicles in China, further bolster Nio's revenue potential.
Nio Financial Statement Overview
Summary
Nio shows strong revenue growth, but faces profitability challenges with negative EBIT and net income margins. The balance sheet is strained by high debt levels and negative cash flows, despite significant cash reserves.Income Statement
Nio has shown significant revenue growth over recent years, with a revenue increase from 2022 to 2024. However, the company struggles with profitability as indicated by negative EBIT and net income margins. Gross profit margin is low, and operating losses are persistent, impacting overall profitability.43
Neutral
Balance Sheet
The balance sheet shows a high level of debt relative to equity, indicating potential leverage risk. Return on Equity (ROE) is negative due to recurring net losses. Despite this, the company maintains substantial cash reserves, providing some liquidity buffer.47
Neutral
Cash Flow
Cash flow metrics are concerning with negative free cash flow and operating cash flow. The lack of positive cash flow from operations and investments in capital expenditures indicate cash management challenges. Financing activities have been largely supporting cash reserves.32
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 63.13B | 55.62B | 49.27B | 36.14B | 16.26B | 7.82B | Gross Profit |
| 5.46B | 3.05B | 5.14B | 6.82B | 1.87B | -1.20B | EBIT |
| -22.47B | -22.66B | -15.64B | -4.50B | -4.61B | -11.08B | EBITDA |
| -19.65B | -15.15B | -12.79B | -985.36M | -3.33B | -9.40B | Net Income Common Stockholders |
| -21.12B | -21.15B | -14.44B | -4.02B | -5.30B | -11.30B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 49.75B | 49.75B | 39.06B | 52.39B | 39.51B | 973.84M | Total Assets |
| 117.38B | 117.38B | 96.26B | 82.88B | 54.64B | 14.58B | Total Debt |
| 50.38B | 50.38B | 23.71B | 20.10B | 9.43B | 10.57B | Net Debt |
| 17.44B | 17.44B | 3.82B | 4.77B | -28.99B | 9.71B | Total Liabilities |
| 91.65B | 91.65B | 68.62B | 44.82B | 27.47B | 20.86B | Stockholders Equity |
| 25.55B | 25.55B | 23.87B | 34.71B | 27.17B | -6.30B |
| Cash Flow | Free Cash Flow | ||||
| 0.00 | -15.72B | -10.84B | -2.11B | 823.21M | -10.43B | Operating Cash Flow |
| 0.00 | -1.38B | -3.87B | 1.97B | 1.95B | -8.72B | Investing Cash Flow |
| 0.00 | -10.89B | 10.39B | -39.76B | -5.07B | 3.38B | Financing Cash Flow |
| 0.00 | 27.66B | -1.62B | 18.13B | 41.36B | 3.09B |
Nio Technical Analysis
Negative
4.22
Price Trends
4.35
Negative
4.69
Negative
4.73
Negative
Market Momentum
0.03
Positive
45.46
Neutral
19.35
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NIO, the sentiment is Negative. The current price of 4.22 is below the 20-day moving average (MA) of 4.35, below the 50-day MA of 4.35, and below the 200-day MA of 4.73, indicating a bearish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 45.46 is Neutral, neither overbought nor oversold. The STOCH value of 19.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NIO.
Nio Risk Analysis
Nio disclosed 122 risk factors in its most recent earnings report. Nio 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
Nio Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $915.58B | 133.46 | 9.73% | ― | 0.95% | -52.81% | |
78 Outperform | $30.01B | 20.65 | 15.27% | ― | 39.75% | 57.08% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% | |
56 Neutral | $19.42B | ― | -28.56% | ― | 63.42% | 54.15% | |
43 Neutral | $9.39B | ― | -186.12% | ― | 13.77% | 17.85% | |
43 Neutral | $13.39B | ― | -72.34% | ― | 12.09% | 17.65% | |
37 Underperform | $6.73B | ― | -70.08% | ― | 35.71% | 8.24% |
* Consumer Cyclical Sector Average
Performance Comparison
NIO
Nio
4.22
-1.26
-22.99%
TSLA
Tesla
272.04
91.30
50.51%
LI
Li Auto
27.67
-10.09
-26.72%
XPEV
XPeng, Inc. ADR
20.22
11.07
120.98%
LCID
Lucid Group
2.10
-1.08
-33.96%
RIVN
Rivian Automotive
11.26
0.33
3.02%
Nio Earnings Call Summary
Earnings Call Date: Nov 20, 2024 | % Change Since: -8.86% | Next Earnings Date: Mar 11, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong vehicle delivery performance, positive cash flow, and strategic investments, balancing these against revenue declines, increased net losses, and challenges in the European market. The company is focused on international expansion and improving profitability, although it faces sales volume pressures and potential brand cannibalization.Highlights
Record Vehicle Deliveries
Achieved a new quarterly record with 61,855 vehicle deliveries, maintaining top position in China's PV segment priced above RMB 300,000 with a market share of 48%.
Improved Vehicle Margin
Vehicle margin improved to 13.1% in Q3 2024, up from 11% in the same period of 2023 and 12.2% last quarter.
Positive Cash Flow
Achieved positive operating cash flow and free cash flow in Q3 2024.
International Expansion
Sales and delivery began in the UAE, with plans to accelerate international market entry in 2025.
Strategic Investment
Secured RMB 3.3 billion from strategic investors, reinforcing the balance sheet.
Lowlights
Decreased Total Revenue
Total revenues decreased by 2.1% year-over-year, mainly due to a lower average selling price and changes in product mix.
Net Loss Increase
Net loss was RMB 5.1 billion, showing an increase of 11% year-over-year.
Sales Volume Pressure
Delivery volumes decreased in October due to reduced promotional activities, impacting sales volume.
Cannibalization Concerns
Potential cannibalization between NIO and ONVO brands, although currently limited to around 2%.
European Market Challenges
Tariffs on Chinese battery electric vehicles affected pricing strategy and sales volume in Europe.
Company Guidance
During NIO's Q3 2024 earnings call, the company provided detailed guidance and insights across various metrics. The company achieved a new quarterly delivery record of 61,855 vehicles, with market share in China's PV segment priced above RMB 300,000 reaching 48%. The ONVO brand initiated deliveries of its L60 model on September 28. In October 2024, NIO delivered 20,976 vehicles, with Q4 delivery guidance set between 72,000 and 75,000 units. Financially, NIO reported Q3 vehicle sales of RMB 16.7 billion, with a vehicle margin improvement to 13.1%. The company also highlighted positive operating cash flow and free cash flow for the quarter. Looking ahead, NIO plans to ramp up monthly production capacity to 10,000 units in December and 20,000 by March. The upcoming NIO Day 2024 will feature the debut of their third brand, Firefly. NIO's global expansion continues, with the first NIO House in the MENA region opening in UAE, and plans to boost international market presence with ONVO and Firefly brands. Additionally, they secured a RMB 3.3 billion investment from strategic investors, underscoring confidence in NIO's industry leadership.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.