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QuantumScape (QS)
NYSE:QS
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QuantumScape
(NYSE:QS)
46Neutral
Positive Factors
Partnerships and Licensing
QS hopes to expand potential licensing partnerships and is already active in discussions with two automotive OEMs.
Production and Milestones
QuantumScape announced an important milestone of producing and shipping cells through its Raptor fast separator production process, which is key for customer and partner engagement.
Negative Factors
Market Challenges
The challenging backdrop for EVs and several OEMs pushing out production targets contribute to maintaining a neutral rating.
QuantumScape (QS) vs. S&P 500 (SPY)
Market Cap
$2.32B
Dividend YieldN/A
Average Volume (3M)13.73M
Price to Earnings (P/E)―
Beta (1Y)2.34
Revenue GrowthN/A
EPS Growth2.40%
CountryUS
Employees850
SectorConsumer Cyclical
Sector Strength49
IndustryVehicles
Share Statistics
EPS (TTM)-0.94
Shares Outstanding503,667,660
10 Day Avg. Volume13,465,716
30 Day Avg. Volume13,732,936
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
Price to Cash Flow (P/CF)-10.10
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
$6.75Price Target Upside56.61% Upside
Rating ConsensusHold
Number of Analyst Covering4
QuantumScape Business Overview & Revenue Model
Company DescriptionQuantumScape Corp is engaged in development of next generation solid-state lithium-metal batteries for use in electric vehicles.
How the Company Makes MoneyQuantumScape makes money through the development and future commercialization of its solid-state battery technology. The company aims to license its technology and establish partnerships with major automotive manufacturers to integrate its batteries into electric vehicles. Revenue is expected to be generated through these strategic partnerships and potential joint ventures. Additionally, QuantumScape may also explore direct sales of its battery products once they are commercially viable. Significant partnerships, such as the one with Volkswagen Group, play a crucial role in QuantumScape's business model by providing financial support and a pathway to market entry for their cutting-edge battery solutions.
QuantumScape Financial Statement Overview
Summary
QuantumScape is in a challenging financial position with no revenue generation and substantial net losses, impacting profitability and cash flow. The balance sheet remains relatively strong due to high equity levels and low leverage, but the ongoing cash burn and lack of revenue growth are significant concerns. The company must focus on commercializing its products to improve financial performance.Income Statement
QuantumScape has consistently reported zero revenue over multiple years, indicating a lack of commercialized product sales. The company experiences high net losses, with increasing EBIT and EBITDA losses year over year, highlighting operational challenges. The absence of revenue growth is a significant concern.20
Very Negative
Balance Sheet
QuantumScape maintains a strong equity position with a high equity ratio, indicating a stable financial foundation. The company's low debt-to-equity ratio suggests limited leverage, reducing financial risk. However, the consistent net losses are eroding equity over time, which is a potential long-term concern.65
Positive
Cash Flow
The company has a negative free cash flow, which has shown some variability without a clear trend of improvement. Operating cash flow is consistently negative, indicating ongoing cash burn. The reliance on financing activities to cover cash flow deficits poses sustainability risks if external funding becomes less accessible.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Gross Profit |
| 0.00 | -41.96M | -36.12M | -14.70M | -8.08M | EBIT |
| -525.21M | -479.03M | -420.62M | -215.27M | -81.02M | EBITDA |
| -525.21M | -400.74M | -373.37M | -29.86M | -1.65B | Net Income Common Stockholders |
| -477.86M | -445.14M | -403.19M | -47.54M | -121.45M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 910.77M | 1.07B | 1.06B | 1.45B | 997.55M | Total Assets |
| 1.32B | 1.50B | 1.48B | 1.72B | 1.07B | Total Debt |
| 93.54M | 100.63M | 105.42M | 77.37M | 12.46M | Net Debt |
| -47.33M | -41.89M | -129.98M | -243.33M | -100.75M | Total Liabilities |
| 164.55M | 161.80M | 155.86M | 107.06M | 23.59M | Stockholders Equity |
| 1.16B | 1.34B | 1.32B | 1.61B | 1.04B |
| Cash Flow | Free Cash Flow | |||
| -336.69M | -324.54M | -376.87M | -255.09M | -85.36M | Operating Cash Flow |
| -274.56M | -240.03M | -218.02M | -127.91M | -61.26M | Investing Cash Flow |
| 128.87M | -152.53M | 124.12M | -385.83M | -802.65M | Financing Cash Flow |
| 144.03M | 300.21M | 8.60M | 736.56M | 953.72M |
QuantumScape Technical Analysis
Negative
4.31
Price Trends
5.15
Negative
5.15
Negative
5.53
Negative
Market Momentum
-0.23
Positive
35.33
Neutral
27.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QS, the sentiment is Negative. The current price of 4.31 is below the 20-day moving average (MA) of 4.81, below the 50-day MA of 5.15, and below the 200-day MA of 5.53, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 35.33 is Neutral, neither overbought nor oversold. The STOCH value of 27.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for QS.
QuantumScape Risk Analysis
QuantumScape disclosed 52 risk factors in its most recent earnings report. QuantumScape 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
QuantumScape Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $12.39B | 10.47 | 1.07% | 3.58% | 1.64% | -18.33% | |
48 Neutral | $194.73M | ― | -21.13% | ― | 15.67% | -45.59% | |
46 Neutral | $2.32B | ― | -38.29% | ― | ― | 2.40% | |
44 Neutral | $1.42B | ― | -88.04% | ― | 1429.35% | -36.13% | |
43 Neutral | $1.58B | ― | -90.88% | ― | -29.45% | -10.79% |
* Consumer Cyclical Sector Average
Performance Comparison
QS
QuantumScape
4.24
-1.73
-28.98%
BLDP
Ballard Power Systems
1.20
-1.68
-58.33%
PLUG
Plug Power
1.67
-1.87
-52.82%
TE
T1 Energy
1.46
-0.10
-6.41%
ENVX
Enovix
7.44
-1.58
-17.52%
SLDP
Solid Power
1.11
-0.37
-25.00%
QuantumScape Earnings Call Summary
Earnings Call Date: Feb 12, 2025 | % Change Since: -10.77% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Positive
QuantumScape's earnings call highlighted significant technological and partnership achievements, particularly with the introduction of the Cobra process and collaboration with Volkswagen's PowerCo. Financially, the company is aligning with a capital-light model, though it faces high operating expenses and significant net losses. The overall sentiment leans positive due to strong strategic progress despite financial challenges.Highlights
Achievement of Key Goals for 2024
Successfully shipped Alpha-2 samples, ramped Raptor process, began low-volume B0 production of QSE-5 cells with industry-leading performance, and released Cobra separator heat-treatment equipment.
Partnership with Volkswagen's PowerCo
Building a 150-person joint team to industrialize the QSE-5 technology platform, aiming for gigawatt hour scale production.
Improved Financial Forecast
Reduction in overall spend from 2024 levels, with adjusted EBITDA loss forecasted between $250 million and $280 million, aligning with a capital-light business model.
Strong Financial Position
Ended 2024 with $910.8 million in liquidity, extending cash runway into the second half of 2028.
Continued Progress in Technology Development
Transitioning from Raptor to Cobra process in 2025, enabling higher-volume B1 sample production.
Lowlights
Significant GAAP Net Loss
GAAP net loss in Q4 was $114.7 million, and for full year 2024 was $477.9 million.
High Operating Expenses
GAAP operating expenses for full year 2024 were $525.2 million.
Uncertain Customer Engagement
Ongoing discussions with two automotive OEMs with no confirmed licensing agreements yet.
Company Guidance
In the QuantumScape Fourth Quarter 2024 Earnings Conference Call, significant guidance was provided for the company's future initiatives. The company aims to transition from the Raptor separator process to the more efficient Cobra process in 2025, enabling higher-volume B1 sample production. QuantumScape plans to ship QSE-5 B1 samples for customer testing, which is a key milestone for a prospective launch customer targeted for 2026. Additionally, the company is focused on expanding its commercial engagements, particularly through a strategic partnership with PowerCo, a Volkswagen Group company. Financially, QuantumScape forecasts capital expenditures between $45 million and $75 million and an adjusted EBITDA loss between $250 million and $280 million for 2025, marking a reduction from 2024 levels. The company ended 2024 with $910.8 million in liquidity, extending its cash runway into the second half of 2028.QuantumScape Corporate Events
Executive/Board Changes
QuantumScape Appoints New Board Members and Chairman
Neutral
Oct 23, 2024
QuantumScape Corporation has announced the appointment of Dennis Segers and Dr. Günther Mendl to its Board of Directors. Segers, a veteran in the semiconductor industry, will also serve as Chairman starting January 1, 2025, succeeding Jagdeep Singh, who is retiring. Dr. Mendl, who has extensive experience in battery technology, joins as a representative of Volkswagen Group. Both directors are part of the company’s standard compensation program, though Dr. Mendl has waived his compensation rights.
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.