Last Updated: 14 Oct 2024
Executive Summary
Expion360 Inc (XPON) is a small-cap company in the manufacturing sector. The company has a market capitalization of $1.33 billion and trades on the NASDAQ exchange. XPON has been struggling financially in recent quarters, with negative earnings and declining revenue. The stock price has fallen significantly over the past year, and analysts are bearish on the company's prospects.
Company Overview
Expion360 is a provider of electronic manufacturing services (EMS). The company offers a range of services, including printed circuit board (PCB) assembly, cable and harness assembly, and box build assembly. XPON's customers include a variety of industries, including aerospace, defense, medical, and industrial.
Fundamental Analysis
XPON's financial performance has been weak in recent quarters. The company reported a net loss of $7.4 million in the second quarter of 2024, on revenue of $49.9 million. This compares to a net loss of $5.9 million on revenue of $50.3 million in the same period last year.
XPON's gross margin has also been declining in recent quarters. In the second quarter of 2024, the company's gross margin was 32.9%, down from 34.2% in the same period last year. The decline in gross margin is due to rising costs of materials and labor.
XPON's financial leverage is also a concern. The company has a debt-to-equity ratio of 1.5, which is higher than the industry average. The company's high debt levels could make it difficult to meet its financial obligations in the future.
Technical Analysis
XPON's stock price has been in a downtrend for the past year. The stock price has fallen from a high of $639 in July 2023 to a low of $2.09 in March 2024. The stock is currently trading at $2.39.
The technical indicators are bearish for XPON. The relative strength index (RSI) is below 30, which indicates that the stock is oversold. The moving average convergence divergence (MACD) is also below zero, which indicates that the stock is in a downtrend.
Short Term Outlook
The short-term outlook for XPON is negative. The company is facing a number of challenges, including rising costs, declining revenue, and high debt levels. The stock price is likely to continue to decline in the near term.
Long Term Outlook
The long-term outlook for XPON is also negative. The company's financial problems are likely to continue in the future. The stock price is likely to remain depressed for the foreseeable future.
Analyst Recommendations
Analysts are bearish on XPON. The consensus recommendation is a "sell". The average price target is $35.
