One-glance verdict
Undervalued
$98.45 our estimate vs market $0.70
99% below our estimate, below the bear case
Fundamentals snapshot
Erayak Power Solution Group Inc.
RAYA · NCM · Industrials · Electrical Equipment & Parts
Current price
$0.70
52-week range
$0.45 - $56.20
Market cap
$751.67K
Balance sheet
Distressed
-4.25x Concerning
Net debt $11.90M. 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 Net debt grew 106.3% over 3 years.
- Risk Operating margin compressed from 15.8% to -8.0% over 3 years.
- Risk Insider ownership is only 0.0% (peer median: 13.5%).
What this company does
Erayak Power Solution Group Inc.
Erayak Power Solution Group Inc. sells power products like inverters and generators for vehicles and homes, with most of its money coming from selling these items across many countries. This matters because it shows how broadly their products are used to provide electricity where it's needed, impacting their overall sales performance.
How the company got here
Erayak Power Solution Group Inc. was founded in 2019 and is based in Wenzhou, China. The company operates as a holding company, focusing on the research, development, manufacturing, wholesale, and retail of power solution products. It has grown to establish a global presence, exporting its products to various countries and regions, including Japan, England, Germany, France, Spain, and the United States. The company's journey has been marked by its expansion into international markets and its focus on developing a diverse range of power solutions.
What it actually does
Erayak Power Solution Group Inc. designs, manufactures, and sells a variety of power products. These products are essential for providing electricity in situations where traditional power sources are unavailable or insufficient. Think of them as portable or backup power sources for homes, vehicles, and outdoor activities. Their offerings include devices that convert direct current (DC) power, like from a battery, into alternating current (AC) power used by most household appliances, as well as generators that produce electricity from fuel.
Inverters
This segment is the largest contributor to Erayak's revenue, making up about 46.5% of sales. Inverters are devices that convert direct current (DC) electricity, such as that from a battery or solar panel, into alternating current (AC) electricity, which is what most of your home appliances use. Erayak offers both sine wave inverters, which provide a clean and stable power output suitable for sensitive electronics, and off-grid inverters, designed for use in locations without a connection to the main power grid.
Gasoline Generators
Gasoline generators represent a significant portion of Erayak's business, accounting for roughly 32.9% of its revenue. These machines use gasoline to produce electricity, serving as a power source for homes, businesses, or recreational activities when the main power is out or unavailable. Erayak's generators are designed for various applications, including powering equipment at outdoor sites or providing backup electricity for homes and recreational vehicles.
Power Banks and Chargers
This category, which includes portable power stations and battery chargers, makes up about 18.2% of Erayak's revenue (16.4% for power banks and 1.8% for chargers). Portable power stations are essentially large batteries that can store electricity and be used to power devices on the go, similar to a very large power bank. Battery chargers are used to replenish the power in various types of batteries, ensuring that devices and systems remain operational. These products are crucial for outdoor enthusiasts, remote workers, and as backup power solutions.
What management is betting on now
Erayak's management is focused on expanding its product roadmap and strengthening its presence in key markets, particularly the United States. They are investing in developing a scalable product platform that ranges from portable outdoor power solutions to higher-capacity hybrid home energy systems. This strategy involves enhancing their inverter technology and generator manufacturing capabilities to meet the growing demand for reliable and sustainable power sources. The company is also actively growing its distribution network through online platforms like Amazon and Walmart, aiming to build a strong consumer brand for its power solutions.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$-16.39M
FY2025 Q4
$-8.41M
Revenue
$22.86M
Net income
$-1.39M
Diluted EPS
—
Operating cash flow
$-3.17M
Free cash flow
$-8.41M
Fetching…
Sources
Revenue
$30.30M
Net income
$-1.12M
Diluted EPS
—
Operating cash flow
$-15.88M
Free cash flow
$-16.39M
Fetching…
Sources
Is it cheap or expensive?
Fair value $98.45 vs current price $0.70
Our most-likely fair value is $98.45 a share — about 13,982.5% above today's price of $0.70, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $11.9M. Interest coverage -4.3x.
Net debt
$11.90M
Interest coverage
-4.25x
Erayak Power Solution Group Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 4 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
RAYA
BASELINE
Erayak Power Solution Group Inc.
Total debt $18.32M Interest coverage -4.25x This is the baseline the peer rows are being compared against.
Total debt $6.37M Interest coverage -14.68x Neither company has much profit cushion over interest right now.
Total debt $51.01M Interest coverage -27.70x Neither company has much profit cushion over interest right now.
Total debt $16.56M Interest coverage -14.97x Neither company has much profit cushion over interest right now.
Total debt $3.32M Interest coverage -30.93x Neither company has much profit cushion over interest right now.
What you should know
The case for and against RAYA
1 Reward
3 Risks
Rewards
-
Free cash flow was positive in 2/10 years.
Risks
-
Net debt grew 106.3% over 3 years.
-
Operating margin compressed from 15.8% to -8.0% over 3 years.
-
Insider ownership is only 0.0% (peer median: 13.5%).
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
—
P/B
0.02x
P/S
0.03x
EV/EBITDA
-13.08x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
20.6%
Operating margin
-8.0%
Net margin
-6.2%
ROE
-4.7%
ROA
-1.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.43x
Current ratio
2.02x
Quick ratio
1.21x
Total debt
$18.32M
Total cash
$6.42M
Growth
How the business has been compounding
Revenue TTM
$100.39M
Revenue 5Y CAGR
5.2%
EPS TTM
-252.02
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-16.46M
Free CF TTM
$-8.41M
FCF margin
-8.4%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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