One-glance verdict
Overvalued
$0.02 our estimate vs market $6.35
Wall Street consensus: $14.60 (61,550.2% higher than our fair-value estimate)
26714% above our estimate, beyond the bull case
Fundamentals snapshot
Electrovaya Inc.
ELVA · NCM · Industrials · Electrical Equipment & Parts
Current price
$6.35
52-week range
$4.10 - $12.78
Market cap
$314.37M
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 designs and sells powerful lithium-ion batteries for heavy-duty commercial vehicles like forklifts and electric buses. The company's growth depends on more businesses switching their fleets to electric to save on fuel and meet environmental goals, which would increase the demand for its specialized battery systems.
How the company got here
Electrovaya was founded in 1996 with a focus on lithium-ion battery technology and went public in 2000. [3] In its early years, the company worked on projects with NASA and developed prototypes for electric passenger cars. [1, 3] After 2018, the company shifted its focus to heavy-duty industrial uses for its batteries, such as in warehouses and for large vehicles. [3] This focus on demanding applications led to key contracts, including with major companies like Walmart, and its listing on the Nasdaq stock exchange in 2023. [1]
What it actually does
Electrovaya designs and manufactures large, rechargeable lithium-ion batteries and the systems that manage them. [2] Think of these not for your phone, but for powerful industrial equipment like electric forklifts, airport vehicles, and electric buses. [2, 4] The company's main selling point is its special 'Infinity Battery Technology,' which uses a ceramic part inside the battery to make it safer and last much longer than typical batteries. [6, 10] They sell these battery systems to businesses that need reliable, long-lasting power for their most critical operations. [2]
Large Format Batteries and Systems
This is the company's single and primary business segment, making up nearly all of its sales. [5, 18] The main product is battery systems for Material Handling Electric Vehicles (MHEVs), which are essentially electric forklifts and other vehicles used in warehouses and distribution centers by large e-commerce and retail companies. [4, 8] A smaller part of this business involves providing high-voltage batteries for bigger vehicles like electric buses, trucks, and military equipment. [8] The company makes money by selling these complete battery systems and related accessories, like chargers, directly to equipment manufacturers and the businesses that use them. [4]
What management is betting on now
The company is heavily investing in a new manufacturing plant in Jamestown, New York, to produce more batteries in the U.S. and strengthen its supply chain (the network of companies that provides parts and services). [1, 6, 8] They are pushing to enter new markets, especially creating large battery systems for energy storage to be used as backup power for data centers and to support power grids. [7, 11, 13] Management is also dedicating resources to research and development (R&D) for future products, including next-generation solid-state batteries and technology that allows for ultra-fast charging. [1, 16] Finally, they are exploring new business models like 'Energy-as-a-Service,' where customers could pay a recurring fee for power rather than buying the battery system upfront. [16, 19]
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $0.02 vs current price $6.35
Wall Street consensus is the average analyst price target: $14.60 (61,550.2% higher than our fair-value estimate).
Our most-likely fair value is $0.02 a share — about 99.6% below today's price of $6.35, 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 $8.51M 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 $7.71M 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 $9.35M 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)
63.50x
Forward P/E
23.18x
P/B
4.72x
P/S
4.38x
EV/EBITDA
44.77x
PEG ratio
0.43x
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
0.10
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
—
Payout ratio
0.0%
Last ex-div date
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