Expion360 Inc. (NASDAQ: XPON)

Sector: Industrials Industry: Electrical Equipment & Parts CIK: 0001894954
Market Cap 4.52 Mn
P/B 0.50
P/E -2.20
P/S 0.48
ROIC (Qtr) -101.61
Div Yield % 0.00
Rev 1y % (Qtr) 72.23
Total Debt (Qtr) 993,200.00
Debt/Equity (Qtr) 0.11
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About

Expion360 Inc., a company with the ticker symbol XPON, operates in the design, assembly, manufacturing, and sales of lithium iron phosphate (LiFePO4) batteries and supporting accessories for recreational vehicles (RVs), marine applications, and home energy storage products. The company aims to expand into industrial applications, leveraging its innovative battery solutions to cater to the growing demand for clean energy. Expion360's main business activities revolve around providing efficient energy storage solutions, particularly in the RV, marine,...

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Investment thesis

Bull case

  • Healthy cash reserves of 4.33M provide 12.08x coverage of short-term debt 358236, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 10.69M provides 10.76x coverage of total debt 993200, indicating robust asset backing and low credit risk.
  • Tangible assets of 10.69M provide robust 66.42x coverage of other current liabilities 160942, indicating strong asset backing.
  • Strong cash position of 4.33M provides 26.88x coverage of other current liabilities 160942, indicating excellent liquidity.
  • Cash reserves of 4.33M provide robust 4.15x coverage of current liabilities 1.04M, indicating strong short-term solvency.

Bear case

  • The company's operating cash flow of (6.64M) shows concerning coverage of stock compensation expenses of 871192, with a -7.62 ratio indicating potential earnings quality issues.
  • Free cash flow of (6.64M) provides weak coverage of capital expenditures of 4403, with a -1508.69 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (2.03M) show weak coverage of depreciation charges of 125739, with a -16.17 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of (6.64M) barely covers operating expenses of 37 with a -179415.05 ratio, suggesting thin operational efficiency margins and limited flexibility.
  • High financing cash flow of 7.61M relative to working capital of 8.52M, which is 0.89x suggests concerning dependence on external funding for operational needs.

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 0.46 3.49
EV to Cash from Ops. EV/CFO -0.73 9.10
EV to Debt EV to Debt 4.91 113.17
EV to EBIT EV/EBIT -2.40 -17.64
EV to EBITDA EV/EBITDA -0.74 3.56
EV to Free Cash Flow [EV/FCF] EV/FCF -0.73 39.13
EV to Market Cap EV to Market Cap 1.08 2.59
EV to Revenue EV/Rev 0.52 77.74
Price to Book Value [P/B] P/B 0.50 4.98
Price to Earnings [P/E] P/E -2.20 23.89
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -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) -108.11 -16.86
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -103.61 -135.37
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 29.03 92.17
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 5.22
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 85.91 -45.52
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 13.28 -56.26
EBIT Growth (1y) % EBIT 1y % (Qtr) 85.88 -64.20
EBT Growth (1y) % EBT 1y % (Qtr) 86.68 8.52
EPS Growth (1y) % EPS 1y % (Qtr) 148.39 13.91
FCF Growth (1y) % FCF 1y % (Qtr) 15.39 -66.58
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 128.38 15.53
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.88 0.63
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.10
Cash Ratio Cash Ratio (Qtr) 4.15 3.50
Current Ratio Curr Ratio (Qtr) 9.18 5.07
Debt to Equity Ratio Debt/Equity (Qtr) 0.11 0.41
Interest Cover Ratio Int Coverage (Qtr) -108.11 -16.86
Times Interest Earned Times Interest Earned (Qtr) -108.11 -16.86
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -20.30 -1,947.23
EBIT Margin % EBIT Margin % (Qtr) -21.60 -2,051.19
EBT Margin % EBT Margin % (Qtr) -21.79 -2,170.94
Gross Margin % Gross Margin % (Qtr) 22.40 2.02
Net Profit Margin % Net Margin % (Qtr) -21.80 -2,202.04