T1 Energy Inc. (NYSE: TE)

Sector: Industrials Industry: Electrical Equipment & Parts CIK: 0001992243
Market Cap 945.64 Mn
P/B 9.76
P/E -1.69
P/S 2.37
ROIC (Qtr) -13.45
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 688.81 Mn
Debt/Equity (Qtr) 7.11
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About

FREYR Battery, Inc. (FREYR), a company operating in the clean energy and transportation sectors, is dedicated to developing and manufacturing battery cells using licensed SemiSolidTM technology from 24M Technologies, Inc. The company's primary focus is on energy storage systems (ESS), commercial mobility (including marine applications and commercial vehicles), and electric vehicles (EV). FREYR's business activities encompass the development, production, and commercialization of lithium-iron phosphate (LFP) Li-Ion battery cells. These cells are...

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Investment thesis

Bull case

  • Tangible assets of 1.14B provide exceptional 10.85x coverage of deferred revenue 105.37M, showing strong service capability backing.
  • Robust tangible asset base of 1.14B provides 14.36x coverage of working capital 79.59M, indicating strong operational backing.
  • Tangible assets of 1.14B provide robust 7.68x coverage of other current liabilities 148.93M, indicating strong asset backing.
  • Operating cash flow of 22.23M provides strong 12.16x coverage of tax liabilities 1.83M, showing excellent fiscal position.
  • Cash reserves of 86.73M provide comfortable 47.45x coverage of tax obligations 1.83M, showing strong fiscal management.

Bear case

  • Operating cash flow of 22.23M barely covers its investment activities of (135.40M), with a coverage ratio of -0.16, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 86.73M provide limited coverage of acquisition spending of (109.64M), which is -0.79x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 22.23M provides insufficient coverage of deferred revenue obligations of 105.37M, which is 0.21x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of 22.23M shows concerning coverage of stock compensation expenses of 8.40M, with a 2.65 ratio indicating potential earnings quality issues.
  • Free cash flow of (3.53M) provides weak coverage of capital expenditures of 25.76M, with a -0.14 ratio suggesting additional external financing needs for growth initiatives.

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 1.17 3.49
EV to Cash from Ops. EV/CFO 73.31 9.10
EV to Debt EV to Debt 2.37 113.17
EV to EBIT EV/EBIT -2.94 -17.64
EV to EBITDA EV/EBITDA -34.58 3.56
EV to Free Cash Flow [EV/FCF] EV/FCF -461.83 39.13
EV to Market Cap EV to Market Cap 1.72 2.59
EV to Revenue EV/Rev 4.08 77.74
Price to Book Value [P/B] P/B 9.76 4.98
Price to Earnings [P/E] P/E -1.69 23.89
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -45.99 -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) -20.33 -16.86
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 16.79 -135.37
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -52.88 92.17
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 5.22
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -369.60 -45.52
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -2,276.18 -56.26
EBIT Growth (1y) % EBIT 1y % (Qtr) -401.40 -64.20
EBT Growth (1y) % EBT 1y % (Qtr) -443.89 8.52
EPS Growth (1y) % EPS 1y % (Qtr) -400.00 13.91
FCF Growth (1y) % FCF 1y % (Qtr) 97.43 -66.58
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 0.00 15.53
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.29 0.63
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.10
Cash Ratio Cash Ratio (Qtr) 0.14 3.50
Current Ratio Curr Ratio (Qtr) 1.13 5.07
Debt to Equity Ratio Debt/Equity (Qtr) 7.11 0.41
Interest Cover Ratio Int Coverage (Qtr) -20.33 -16.86
Times Interest Earned Times Interest Earned (Qtr) -20.33 -16.86
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -119.40 -1,947.23
EBIT Margin % EBIT Margin % (Qtr) -138.84 -2,051.19
EBT Margin % EBT Margin % (Qtr) -145.67 -2,170.94
Gross Margin % Gross Margin % (Qtr) 18.20 2.02
Net Profit Margin % Net Margin % (Qtr) -139.60 -2,202.04