Workhorse Group Inc

Workhorse Group Inc has a market capitalization of $39.43 million and a price-to-book ratio of 0.58, indicating a significant discount to its book value. The company's liquidity position is characterized by $6.73 million in cash and equivalents, but with $7.87 million in long-term debt, the net cash position is negative. The current ratio of 1.59 suggests the company has sufficient short-term assets to cover its liabilities, but the negative operating cash flow of -$17.96 million and free cash flow of -$30.22 million highlight ongoing liquidity challenges.

Profitability metrics are deeply negative, with a return on equity of -43.24% and a return on assets of -25.6%. The company reported a net loss of $29.16 million and an operating loss of $23.73 million in the latest period. Gross profit was also negative at -$6.10 million, indicating that the cost of goods sold exceeds revenue. These figures are well below the industry median for profitability metrics, suggesting significant operational inefficiencies.

The company's revenue of $1.34 billion is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to market-specific risks and limits the company's ability to offset losses in one area with gains in another. The absence of segment or geographic breakdown in the financial data further complicates the assessment of risk and growth potential.

Looking ahead, the company is projected to face continued financial pressure, with no clear path to profitability. Analysts have assigned a mean price target of $3.00, which is below the current market price of $3.62, and all recommendations are "Hold." The lack of strong buy or buy ratings reflects a cautious outlook. The company's capital expenditure of -$3.02 million indicates ongoing investment in infrastructure, but without a corresponding increase in revenue or profitability, these expenditures may not yield positive returns.

The risk assessment highlights medium liquidity risk and low dilution risk. The company's net cash position is negative after accounting for total debt, which could constrain its ability to fund operations or pursue growth opportunities. The low dilution risk is attributed to the absence of significant dilutive events in the recent financial data, but the company's capital structure remains vulnerable to further equity issuance if needed to fund operations.

Recent filings and transcripts indicate that the company is actively seeking to improve its financial position through cost reduction initiatives and strategic partnerships. However, the lack of detailed disclosures on these efforts makes it difficult to assess their potential impact. The company's recent financial performance and analyst sentiment suggest that it is in a defensive position, with limited upside potential in the near term.

Revenue surged 220.6% year-over-year to $21.2 million, indicating accelerating top-line growth momentum for the company.

Net losses improved 37.0% year-over-year to $64.1 million, demonstrating a meaningful reduction in annual profitability deficits.

Free cash flow losses narrowed 35.2% to $63.4 million, suggesting improving operational efficiency and cash burn management.

Debt-to-equity ratio of 0.12 ranks above the cohort median of 0.21, indicating a relatively conservative capital structure.

Analysts assign a mean price target of $3.00, implying 10.1% upside from the current market price of $2.725.

The company posted a net loss of $64.1 million, resulting in a negative net margin of -21.8%.

Operating margin of -17.7% places the firm in the bottom quartile of the Auto & Truck Manufacturers cohort.

Gross profit remains negative at -$9.6 million, highlighting persistent inability to achieve positive production margins.

Liquidity risk is rated as medium, posing potential challenges for meeting short-term financial obligations amidst ongoing losses.

Revenue $12.5M, +550,2% YoY; Operating income +76,9% YoY.

• ▍Revenue $12.5M, +550,2% YoY
• ▍Operating income +76,9% YoY
• ▍Net income +1,6% YoY
• ▍Free cash flow −33,8% YoY
• ▍Net margin -166.5%

Revenue $2.4M, −5,0% YoY; Operating income −16,9% YoY.

• ▍Revenue $2.4M, −5,0% YoY
• ▍Operating income −16,9% YoY
• ▍Net income +68,9% YoY
• ▍Free cash flow +74,2% YoY
• ▍Net margin -328.2%

Revenue $5.7M, +573,0% YoY; Operating income +29,5% YoY.

• ▍Revenue $5.7M, +573,0% YoY
• ▍Operating income +29,5% YoY
• ▍Net income +43,8% YoY
• ▍Free cash flow +48,2% YoY
• ▍Net margin -260.7%

Revenue $640.9k, −52,1% YoY; Operating income +45,9% YoY.

• ▍Revenue $640.9k, −52,1% YoY
• ▍Operating income +45,9% YoY
• ▍Net income +29,2% YoY
• ▍Free cash flow +38,2% YoY
• ▍Net margin -3221.0%

Revenue $1.9M; Operating income -$15.5M.

• ▍Revenue $1.9M
• ▍Operating income -$15.5M
• ▍Net margin -1100.3%

Revenue $2.5M; Operating income -$14.2M.

• ▍Revenue $2.5M
• ▍Operating income -$14.2M
• ▍Net margin -1001.5%

Revenue $842.4k; Operating income -$20.5M.

• ▍Revenue $842.4k
• ▍Operating income -$20.5M
• ▍Net margin -3124.3%

Revenue $1.3M; Operating income -$23.7M.

• ▍Revenue $1.3M
• ▍Operating income -$23.7M
• ▍Net margin -2176.9%

Revenue $21.2M, +220,6% YoY; Operating income +35,8% YoY.

• ▍Revenue $21.2M, +220,6% YoY
• ▍Operating income +35,8% YoY
• ▍Net income +37,0% YoY
• ▍Free cash flow +35,2% YoY
• ▍Net margin -302.1%

Revenue $6.6M, −49,5% YoY; Operating income +35,9% YoY.

• ▍Revenue $6.6M, −49,5% YoY
• ▍Operating income +35,9% YoY
• ▍Net income +17,9% YoY
• ▍Free cash flow +29,3% YoY
• ▍Net margin -1538.5%

Revenue $13.1M, +160,7% YoY; Operating income +10,7% YoY.

• ▍Revenue $13.1M, +160,7% YoY
• ▍Operating income +10,7% YoY
• ▍Net income −5,7% YoY
• ▍Free cash flow −4,3% YoY
• ▍Net margin -946.3%

Revenue $5.0M, +689,6% YoY; Operating income +29,7% YoY.

• ▍Revenue $5.0M, +689,6% YoY
• ▍Operating income +29,7% YoY
• ▍Net income +70,8% YoY
• ▍Free cash flow +67,2% YoY
• ▍Net margin -2334.7%