Westport Fuel Systems Inc. (NASDAQ: WPRT)

Sector: Consumer Cyclical Industry: Auto Parts CIK: 0001370416
Market Cap 34.14 Mn
P/B 0.43
P/E -0.56
P/S 0.21
ROIC (Qtr) -12.83
Div Yield % 0.00
Rev 1y % (Qtr) -66.84
Total Debt (Qtr) 5.71 Mn
Debt/Equity (Qtr) 0.07

About

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 4.96M provides robust 0.87x coverage of total debt 5.71M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 33.10M provide 7.31x coverage of short-term debt 4.53M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 104.09M provides 18.22x coverage of total debt 5.71M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 4.96M provides exceptional 12.82x coverage of interest expenses 387000, showing strong debt service capability.
  • Robust tangible asset base of 104.09M provides 3.53x coverage of working capital 29.51M, indicating strong operational backing.

Bear case

  • Operating cash flow of 4.96M barely covers its investment activities of 7.48M, with a coverage ratio of 0.66, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 7.48M provide weak support for R&D spending of 12.01M, which is 0.62x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • High receivables of 13.19M relative to inventory of 3.40M (3.88 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Free cash flow of (3.97M) provides weak coverage of capital expenditures of 8.93M, with a -0.44 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (57.78M) show weak coverage of depreciation charges of 4.23M, with a -13.66 ratio indicating high capital intensity and potential reinvestment needs.

Segments Breakdown of Revenue (2024)

Segments 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 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 0.34 1.16
EV to Cash from Ops. EV/CFO 7.04 9.30
EV to Debt EV to Debt 6.11 34.64
EV to EBIT EV/EBIT -0.60 4.45
EV to EBITDA EV/EBITDA -4.02 7.40
EV to Free Cash Flow [EV/FCF] EV/FCF -8.80 17.25
EV to Market Cap EV to Market Cap 1.02 1.58
EV to Revenue EV/Rev 0.22 3.42
Price to Book Value [P/B] P/B 0.43 -0.33
Price to Earnings [P/E] P/E -0.56 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) -149.30 -110.44
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 9.96 -13.49
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -0.48 27.17
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.96
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -141.75 5.41
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 71.56 -8.06
EBIT Growth (1y) % EBIT 1y % (Qtr) -142.82 -22.36
EBT Growth (1y) % EBT 1y % (Qtr) -137.59 -123.98
EPS Growth (1y) % EPS 1y % (Qtr) -134.90 -110.42
FCF Growth (1y) % FCF 1y % (Qtr) 82.06 24.26
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 35.62 16.01
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.54 0.92
Cash Payout Ratio Cash Payout Ratio 0.00 -0.25
Cash Ratio Cash Ratio (Qtr) 1.55 0.69
Current Ratio Curr Ratio (Qtr) 2.39 2.88
Debt to Equity Ratio Debt/Equity (Qtr) 0.07 0.22
Interest Cover Ratio Int Coverage (Qtr) -149.30 -110.44
Times Interest Earned Times Interest Earned (Qtr) -149.30 -110.44
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -33.40 -952.44
EBIT Margin % EBIT Margin % (Qtr) -36.08 -997.37
EBT Margin % EBT Margin % (Qtr) -36.32 -987.56
Gross Margin % Gross Margin % (Qtr) 19.20 -122.43
Net Profit Margin % Net Margin % (Qtr) -37.90 -979.78