Lotus Technology Inc. (NASDAQ: LOT)

Sector: Consumer Cyclical Industry: Auto Manufacturers CIK: 0001962746
Market Cap 844.66 Mn
P/B -0.67
P/E -1.03
P/S 1.35
ROIC (Qtr) -133.04
Div Yield % 0.00
Rev 1y % (Qtr) -46.04
Total Debt (Qtr) 1.70 Bn
Debt/Equity (Qtr) -1.35

About

Lotus Technology Inc. (LOT), a luxury electric vehicle (BEV) manufacturer, operates under the iconic British brand "Lotus". The company's headquarters are located in Shanghai, China, and it boasts a global distribution network of 215 stores. Lotus Technology Inc. is listed on the Nasdaq Global Market. Lotus Technology Inc.'s main business activities include designing, developing, and selling luxury lifestyle vehicles, along with providing aftersales services and charging solutions. The company has established a global commercial platform for the...

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Price action

Investment thesis

Bull case

  • Tangible assets of 1.74B provide exceptional 5.28x coverage of deferred revenue 329.87M, showing strong service capability backing.
  • Long-term investments of 403.56M provide solid 0.92x coverage of long-term debt 439.60M, indicating strategic financial planning.
  • R&D investment of 177.08M represents healthy 0.54x of deferred revenue 329.87M, indicating strong future innovation pipeline.
  • Cash reserves of 426.01M provide solid 4.43x coverage of other non-current liabilities 96.14M, indicating strong liquidity.
  • Cash position of 426.01M provides strong 1.29x coverage of deferred revenue 329.87M, ensuring service delivery capability.

Bear case

  • Investment activities of 0 provide weak support for R&D spending of 177.08M, 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 329.87M, which is 0x, raising concerns about future service delivery capabilities.
  • Long-term investments of 403.56M represent a high 1.12x of fixed assets 360.99M, indicating potential overexposure to financial assets versus operational capabilities.
  • Operating cash flow of 0 provides minimal 0x coverage of tax expenses of 17.54M, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Retained earnings of (3.07B) provide limited buffer against comprehensive income items of 40.06M, which is -76.68x, indicating elevated exposure to market risks.

Peer comparison

Companies in the Auto Manufacturers
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 TSLA Tesla, Inc. 1,386.72 Bn 263.09 14.50 7.70 Bn
2 TM Toyota Motor Corp/ 286.80 Bn 9.26 0.87 287.20 Bn
3 GM General Motors Co 81.08 Bn 25.50 0.44 130.28 Bn
4 RACE Ferrari N.V. 59.53 Bn 31.60 7.15 3.38 Bn
5 F Ford Motor Co 55.12 Bn 17.49 0.30 161.94 Bn
6 HMC Honda Motor Co Ltd 42.13 Bn 9.65 0.29 88.09 Bn
7 STLA Stellantis N.V. 29.73 Bn -10.57 0.17 -
8 XPEV Xpeng Inc. 17.74 Bn -44.29 1.79 4.87 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.99 1.20
EV to Cash from Ops. EV/CFO -3.48 5.88
EV to Debt EV to Debt 1.09 28.94
EV to EBIT EV/EBIT -2.45 11.38
EV to EBITDA EV/EBITDA -2.67 7.73
EV to Free Cash Flow [EV/FCF] EV/FCF -3.18 8.79
EV to Market Cap EV to Market Cap 2.19 304,683.06
EV to Revenue EV/Rev 2.95 16.98
Price to Book Value [P/B] P/B -0.67 3.04
Price to Earnings [P/E] P/E -1.03 9.04
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 0.59
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 6.04
Dividend per Basic Share Div per Share (Qtr) 0.00 0.36
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.58
Interest Coverage Int. cover (Qtr) -16.77 8.74
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -59.34
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -35.10 62.23
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.34
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 11.90 -1,057.18
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 0.00 -19.82
EBIT Growth (1y) % EBIT 1y % (Qtr) 13.70 -1,011.94
EBT Growth (1y) % EBT 1y % (Qtr) 9.76 -216.80
EPS Growth (1y) % EPS 1y % (Qtr) 20.00 -59.11
FCF Growth (1y) % FCF 1y % (Qtr) 0.00 -21.21
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -100.59 -10.92
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.34 0.33
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 0.19 0.40
Current Ratio Curr Ratio (Qtr) 0.40 1.21
Debt to Equity Ratio Debt/Equity (Qtr) -1.35 0.99
Interest Cover Ratio Int Coverage (Qtr) -16.77 8.74
Times Interest Earned Times Interest Earned (Qtr) -16.77 8.74
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.00 -2,589.89
EBIT Margin % EBIT Margin % (Qtr) -120.47 -104,371.67
EBT Margin % EBT Margin % (Qtr) -127.65 -3,156.67
Gross Margin % Gross Margin % (Qtr) -0.10 -649.09
Net Profit Margin % Net Margin % (Qtr) -130.40 -3,158.82