Electrovaya Inc. (NASDAQ: ELVA)

Sector: Industrials Industry: Electrical Equipment & Parts CIK: 0001844450
Market Cap 315.37 Mn
P/B 5.23
P/E 65.42
P/S 4.62
ROIC (Qtr) 10.98
Div Yield % 0.00
Rev 1y % (Qtr) 39.26
Total Debt (Qtr) 28.98 Mn
Debt/Equity (Qtr) 0.48
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About

Investment thesis

Bull case

  • Healthy cash reserves of 25.12M provide 78.26x coverage of short-term debt 321000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 99.94M provides 3.45x coverage of total debt 28.98M, indicating robust asset backing and low credit risk.
  • Retained earnings of (124.84M) provide strong 369.36x coverage of other current liabilities (338000), indicating earnings quality.
  • Free cash flow of (17.38M) provides exceptional 68.43x coverage of interest expense (254000), showing strong debt service ability.
  • Operating cash flow of 9.76M fully covers other non-current liabilities 619000 by 15.76x, showing strong long-term stability.

Bear case

  • Operating cash flow of 9.76M barely covers its investment activities of (29.75M), with a coverage ratio of -0.33, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (29.75M) provide weak support for R&D spending of 4.62M, which is -6.44x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Free cash flow of (17.38M) provides weak coverage of capital expenditures of 27.14M, with a -0.64 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of 9.76M provides minimal -4.53x coverage of tax expenses of (2.15M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of 2.42M show weak coverage of depreciation charges of 1.55M, with a 1.56 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Electrical Equipment & Parts
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 VRT Vertiv Holdings Co 93.00 Bn 69.78 9.09 3.16 Bn
2 BE Bloom Energy Corp 34.73 Bn -392.76 17.16 2.99 Bn
3 HUBB Hubbell Inc 27.97 Bn 31.52 4.78 2.33 Bn
4 NVT nVent Electric plc 19.43 Bn 76.81 8.40 1.56 Bn
5 AYI Acuity Inc. (De) 12.85 Bn 109.95 6.86 0.91 Bn
6 AEIS Advanced Energy Industries Inc 11.80 Bn 79.52 6.56 0.68 Bn
7 NVX NOVONIX Ltd 11.53 Bn -174.00 1,943.36 -
8 ENS EnerSys 6.79 Bn 21.71 1.82 1.18 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 3.31 3.49
EV to Cash from Ops. EV/CFO 33.93 9.10
EV to Debt EV to Debt 11.43 113.17
EV to EBIT EV/EBIT 137.12 -17.64
EV to EBITDA EV/EBITDA 38.27 3.56
EV to Free Cash Flow [EV/FCF] EV/FCF -19.05 39.13
EV to Market Cap EV to Market Cap 1.05 2.59
EV to Revenue EV/Rev 4.85 77.74
Price to Book Value [P/B] P/B 5.23 4.98
Price to Earnings [P/E] P/E 65.42 23.89
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -2.92
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 3.27
Dividend per Basic Share Div per Share (Qtr) 0.00 0.37
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.79
Interest Coverage Int. cover (Qtr) -9.51 -16.86
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -4,571.08 -135.37
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 207.47 92.17
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 5.22
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 530.20 -45.52
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 361.44 -56.26
EBIT Growth (1y) % EBIT 1y % (Qtr) 338.17 -64.20
EBT Growth (1y) % EBT 1y % (Qtr) 257.28 8.52
EPS Growth (1y) % EPS 1y % (Qtr) 400.00 13.91
FCF Growth (1y) % FCF 1y % (Qtr) -635.46 -66.58
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 57.92 15.53
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.68 0.63
Cash Payout Ratio Cash Payout Ratio 0.00 -0.10
Cash Ratio Cash Ratio (Qtr) 2.43 3.50
Current Ratio Curr Ratio (Qtr) 6.02 5.07
Debt to Equity Ratio Debt/Equity (Qtr) 0.48 0.41
Interest Cover Ratio Int Coverage (Qtr) -9.51 -16.86
Times Interest Earned Times Interest Earned (Qtr) -9.51 -16.86
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 5.80 -1,947.23
EBIT Margin % EBIT Margin % (Qtr) 3.54 -2,051.19
EBT Margin % EBT Margin % (Qtr) 3.91 -2,170.94
Gross Margin % Gross Margin % (Qtr) 31.40 2.02
Net Profit Margin % Net Margin % (Qtr) 7.10 -2,202.04