Hesai Group (NASDAQ: HSAI)

Sector: Consumer Cyclical Industry: Auto Parts CIK: 0001861737
Market Cap 3.60 Bn
P/B 2.90
P/E 59.59
P/S 9.32
ROIC (Qtr) 14.79
Div Yield % 0.00
Rev 1y % (Qtr) 47.45
Total Debt (Qtr) 137.78 Mn
Debt/Equity (Qtr) 0.11

About

Hesai Group, a company known by its stock symbol HSAI, operates in the industry of three-dimensional light detection and ranging (LiDAR) solutions. The company's main business activities revolve around the design, manufacturing, and sales of LiDAR products, which cater to a wide range of applications such as advanced driver assistance systems (ADAS), autonomous mobility, and robotics. With a focus on innovation and quality, Hesai Technology's LiDAR products are used in short-, medium-, and long-range applications, offering industry-leading detection...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 360.61M provide 4.32x coverage of short-term debt 83.41M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 1.51B provides 10.99x coverage of total debt 137.78M, indicating robust asset backing and low credit risk.
  • Tangible assets of 1.51B provide exceptional 275.81x coverage of deferred revenue 5.49M, showing strong service capability backing.
  • Short-term investments of 674.34M provide solid 8.01x coverage of other current liabilities 84.21M, indicating strong liquidity.
  • Cash reserves of 360.61M provide robust 1.55x coverage of current liabilities 232.46M, indicating strong short-term solvency.

Bear case

  • Investment activities of 0 provide weak support for R&D spending of 115.70M, which is 0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 0 provides insufficient coverage of deferred revenue obligations of 5.49M, which is 0x, raising concerns about future service delivery capabilities.
  • Retained earnings of (439.19M) provide limited buffer against comprehensive income items of 9.89M, which is -44.40x, indicating elevated exposure to market risks.
  • Operating cash flow of 0 provides minimal 0x coverage of tax expenses of 3.95M, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating cash flow of 0 barely covers operating expenses of (48.27M) with a -0 ratio, suggesting thin operational efficiency margins and limited flexibility.

Product and Service Breakdown of Revenue (2024)

Geographical Breakdown of Revenue (2024)

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 0.24 1.16
EV to Cash from Ops. EV/CFO 41.74 9.30
EV to Debt EV to Debt 2.64 34.64
EV to EBIT EV/EBIT 5.43 4.45
EV to EBITDA EV/EBITDA -74.21 7.40
EV to Free Cash Flow [EV/FCF] EV/FCF -13.52 17.25
EV to Market Cap EV to Market Cap 0.10 1.58
EV to Revenue EV/Rev 0.94 3.42
Price to Book Value [P/B] P/B 2.90 -0.33
Price to Earnings [P/E] P/E 59.59 11.70
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 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) 25.83 -110.44
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 -13.49
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 18.54 27.17
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.96
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 217.56 5.41
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 0.00 -8.06
EBIT Growth (1y) % EBIT 1y % (Qtr) 225.66 -22.36
EBT Growth (1y) % EBT 1y % (Qtr) 217.69 -123.98
EPS Growth (1y) % EPS 1y % (Qtr) 207.21 -110.42
FCF Growth (1y) % FCF 1y % (Qtr) 0.00 24.26
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 36.00 16.01
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.04 0.92
Cash Payout Ratio Cash Payout Ratio 0.00 -0.25
Cash Ratio Cash Ratio (Qtr) 1.55 0.69
Current Ratio Curr Ratio (Qtr) 5.76 2.88
Debt to Equity Ratio Debt/Equity (Qtr) 0.11 0.22
Interest Cover Ratio Int Coverage (Qtr) 25.83 -110.44
Times Interest Earned Times Interest Earned (Qtr) 25.83 -110.44
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.00 -952.44
EBIT Margin % EBIT Margin % (Qtr) 123.44 -997.37
EBT Margin % EBT Margin % (Qtr) 16.67 -987.56
Gross Margin % Gross Margin % (Qtr) 41.30 -122.43
Net Profit Margin % Net Margin % (Qtr) 15.60 -979.78