Faraday Future Intelligent Electric Inc. (NASDAQ: FFAI)

Sector: Consumer Cyclical Industry: Auto Manufacturers CIK: 0001805521
Market Cap 77.41 Mn
P/B -1.00
P/E -0.16
P/S 120.57
ROIC (Qtr) -319.03
Div Yield % 0.00
Rev 1y % (Qtr) 311.11
Total Debt (Qtr) 136.67 Mn
Debt/Equity (Qtr) -1.76
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About

Investment thesis

Bull case

  • Healthy cash reserves of 70.72M provide 5.28x coverage of short-term debt 13.40M, demonstrating strong liquidity position and minimal refinancing risk.
  • Cash reserves of 70.72M provide ample 8.06x coverage of acquisition spending 8.78M, enabling strategic growth opportunities.
  • Retained earnings of (4.67B) represent substantial 60.09x of equity (77.74M), indicating strong internal capital generation.
  • Cash reserves of 70.72M provide solid 3.43x coverage of other non-current liabilities 20.64M, indicating strong liquidity.
  • Cash reserves of 70.72M exceed inventory value of 381000 by 185.62x, indicating strong liquidity and inventory management.

Bear case

  • Investment activities of (6.53M) provide weak support for R&D spending of 28.11M, which is -0.23x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (97.56M) shows concerning coverage of stock compensation expenses of 8.62M, with a -11.32 ratio indicating potential earnings quality issues.
  • Free cash flow of (110.90M) provides weak coverage of capital expenditures of 13.34M, with a -8.32 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (469.89M) show weak coverage of depreciation charges of 77.32M, with a -6.08 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of (110.90M) represents just -0.70x of debt issuance 159.14M, suggesting concerning reliance on leverage rather than internal cash generation for growth.

Peer comparison

Companies in the Auto Manufacturers
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 TSLA Tesla, Inc. 1,320.28 Bn 347.99 13.92 8.38 Bn
2 TM Toyota Motor Corp/ 319.29 Bn 13.45 0.99 293.92 Bn
3 GM General Motors Co 77.56 Bn 24.39 0.42 130.28 Bn
4 RACE Ferrari N.V. 66.95 Bn 35.53 8.04 3.38 Bn
5 F Ford Motor Co 56.20 Bn 7.14 0.35 163.34 Bn
6 HMC Honda Motor Co Ltd 41.25 Bn 12.95 0.30 88.85 Bn
7 STLA Stellantis N.V. 24.00 Bn -8.53 0.14 -
8 RIVN Rivian Automotive, Inc. / DE 19.56 Bn -5.36 3.63 4.99 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.37 1.21
EV to Cash from Ops. EV/CFO -1.21 3.90
EV to Debt EV to Debt 0.87 29.88
EV to EBIT EV/EBIT -0.25 12.72
EV to EBITDA EV/EBITDA -0.47 8.45
EV to Free Cash Flow [EV/FCF] EV/FCF -1.07 10.17
EV to Market Cap EV to Market Cap 1.53 308,127.46
EV to Revenue EV/Rev 184.16 11.91
Price to Book Value [P/B] P/B -1.00 3.20
Price to Earnings [P/E] P/E -0.16 12.53
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.42
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.47
Dividend per Basic Share Div per Share (Qtr) 0.00 0.36
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.50
Interest Coverage Int. cover (Qtr) -53.61 8.29
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 36.00 -57.61
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 90.03 59.50
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.34
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -55.06 -1,066.49
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -116.17 -19.23
EBIT Growth (1y) % EBIT 1y % (Qtr) -55.19 -1,024.45
EBT Growth (1y) % EBT 1y % (Qtr) -50.38 -231.75
EPS Growth (1y) % EPS 1y % (Qtr) -99.49 -70.11
FCF Growth (1y) % FCF 1y % (Qtr) -0.41 -16.56
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -24.73 -5.98
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.34
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 0.33 0.37
Current Ratio Curr Ratio (Qtr) 0.43 1.19
Debt to Equity Ratio Debt/Equity (Qtr) -1.76 1.05
Interest Cover Ratio Int Coverage (Qtr) -53.61 8.29
Times Interest Earned Times Interest Earned (Qtr) -53.61 8.29
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -61,148.00 -2,590.34
EBIT Margin % EBIT Margin % (Qtr) -73,191.59 -104,390.42
EBT Margin % EBT Margin % (Qtr) -74,556.85 -3,158.64
Gross Margin % Gross Margin % (Qtr) -16,016.50 -649.03
Net Profit Margin % Net Margin % (Qtr) -74,517.10 -3,160.67