Eve Holding, Inc. (NYSE: EVEX)

Sector: Industrials Industry: Aerospace & Defense CIK: 0001823652
Market Cap 1.40 Bn
P/B 7.63
P/E -6.98
P/S 0.00
ROIC (Qtr) -79.33
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 168.09 Mn
Debt/Equity (Qtr) 0.91

About

Eve Holding, Inc. (EVEX) operates in the Urban Air Mobility (UAM) solutions industry. The company, previously a blank check company, was established to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. Eve Holding is a Delaware corporation with operations in Melbourne, Florida, and Brazil. The company's main business activities revolve around the design and production of electric vertical take-off and landing vehicles (eVTOLs), provision of maintenance...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 67.43M provide 84.92x coverage of short-term debt 794000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 439.68M provides 2.62x coverage of total debt 168.09M, indicating robust asset backing and low credit risk.
  • Short-term investments of 344.23M provide solid 9.36x coverage of other current liabilities 36.78M, indicating strong liquidity.
  • Tangible assets of 439.68M provide robust 11.96x coverage of other current liabilities 36.78M, indicating strong asset backing.
  • Cash reserves of 67.43M provide robust 0.83x coverage of current liabilities 81.48M, indicating strong short-term solvency.

Bear case

  • Investment activities of (98.67M) provide weak support for R&D spending of 168.91M, which is -0.58x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Short-term investments of 344.23M significantly exceed cash reserves of 67.43M, which is 5.11x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • The company's operating cash flow of (173.17M) shows concerning coverage of stock compensation expenses of 4.15M, with a -41.69 ratio indicating potential earnings quality issues.
  • Operating cash flow of (173.17M) provides minimal -1055.94x coverage of tax expenses of 164000, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Free cash flow of (182.84M) provides weak coverage of capital expenditures of 9.67M, with a -18.91 ratio suggesting additional external financing needs for growth initiatives.

Peer comparison

Companies in the Aerospace & Defense
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GE General Electric Co 342.94 Bn 42.54 7.80 20.84 Bn
2 RTX RTX Corp 252.05 Bn 38.24 2.93 40.71 Bn
3 BA Boeing Co 174.43 Bn -17.16 2.16 53.35 Bn
4 LMT Lockheed Martin Corp 126.61 Bn 30.15 1.73 22.19 Bn
5 GD General Dynamics Corp 95.62 Bn 22.69 1.86 8.01 Bn
6 NOC Northrop Grumman Corp /De/ 89.30 Bn 22.22 2.18 16.96 Bn
7 HWM Howmet Aerospace Inc. 88.16 Bn 60.80 11.05 3.19 Bn
8 TDG TransDigm Group INC 80.97 Bn 43.39 9.17 30.02 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 3.45 3.58
EV to Cash from Ops. EV/CFO -8.76 58.38
EV to Debt EV to Debt 9.03 98.04
EV to EBIT EV/EBIT -7.91 19.42
EV to EBITDA EV/EBITDA -7.60 33.60
EV to Free Cash Flow [EV/FCF] EV/FCF -8.30 91.66
EV to Market Cap EV to Market Cap 1.08 1.13
EV to Revenue EV to Revenue 0.00 11.27
Price to Book Value [P/B] P/B 7.63 4.81
Price to Earnings [P/E] P/E -6.98 31.79
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -3.75
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 22.95
Dividend per Basic Share Div per Share (Qtr) 0.00 0.70
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 14.15
Interest Coverage Int. cover (Qtr) -21.09 -18.00
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -141.66 -50.32
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 174.41 1,609.43
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.75
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -42.56 -30.98
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -26.87 10.65
EBIT Growth (1y) % EBIT 1y % (Qtr) -43.96 -26.90
EBT Growth (1y) % EBT 1y % (Qtr) -48.46 -27.25
EPS Growth (1y) % EPS 1y % (Qtr) -35.42 -99.21
FCF Growth (1y) % FCF 1y % (Qtr) -45.34 6.61
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 0.00 -5.55
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.51
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.07
Cash Ratio Cash Ratio (Qtr) 0.83 1.76
Current Ratio Curr Ratio (Qtr) 5.21 3.72
Debt to Equity Ratio Debt/Equity (Qtr) 0.91 0.07
Interest Cover Ratio Int Coverage (Qtr) -21.09 -18.00
Times Interest Earned Times Interest Earned (Qtr) -21.09 -18.00
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 -345.84
EBIT Margin % EBIT Margin % 0.00 -382.63
EBT Margin % EBT Margin % 0.00 -387.93
Gross Margin % Gross Margin % 0.00 -33.31
Net Profit Margin % Net Profit Margin % 0.00 -389.13