GREENPOWER MOTOR Co INC. (GP) Stock Analysis and Metrics

Sector: Industrials Industry: Farm & Heavy Construction Machinery CIK: 0001584547

Market Cap 3.66 Mn

P/B -1.16

P/E -0.50

P/S 0.22

ROIC (Qtr) -31.13

Div Yield % 0.00

Rev 1y % (Qtr) 17.68

Total Debt (Qtr) 21.96 Mn

Debt/Equity (Qtr) -6.95

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About

GreenPower Motor Company Inc., a Canadian issuer, is a leading manufacturer of electric vehicles, including buses and trucks. Its common shares are listed on the Nasdaq Stock Exchange under the trading symbol "GP" and on the Toronto Stock Exchange under the trading symbol "GPV". The company operates in the electric vehicle industry, a sector that is rapidly growing due to the increasing demand for clean energy solutions. GreenPower's main business activities include designing, manufacturing, and selling electric vehicles, including buses and trucks....

GreenPower Motor Company Inc., a Canadian issuer, is a leading manufacturer of electric vehicles, including buses and trucks. Its common shares are listed on the Nasdaq Stock Exchange under the trading symbol "GP" and on the Toronto Stock Exchange under the trading symbol "GPV". The company operates in the electric vehicle industry, a sector that is rapidly growing due to the increasing demand for clean energy solutions.

GreenPower's main business activities include designing, manufacturing, and selling electric vehicles, including buses and trucks. The company's products are designed to meet the needs of various industries, including public transportation, logistics, and construction. GreenPower's vehicles are powered by electric motors and batteries, which provide a cleaner and more environmentally friendly alternative to traditional internal combustion engine vehicles.

The company generates revenue through the sale of its electric vehicles, as well as through the provision of maintenance and repair services. Its primary products include the EV Star, a 27-foot electric bus, and the EV Star CC, a 30-foot electric bus. The company's customer base includes public transportation agencies, private companies, and government organizations.

GreenPower operates in a highly competitive industry, with many established players, including automobile manufacturers and electric vehicle startups. However, the company's competitive advantages include its expertise in designing and manufacturing electric vehicles, its strong relationships with suppliers, and its ability to adapt to changing market conditions.

One of the main risks facing the company is the potential for changes in government regulations and incentives. The company's electric vehicles are eligible for various government incentives, including tax credits and rebates. However, these incentives are subject to change, and the company may not be able to rely on them in the future. Additionally, the company faces the risk of competition from established players, including automobile manufacturers and electric vehicle startups.

Another significant risk facing the company is the impact of global economic conditions. The company's sales and revenue are subject to fluctuations in global economic conditions, including changes in consumer spending and government spending. The company also faces the risk of supply chain disruptions, which could impact its ability to deliver products to customers.

GreenPower's financial performance is also subject to risks and uncertainties, including the potential for changes in government regulations and incentives, the impact of global economic conditions, and the risk of competition from established players. The company's ability to generate cash flow and maintain a strong balance sheet is critical to its long-term success.

The company has a strong position within the industry, with a growing customer base and a reputation for producing high-quality electric vehicles. GreenPower's electric bus segment caters to the public transportation industry, which is characterized by a growing demand for electric vehicles, driven by government regulations and incentives promoting the adoption of clean energy solutions. The company's electric buses are designed to meet the needs of public transportation agencies, offering a reliable, efficient, and environmentally friendly alternative to traditional fossil-fuel-powered buses.

Another significant segment of GreenPower's business is its truck segment, which caters to the logistics and construction industries. This segment is characterized by a growing demand for electric vehicles, driven by the need for sustainable and cost-effective transportation solutions. The company's electric trucks are designed to meet the needs of logistics and construction companies, offering a reliable, efficient, and environmentally friendly alternative to traditional fossil-fuel-powered trucks.

In addition to its electric buses and trucks, GreenPower offers a range of other products and services, including maintenance and repair services, parts and accessories, and financing options. The company has a network of dealers across the United States and Canada, and it is expanding its operations to meet growing demand for electric vehicles.

GreenPower's technology is designed to provide a reliable and efficient means of transportation, with a focus on reducing emissions and improving air quality. The company's electric vehicles are designed to meet the needs of a variety of customers, including public transportation agencies, private companies, and government organizations.

Investment thesis

Bull case

Tangible assets of 30.76M provide exceptional 5.95x coverage of deferred revenue 5.17M, showing strong service capability backing.
Retained earnings of (100.90M) represent substantial 31.95x of equity (3.16M), indicating strong internal capital generation.
Robust tangible asset base of 30.76M provides 5.34x coverage of working capital 5.76M, indicating strong operational backing.
Tangible assets of 30.76M provide robust 5.04x coverage of other current liabilities 6.10M, indicating strong asset backing.
Strong R&D investment of 868234 at 285.70x of capex 3039 shows balanced investment in innovation and infrastructure.

Bear case

Operating cash flow of (2.84M) barely covers its investment activities of 12026, with a coverage ratio of -235.78, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
With cash reserves of 675950 against inventory of 23.65M, the 0.03 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
Investment activities of 12026 provide weak support for R&D spending of 868234, which is 0.01x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
Operating cash flow of (2.84M) provides insufficient coverage of deferred revenue obligations of 5.17M, which is -0.55x, raising concerns about future service delivery capabilities.
The company's operating cash flow of (2.84M) shows concerning coverage of stock compensation expenses of 384613, with a -7.37 ratio indicating potential earnings quality issues.

Peer comparison

Companies in the Farm & Heavy Construction Machinery

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	CAT	Caterpillar Inc	483.60 Bn	124.96	8.76	43.33 Bn
2	DE	Deere & Co	188.47 Bn	68.51	5.30	63.94 Bn
3	PCAR	Paccar Inc	68.19 Bn	57.51	3.81	15.85 Bn
4	CNH	CNH Industrial N.V.	16.63 Bn	27.85	0.93	27.17 Bn
5	AGCO	Agco Corp /De	10.86 Bn	33.29	1.16	2.56 Bn
6	OSK	Oshkosh Corp	10.81 Bn	16.71	1.04	1.10 Bn
7	TEX	Terex Corp	4.57 Bn	20.69	0.84	2.58 Bn
8	ALG	Alamo Group Inc	2.46 Bn	38.76	2.10	0.21 Bn

Industry comparisons

Current Valuation	Value	Ind Avg
EV to Assets EV to Assets	0.79	1.36
EV to Cash from Ops. EV/CFO	-8.59	2.52
EV to Debt EV to Debt	1.11	36.19
EV to EBIT EV/EBIT	-4.90	19.84
EV to EBITDA EV/EBITDA	-7.05	11.98
EV to Free Cash Flow [EV/FCF] EV/FCF	-8.58	10.22
EV to Market Cap EV to Market Cap	6.65	2.67
EV to Revenue EV/Rev	1.45	2.22
Price to Book Value [P/B] P/B	-1.16	2.56
Price to Earnings [P/E] P/E	-0.50	19.56

Dividend Metrics	Value	Ind Avg
Dividend Coverage Ratio Dividend Coverage Ratio	0.00	116,909.42
Dividend Payout Ratio % Div Payout % (Qtr)	0.00	51.44
Dividend per Basic Share Div per Share (Qtr)	0.00	1.01
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr)	0.00	11.55
Interest Coverage Int. cover (Qtr)	-2.06	6.02

Growth Metrics	Value	Ind Avg
Capex Growth (1y) % Capex 1y % (Qtr)	97.98	-4.60
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr)	8.83	27.84
Dividend Growth (1y) % Dividend Growth (1y) %	0.00	-2.90
EBIAT Growth (1y) % EBIAT 1y % (Qtr)	74.06	22.54
EBITDA Growth (1y) % EBITDA 1y % (Qtr)	79.80	2.73
EBIT Growth (1y) % EBIT 1y % (Qtr)	74.06	36.64
EBT Growth (1y) % EBT 1y % (Qtr)	65.62	2,839.65
EPS Growth (1y) % EPS 1y % (Qtr)	68.89	154.78
FCF Growth (1y) % FCF 1y % (Qtr)	73.43	-12.49
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr)	434.11	-11.09

Liquidity Ratios	Value	Ind Avg
Asset Utilization Ratio Asset Util Ratio (Qtr)	0.55	1.00
Cash Payout Ratio Cash Payout (Qtr)	0.00	0.07
Cash Ratio Cash Ratio (Qtr)	0.04	0.46
Current Ratio Curr Ratio (Qtr)	1.31	2.51
Debt to Equity Ratio Debt/Equity (Qtr)	-6.95	0.43
Interest Cover Ratio Int Coverage (Qtr)	-2.06	6.02
Times Interest Earned Times Interest Earned (Qtr)	-2.06	6.02

Profitability	Value	Ind Avg
EBITDA Margin % EBITDA Margin % (Qtr)	-20.70	-7.57
EBIT Margin % EBIT Margin % (Qtr)	-29.51	-11.88
EBT Margin % EBT Margin % (Qtr)	-43.86	-14.87
Gross Margin % Gross Margin % (Qtr)	48.50	19.78
Net Profit Margin % Net Margin % (Qtr)	-43.90	-16.22

Research Tools

GREENPOWER MOTOR Co INC. (NASDAQ: GP)

About

Investment thesis

Bull case

Bear case

Peer comparison

Industry comparisons

Research Tools

GREENPOWER MOTOR Co INC. (NASDAQ: GP)

About

Investment thesis

Bull case

Bear case

Peer comparison

Industry comparisons

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