WeRide Inc. (NASDAQ: WRD)

Sector: Technology Industry: Software - Application CIK: 0001867729
Market Cap 2.90 Bn
P/B 3.33
P/E -12.23
P/S 40.43
ROIC (Qtr) -204.05
Div Yield % 0.00
Rev 1y % (Qtr) 144.21
Total Debt (Qtr) 41.73 Mn
Debt/Equity (Qtr) 0.05

About

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 632.10M provide 16.17x coverage of short-term debt 39.09M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 977.26M provides 23.42x coverage of total debt 41.73M, indicating robust asset backing and low credit risk.
  • Tangible assets of 977.26M provide exceptional 223.19x coverage of deferred revenue 4.38M, showing strong service capability backing.
  • Short-term investments of 130.07M provide solid 2.13x coverage of other current liabilities 61.13M, indicating strong liquidity.
  • Tangible assets of 977.26M provide robust 15.99x coverage of other current liabilities 61.13M, indicating strong asset backing.

Bear case

  • Investment activities of 0 provide weak support for R&D spending of 179.91M, which is 0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • High receivables of 94.91M relative to inventory of 43.45M (2.18 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating cash flow of 0 provides insufficient coverage of deferred revenue obligations of 4.38M, which is 0x, raising concerns about future service delivery capabilities.
  • Tax assets of 34971.91 provide limited offset against tax liabilities of 525000, which is 0.07x, indicating potential future cash flow pressure from tax obligations.
  • Operating cash flow of 0 provides minimal 0x coverage of tax expenses of 854213.48, suggesting potential tax planning inefficiencies or unsustainable tax positions.

Peer comparison

Companies in the Software - Application
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SAP Sap Se 288.31 Bn 34.60 6.72 10.73 Bn
2 CRM Salesforce, Inc. 248.32 Bn 34.38 6.16 11.14 Bn
3 SHOP Shopify Inc. 212.27 Bn 119.19 19.85 1.12 Bn
4 INTU Intuit Inc. 180.73 Bn 43.89 9.30 6.78 Bn
5 UBER Uber Technologies, Inc 178.38 Bn 10.72 3.60 12.19 Bn
6 NOW ServiceNow, Inc. 146.98 Bn 84.91 11.60 2.40 Bn
7 ADBE Adobe Inc. 144.48 Bn 20.77 6.23 6.64 Bn
8 ADP Automatic Data Processing Inc 108.20 Bn 26.16 5.18 9.77 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.49 2.65
EV to Cash from Ops. EV/CFO -3.76 13.37
EV to Debt EV to Debt 11.61 57.69
EV to EBIT EV/EBIT -2.05 19.12
EV to EBITDA EV/EBITDA -1.61 15.00
EV to Free Cash Flow [EV/FCF] EV/FCF -3.14 14.69
EV to Market Cap EV to Market Cap 0.17 -92.28
EV to Revenue EV/Rev 6.75 4.60
Price to Book Value [P/B] P/B 3.33 4.26
Price to Earnings [P/E] P/E -12.23 -136.90
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -3.95
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.25
Dividend per Basic Share Div per Share (Qtr) 0.00 0.15
FCF Dividend Payout Ratio % FCF Dividend Payout Ratio % 0.00 2.52
Interest Coverage Interest Coverage 0.00 -52.32
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -259.78
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 66.03 9,763.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.61
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 26.58 -263.15
EBITDA Growth (1y) % EBITDA Growth (1y) % 0.00 56.46
EBIT Growth (1y) % EBIT 1y % (Qtr) 26.75 -225.15
EBT Growth (1y) % EBT 1y % (Qtr) 26.75 -86.10
EPS Growth (1y) % EPS 1y % (Qtr) 119.29 123.84
FCF Growth (1y) % FCF Growth (1y) % 0.00 -36.82
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 24.08 95.08
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.01 0.58
Cash Payout Ratio Cash Payout Ratio 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 5.81 3.75
Current Ratio Curr Ratio (Qtr) 8.39 8.16
Debt to Equity Ratio Debt/Equity (Qtr) 0.05 0.17
Interest Cover Ratio Interest Cover Ratio 0.00 -52.32
Times Interest Earned Times Interest Earned 0.00 -52.32
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 -100.06
EBIT Margin % EBIT Margin % (Qtr) -2,346.05 -164.24
EBT Margin % EBT Margin % (Qtr) -329.50 -116.94
Gross Margin % Gross Margin % (Qtr) 33.00 58.20
Net Profit Margin % Net Margin % (Qtr) -330.70 -121.65