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Workhorse Group (WKHS)
NASDAQ:WKHS
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Workhorse Group
(NASDAQ:WKHS)
43Neutral
Positive Factors
Revenue Growth
The company's revenue estimates have been increased for FY2024 and FY2025, suggesting growth expectations.
Strategic Partnerships
Workhorse secured a three-year Master Framework Agreement with FedEx, under which they've already shipped 15 trucks and expect more orders in 2025.
Negative Factors
Financial Challenges
The forecasted adjusted EBITDA remains negative, indicating ongoing financial challenges.
Workhorse Group (WKHS) vs. S&P 500 (SPY)
Market Cap
$14.95M
Dividend YieldN/A
Average Volume (3M)2.69M
Price to Earnings (P/E)―
Beta (1Y)2.05
Revenue Growth-25.03%
EPS Growth42.78%
CountryUS
Employees298
SectorConsumer Cyclical
Sector Strength50
IndustryVehicles
Share Statistics
EPS (TTM)-7.47
Shares Outstanding40,981,552
10 Day Avg. Volume3,696,726
30 Day Avg. Volume2,690,420
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.64
Price to Cash Flow (P/CF)-0.40
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
$1.00Price Target Upside270.37% Upside
Rating ConsensusHold
Number of Analyst Covering1
Workhorse Group Business Overview & Revenue Model
Company DescriptionWorkhorse Group, Inc. engages in designing and build performance battery-electric vehicles and aircraft. It develops cloud-based, real-time telematics performance monitoring systems. The firm operates in two divisions, Automotive and Aviation. The Automotive division operates as a original equipment manufacturer of class 3-6 commercial-grade, medium-duty truck chassis, marketed under the Workhorse brand. The Aviation division offers delivery drones and SureFly multicopter. The company was founded by Stephen S. Burns on February 20, 2007 and is headquartered in Loveland, OH.
How the Company Makes MoneyWorkhorse Group Inc. generates revenue through the sale of electric delivery vehicles and related technologies. The primary revenue stream comes from manufacturing and selling electric trucks to logistics companies and other commercial fleets. Additionally, Workhorse looks to capitalize on its proprietary HorseFly drone system, which potentially offers new revenue opportunities through delivery solutions. The company may also engage in strategic partnerships to enhance its market reach and product offerings, although specific partnership details contributing to revenues are null.
Workhorse Group Financial Statement Overview
Summary
Workhorse Group's financial statements indicate significant challenges with declining revenues, persistent losses, and high leverage impacting its liquidity and financial stability. The negative cash flow trends further underscore the need for strategic adjustments to improve profitability and financial health.Income Statement
Workhorse Group's income statement shows a concerning trend with negative profit margins and declining revenues. The TTM revenue growth rate is negative at -30.53%, indicating a decrease in total revenue. The gross profit margin is significantly negative, suggesting that cost of goods sold far exceeds revenue. The net profit margin is also heavily negative, reflecting substantial net losses, consistent with its negative EBIT and EBITDA margins. Overall, the financial performance indicates challenges in revenue generation and cost management.35
Negative
Balance Sheet
The balance sheet reveals a mixed picture. The debt-to-equity ratio appears moderate, but there is a high level of total liabilities relative to equity, suggesting potential leverage risks. The equity ratio has declined over the years, indicating a decrease in shareholder equity relative to total assets. The return on equity is negative, driven by significant net losses, which is a concern for investors. Overall, the financial stability is weakened by high leverage and declining equity.45
Neutral
Cash Flow
Workhorse Group's cash flow statement highlights cash flow challenges. The operating cash flow to net income ratio is negative, indicating inefficient cash generation from operations. Free cash flow is negative, and the free cash flow growth rate is also negative, showing a decline in available cash after capital expenditures. This suggests potential liquidity issues and challenges in sustaining operations without additional financing.40
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 9.10M | 13.09M | 5.02M | -851.92K | 1.39M | 376.56K | Gross Profit |
| -30.33M | -25.26M | -32.65M | -133.34M | -11.67M | -5.47M | EBIT |
| -93.58M | -105.30M | -129.08M | -185.11M | 116.32M | -8.02M | EBITDA |
| -86.61M | -111.24M | -113.90M | -414.55M | -40.17M | -30.06M | Net Income Common Stockholders |
| -125.87M | -123.92M | -105.47M | -401.34M | 69.78M | -65.92M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.51M | 25.85M | 99.28M | 201.65M | 46.82M | 23.87M | Total Assets |
| 11.80M | 141.67M | 182.74M | 228.14M | 632.54M | 50.67M | Total Debt |
| 8.31M | 29.02M | 10.13M | 26.26M | 199.11M | 39.02M | Net Debt |
| 6.80M | 3.18M | -89.15M | -175.39M | 152.29M | 15.15M | Total Liabilities |
| 27.23M | 58.56M | 74.16M | 53.45M | 237.34M | 85.59M | Stockholders Equity |
| -15.42M | 83.11M | 108.59M | 174.69M | 395.20M | -34.91M |
| Cash Flow | Free Cash Flow | ||||
| -73.78M | -141.71M | -111.32M | -137.89M | -76.01M | -38.88M | Operating Cash Flow |
| -67.59M | -123.02M | -93.82M | -132.58M | -70.28M | -36.87M | Investing Cash Flow |
| -6.19M | -18.69M | -20.02M | 99.81M | -5.73M | 1.65M | Financing Cash Flow |
| 38.16M | 78.28M | 11.47M | -6.82M | 292.37M | 58.57M |
Workhorse Group Technical Analysis
Negative
0.27
Price Trends
0.56
Negative
0.76
Negative
1.16
Negative
Market Momentum
-0.07
Positive
24.10
Positive
13.61
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WKHS, the sentiment is Negative. The current price of 0.27 is below the 20-day moving average (MA) of 0.44, below the 50-day MA of 0.56, and below the 200-day MA of 1.16, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 24.10 is Positive, neither overbought nor oversold. The STOCH value of 13.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WKHS.
Workhorse Group Risk Analysis
Workhorse Group disclosed 43 risk factors in its most recent earnings report. Workhorse Group 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
Workhorse Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
59 Neutral | $12.41B | 10.34 | 1.32% | 3.61% | 1.65% | -18.04% | |
56 Neutral | $190.89M | ― | -24.86% | ― | 4.11% | -36.36% | |
43 Neutral | $14.95M | ― | -157.31% | ― | -25.03% | 42.78% | |
41 Neutral | $276.22M | ― | -18.90% | ― | 124.55% | 56.35% | |
40 Underperform | $1.88M | ― | -72.67% | ― | 258.96% | 82.54% | |
38 Underperform | $9.71M | ― | -129.17% | ― | 141.23% | 69.50% | |
36 Underperform | $3.45M | ― | -21.91% | ― | -76.66% | 47.08% |
* Consumer Cyclical Sector Average
Performance Comparison
WKHS
Workhorse Group
0.27
-4.76
-94.63%
AYRO
AYRO
0.53
-1.13
-68.07%
NKLAQ
Nikola
0.11
-17.89
-99.39%
NIU
Niu Technologies
2.45
0.57
30.32%
GOEVQ
Canoo
0.12
-26.08
-99.54%
HYLN
Hyliion Holdings
1.60
-0.04
-2.44%
Workhorse Group Earnings Call Summary
Earnings Call Date: Mar 4, 2025 | % Change Since: -30.77% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant strides in securing strategic agreements and expanding product offerings. However, financial challenges persist with declining revenue and liquidity concerns. Cost reduction efforts have been substantial, but achieving profitability remains a critical issue.Highlights
FedEx Master Framework Agreement
Secured a 3-year master framework agreement with FedEx, marking a major milestone as an approved commercial vehicle supplier in the EV segment.
GSA Contract Award
Awarded a GSA contract after successful site visit and audit, enabling streamlined procurement for federal government agencies.
Successful Vehicle Demonstrations
Completed successful vehicle demonstrations with major last-mile fleet companies and received positive feedback.
Product Line Expansion
Expanded product line to include 6 products in production, with 4 new models to be added next year.
Cost Reduction Measures
Achieved significant cost reductions, including a 50% reduction in staff, resulting in a cash burn rate of $3.5 million per month.
Lowlights
Revenue Decline
Sales decreased to $2.5 million from $3 million year-over-year due to nonrecurrence of a previous sales allowance reversal.
Net Loss
Reported a net loss of $25.1 million, although this was an improvement from a $30.6 million loss in the same period last year.
Cash and Liquidity Concerns
Cash and cash equivalents were only $3.2 million as of September 30, 2024, highlighting ongoing liquidity challenges.
Company Guidance
During the Workhorse Group Q3 2024 earnings call, the company provided a detailed guidance and outlook. Rick Dauch, the CEO, highlighted the significant milestone achieved with the signing of a 3-year master framework agreement with FedEx, which included an initial purchase order for 15 W56 step vans. This agreement positions Workhorse as a key supplier in FedEx's plan to convert its 150,000-unit fleet to electric vehicles by 2040. Additionally, Workhorse has received 75 new quote inquiries from FedEx Ground contractors and confirmed three purchase orders for the delivery of seven vehicles in Q4. The company also secured a GSA contract, opening opportunities for federal government fleet procurements. Financially, Workhorse is focused on managing its cash burn rate, which has been reduced to approximately $3.5 million per month, and continues to explore financing options, including a sale-leaseback transaction for its Union City facility. Overall, Workhorse aims to secure more orders, deliver superior products, and expand its product portfolio while navigating the current market environment and extending its financial runway.Workhorse Group Corporate Events
Product-Related AnnouncementsBusiness Operations and Strategy
Workhorse Group Lands Major GSA Contract for EVs
Positive
Nov 19, 2024
Workhorse Group Inc. has secured a significant General Services Administration (GSA) contract, enabling the streamlined procurement of its American-made electric commercial vehicles by government agencies. This contract underscores Workhorse’s commitment to providing robust and reliable zero-emission vehicles and expands its reach in public sector fleets, supporting the transition to sustainable transportation across the U.S.
Business Operations and StrategyFinancial Disclosures
Workhorse Group Reschedules Q3 2024 Earnings Call
Neutral
Nov 14, 2024
Workhorse Group has rescheduled its Q3 2024 earnings call to November 19, 2024, highlighting the delivery of 20 trucks, including FedEx orders, as a key achievement. The company remains focused on cost management and strengthening its financial position, while showcasing the reliability of its electric vehicles. Interested investors can access the call via Workhorse’s website.
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.