Last Updated: 14 Sep 2024
Executive Summary
ZEEKR Intelligent Technology Holding Limited (ZK) is a Chinese electric vehicle manufacturer that has recently debuted on the NYSE. Despite strong revenue growth, the company is still operating at a loss and has a negative book value. The stock price has fallen significantly since its IPO, and analysts are divided on the company's future prospects.
Company Overview
ZEEKR was founded in 2021 as a subsidiary of Geely Automobile Holdings. The company designs, develops, produces, and sells electric vehicles and batteries. ZEEKR's vehicles are targeted at the premium segment of the Chinese market. The company has a manufacturing facility in Ningbo, China, and plans to expand its production capacity in the coming years.
Fundamental Analysis
ZEEKR's financial performance has been mixed since its IPO. The company reported revenue of $57.8 billion for the fiscal year ended December 2022, up 71% year-over-year. However, the company also reported a net loss of $7.2 billion, due to high operating expenses and a lack of economies of scale. ZEEKR's gross profit margin is also very low, at just 0%.
The company's financial position is also weak. ZEEKR has a negative book value of $58.43 per share and a high level of debt. The company's EBITDA margin is also negative, at -13.8%.
Technical Analysis
ZEEKR's stock price has fallen significantly since its IPO, from a high of $32.24 to a current price of $15.98. The stock is currently trading below its 50-day and 200-day moving averages. The relative strength index (RSI) is also below 50, indicating that the stock is oversold.
Short Term Outlook
The short-term outlook for ZEEKR is uncertain. The company is facing a number of challenges, including high operating expenses, a lack of economies of scale, and a weak financial position. The stock price is also trading below its key moving averages and is oversold. As a result, it is likely that the stock price will continue to decline in the short term.
Long Term Outlook
The long-term outlook for ZEEKR is more positive. The company is operating in a growing market for electric vehicles, and it has a strong brand and a good product. However, the company will need to improve its financial performance and reduce its operating expenses in order to be successful in the long term.
Analyst Recommendations
Analysts are divided on the future prospects of ZEEKR. Some analysts believe that the company has the potential to be a major player in the electric vehicle market, while others are more cautious due to the company's financial performance and competitive landscape. The consensus analyst rating for ZEEKR is a "hold."
