One-glance verdict
Undervalued
$2.61 our estimate vs market $0.60
Wall Street consensus: $4.50 (72.6% higher than our fair-value estimate)
77% below our estimate, below the bear case
Fundamentals snapshot
Microvast Holdings, Inc.
MVST · NCM · Consumer Cyclical · Auto Parts
Current price
$0.60
52-week range
$0.47 - $5.30
Market cap
$232.05M
Balance sheet
Stretched
2.27x Stretched
Net debt $65.21M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
0 Risks
2 rewards · 0 risks
- Reward Returns 11.4% on equity, ahead of 83% of its peers.
- Reward Free cash flow was positive in 1/10 years.
What this company does
Microvast Holdings, Inc.
Microvast Holdings, Inc. makes battery parts and systems for electric vehicles like buses and trucks, as well as for storing energy. Their money mainly comes from selling these battery components, and this is important because it shows how much demand there is for their specialized products in the growing electric vehicle and energy storage markets.
How the company got here
Microvast Holdings, Inc. was founded in 2006 by Yang Wu, with its initial manufacturing operations beginning in China in 2010. [1] The company focused on developing advanced lithium-ion battery technologies, particularly for commercial electric vehicles (EVs) and energy storage systems (ESS). [2, 3] Over the years, Microvast expanded its global presence, establishing manufacturing facilities in China, Germany, and the United States. [1] A significant milestone was its public debut in 2021 through a merger with a special purpose acquisition company (SPAC), which is a company formed to raise capital through an initial public offering (IPO) to acquire an existing company. [4] The company has faced challenges, including a canceled federal grant in 2023 that was intended to support a manufacturing facility in Tennessee. [1]
What it actually does
Microvast designs, develops, and manufactures lithium-ion battery solutions. [2] These batteries are primarily used in electric commercial vehicles, such as buses and trucks, and for energy storage systems that help manage electricity grids. [3, 5] The company's expertise lies in creating customized battery packs, focusing on features like fast charging, long lifespan, and safety. [4, 7] Microvast's operations span the entire battery production process, from the core chemical components like cathodes and anodes to the final assembled battery modules and packs. [2]
Electric Commercial Vehicle Batteries
This is Microvast's largest business segment, generating most of its revenue. [7] The company provides battery cells, modules, and complete systems tailored for a range of electric commercial vehicles. [7] This includes light, medium, and heavy-duty trucks, as well as buses and other specialized vehicles used in industries like mining and port operations. [5, 7] Microvast focuses on applications where factors like quick charging times and durability are crucial for keeping these large vehicles operational. [4]
Battery Energy Storage Systems (BESS)
This segment involves creating battery systems designed for storing large amounts of electrical energy. [3, 7] These systems are primarily sold to utility companies and for use in microgrids, which are small-scale power grids that can operate independently. [7] BESS helps stabilize the electricity grid by storing excess energy when it's plentiful and releasing it when demand is high, or during power outages. [7]
Battery Components
Microvast also designs, develops, and manufactures individual battery components. [2, 5] This includes proprietary technologies for key parts of the battery, such as the cathode (the positive electrode), anode (the negative electrode), separator (which prevents short circuits), and electrolyte (the medium that allows ions to flow). [2, 5] By controlling these core components, Microvast aims to improve battery performance, ensure a stable supply chain, and potentially enhance its profit margins (the difference between revenue and costs). [4]
What management is betting on now
Microvast's strategy centers on differentiating itself in the competitive battery market through technological innovation, particularly in fast-charging capabilities and extended battery life. [7] Management is focused on serving niche markets within the commercial vehicle and energy storage sectors, where these advanced features are highly valued. [4] The company is also investing in vertical integration, meaning it controls more steps of the production process from raw materials to finished products, to improve efficiency and cost control. [2, 4] A key priority is to translate its technological strengths and growing sales into consistent profitability, a challenge given the presence of much larger competitors in the battery industry. [4, 7]
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.
FY2024 Q3
$-19.61M
FY2024 Q4
$5.75M
FY2025 Q1
$4.82M
FY2025 Q2
$34.29M
FY2025 Q3
$1.18M
FY2025 Q4
$15.78M
FY2026 Q1
$-25.65M
FY2026 Q2
$-21.83M
Revenue
$87.26M
Net income
$-11.99M
Diluted EPS
-0.03
Operating cash flow
$-10.51M
Free cash flow
$-21.83M
Fetching…
Sources
Revenue
$60.61M
Net income
—
Diluted EPS
-0.04
Operating cash flow
$-22.80M
Free cash flow
$-25.65M
Fetching…
Sources
Revenue
$96.40M
Net income
$16.54M
Diluted EPS
0.19
Operating cash flow
$16.42M
Free cash flow
$15.78M
Fetching…
Sources
Revenue
$123.29M
Net income
$-1.49M
Diluted EPS
0.00
Operating cash flow
$15.16M
Free cash flow
$1.18M
Fetching…
Sources
Revenue
$91.34M
Net income
$-106.06M
Diluted EPS
-0.33
Operating cash flow
$37.15M
Free cash flow
$34.29M
Fetching…
Sources
Revenue
$116.49M
Net income
$61.79M
Diluted EPS
0.05
Operating cash flow
$7.17M
Free cash flow
$4.82M
Fetching…
Sources
Revenue
$113.39M
Net income
$-105.44M
Diluted EPS
-0.31
Operating cash flow
$6.10M
Free cash flow
$5.75M
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Sources
Revenue
$101.39M
Net income
$13.25M
Diluted EPS
0.03
Operating cash flow
$-5.43M
Free cash flow
$-19.61M
Fetching…
Sources
Is it cheap or expensive?
Fair value $2.61 vs current price $0.60
Wall Street consensus is the average analyst price target: $4.50 (72.6% higher than our fair-value estimate).
Our most-likely fair value is $2.61 a share — about 333.6% above today's price of $0.60, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $65.2M. Interest coverage 2.3x.
Net debt
$65.21M
Interest coverage
2.27x
Microvast Holdings, Inc.'s profit covers its interest bill about 2.3 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
MVST
BASELINE
Microvast Holdings, Inc.
Total debt $193.04M Interest coverage 2.27x This is the baseline the peer rows are being compared against.
Total debt $190.16K Interest coverage -3,842.02x -100% vs MVST This peer has almost no interest-payment cushion compared with MVST.
Total debt $7.43M Interest coverage -4,033.28x -100% vs MVST This peer has almost no interest-payment cushion compared with MVST.
Total debt $19.69M Interest coverage -41.88x -100% vs MVST This peer has almost no interest-payment cushion compared with MVST.
Total debt $22.77M Interest coverage -173.13x -100% vs MVST This peer has almost no interest-payment cushion compared with MVST.
Total debt $51.01M Interest coverage -27.70x -100% vs MVST This peer has almost no interest-payment cushion compared with MVST.
What you should know
The case for and against MVST
2 Rewards
0 Risks
Rewards
-
Returns 11.4% on equity, ahead of 83% 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)
—
Forward P/E
5.01x
P/B
0.43x
P/S
0.63x
EV/EBITDA
7.01x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
34.0%
Operating margin
-2.0%
Net margin
14.0%
ROE
11.4%
ROA
0.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.36x
Current ratio
1.09x
Quick ratio
0.72x
Total debt
$193.04M
Total cash
$127.83M
Growth
How the business has been compounding
Revenue TTM
$367.56M
Revenue 5Y CAGR
29.5%
EPS TTM
-0.01
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$-1.72M
Free CF TTM
$56.07M
FCF margin
15.3%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
—
Last ex-div date
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