One-glance verdict
Undervalued
$306.98 our estimate vs market $3.46
99% below our estimate, below the bear case
Fundamentals snapshot
Kandi Technologies Group, Inc.
KNDI · NMS · Consumer Cyclical · Recreational Vehicles
Current price
$3.46
52-week range
$3.22 - $12.00
Market cap
$34.92M
Balance sheet
Healthy
-20.95x Concerning
Net cash $180.09M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
2 Risks
1 rewards · 2 risks
- Reward Free cash flow was positive in 2/10 years.
- Risk Insider ownership is only 14.4% (peer median: 78.7%).
- Risk Return on equity was -26.5% last year — the company lost money on shareholders' equity.
What this company does
Kandi Technologies Group, Inc.
Kandi Technologies Group designs and sells electric vehicles like ATVs and go-karts for fun or work, and also electric car parts and batteries. Most of their money comes from selling these vehicles and related items in China and other parts of the world. This matters because their sales show how well their electric vehicle products are being received by customers globally.
How the company got here
Kandi Technologies Group, Inc. was founded in 2002 and is based in Jinhua, China. It started as a manufacturer of electric vehicle (EV) products and parts, as well as off-road vehicles. Over the years, the company has expanded its reach globally, with a significant presence in the United States. A key turning point was its name change from Kandi Technologies, Corp. to Kandi Technologies Group, Inc. in December 2012, signaling a broader scope. The company has also formed joint ventures, including one with Geely in 2013 to focus on EV development and sales in China.
What it actually does
Kandi Technologies Group designs, develops, manufactures, and sells a variety of electric vehicle products and related technologies. Their offerings include off-road vehicles like all-terrain vehicles (ATVs), utility vehicles (UTVs), and go-karts, as well as electric scooters and self-balancing scooters. They also produce EV parts, lithium-ion cells, and battery packs. The company's products are used for leisure, entertainment, agricultural operations, and site transportation.
All-Electric Off-Road Vehicles
This is Kandi's core business and a significant portion of its revenue comes from selling these vehicles and their parts. This segment includes products like ATVs, UTVs, go-karts, and golf carts. These vehicles are designed for recreational use, agricultural tasks, and getting around specific areas like golf courses or industrial sites. Kandi sells these products internationally, with a strong focus on the United States market.
Battery Swapping Equipment and Intelligent Robotics
This is a newer, growing area for Kandi. The company is developing and supplying battery swapping systems and related equipment for electric vehicles. This allows EVs to quickly swap out a depleted battery for a fully charged one, reducing charging time. Kandi is also venturing into intelligent robotics, creating products like quadruped robots for tasks such as security inspection and potentially for delivery services. This segment represents a diversification beyond just vehicle manufacturing.
What management is betting on now
Kandi's management is focused on a dual-engine growth strategy, balancing its established off-road electric vehicle business with new growth areas. They are investing heavily in expanding their battery swapping equipment and intelligent robotics segments, aiming to become a technology-driven platform company. A key part of this strategy involves strengthening their global supply chain and manufacturing capabilities, particularly in North America, to support these expanding business lines and reach new markets.
Price history
How the share price has moved
—
Loading price history…
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
—
Fetching…
Sources
Revenue
$127.57M
Net income
$-50.50M
Diluted EPS
-0.59
Operating cash flow
$-17.82M
Free cash flow
—
Fetching…
Sources
Is it cheap or expensive?
Fair value $306.98 vs current price $3.46
Our most-likely fair value is $306.98 a share — about 8,772.4% above today's price of $3.46, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $180.1M - more cash than debt. Interest coverage -21.0x.
Net debt
$-180.09M
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 $43.65M 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 $35.48M Interest coverage -13.68x Neither company has much profit cushion over interest right now.
Total debt $77.62M 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
2 Risks
Rewards
-
Free cash flow was positive in 2/10 years.
Risks
-
Insider ownership is only 14.4% (peer median: 78.7%).
-
Return on equity was -26.5% 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)
—
Forward P/E
23.07x
P/B
0.11x
P/S
0.32x
EV/EBITDA
4.65x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
42.2%
Operating margin
9.7%
Net margin
-79.7%
ROE
-26.5%
ROA
-4.7%
Health
Liquidity and balance-sheet strength
Debt / equity
0.14x
Current ratio
2.26x
Quick ratio
1.61x
Total debt
$43.65M
Total cash
$223.74M
Growth
How the business has been compounding
Revenue TTM
$456.42M
Revenue 5Y CAGR
-9.5%
EPS TTM
-10.40
EPS 5Y CAGR
—
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
0.0%
Payout ratio
0.0%
Last ex-div date
—