Worksport Ltd (NASDAQ: WKSP)

Sector: Consumer Cyclical Industry: Auto Parts CIK: 0001096275
Market Cap 10.93 Mn
P/B 0.55
P/E -0.63
P/S 0.77
ROIC (Qtr) -77.17
Div Yield % 0.00
Rev 1y % (Qtr) 60.58
Total Debt (Qtr) 3.09 Mn
Debt/Equity (Qtr) 0.16

About

Price action

Investment thesis

Bull case

  • Strong tangible asset base of 26.01M provides 8.42x coverage of total debt 3.09M, indicating robust asset backing and low credit risk.
  • Tangible assets of 26.01M provide robust 19.03x coverage of other current liabilities 1.37M, indicating strong asset backing.
  • Robust tangible asset base of 26.01M provides 4.12x coverage of working capital 6.31M, indicating strong operational backing.
  • Strong cash position of 3.76M provides 2.75x coverage of other current liabilities 1.37M, indicating excellent liquidity.
  • Cash position of 3.76M represents healthy 0.60x of working capital 6.31M, demonstrating strong operational liquidity.

Bear case

  • Investment activities of (1.09M) provide weak support for R&D spending of 3.27M, which is -0.34x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (13.37M) shows concerning coverage of stock compensation expenses of 1.95M, with a -6.86 ratio indicating potential earnings quality issues.
  • Free cash flow of (14.03M) provides weak coverage of capital expenditures of 661557, with a -21.21 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (16.72M) show weak coverage of depreciation charges of 2.09M, with a -7.99 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of (13.37M) barely covers operating expenses of 2.51M with a -5.32 ratio, suggesting thin operational efficiency margins and limited flexibility.

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 0.47 1.16
EV to Cash from Ops. EV/CFO -0.94 9.30
EV to Debt EV to Debt 4.09 34.64
EV to EBIT EV/EBIT -0.76 4.45
EV to EBITDA EV/EBITDA -0.86 7.40
EV to Free Cash Flow [EV/FCF] EV/FCF -0.90 17.25
EV to Market Cap EV to Market Cap 1.16 1.58
EV to Revenue EV/Rev 0.88 3.42
Price to Book Value [P/B] P/B 0.55 -0.33
Price to Earnings [P/E] P/E -0.63 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) -23.85 -110.44
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 11.16 -13.49
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 102.49 27.17
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.96
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -12.35 5.41
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -5.13 -8.06
EBIT Growth (1y) % EBIT 1y % (Qtr) -12.35 -22.36
EBT Growth (1y) % EBT 1y % (Qtr) -12.26 -123.98
EPS Growth (1y) % EPS 1y % (Qtr) 45.03 -110.42
FCF Growth (1y) % FCF 1y % (Qtr) -12.79 24.26
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 400.70 16.01
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.53 0.92
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.25
Cash Ratio Cash Ratio (Qtr) 0.62 0.69
Current Ratio Curr Ratio (Qtr) 2.04 2.88
Debt to Equity Ratio Debt/Equity (Qtr) 0.16 0.22
Interest Cover Ratio Int Coverage (Qtr) -23.85 -110.44
Times Interest Earned Times Interest Earned (Qtr) -23.85 -110.44
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -102.40 -952.44
EBIT Margin % EBIT Margin % (Qtr) -117.06 -997.37
EBT Margin % EBT Margin % (Qtr) -121.96 -987.56
Gross Margin % Gross Margin % (Qtr) 23.60 -122.43
Net Profit Margin % Net Margin % (Qtr) -122.00 -979.78