One-glance verdict
Overvalued
$-0.19 our estimate vs market $5.28
Wall Street consensus: $14.60 (-7,808.2% lower than our fair-value estimate)
2888% below our estimate, beyond the bull case
Fundamentals snapshot
Electrovaya Inc.
ELVA · NCM · Industrials · Electrical Equipment & Parts
Current price
$5.28
52-week range
$4.10 - $12.78
Market cap
$263.99M
Balance sheet
Stretched
2.13x Stretched
Net debt $27.97M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 42.6% last year.
- Reward Returns 9.8% on equity, ahead of 75% of its peers.
- Reward Free cash flow was positive in 1/10 years.
What this company does
Electrovaya Inc.
Electrovaya Inc. makes special lithium-ion batteries and related products used for things like storing energy and powering electric vehicles. Most of their money comes from selling these battery systems, which is important because it shows how well their main business is doing in markets like defense and forklifts.
How the company got here
Electrovaya Inc. started in 1996, originally named Electrofuel Inc., and its journey has been focused on the evolving world of battery technology. The company officially changed its name to Electrovaya Inc. in March 2002, signaling a clearer focus on its core business. Over the years, Electrovaya has navigated the dynamic landscape of energy storage and electric transportation, adapting its strategies to meet the growing demand for advanced battery solutions. This evolution has positioned the company as a player in the clean energy sector.
What it actually does
Electrovaya designs, develops, manufactures, and sells lithium-ion batteries and related products. Think of them as the builders of the power packs that make electric vehicles, forklifts, and even robots move. They also create battery management systems, which are like the brains of the battery, ensuring it operates safely and efficiently. Their work is crucial for industries looking to transition to cleaner, electric-powered equipment and for storing energy generated from renewable sources.
Lithium-ion Battery Systems
This is Electrovaya's primary business, where they produce lithium-ion battery systems for a variety of uses. These systems power electric buses, trucks, and defense vehicles, contributing to the electrification of transportation. They also provide battery solutions for material handling equipment like forklifts, making industrial operations more efficient and less reliant on fossil fuels. Additionally, Electrovaya supplies lithium-ion battery cells and modules to other manufacturers (OEMs) for use in sectors such as defense and construction, acting as a key component supplier.
Energy Storage Solutions
Electrovaya offers industrial products specifically designed for energy storage. These are essentially large-scale battery systems that can store electricity, often from renewable sources like solar or wind power, and then release it when needed. This helps to stabilize the power grid, reduce reliance on traditional power plants, and ensure a more consistent supply of electricity. Their 'infinity battery systems' are part of this offering, providing both low and high voltage solutions for various energy storage needs.
Advanced Battery Technology
Beyond current lithium-ion offerings, Electrovaya is also involved in developing next-generation battery technology, including solid-state batteries. Solid-state batteries are considered a potential advancement over current lithium-ion technology, promising greater safety, higher energy density (meaning more power in the same size), and longer lifespans. This segment represents Electrovaya's investment in future battery innovations, aiming to stay at the forefront of the rapidly evolving energy storage market.
What management is betting on now
Electrovaya's management is focused on capitalizing on the global shift towards electrification and clean energy. They are prioritizing the expansion of their lithium-ion battery systems for electric transportation and industrial applications, aiming to capture a larger share of this growing market. Simultaneously, the company is investing in the development of advanced battery technologies like solid-state batteries to secure a competitive edge in the future. This dual strategy aims to leverage current demand while preparing for the next wave of battery innovation.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $-0.19 vs current price $5.28
Wall Street consensus is the average analyst price target: $14.60 (-7,808.2% lower than our fair-value estimate).
Our most-likely fair value is $-0.19 a share — about 103.6% below today's price of $5.28, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Stretched
Net debt $28.0M. Interest coverage 2.1x.
Net debt
$27.97M
Interest coverage
2.13x
Electrovaya Inc.'s profit covers its interest bill about 2.1 times over. which is stronger than every peer shown here and 5 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
ELVA
BASELINE
Electrovaya Inc.
Total debt $41.06M Interest coverage 2.13x This is the baseline the peer rows are being compared against.
Total debt $8.22M Interest coverage -3.77x -100% vs ELVA This peer has almost no interest-payment cushion compared with ELVA.
Total debt $22.77M Interest coverage -173.13x -100% vs ELVA This peer has almost no interest-payment cushion compared with ELVA.
Total debt $7.43M Interest coverage -4,033.28x -100% vs ELVA This peer has almost no interest-payment cushion compared with ELVA.
Total debt $244.97M Interest coverage -8.79x -100% vs ELVA This peer has almost no interest-payment cushion compared with ELVA.
Total debt $20.77M Interest coverage -1.32x -100% vs ELVA This peer has almost no interest-payment cushion compared with ELVA.
What you should know
The case for and against ELVA
3 Rewards
0 Risks
Rewards
-
Revenue grew 42.6% last year.
-
Returns 9.8% on equity, ahead of 75% of its peers.
-
Free cash flow was positive in 1/10 years.
Risks
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)
48.00x
Forward P/E
24.22x
P/B
3.93x
P/S
3.68x
EV/EBITDA
37.84x
PEG ratio
0.34x
Profitability
How much profit each dollar creates
Gross margin
33.0%
Operating margin
4.4%
Net margin
6.1%
ROE
9.8%
ROA
4.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.61x
Current ratio
7.53x
Quick ratio
4.27x
Total debt
$41.06M
Total cash
$13.08M
Growth
How the business has been compounding
Revenue TTM
$71.82M
Revenue 5Y CAGR
59.7%
EPS TTM
0.11
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$1.72M
Free CF TTM
$-9.50M
FCF margin
-13.2%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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