Last Updated: 16 Sep 2024
Executive Summary
Workhorse Group Inc. (WKHS) is a technology company focused on the design, manufacture, and sale of electric vehicles and aircraft. Despite facing financial challenges, the company has recently reported strong quarterly earnings growth, driven by increased demand for its products. However, the stock price remains significantly below its 52-week high, indicating potential undervaluation.
Company Overview
Workhorse Group is headquartered in Loveland, Ohio, and has been in operation since 2007. The company has a focus on sustainability and innovation, aiming to provide environmentally friendly transportation solutions. Its product portfolio includes electric delivery vans, pickup trucks, and unmanned aerial vehicles.
Fundamental Analysis
Revenue: Revenue for the latest quarter was $9.6 million, a slight decrease of 0.788% year-over-year.
Earnings: The company reported a net loss of $92.9 million for the quarter, resulting in a diluted EPS of -$9.86.
Profitability: Workhorse Group has negative profit margins, indicating that it is not yet profitable.
Balance Sheet: The company has a market capitalization of $16.5 million, with total assets of $118.6 million and total liabilities of $124.6 million.
Technical Analysis
Stock Price: The current stock price of $0.68 is significantly below its 52-week high of $12.
Moving Averages: The 50-day moving average is $1.183, while the 200-day moving average is $4.051.
Relative Strength Index (RSI): The RSI is currently at 32.3, indicating that the stock is oversold.
Short Term Outlook
In the short term, Workhorse Group is expected to continue facing financial challenges. However, the recent quarterly earnings growth and analyst target price of $7.88 suggest potential upside for the stock. The oversold RSI also indicates that the stock may be due for a bounce.
Long Term Outlook
The long-term outlook for Workhorse Group depends on the company's ability to improve its profitability and execute on its growth strategy. The increasing demand for electric vehicles and the company's focus on innovation provide potential for long-term growth.
Analyst Recommendations
Analysts have a mixed view on Workhorse Group. Five analysts have a "Hold" rating, while none have a "Strong Buy" or "Sell" rating. The average analyst target price is $7.88, which represents a significant upside potential from the current stock price.
