ECARX Holdings Inc. (NASDAQ: ECX)

Sector: Consumer Cyclical Industry: Auto Parts CIK: 0001861974
Market Cap 626.43 Mn
P/B -2.14
P/E -8.49
P/S 0.77
ROIC (Qtr) -84.99
Div Yield % 0.00
Rev 1y % (Qtr) 10.95
Total Debt (Qtr) 391.00 Mn
Debt/Equity (Qtr) -1.34

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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Price action

Investment thesis

Bull case

  • Tangible assets of 464.60M provide exceptional 34.16x coverage of deferred revenue 13.60M, showing strong service capability backing.
  • R&D investment of 142.17M represents healthy 10.45x of deferred revenue 13.60M, indicating strong future innovation pipeline.
  • Retained earnings of (1.19B) represent substantial 4.08x of equity (292.20M), indicating strong internal capital generation.
  • Cash reserves of 50.40M provide solid 1.79x coverage of other non-current liabilities 28.20M, indicating strong liquidity.
  • Cash position of 50.40M provides strong 3.71x coverage of deferred revenue 13.60M, ensuring service delivery capability.

Bear case

  • Investment activities of 0 provide weak support for R&D spending of 142.17M, which is 0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • High receivables of 214.60M relative to inventory of 71.40M (3.01 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 13.60M, which is 0x, raising concerns about future service delivery capabilities.
  • Cash position of 50.40M provides weak coverage of payables of 248.70M, which is 0.20x, indicating potential working capital stress and supplier relationship risks.
  • Operating cash flow of 0 provides minimal 0x coverage of tax expenses of 2.03M, suggesting potential tax planning inefficiencies or unsustainable tax positions.

Product and Service Breakdown of Revenue (2023)

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 80.07 Bn 32.23 4.59 8.40 Bn
2 AZO Autozone Inc 57.24 Bn 23.23 2.97 12.05 Bn
3 APTV Aptiv PLC 19.67 Bn 66.67 0.98 8.03 Bn
4 GPC Genuine Parts Co 17.83 Bn 22.05 0.74 6.40 Bn
5 MGA Magna International Inc 15.86 Bn 15.36 0.38 7.48 Bn
6 ALV Autoliv Inc 9.72 Bn 12.92 0.92 2.19 Bn
7 MBLY Mobileye Global Inc. 9.47 Bn -28.17 4.88 0.00 Bn
8 BWA Borgwarner Inc 8.87 Bn 66.21 0.63 3.90 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.82 1.16
EV to Cash from Ops. EV/CFO -15.41 9.30
EV to Debt EV to Debt 2.36 34.64
EV to EBIT EV/EBIT -22.29 4.45
EV to EBITDA EV/EBITDA -9.57 7.40
EV to Free Cash Flow [EV/FCF] EV/FCF -12.20 17.25
EV to Market Cap EV to Market Cap 1.47 1.58
EV to Revenue EV/Rev 1.13 3.42
Price to Book Value [P/B] P/B -2.14 -0.33
Price to Earnings [P/E] P/E -8.49 11.70
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 1.64
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 12.18
Dividend per Basic Share Div per Share (Qtr) 0.00 0.41
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 13.70
Interest Coverage Int. cover (Qtr) -1.85 -110.44
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -13.49
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -47.33 27.17
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.96
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 71.16 5.41
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 0.00 -8.06
EBIT Growth (1y) % EBIT 1y % (Qtr) 72.13 -22.36
EBT Growth (1y) % EBT 1y % (Qtr) 60.54 -123.98
EPS Growth (1y) % EPS 1y % (Qtr) 55.18 -110.42
FCF Growth (1y) % FCF Growth (1y) % 0.00 24.26
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -4.50 16.01
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.61 0.92
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.25
Cash Ratio Cash Ratio (Qtr) 0.07 0.69
Current Ratio Curr Ratio (Qtr) 0.54 2.88
Debt to Equity Ratio Debt/Equity (Qtr) -1.34 0.22
Interest Cover Ratio Int Coverage (Qtr) -1.85 -110.44
Times Interest Earned Times Interest Earned (Qtr) -1.85 -110.44
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.00 -952.44
EBIT Margin % EBIT Margin % (Qtr) -5.07 -997.37
EBT Margin % EBT Margin % (Qtr) -7.81 -987.56
Gross Margin % Gross Margin % (Qtr) 19.00 -122.43
Net Profit Margin % Net Margin % (Qtr) -9.10 -979.78