Xos, Inc. (NASDAQ: XOS)

Sector: Industrials Industry: Farm & Heavy Construction Machinery CIK: 0001819493
Market Cap 17.67 Mn
P/B 0.57
P/E -0.51
P/S 0.34
ROIC (Qtr) -84.92
Div Yield % 0.00
Rev 1y % (Qtr) 4.50
Total Debt (Qtr) 20.00 Mn
Debt/Equity (Qtr) 0.64
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About

Xos, Inc., often recognized by its stock symbol XOS, operates in the industry of fleet electrification solutions. The company is dedicated to the decarbonization of commercial transportation, a mission that is reflected in its primary business activities. Xos designs and manufactures Class 5-8 battery-electric commercial vehicles, offering flexibility and customization to satisfy customers' preferred range and payload capacities. The company's operations span across various countries and regions, with a focus on providing electric vehicle fleets...

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Investment thesis

Bull case

  • Healthy cash reserves of 14.07M provide 2.34x coverage of short-term debt 6M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 73.81M provides 3.69x coverage of total debt 20M, indicating robust asset backing and low credit risk.
  • Tangible assets of 73.81M provide robust 4.89x coverage of other current liabilities 15.10M, indicating strong asset backing.
  • Operating cash flow of 6.26M fully covers other non-current liabilities 2.79M by 2.25x, showing strong long-term stability.
  • Cash reserves of 14.07M provide solid 5.04x coverage of other non-current liabilities 2.79M, indicating strong liquidity.

Bear case

  • Investment activities of 43000 provide weak support for R&D spending of 8.05M, which is 0.01x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of 6.26M shows concerning coverage of stock compensation expenses of 7.04M, with a 0.89 ratio indicating potential earnings quality issues.
  • Operating earnings of (34.50M) show weak coverage of depreciation charges of 4.20M, with a -8.22 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 6.26M represents just -2.13x of debt issuance (2.94M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • High depreciation of 4.20M relative to operating cash flow of 6.26M, which is 0.67x suggests significant maintenance capital requirements affecting free cash flow.

Peer comparison

Companies in the Farm & Heavy Construction Machinery
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 CAT Caterpillar Inc 483.60 Bn 124.96 8.76 43.33 Bn
2 DE Deere & Co 188.47 Bn 68.51 5.30 63.94 Bn
3 PCAR Paccar Inc 68.19 Bn 57.51 3.81 15.85 Bn
4 CNH CNH Industrial N.V. 16.63 Bn 27.85 0.93 27.17 Bn
5 AGCO Agco Corp /De 10.86 Bn 33.29 1.16 2.56 Bn
6 OSK Oshkosh Corp 10.81 Bn 16.71 1.04 1.10 Bn
7 TEX Terex Corp 4.57 Bn 20.69 0.84 2.58 Bn
8 ALG Alamo Group Inc 2.46 Bn 38.76 2.10 0.21 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.39 1.36
EV to Cash from Ops. EV/CFO 4.61 2.52
EV to Debt EV to Debt 1.44 36.19
EV to EBIT EV/EBIT -0.84 19.84
EV to EBITDA EV/EBITDA -0.86 11.98
EV to Free Cash Flow [EV/FCF] EV/FCF 4.61 10.22
EV to Market Cap EV to Market Cap 1.63 2.67
EV to Revenue EV/Rev 0.55 2.22
Price to Book Value [P/B] P/B 0.57 2.56
Price to Earnings [P/E] P/E -0.51 19.56
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 116,909.42
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 51.44
Dividend per Basic Share Div per Share (Qtr) 0.00 1.01
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 11.55
Interest Coverage Int. cover (Qtr) 0.00 6.02
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 -4.60
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 53.12 27.84
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -2.90
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 23.23 22.54
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 12.95 2.73
EBIT Growth (1y) % EBIT 1y % (Qtr) 23.29 36.64
EBT Growth (1y) % EBT 1y % (Qtr) 23.29 2,839.65
EPS Growth (1y) % EPS 1y % (Qtr) 34.14 154.78
FCF Growth (1y) % FCF 1y % (Qtr) 111.76 -12.49
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -81.75 -11.09
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.71 1.00
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.07
Cash Ratio Cash Ratio (Qtr) 0.54 0.46
Current Ratio Curr Ratio (Qtr) 2.41 2.51
Debt to Equity Ratio Debt/Equity (Qtr) 0.64 0.43
Interest Cover Ratio Int Coverage (Qtr) 0.00 6.02
Times Interest Earned Times Interest Earned (Qtr) 0.00 6.02
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -58.00 -7.57
EBIT Margin % EBIT Margin % (Qtr) -66.04 -11.88
EBT Margin % EBT Margin % (Qtr) -66.04 -14.87
Gross Margin % Gross Margin % (Qtr) 3.10 19.78
Net Profit Margin % Net Margin % (Qtr) -66.10 -16.22