NeoVolta Inc. (NASDAQ: NEOV)

Sector: Industrials Industry: Electrical Equipment & Parts CIK: 0001748137
Market Cap 109.71 Mn
P/B 21.93
P/E -11.10
P/S 6.07
ROIC (Qtr) -99.41
Div Yield % 0.00
Rev 1y % (Qtr) 333.52
Total Debt (Qtr) 4.36 Mn
Debt/Equity (Qtr) 0.87
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About

NeoVolta Inc., a company with the ticker symbol NEOV, operates in the energy storage systems (ESS) industry. The company's primary business activities involve designing, manufacturing, and selling high-end ESS for residential and commercial applications. NeoVolta's operations span across the United States, with a particular focus on the residential and commercial markets. NeoVolta generates revenue through the sale of its ESS products, which are primarily sold directly to certified solar installers and solar equipment distributors. The company's...

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Investment thesis

Bull case

  • Tangible assets of 8.82M provide robust 26.69x coverage of other current liabilities 330298, indicating strong asset backing.
  • Strong tangible asset base of 8.82M provides 6.80x coverage of intangibles 1.30M, indicating robust asset quality.
  • Tangible assets of 8.82M provide robust 2.38x coverage of current liabilities 3.71M, showing strong asset backing.

Bear case

  • With cash reserves of 242434 against inventory of 1.86M, the 0.13 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Investment activities of 0 provide weak support for R&D spending of 222071, which is 0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (7.55M) shows concerning coverage of stock compensation expenses of 4.64M, with a -1.63 ratio indicating potential earnings quality issues.
  • High receivables of 5.31M relative to inventory of 1.86M (2.86 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating earnings of (8.99M) show weak coverage of depreciation charges of 269097, with a -33.41 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Electrical Equipment & Parts
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 VRT Vertiv Holdings Co 93.00 Bn 69.78 9.09 3.16 Bn
2 BE Bloom Energy Corp 34.73 Bn -392.76 17.16 2.99 Bn
3 HUBB Hubbell Inc 27.97 Bn 31.52 4.78 2.33 Bn
4 NVT nVent Electric plc 19.43 Bn 76.81 8.40 1.56 Bn
5 AYI Acuity Inc. (De) 12.85 Bn 109.95 6.86 0.91 Bn
6 AEIS Advanced Energy Industries Inc 11.80 Bn 79.52 6.56 0.68 Bn
7 NVX NOVONIX Ltd 11.53 Bn -174.00 1,943.36 -
8 ENS EnerSys 6.79 Bn 21.71 1.82 1.18 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 11.24 3.49
EV to Cash from Ops. EV/CFO -15.05 9.10
EV to Debt EV to Debt 26.06 113.17
EV to EBIT EV/EBIT -12.64 -17.64
EV to EBITDA EV/EBITDA -14.45 3.56
EV to Free Cash Flow [EV/FCF] EV/FCF -15.05 39.13
EV to Market Cap EV to Market Cap 1.04 2.59
EV to Revenue EV/Rev 6.29 77.74
Price to Book Value [P/B] P/B 21.93 4.98
Price to Earnings [P/E] P/E -11.10 23.89
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -2.92
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 3.27
Dividend per Basic Share Div per Share (Qtr) 0.00 0.37
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.79
Interest Coverage Int. cover (Qtr) -10.11 -16.86
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -135.37
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -26.25 92.17
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 5.22
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -178.40 -45.52
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -142.23 -56.26
EBIT Growth (1y) % EBIT 1y % (Qtr) -178.40 -64.20
EBT Growth (1y) % EBT 1y % (Qtr) -203.64 8.52
EPS Growth (1y) % EPS 1y % (Qtr) -190.00 13.91
FCF Growth (1y) % FCF 1y % (Qtr) -284.51 -66.58
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 473.23 15.53
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.79 0.63
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.10
Cash Ratio Cash Ratio (Qtr) 0.07 3.50
Current Ratio Curr Ratio (Qtr) 2.10 5.07
Debt to Equity Ratio Debt/Equity (Qtr) 0.87 0.41
Interest Cover Ratio Int Coverage (Qtr) -10.11 -16.86
Times Interest Earned Times Interest Earned (Qtr) -10.11 -16.86
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -48.30 -1,947.23
EBIT Margin % EBIT Margin % (Qtr) -49.78 -2,051.19
EBT Margin % EBT Margin % (Qtr) -54.71 -2,170.94
Gross Margin % Gross Margin % (Qtr) 19.00 2.02
Net Profit Margin % Net Margin % (Qtr) -54.70 -2,202.04