One-glance verdict
Undervalued
$25.24 our estimate vs market $0.59
98% below our estimate, below the bear case
Fundamentals snapshot
Kandi Technologies Group, Inc.
KNDI · NMS · Consumer Cyclical · Recreational Vehicles
Current price
$0.59
52-week range
$0.48 - $1.35
Market cap
$59.04M
Balance sheet
Healthy
-20.95x Concerning
Net cash $86.92M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
3 Risks
1 rewards · 3 risks
- Reward Free cash flow was positive in 2/10 years.
- Risk Insider ownership is only 14.7% (peer median: 78.7%).
- Risk Operating margin compressed from -19.3% to -77.2% over 3 years.
- Risk Return on equity was -31.0% last year — the company lost money on shareholders' equity.
What this company does
Kandi Technologies Group, Inc.
Kandi Technologies is a Chinese company that makes and sells electric recreational vehicles, like go-karts and golf carts, along with their batteries and parts. It earns money by selling these products to customers worldwide for leisure, farm work, and transportation on large sites. The company's performance relies on growing demand for affordable electric vehicles and its ability to manage its supply chain (the entire process of making and delivering a product, from sourcing materials to final sale).
How the company got here
Kandi Technologies Group was founded in China in 2002 and initially focused on electric vehicles (EVs) for the Chinese market. A key moment was a 2013 partnership with Geely, a major Chinese automaker, to develop and sell EVs in China. The company also launched an innovative EV car-sharing program in the city of Hangzhou, featuring automated parking garages that worked like car vending machines. More recently, Kandi has shifted its focus away from the highly competitive traditional EV market to concentrate on off-road electric vehicles for the U.S. market.
What it actually does
Kandi makes a variety of electric vehicles designed for recreation and work, not for highway driving. Think of products like electric go-karts, all-terrain vehicles (ATVs) for off-road trails, utility vehicles (UTVs) for farm or worksite tasks, and golf carts. The company also produces the core components that power these vehicles, such as lithium-ion batteries and electric motors. Kandi sells these products internationally, with a strong focus on the United States.
Off-Road Electric Vehicles
This is Kandi's main business, representing its core source of money from sales. The company designs and builds a range of electric-powered vehicles for fun and practical uses, such as go-karts, ATVs, UTVs, and golf carts. Customers are typically individuals looking for recreational vehicles or businesses needing vehicles for tasks on large properties like farms or job sites. This part of the business is focused heavily on the North American market.
Battery Swapping Equipment & Intelligent Robotics
This is a newer and smaller, but growing, part of Kandi's business that it sees as a major future opportunity. The company is developing systems that allow EV owners to quickly swap out a depleted battery for a fully charged one, a process much faster than traditional charging. It is also venturing into intelligent robotics, creating four-legged robots designed for tasks like autonomous (self-driving) security patrols in large areas like logistics parks. The customers for this segment are other businesses, such as trucking companies or logistics centers.
What management is betting on now
Kandi's leadership is pursuing a "dual-engine" growth strategy, focusing on two main areas. The first engine is to expand its core business of off-road EVs in North America by investing in research and development (R&D, the process of creating new products and improving existing ones) to create next-generation vehicles. The second engine is to grow its newer businesses in battery-swapping technology and intelligent robotics, aiming to become a major supplier of this equipment. The company is also building more of its manufacturing and assembly operations in the United States to be closer to its key customers.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
Revenue
$87.44M
Net income
$-93.88M
Diluted EPS
-1.14
Operating cash flow
$96.81M
Free cash flow
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Sources
Revenue
$127.57M
Net income
$-50.50M
Diluted EPS
-0.59
Operating cash flow
$-17.82M
Free cash flow
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Sources
Is it cheap or expensive?
Fair value $25.24 vs current price $0.59
Our most-likely fair value is $25.24 a share — about 4,192.2% above today's price of $0.59, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $86.9M - more cash than debt. Interest coverage -21.0x.
Net debt
$-86.92M
Interest coverage
-20.95x
Kandi Technologies Group, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
KNDI
BASELINE
Kandi Technologies Group, Inc.
Total debt $31.53M Interest coverage -20.95x This is the baseline the peer rows are being compared against.
Total debt $8.39M Interest coverage 43.66x This peer still has a real interest-payment cushion, while KNDI does not.
Total debt $55.56M Interest coverage -13.68x Neither company has much profit cushion over interest right now.
Total debt $77.31M Interest coverage -296.02x Neither company has much profit cushion over interest right now.
What you should know
The case for and against KNDI
1 Reward
3 Risks
Rewards
-
Free cash flow was positive in 2/10 years.
Risks
-
Insider ownership is only 14.7% (peer median: 78.7%).
-
Operating margin compressed from -19.3% to -77.2% over 3 years.
-
Return on equity was -31.0% last year — the company lost money on shareholders' equity.
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
3.92x
P/B
0.18x
P/S
0.68x
EV/EBITDA
1.07x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
42.6%
Operating margin
-77.2%
Net margin
-107.4%
ROE
-31.0%
ROA
-5.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.12x
Current ratio
2.35x
Quick ratio
1.35x
Total debt
$31.53M
Total cash
$118.45M
Growth
How the business has been compounding
Revenue TTM
$456.42M
Revenue 5Y CAGR
-9.5%
EPS TTM
-1.12
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$9.31M
Free CF TTM
$96.34M
FCF margin
21.1%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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