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ECD Automotive Design (ECDA)
NASDAQ:ECDA
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ECD Automotive Design
(NASDAQ:ECDA)
26Underperform
ECD Automotive Design (ECDA) vs. S&P 500 (SPY)
Market Cap
$11.96M
Dividend YieldN/A
Average Volume (3M)522.96K
Price to Earnings (P/E)―
Beta (1Y)-0.48
Revenue Growth48.27%
EPS Growth-209.82%
CountryUS
Employees105
SectorFinancial
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)-0.25
Shares Outstanding35,385,662
10 Day Avg. Volume666,864
30 Day Avg. Volume522,959
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)-0.65
Price to Sales (P/S)0.00
P/FCF Ratio-1.25
Enterprise Value/Market Cap2.39
Enterprise Value/Revenue0.26
Enterprise Value/Gross Profit6.16
Enterprise Value/Ebitda8.47
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
ECD Automotive Design Business Overview & Revenue Model
Company DescriptionECD Automotive Design, Inc. engages in the production and sale of customized Land Rover vehicles in the United States. The company also provides repair or upgrade services and extended warranties to customers. It restores various vehicles, including Land Rovers Defenders, Land Rover Series IIA and III, the Range Rover Classic, and Jaguar E-Type. The company was founded in 2013 and is based in Kissimmee, Florida.
How the Company Makes MoneyECD Automotive Design makes money by offering premium restoration and customization services for classic Land Rover Defenders. The company's primary revenue stream comes from sales of these fully customized vehicles, which are built according to the specific desires and requirements of each customer. The customization process includes modernizing the vehicle's performance, aesthetics, and technology, often incorporating luxury features and high-end materials. Additionally, ECDA may generate revenue through partnerships with automotive parts suppliers and accessory manufacturers, which provide the high-quality components necessary for their bespoke projects. The company's reputation for quality and exclusivity allows it to command premium pricing for its services, contributing significantly to its earnings.
ECD Automotive Design Financial Statement Overview
Summary
ECD Automotive Design faces severe financial difficulties with negative profitability, high leverage, and negative cash flows. While there is revenue growth, the lack of profitability and high debt levels pose substantial risks, indicating the need for strategic changes to improve financial health.Income Statement
The company has experienced significant revenue growth in 2024, yet it operates with negative profitability metrics such as net profit margin and EBIT margin. The negative net income and gross profit indicate substantial financial challenges. EBIT and EBITDA are also negative, suggesting operational difficulties.10
Very Negative
Balance Sheet
ECD Automotive Design has a concerning financial structure with negative stockholders' equity, indicating liabilities exceed assets. The debt-to-equity ratio is irrelevant due to negative equity, and high leverage poses financial stability risks. The equity ratio is negative, further indicating financial distress.5
Very Negative
Cash Flow
The cash flow situation is critical with negative operating and free cash flows, indicating the company is struggling to generate cash. Operating cash flow to net income ratio is negative, reflecting cash outflows in operations. Financing activities provide some relief but are unsustainable long-term.15
Very Negative
| Breakdown | |||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|
| Income Statement | Total Revenue | ||
| 25.17M | 15.12M | 14.99M | 11.52M | Gross Profit |
| 5.89M | 4.25M | 3.77M | 2.56M | EBIT |
| -4.55M | -1.64M | -342.17K | -845.06K | EBITDA |
| -4.18M | -976.96K | -1.21M | -532.60K | Net Income Common Stockholders |
| -10.77M | -1.60M | 160.73K | 882.91K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||
| 1.48M | 8.13M | 3.51M | 2.81M | Total Assets |
| 19.18M | 25.29M | 12.44M | 7.30M | Total Debt |
| 17.81M | 14.73M | 4.99M | 500.00K | Net Debt |
| 16.34M | 6.59M | 1.47M | -2.31M | Total Liabilities |
| 37.17M | 35.31M | 15.45M | 10.19M | Stockholders Equity |
| -18.98B | -10.02M | -3.01M | -2.89M |
| Cash Flow | Free Cash Flow | ||
| -9.76M | -5.56M | 954.40K | -82.59K | Operating Cash Flow |
| -9.76M | -5.01M | 1.49M | -20.75K | Investing Cash Flow |
| -17.05M | -554.82K | -509.73K | -61.84K | Financing Cash Flow |
| 3.13B | 7.11M | -278.16K | 661.63K |
ECD Automotive Design Technical Analysis
Negative
0.34
Price Trends
0.53
Negative
0.71
Negative
0.89
Negative
Market Momentum
-0.05
Negative
39.80
Neutral
25.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ECDA, the sentiment is Negative. The current price of 0.34 is below the 20-day moving average (MA) of 0.35, below the 50-day MA of 0.53, and below the 200-day MA of 0.89, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 39.80 is Neutral, neither overbought nor oversold. The STOCH value of 25.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ECDA.
ECD Automotive Design Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $12.82B | 9.83 | 7.68% | 17000.34% | 12.38% | -5.56% | |
48 Neutral | $30.87M | ― | -32.49% | ― | 36.58% | -62.75% | |
39 Underperform | $8.48M | ― | -188.79% | ― | -53.55% | 65.29% | |
38 Underperform | $7.93M | ― | ― | ― | ― | ||
37 Underperform | $5.82M | ― | -42.59% | ― | -34.68% | 34.15% | |
26 Underperform | $11.96M | ― | -82.82% | ― | 48.27% | -209.82% | |
11 Underperform | $64.70M | ― | 86.35% | ― | ― | ― |
* Financial Sector Average
Performance Comparison
ECDA
ECD Automotive Design
0.34
-0.81
-70.43%
WKHS
Workhorse Group
0.90
-57.72
-98.46%
CENN
Cenntro Electric Group
1.00
-0.92
-47.92%
EVTV
Envirotech Vehicles
0.25
-1.23
-83.11%
CJET
Chijet Motor Company
1.99
-8.43
-80.90%
PEVM
Phoenix Motor Inc
0.17
-0.38
-69.09%
ECD Automotive Design Earnings Call Summary
Earnings Call Date:Apr 15, 2025
(Q4-2024)
| % Change Since: -37.04%|
Next Earnings Date:Jun 27, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a company with strong revenue growth and strategic initiatives such as a new retail strategy and vehicle models. However, these positives were balanced by significant financial challenges, including increased net losses, delayed revenue recognition, and a reduced cash position.Q4-2024 Updates
Positive Updates
Revenue Growth
ECD Auto Design reported revenue growth of 29% for the fiscal year 2024, reaching $25.2 million, which is a record for the company.
Increased Gross Profit
Gross profit increased by 30%, further reflecting the company's improvements in processes and customer engagement.
Retail Strategy Launch
ECD Auto Design launched its retail strategy with the opening of two new locations, which are expected to enhance customer engagement and reduce marketing costs.
New Vehicle Models and Licensing Agreements
The company added new vehicle models, including Classic Toyota FJs and Classic Ford Mustangs, through licensing agreements.
Manufacturing Process Improvements
ECD Auto Design improved manufacturing processes by moving quality control within the line, which is expected to enhance build quality.
Negative Updates
Delayed Revenue Recognition
There was a delay in recognizing revenue for 12 vehicles due to delays in vehicle title transfers, impacting fourth-quarter results.
Increased Net Loss
The company reported a net loss of $10.8 million for the year, compared to a loss of $1.2 million in the previous year.
Decreased Cash Balance
ECD Auto Design's cash balance decreased significantly from $8.1 million to $1.5 million year-over-year.
Noncash Write-Downs
A noncash $1.1 million write-down of labor overhead allocation and raw materials affected gross profit negatively.
Company Guidance
During the ECD Auto Design Fourth Quarter 2024 Earnings Conference Call, the company provided several key metrics and guidance for future growth. ECD reported a 29% increase in revenue for 2024, reaching $25.2 million, and a 30% rise in gross profit, setting records for the company. The average selling price of their custom classic vehicles ranges from $300,000 to $400,000, with new orders sometimes exceeding $500,000. For the fourth quarter, revenue was $5.3 million, up from $4.8 million in the previous year, although gross profit decreased due to a $1.1 million noncash write-down. ECD's net loss for the year was $10.8 million, with a cash balance of $1.5 million as of December 31, 2024. The company plans to expand its retail presence, with two locations already operational, each expecting to sell two vehicles per month. This strategy aims to boost sales and fill the factory, with a target of 10 units per month for cash flow positivity. ECD is also addressing potential tariff impacts by adjusting upgrade pricing while maintaining base contract prices, leveraging the classic vehicle exemption from new automotive tariffs.ECD Automotive Design Corporate Events
M&A TransactionsLegal ProceedingsFinancial DisclosuresRegulatory Filings and Compliance
ECD Automotive Design Faces SEC Investigation in 2025
Negative
May 15, 2025
ECD Automotive Design, Inc. completed a significant business combination on December 12, 2023, involving multiple entities, which resulted in the issuance of various stocks and warrants to former security holders of Humble Imports Inc. This strategic move, alongside a series of financial agreements and securities purchase agreements, aims to strengthen the company’s financial position and expand its market presence. However, the company is currently under investigation by the SEC concerning its 2024 financial statement restatements and auditor changes, which may impact its reputation and stakeholder trust.
Spark’s Take on ECDA Stock
According to Spark, TipRanks’ AI Analyst, ECDA is a Underperform.
ECD Automotive Design’s overall stock score is significantly impacted by its poor financial performance, with severe challenges in profitability and cash flow. Technical indicators suggest bearish market conditions, while valuation metrics indicate potential overvaluation despite a low stock price. Strategic initiatives and revenue growth are positive, but are currently outweighed by financial distress and operational challenges.
To see Spark’s full report on ECDA stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.