One-glance verdict
Within fair range
$1.54 our estimate vs market $1.25
Wall Street consensus: $1.50 (-2.3% lower than our fair-value estimate)
19% below our estimate
Fundamentals snapshot
CBAK Energy Technology Limited
CBAT · NCM · Industrials · Electrical Equipment & Parts
Current price
$1.25
52-week range
$0.46 - $1.55
Market cap
$110.81M
Balance sheet
Distressed
-27.70x Concerning
Net debt $41.56M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
3 Risks
2 rewards · 3 risks
- Reward Revenue grew 10.5% last year.
- Reward Free cash flow was positive in 4/10 years.
- Risk Net debt grew 165.1% over 3 years.
- Risk Return on equity was -16.2% last year — the company lost money on shareholders' equity.
What this company does
CBAK Energy Technology Limited
CBAK Energy Technology is a Chinese company that makes and sells rechargeable batteries, mainly for electric vehicles like cars, buses, and bikes. It also sells larger battery systems for storing energy, such as backup power for buildings or for the main electrical grid. The company's success is directly tied to the growing global demand for electric transportation and renewable energy storage solutions.
How the company got here
Founded in 2001, CBAK Energy Technology started as a battery maker in China and grew to become the first Chinese lithium battery manufacturer to be listed on the Nasdaq stock exchange in the U.S. in 2006. Over the years, it has focused on developing and producing rechargeable batteries for a growing number of uses. A key moment was its acquisition of Zhejiang Hitrans Technology, which allowed CBAK to also produce its own raw materials for batteries. This move helped the company control its supply chain (the network of companies involved in producing and distributing a product). Recently, the company changed its official location from Nevada to the Cayman Islands, a common move for international companies listed in the U.S., without changing its actual business operations.
What it actually does
CBAK Energy Technology makes rechargeable batteries, similar to the ones in your phone or laptop, but much more powerful. These batteries are designed for bigger things like electric vehicles (scooters, bikes, and cars) and energy storage systems that can power a house or provide backup power for large computer systems. The company produces both lithium-ion batteries, a common type of rechargeable battery, and is also developing sodium-ion batteries, a newer technology. They create everything from the small, cylindrical battery cells to the raw materials needed to make them.
CBAK (Battery Business)
This is the company's main business, where it manufactures and sells rechargeable batteries. These aren't just one-size-fits-all; they come in different models and are used in electric scooters and bikes, electric cars, and large energy storage units for homes and businesses. The customers for this segment are typically other companies that make electric vehicles or energy systems. This part of the company is its core and generates the majority of its sales by providing the power source for other companies' finished products.
Hitrans (Raw Materials)
This part of the company focuses on making the essential ingredients that go into lithium-ion batteries. Specifically, it develops and produces cathode materials, which are a critical component that determines a battery's performance. By having this segment, CBAK doesn't have to rely as much on outside suppliers for these crucial materials. While this is a smaller part of the company's overall revenue (the total money earned from sales), it is a very important piece of their strategy to control their production process from start to finish.
What management is betting on now
The company is heavily focused on expanding its production capabilities, particularly at its newer facility in Nanjing, to meet growing demand and lower the cost of making each battery. They are also pushing into new, high-growth markets, such as providing backup power for AI data centers and expanding sales to electric vehicle makers in India. Additionally, CBAK is investing in new technology, like sodium-ion batteries, which could become a key product line in the future. The overall goal is to scale up production, enter new markets, and innovate with new battery technologies to capture a larger share of the global shift toward electric power.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $1.54 vs current price $1.25
Wall Street consensus is the average analyst price target: $1.50 (-2.3% lower than our fair-value estimate).
Our most-likely fair value is $1.54 a share — about 22.8% away from today's price of $1.25, so the stock currently looks fairly priced.
Is it drowning in debt?
Distressed
Net debt $41.6M. Interest coverage -27.7x.
Net debt
$41.56M
Interest coverage
-27.70x
CBAK Energy Technology Limited's profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 4 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
CBAT
BASELINE
CBAK Energy Technology Limited
Total debt $51.01M Interest coverage -27.70x This is the baseline the peer rows are being compared against.
Total debt $193.04M Interest coverage 2.27x This peer still has a real interest-payment cushion, while CBAT does not.
Total debt $8.51M Interest coverage -3.77x Neither company has much profit cushion over interest right now.
Total debt $32.93M Interest coverage -1.01x Neither company has much profit cushion over interest right now.
Total debt $17.46M Interest coverage -30.44x Neither company has much profit cushion over interest right now.
Total debt $9.21M Interest coverage -14.72x Neither company has much profit cushion over interest right now.
What you should know
The case for and against CBAT
2 Rewards
3 Risks
Rewards
-
Revenue grew 10.5% last year.
-
Free cash flow was positive in 4/10 years.
Risks
-
Net debt grew 165.1% over 3 years.
-
Return on equity was -16.2% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from -1.7% to -13.9% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
3.79x
P/B
1.05x
P/S
0.48x
EV/EBITDA
-10.03x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
6.4%
Operating margin
-13.9%
Net margin
-7.4%
ROE
-16.2%
ROA
-3.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.50x
Current ratio
0.65x
Quick ratio
0.19x
Total debt
$51.01M
Total cash
$9.45M
Growth
How the business has been compounding
Revenue TTM
$229.87M
Revenue 5Y CAGR
-7.8%
EPS TTM
-0.18
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$48.55M
Free CF TTM
$2.80M
FCF margin
1.2%
Dividend
Shareholder payout
Yield
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Payout ratio
0.0%
Last ex-div date
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