Cenntro Inc. (NASDAQ: CENN)

Sector: Consumer Cyclical Industry: Auto Manufacturers CIK: 0001707919
Market Cap 5.18 Mn
P/B 0.07
P/E -0.13
P/S 0.32
ROIC (Qtr) -25.07
Div Yield % 0.00
Rev 1y % (Qtr) -71.84
Total Debt (Qtr) 15.48 Mn
Debt/Equity (Qtr) 0.20

About

Cenntro Inc., with its ticker symbol CENN, is a prominent player in the design, manufacturing, distribution, and servicing of commercial vehicles that run on electricity or hydrogen energy sources. The company operates in the rapidly growing industry of sustainable commercial transportation, offering a range of vehicles tailored for fleet and municipal organizations in support of city services, last-mile delivery, and other commercial applications. Cenntro's main business activities revolve around the production of electric commercial vehicles,...

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Price action

Investment thesis

Bull case

  • Operating cash flow of (19.23M) provides exceptional 409.72x coverage of minority interest expenses (46938), showing strong core operations.
  • Strong tangible asset base of 106.55M provides 6.88x coverage of total debt 15.48M, indicating robust asset backing and low credit risk.
  • Tangible assets of 106.55M provide exceptional 28.80x coverage of deferred revenue 3.70M, showing strong service capability backing.
  • Strong free cash flow of (19.89M) provides 517.68x coverage of acquisition spending (38424), indicating disciplined M&A strategy.
  • Robust tangible asset base of 106.55M provides 4.27x coverage of working capital 24.93M, indicating strong operational backing.

Bear case

  • With cash reserves of 4.54M against inventory of 24.29M, the 0.19 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Investment activities of (1.37M) provide weak support for R&D spending of 2.82M, which is -0.49x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 4.54M provide limited coverage of acquisition spending of (38424), which is -118.03x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of (19.23M) provides insufficient coverage of deferred revenue obligations of 3.70M, which is -5.20x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (19.23M) shows concerning coverage of stock compensation expenses of 3.37M, with a -5.71 ratio indicating potential earnings quality issues.

Peer comparison

Companies in the Auto Manufacturers
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 TSLA Tesla, Inc. 1,386.72 Bn 263.09 14.50 7.70 Bn
2 TM Toyota Motor Corp/ 286.80 Bn 9.26 0.87 287.20 Bn
3 GM General Motors Co 81.08 Bn 25.50 0.44 130.28 Bn
4 RACE Ferrari N.V. 59.53 Bn 31.60 7.15 3.38 Bn
5 F Ford Motor Co 55.12 Bn 17.49 0.30 161.94 Bn
6 HMC Honda Motor Co Ltd 42.13 Bn 9.65 0.29 88.09 Bn
7 STLA Stellantis N.V. 29.73 Bn -10.57 0.17 -
8 XPEV Xpeng Inc. 17.74 Bn -44.29 1.79 4.87 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.20 1.20
EV to Cash from Ops. EV/CFO -1.15 5.88
EV to Debt EV to Debt 1.43 28.94
EV to EBIT EV/EBIT -0.56 11.38
EV to EBITDA EV/EBITDA -1.25 7.73
EV to Free Cash Flow [EV/FCF] EV/FCF -1.11 8.79
EV to Market Cap EV to Market Cap 4.26 304,683.06
EV to Revenue EV/Rev 1.38 16.98
Price to Book Value [P/B] P/B 0.07 3.04
Price to Earnings [P/E] P/E -0.13 9.04
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.59
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 6.04
Dividend per Basic Share Div per Share (Qtr) 0.00 0.36
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.58
Interest Coverage Int. cover (Qtr) -76.55 8.74
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -806.62 -59.34
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -80.14 62.23
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.34
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 4.18 -1,057.18
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 20.81 -19.82
EBIT Growth (1y) % EBIT 1y % (Qtr) 4.22 -1,011.94
EBT Growth (1y) % EBT 1y % (Qtr) 1.81 -216.80
EPS Growth (1y) % EPS 1y % (Qtr) 12.88 -59.11
FCF Growth (1y) % FCF 1y % (Qtr) 22.56 -21.21
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -64.06 -10.92
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.14 0.33
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 0.17 0.40
Current Ratio Curr Ratio (Qtr) 1.91 1.21
Debt to Equity Ratio Debt/Equity (Qtr) 0.20 0.99
Interest Cover Ratio Int Coverage (Qtr) -76.55 8.74
Times Interest Earned Times Interest Earned (Qtr) -76.55 8.74
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -204.10 -2,589.89
EBIT Margin % EBIT Margin % (Qtr) -245.70 -104,371.67
EBT Margin % EBT Margin % (Qtr) -248.91 -3,156.67
Gross Margin % Gross Margin % (Qtr) 17.10 -649.09
Net Profit Margin % Net Margin % (Qtr) -248.70 -3,158.82