tiprankstipranks
Worksport (WKSP)
NASDAQ:WKSP
US Market

Worksport (WKSP) AI Stock Analysis

Compare
315 Followers

Top Page

WK

Worksport

(NASDAQ:WKSP)

51Neutral
Worksport's overall stock score is moderate, primarily driven by robust revenue growth and positive strategic moves, such as government sales and new product launches. However, ongoing profitability challenges, negative cash flow, and uncertain future margins weigh down the score. The company's technical momentum and strategic corporate events provide some support, but valuation concerns due to negative earnings persist.
Positive Factors
Product Initiatives
New product initiatives position the automotive tech business for meaningful growth and profitability.
Revenue Growth
Elevated levels of revenue growth should accelerate the timeline to profitability and positive cash flow from operations.
Negative Factors
Short-Term Financial Challenges
Analyst widens 2H24 EBITDA loss estimate due to lower revenue and gross profit margin forecasts, indicating financial challenges in the short term.

Worksport (WKSP) vs. S&P 500 (SPY)

Worksport Business Overview & Revenue Model

Company DescriptionFranchise Holdings International, Inc. engages in the acquisition of franchise, license, and distribution rights in companies. The company was founded on April 2, 2003 and is headquartered in Vaughan, Canada.
How the Company Makes MoneyWorksport generates revenue primarily through the sale of its proprietary truck bed covers and accessories. These products are distributed through various channels, including direct-to-consumer sales, partnerships with automotive dealerships, and collaborations with aftermarket distributors. The company's revenue streams are bolstered by its commitment to innovation, evidenced by its development of solar-powered solutions that integrate renewable energy into its product offerings. Strategic partnerships with automotive manufacturers and retailers also play a significant role in expanding Worksport's market reach and driving sales growth.

Worksport Financial Statement Overview

Summary
Worksport's financial performance shows significant revenue growth but is marred by negative margins and cash flow challenges. The low debt-to-equity ratio suggests limited leverage risk, but negative return on equity and cash flow issues highlight inefficiencies.
Income Statement
30
Negative
Worksport's TTM (Trailing-Twelve-Months) financials show a significant increase in revenue from the previous year, indicating a positive growth trend. However, their margins are severely negative, with a gross profit margin of 4.54% and a net profit margin of -242.68%. The EBIT and EBITDA margins are also negative, which indicates the company is struggling with operational efficiency and profitability.
Balance Sheet
40
Negative
The company has a debt-to-equity ratio of 0.37, which is relatively low, suggesting limited leverage risk. However, the return on equity is negative due to ongoing losses, indicating inefficient use of shareholder funds. The equity ratio of 65.61% suggests a strong capital structure with significant equity backing, though profitability remains a concern.
Cash Flow
25
Negative
Worksport shows a negative free cash flow and a high operating cash flow to net income ratio, implying cash deficits and operational challenges. While there is some financing activity, the free cash flow growth rate is negative, highlighting ongoing liquidity issues and the need for improved cash management.
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
6.40M1.53M116.50K303.75K346.14K1.93M
Gross Profit
290.21K240.51K59.53K-46.95K47.15K238.55K
EBIT
-15.00M-14.74M-12.78M-7.56M-982.44K-621.30K
EBITDA
-13.78M-13.20M-11.56M-7.39M-774.41K-275.63K
Net Income Common Stockholders
-15.52M-14.93M-12.22M-8.19M-1.57M-486.57K
Balance SheetCash, Cash Equivalents and Short-Term Investments
25.32K3.37M14.21M28.57M1.11M11.99K
Total Assets
557.37K25.95M32.76M36.29M1.90M481.31K
Total Debt
296.80K6.24M6.62M857.06K712.79K357.70K
Net Debt
271.47K3.60M-7.59M-27.71M-395.02K345.71K
Total Liabilities
780.93K7.78M8.65M2.11M1.73M1.36M
Stockholders Equity
-223.56K18.18M24.12M34.18M169.47K-882.56K
Cash FlowFree Cash Flow
-12.44M-15.62M-19.13M-5.18M-734.27K-111.61K
Operating Cash Flow
-11.70M-11.93M-7.98M-4.05M-726.30K-13.25K
Investing Cash Flow
-744.65K-3.76M-11.15M-1.13M-16.73K-114.01K
Financing Cash Flow
11.33M4.43M5.18M32.64M1.84M117.84K

Worksport Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.57
Price Trends
50DMA
0.83
Negative
100DMA
0.79
Negative
200DMA
0.70
Negative
Market Momentum
MACD
-0.07
Positive
RSI
40.58
Neutral
STOCH
31.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WKSP, the sentiment is Negative. The current price of 0.57 is below the 20-day moving average (MA) of 0.71, below the 50-day MA of 0.83, and below the 200-day MA of 0.70, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 40.58 is Neutral, neither overbought nor oversold. The STOCH value of 31.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WKSP.

Worksport Risk Analysis

Worksport disclosed 50 risk factors in its most recent earnings report. Worksport 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

Worksport Peers Comparison

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$3.87B20.6115.44%4.11%50.07%
MOMOD
73
Outperform
$4.21B28.3720.25%4.87%-29.43%
LELEA
70
Outperform
$5.16B10.7210.81%3.20%-0.70%-7.27%
70
Outperform
$973.86M15.0210.30%-0.88%67.38%
59
Neutral
$12.41B10.341.32%3.61%1.65%-18.04%
51
Neutral
$18.91M-94.70%776.97%22.70%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WKSP
Worksport
0.64
-0.17
-20.99%
DORM
Dorman Products
126.82
36.42
40.29%
LEA
Lear
94.83
-41.29
-30.33%
MGA
Magna International
36.37
-13.36
-26.87%
MOD
Modine
84.36
-0.37
-0.44%
THRM
Gentherm
31.00
-23.02
-42.61%

Worksport Earnings Call Summary

Earnings Call Date: Aug 13, 2024 | % Change Since: -34.48% | Next Earnings Date: Nov 13, 2024
Earnings Call Sentiment Positive
The earnings call highlights substantial revenue growth and a strong strategic position with new product launches and government sales expansion. However, challenges in margin improvement and uncertainty in 2024 revenue guidance indicate areas of caution.
Highlights
Record Revenue Growth
Worksport reports top line revenue of approximately $3.1 million, a 581% year-over-year increase from Q3 of 2023's $458,000.
Government and International Sales Expansion
Commencement of sales to the U.S. government and first-ever B2B order from a customer in Puerto Rico, signaling significant expansion into new territories.
New Product Launches and Innovations
Launch of AL4 tonneau cover expected in late Q4 2024 and market beta release of COR and SOLIS products, anticipated to drive significant growth in 2025.
Strategic Cost Savings Program
Initiation of a $2 million strategic cost savings program aimed at enhancing operational efficiency without impacting revenue growth.
Robust Inventory and Production Capacity
Maintaining a healthy inventory balance of approximately $6.1 million with production capacity optimized to produce over 200 tonneau covers per day.
Lowlights
Temporary Margin Erosion
Strategic production slowdown led to temporary margin erosion in Q3, with gross profit at $247,000.
Challenges in Margin Improvement
Continued investment in perfecting product processes with significant margin improvements not expected until after Q1 2025.
Uncertainty in 2024 Revenue Guidance
While expecting to beat the $8 million revenue guidance for 2024, no specific updated guidance was provided.
Company Guidance
During Worksport's Q3 2024 earnings call, the company highlighted several key financial metrics and strategic initiatives. Worksport reported approximately $3.1 million in revenue for Q3, a remarkable 581% increase from the same period in 2023. This growth was driven by a 63% revenue increase from Q2 2024 and a significant rise in B2B and B2C sales. The gross profit for the quarter was $247,000, with product margins in the B2C segment expected to reach up to 51% and B2B white label margins targeting 25% to 40% in the future. Worksport is projecting revenues between $25 million and $34.5 million for 2025, with plans to achieve cash flow positivity. The company also launched several products, including the COR and SOLIS energy systems, and began sales to the U.S. government. With a $6.1 million inventory balance, Worksport is poised for continued growth without significant supply chain concerns.

Worksport Corporate Events

Business Operations and Strategy
Worksport Embraces Crypto for Treasury Strategy
Positive
Jan 29, 2025

On January 29, 2025, Worksport Ltd. announced its strategic move to purchase Bitcoin (BTC) and Ripple (XRP) as part of a treasury strategy aimed at hedging inflation and embracing cryptocurrency adoption. This initiative aligns with the company’s plans for revenue growth and cash flow positivity in 2025, as well as its efforts to integrate cryptocurrency payment options for enhanced operational efficiency, reflecting a proactive approach to the evolving financial landscape.

Business Operations and Strategy
Worksport Partners with Coinbase for Crypto Custody
Positive
Jan 28, 2025

On January 28, 2025, Worksport Ltd. announced its decision to select Coinbase as its official cryptocurrency custodian following a strategic evaluation of multiple custodians. This partnership aligns with Worksport’s Cryptocurrency Treasury Strategy, allowing the company to hold a portion of its surplus cash reserves in Bitcoin and XRP, aiming to diversify its financial positioning and enhance shareholder value. This move is part of Worksport’s broader growth initiatives, including new product launches and a push towards cash flow positivity, while positioning itself within the evolving digital asset landscape.

Product-Related AnnouncementsBusiness Operations and Strategy
Worksport’s Breakthrough in AI-Driven Heat Pump Technology
Positive
Jan 22, 2025

On January 22, 2025, Worksport’s subsidiary, Terravis Energy, announced groundbreaking advancements in heat pump technology, addressing major challenges in the market including climate adaptability, affordability, and efficiency. The new heat pump, enhanced with AI-driven personalization, is expected to revolutionize home heating and cooling, and a global reveal is set for February 11, 2025. This innovation, which promises to redefine industry performance in extreme climates, positions Worksport as a key player in the rapidly growing heat pump market, potentially increasing adoption due to overcoming traditional limitations.

Product-Related AnnouncementsBusiness Operations and StrategyFinancial Disclosures
Worksport Reports Strong Q4 2024 Financial Results
Positive
Jan 21, 2025

Worksport Ltd. announced strong financial results for Q4 2024, with unaudited revenues of approximately $2.93 million, marking a significant improvement from Q4 2023. This performance brought the company’s year-end revenues to $8.5 million, exceeding its guidance. The company also reported a notable increase in gross margins in December 2024, which are expected to support its path toward sustainable profitability. Looking forward, Worksport plans to capitalize on its success by expanding its market reach through strategic partnerships and launching flagship products like the SOLIS solar tonneau cover and COR mobile power system in 2025. These efforts aim to reinforce its market position and drive further revenue growth.

Product-Related AnnouncementsBusiness Operations and Strategy
Worksport Unveils New HD3 Cover and Clean-Tech Plans
Positive
Jan 7, 2025

Worksport Ltd. announced the upcoming launch of its new HD3 premium tri-fold tonneau cover, expected in Spring 2025, which aims to diversify its product offerings and drive revenue growth. The company is also progressing with its COR and SOLIS clean-tech innovations and anticipates strong growth in 2025, further strengthening its position in the tonneau cover and sustainable automotive solutions industries.

Product-Related AnnouncementsBusiness Operations and StrategyFinancial Disclosures
Worksport Projects Growth with Strategic Expansions in 2025
Positive
Dec 30, 2024

Worksport Ltd. reflected on a pivotal 2024, marked by significant growth and milestones such as U.S. manufacturing expansion and a 275% revenue increase. Looking ahead to 2025, the company plans product launches and strategic expansions to enhance market positioning, with projections of substantial revenue growth and initiatives like investing in crypto assets.

Product-Related AnnouncementsBusiness Operations and Strategy
Worksport Launches New Investor Relations Website
Positive
Dec 18, 2024

Worksport Ltd. announced the launch of a new investor relations website, featuring insights into its strategic growth plans and clean-tech innovations, such as the SOLIS solar tonneau cover and COR mobile power system. The company projects significant market expansion, driven by a proactive approach involving cryptocurrency, a 581% sales growth in Q3, and upcoming product launches. Worksport’s integrated strategy aims to transform it into a leading clean-tech brand with a focus on sustainable technologies, targeting multi-billion-dollar markets.

Product-Related AnnouncementsBusiness Operations and Strategy
Worksport Expands Dealer Network and Embraces Crypto
Positive
Dec 13, 2024

Worksport Ltd. has announced significant growth and strategic advancements, including a 117% increase in its dealer network and securing initial pre-orders for its AL4 tonneau cover from leading distributors. The company is integrating Bitcoin and Ripple into its treasury strategy, reflecting a proactive approach to diversify assets and strengthen its market position. This move has attracted attention from crypto custodians and aligns with Worksport’s broader strategy to enhance value through innovation, expand its clean-tech product portfolio, and increase brand visibility through national exposure.

Product-Related AnnouncementsBusiness Operations and Strategy
Worksport Showcases Clean-Tech Innovations on FOX & Friends
Positive
Dec 9, 2024

Worksport Ltd. recently showcased its innovative clean-tech products, including the SOLIS solar tonneau cover and COR portable energy system, on the popular TV show FOX & Friends Weekend. This appearance highlighted Worksport’s commitment to domestic manufacturing and sustainable solutions, garnering positive feedback and setting the stage for future media opportunities. As the company aligns with the global shift toward sustainable mobility, it aims to expand its brand presence and drive revenue growth, particularly in the EV and outdoor adventure sectors.

Product-Related AnnouncementsBusiness Operations and Strategy
Worksport Showcases Innovative Products on FOX & Friends
Positive
Dec 6, 2024

Worksport Ltd. is set to make a significant appearance on FOX & Friends, showcasing their innovative products to over a million viewers. This national exposure will feature their AL4 Premium Cover, Solis Solar Cover, and COR Portable Energy System, aiming to captivate the multi-billion dollar market. The event represents a strategic milestone for Worksport, enhancing brand presence and potentially boosting consumer awareness and investor confidence.

Product-Related AnnouncementsBusiness Operations and StrategyFinancial Disclosures
Worksport Reports 581% Revenue Growth in Q3 2024
Positive
Nov 14, 2024

Worksport Ltd. reported an impressive 581% year-over-year revenue growth in Q3 2024, reflecting strong demand for its innovative products across B2B and B2C markets. With strategic investments and expansion plans, including new product launches like the AL4 tonneau cover and the SOLIS solar cover, the company aims to achieve cash flow positivity by 2025. Worksport projects revenue between $25 million and $34.5 million for 2025, positioning itself strongly in the automotive accessory and clean energy sectors.

Business Operations and StrategyFinancial Disclosures
Worksport to Host Q3 2024 Earnings Call
Positive
Nov 7, 2024

Worksport Ltd., a leader in hybrid and clean energy solutions, is set to host its Q3 2024 earnings call on November 13, inviting investors and analysts to explore its recent growth and financial strategies. The call promises insights into the company’s performance, strategic initiatives, and future product launches, highlighting its commitment to achieving cash flow positivity. CEO Steven Rossi emphasizes Worksport’s undervalued status and ongoing sales momentum, marking an exciting opportunity for stakeholders to engage with the company’s promising growth outlook.

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.