ECARX Holdings Inc. (NASDAQ: ECX)

Sector: Consumer Cyclical Industry: Auto Parts CIK: 0001861974
Market Cap 580.11 Mn
P/B -2.05
P/E -8.79
P/S 0.68
ROIC (Qtr) -58.18
Div Yield % 0.00
Rev 1y % (Qtr) 12.94
Total Debt (Qtr) 455.40 Mn
Debt/Equity (Qtr) -1.61
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About

ECARX Holdings Inc., often recognized by the stock symbol ECX, operates in the technology industry, specifically focusing on the development of automotive computing platforms, intelligent cockpits, and autonomous driving solutions. The company, founded in 2017 and headquartered in Shanghai, China, has made its mark on the global stage by listing on the Nasdaq Global Market. ECARX's primary business activities revolve around creating advanced systems and solutions that transform vehicles into sophisticated information, communication, and transportation...

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Investment thesis

Bull case

  • Tangible assets of 618.40M provide exceptional 83.57x coverage of deferred revenue 7.40M, showing strong service capability backing.
  • Long-term investments of 61.50M provide solid 0.75x coverage of long-term debt 81.60M, indicating strategic financial planning.
  • Tangible assets of 618.40M provide robust 4.07x coverage of other current liabilities 151.90M, indicating strong asset backing.
  • Retained earnings of (1.19B) represent substantial 4.21x of equity (282.60M), indicating strong internal capital generation.
  • R&D investment of 123.30M represents healthy 16.66x of deferred revenue 7.40M, indicating strong future innovation pipeline.

Bear case

  • Investment activities of 0 provide weak support for R&D spending of 123.30M, which is 0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • High receivables of 254M relative to inventory of 62.30M (4.08 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating cash flow of 0 provides insufficient coverage of deferred revenue obligations of 7.40M, which is 0x, raising concerns about future service delivery capabilities.
  • Long-term investments of 61.50M represent a high 1.41x of fixed assets 43.50M, indicating potential overexposure to financial assets versus operational capabilities.
  • Cash position of 93.20M provides weak coverage of payables of 297.30M, which is 0.31x, indicating potential working capital stress and supplier relationship risks.

Product and Service Breakdown of Revenue (2023)

Peer comparison

Companies in the Auto Parts
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ORLY O Reilly Automotive Inc 79.05 Bn 31.82 4.53 8.40 Bn
2 AZO Autozone Inc 62.61 Bn 25.41 3.25 12.05 Bn
3 ALSN Allison Transmission Holdings Inc 21.28 Bn 43.99 10.65 2.40 Bn
4 MGA Magna International Inc 18.84 Bn 22.73 0.45 6.69 Bn
5 GPC Genuine Parts Co 18.74 Bn 27.28 1.22 6.40 Bn
6 APTV Aptiv PLC 18.21 Bn 110.36 0.89 7.95 Bn
7 BWA Borgwarner Inc 13.42 Bn 48.46 0.94 3.90 Bn
8 MOD Modine Manufacturing Co 11.46 Bn 117.21 3.99 0.62 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.39 1.25
EV to Cash from Ops. EV/CFO -15.39 14.01
EV to Debt EV to Debt 2.02 36.85
EV to EBIT EV/EBIT -22.46 21.23
EV to EBITDA EV/EBITDA -9.55 9.40
EV to Free Cash Flow [EV/FCF] EV/FCF -12.19 -2.78
EV to Market Cap EV to Market Cap 1.59 1.79
EV to Revenue EV/Rev 1.09 3.03
Price to Book Value [P/B] P/B -2.05 0.00
Price to Earnings [P/E] P/E -8.79 12.66
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 1.87
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 13.37
Dividend per Basic Share Div per Share (Qtr) 0.00 0.42
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 14.12
Interest Coverage Int. cover (Qtr) -1.72 -114.22
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -15.53
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 85.66 20.52
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 2.88
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 62.44 35.51
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 0.00 -1.89
EBIT Growth (1y) % EBIT 1y % (Qtr) 63.06 -6.91
EBT Growth (1y) % EBT 1y % (Qtr) 50.00 -105.73
EPS Growth (1y) % EPS 1y % (Qtr) 51.28 -467.53
FCF Growth (1y) % FCF Growth (1y) % 0.00 15.37
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 0.75 23.99
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.28 0.92
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.08
Cash Ratio Cash Ratio (Qtr) 0.11 0.72
Current Ratio Curr Ratio (Qtr) 0.59 2.95
Debt to Equity Ratio Debt/Equity (Qtr) -1.61 0.09
Interest Cover Ratio Int Coverage (Qtr) -1.72 -114.22
Times Interest Earned Times Interest Earned (Qtr) -1.72 -114.22
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.00 -988.62
EBIT Margin % EBIT Margin % (Qtr) -4.84 -1,028.09
EBT Margin % EBT Margin % (Qtr) -7.64 -1,019.44
Gross Margin % Gross Margin % (Qtr) 19.00 -124.68
Net Profit Margin % Net Margin % (Qtr) -7.80 -1,011.37