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VinFast Auto (VFS)
NASDAQ:VFS
US Market

VinFast Auto (VFS) AI Stock Analysis

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VinFast Auto

(NASDAQ:VFS)

32Underperform
VinFast Auto's stock score reflects its financial struggles with unprofitability, high debt, and negative cash flows. Technical indicators suggest a bearish trend, and valuation metrics highlight risks due to negative earnings. The earnings call presented positive growth in EV deliveries and strategic investments, but challenges such as negative margins and cash flow concerns persist, weighing down the overall score.
Positive Factors
Financial Strategy
Securing $3.5B in capital funding is crucial for scaling production and expanding the global manufacturing footprint.
Market Demand
The company reported significant growth in EV deliveries, showing strong market demand.
Negative Factors
Revenue Performance
Revenue was below consensus expectations, which can impact investor confidence.

VinFast Auto (VFS) vs. S&P 500 (SPY)

VinFast Auto Business Overview & Revenue Model

Company DescriptionVinfast is a Vietnamese automobile maker whose headquarters are in Singapore. The company, which aspires to create a "green future," exports its electric SUVs, electric buses, and electric scooters to the U.S., and plans to export its vehicles to European countries as well.
How the Company Makes MoneyVinFast Auto makes money primarily through the sale of its electric vehicles, which include cars, scooters, and buses. The company's revenue model is centered around direct sales to consumers and businesses, leveraging showrooms, online platforms, and a network of dealerships. In addition to vehicle sales, VinFast may generate income from after-sales services, such as maintenance and repair, and the sale of parts and accessories. The company has also engaged in strategic partnerships and collaborations with global technology and automotive firms to enhance its product offerings and expand its market reach. These partnerships may contribute to revenue through technology licensing or joint ventures. Additionally, VinFast's focus on innovation and sustainable practices positions it to benefit from government incentives and support for electric vehicle adoption, which can further bolster its financial performance.

VinFast Auto Financial Statement Overview

Summary
VinFast Auto is facing significant financial difficulties characterized by unprofitability, high leverage, and negative cash flows. The company must address operational inefficiencies and improve its financial structure to enhance its long-term viability. Continuous reliance on external financing may not be sustainable without substantial operational improvements.
Income Statement
20
Very Negative
VinFast Auto's financials show a challenging scenario with negative gross profit margins and net income across multiple periods, indicating persistent unprofitability. The revenue growth rate is positive, suggesting some top-line improvement, but the continuous negative EBIT and EBITDA margins highlight ongoing operational inefficiencies.
Balance Sheet
15
Very Negative
The balance sheet shows a concerning financial structure with negative stockholders' equity, suggesting insolvency risks. The high total debt further exacerbates leverage concerns, leading to a negative equity ratio. The company's ability to manage and service debt effectively is highly questionable under these circumstances.
Cash Flow
25
Negative
VinFast Auto's cash flow position is strained, evidenced by consistently negative free cash flows and operating cash flows. While financing activities remain robust, potentially indicating external funding reliance, the lack of positive cash flow from operations raises sustainability concerns.
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
38.68T28.60T14.97T16.03T13.69T
Gross Profit
-16.19T-13.17T-12.27T-9.26T-6.70T
EBIT
-42.58T-40.41T-42.26T-27.07T-13.25T
EBITDA
-34.39T-42.07T-35.05T-22.87T-9.50T
Net Income Common Stockholders
-62.30T-57.35T-49.78T-32.18T-18.95T
Balance SheetCash, Cash Equivalents and Short-Term Investments
4.01T4.01T4.28T3.03T828.75B
Total Assets
10.00T>10.00T>10.00T>85.32T92.91T
Total Debt
77.86T10.00T>68.50T75.75T54.29T
Net Debt
73.86T10.00T>64.23T72.73T53.46T
Total Liabilities
10.00T>10.00T>10.00T>10.00T>86.73T
Stockholders Equity
-10.00T>-10.00T>-10.00T>-76.93T6.15T
Cash FlowFree Cash Flow
-55.31T-78.60T-53.31T-34.98T-19.02T
Operating Cash Flow
-39.64T-53.65T-35.63T-28.97T-9.35T
Investing Cash Flow
-14.11T-23.02T-16.04T2.42T-1.84T
Financing Cash Flow
52.97T77.42T52.95T28.86T10.45T

VinFast Auto Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.05
Price Trends
50DMA
3.86
Negative
100DMA
3.98
Negative
200DMA
4.01
Negative
Market Momentum
MACD
-0.20
Positive
RSI
30.07
Neutral
STOCH
13.07
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VFS, the sentiment is Negative. The current price of 3.05 is below the 20-day moving average (MA) of 3.55, below the 50-day MA of 3.86, and below the 200-day MA of 4.01, indicating a bearish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 30.07 is Neutral, neither overbought nor oversold. The STOCH value of 13.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VFS.

VinFast Auto Risk Analysis

VinFast Auto disclosed 100 risk factors in its most recent earnings report. VinFast Auto 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

VinFast Auto Peers Comparison

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GMGM
72
Outperform
$48.04B7.559.44%0.99%9.08%-15.25%
FF
71
Outperform
$38.41B6.6313.42%7.74%5.00%35.92%
66
Neutral
$741.66B113.1210.52%0.95%-52.81%
59
Neutral
$12.41B10.341.32%3.61%1.65%-18.04%
43
Neutral
$12.20B-60.48%12.09%17.65%
37
Underperform
$6.34B-54.15%35.71%8.24%
VFVFS
32
Underperform
$7.13B36.15%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VFS
VinFast Auto
3.10
-1.88
-37.75%
F
Ford Motor
9.59
-1.91
-16.61%
GM
General Motors
47.90
8.04
20.17%
TSLA
Tesla
248.09
78.61
46.38%
LCID
Lucid Group
2.16
-0.64
-22.86%
RIVN
Rivian Automotive
11.06
-0.65
-5.55%

VinFast Auto Earnings Call Summary

Earnings Call Date: Nov 26, 2024 | % Change Since: -22.39% | Next Earnings Date: Apr 16, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements such as becoming the EV market leader in Vietnam, robust growth in EV deliveries, and improved financial performance. However, challenges remain with negative gross margins, decreased eScooter deliveries, and cash flow concerns. The strategic capital injection provides a strong foundation for future growth and indicates confidence in achieving long-term profitability.
Highlights
Historic Milestone in Domestic Market
VinFast became the market leader in Vietnam, outperforming international competitors in the EV segment, marking a significant achievement for the domestic automotive industry.
Significant Growth in EV Deliveries
Q3 2024 saw 21,912 EVs delivered, representing a 66% quarter-over-quarter and 115% year-over-year increase.
Robust B2C Electric Car Sales
Electric car sales grew 163% quarter-over-quarter and 497% year-over-year in Q3 2024.
Expansion in International Markets
Deliveries to international markets increased to 9% in Q3 2024 compared to 3% a year ago, with notable growth in North America and recent market entry in the Middle East and Indonesia.
Improved Financial Performance
Q3 2024 net revenue was USD 512 million, a 42% quarter-over-quarter and 49% year-over-year increase, with gross loss and net loss narrowing significantly.
Strategic Investments and Support
VinFast announced a USD 3.5 billion capital injection by 2026, providing financial stability and supporting growth and profitability plans.
Lowlights
Decrease in eScooter Deliveries
eScooter deliveries in Q3 were 18,894, representing a 33% year-on-year decrease.
Negative Gross Margin
Q3 2024 gross loss margin was -24%, an improvement but still negative, reflecting ongoing challenges in achieving profitability.
Cash Flow Concerns
Cash flow from operations was -USD 465 million, a 42% increase quarter-over-quarter, raising concerns about cash burn and liquidity.
Company Guidance
During the Q3 2024 earnings call for VinFast Auto Limited, the company reported significant metrics showcasing its growth and market expansion. VinFast delivered 21,912 electric vehicles (EVs), reflecting a 66% increase quarter-over-quarter and a 115% increase year-over-year, with a strong domestic performance in Vietnam, where retail sales rose 159% quarter-over-quarter and 504% year-over-year. The company reiterated its full-year delivery target of 80,000 vehicles, having reached 55% of this target by the end of September. Financially, VinFast achieved a net revenue of USD 512 million, marking a 42% quarter-over-quarter and 49% year-over-year increase. The company's gross loss narrowed to USD 123 million, a significant improvement from previous quarters, driven by a decline in average unit bill of material costs for electric cars by 8.3% and production costs by 20.1%. The company also highlighted its strategic expansions into international markets, with approximately 9% of deliveries going to these markets in Q3, compared to just 3% a year ago, and a notable presence in North America, the Middle East, and Southeast Asia.
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.