Solid Power, Inc. (NASDAQ: SLDP)

Sector: Consumer Cyclical Industry: Auto Parts CIK: 0001844862
Market Cap 644.07 Mn
P/B 1.69
P/E -6.64
P/S 28.53
ROIC (Qtr) -26.22
Div Yield % 0.00
Rev 1y % (Qtr) -1.96
Total Debt (Qtr) 8.21 Mn
Debt/Equity (Qtr) 0.02
Add ratio to table...

About

Solid Power, Inc. (SLDP) operates in the advanced battery technology industry, specializing in the development of solid-state battery technology for electric vehicles (EVs) and other markets. The company's main business activities involve the development and commercialization of solid-state battery technology, which has the potential to improve driving range, battery life, safety, and cost compared to traditional lithium-ion batteries. Solid Power generates revenue through the sale of its solid-state electrolyte material and licensing its cell...

Read more

Investment thesis

Bull case

  • Healthy cash reserves of 47.29M provide 56.56x coverage of short-term debt 836000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 414.09M provides 50.46x coverage of total debt 8.21M, indicating robust asset backing and low credit risk.
  • Tangible assets of 414.09M provide exceptional 949.74x coverage of deferred revenue 436000, showing strong service capability backing.
  • Short-term investments of 203.93M provide solid 32.22x coverage of other current liabilities 6.33M, indicating strong liquidity.
  • Long-term investments of 54.80M provide solid 7.44x coverage of long-term debt 7.37M, indicating strategic financial planning.

Bear case

  • Operating cash flow of (68.87M) barely covers its investment activities of 48.16M, with a coverage ratio of -1.43, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 48.16M provide weak support for R&D spending of 74.26M, which is 0.65x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (68.87M) provides insufficient coverage of deferred revenue obligations of 436000, which is -157.96x, raising concerns about future service delivery capabilities.
  • Short-term investments of 203.93M significantly exceed cash reserves of 47.29M, which is 4.31x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • The company's operating cash flow of (68.87M) shows concerning coverage of stock compensation expenses of 9.45M, with a -7.29 ratio indicating potential earnings quality issues.

Geographical 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 79.05 Bn 31.82 4.53 8.40 Bn
2 AZO Autozone Inc 62.61 Bn 25.41 3.25 12.05 Bn
3 ALSN Allison Transmission Holdings Inc 21.28 Bn 43.99 10.65 2.40 Bn
4 MGA Magna International Inc 18.84 Bn 22.73 0.45 6.69 Bn
5 GPC Genuine Parts Co 18.74 Bn 27.28 1.22 6.40 Bn
6 APTV Aptiv PLC 18.21 Bn 110.36 0.89 7.95 Bn
7 BWA Borgwarner Inc 13.42 Bn 48.46 0.94 3.90 Bn
8 MOD Modine Manufacturing Co 11.46 Bn 117.21 3.99 0.62 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.50 1.25
EV to Cash from Ops. EV/CFO -9.09 14.01
EV to Debt EV to Debt 76.31 36.85
EV to EBIT EV/EBIT -6.50 21.23
EV to EBITDA EV/EBITDA -7.85 9.40
EV to Free Cash Flow [EV/FCF] EV/FCF -7.92 -2.78
EV to Market Cap EV to Market Cap 0.97 1.79
EV to Revenue EV/Rev 27.74 3.03
Price to Book Value [P/B] P/B 1.69 0.00
Price to Earnings [P/E] P/E -6.64 12.66
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 1.87
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 13.37
Dividend per Basic Share Div per Share (Qtr) 0.00 0.42
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 14.12
Interest Coverage Int. cover (Qtr) -3,209.10 -114.22
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 36.86 -15.53
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 24.54 20.52
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 2.88
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -14.33 35.51
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 10.31 -1.89
EBIT Growth (1y) % EBIT 1y % (Qtr) -14.74 -6.91
EBT Growth (1y) % EBT 1y % (Qtr) -14.57 -105.73
EPS Growth (1y) % EPS 1y % (Qtr) -8.16 -467.53
FCF Growth (1y) % FCF 1y % (Qtr) -8.58 15.37
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 169.44 23.99
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.05 0.92
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.08
Cash Ratio Cash Ratio (Qtr) 2.85 0.72
Current Ratio Curr Ratio (Qtr) 15.78 2.95
Debt to Equity Ratio Debt/Equity (Qtr) 0.02 0.09
Interest Cover Ratio Int Coverage (Qtr) -3,209.10 -114.22
Times Interest Earned Times Interest Earned (Qtr) -3,209.10 -114.22
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -339.70 -988.62
EBIT Margin % EBIT Margin % (Qtr) -426.44 -1,028.09
EBT Margin % EBT Margin % (Qtr) -426.57 -1,019.44
Gross Margin % Gross Margin % (Qtr) 18.60 -124.68
Net Profit Margin % Net Margin % (Qtr) -429.60 -1,011.37