Kandi Technologies (KNDI) AI Stock Analysis

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Kandi Technologies

(NASDAQ:KNDI)

51Neutral

Kandi Technologies receives a moderate score of 51, reflecting both challenges and potential. The company's financial performance is weak, with negative profitability and cash flow issues. Technical analysis shows a neutral trend, neither signaling strong buying nor selling pressures. Valuation is a concern due to a negative P/E ratio and lack of dividends. However, positive sentiment from the earnings call, driven by strategic initiatives and partnerships, provides some optimism for future growth.

Kandi Technologies (KNDI) vs. S&P 500 (SPY)

Market Cap

$103.18M

Dividend YieldN/A

Average Volume (3M)102.01K

Price to Earnings (P/E)―

Beta (1Y)0.27

Revenue Growth3.21%

EPS Growth-6985.88%

CountryUS

Employees840

SectorConsumer Cyclical

Sector Strength75

IndustryAuto - Parts

Share Statistics

EPS (TTM)-0.07

Shares Outstanding85,985,664

10 Day Avg. Volume84,617

30 Day Avg. Volume102,011

Financial Highlights & Ratios

PEG Ratio0.03

Price to Book (P/B)0.28

Price to Sales (P/S)0.00

P/FCF Ratio-1.04

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Kandi Technologies Business Overview & Revenue Model

Company DescriptionKandi Technologies Group, Inc. designs, develops, manufactures, and commercializes electric vehicle (EV) products and parts, and off-road vehicles in the People's Republic of China and internationally. It offers off-road vehicles, including all-terrain vehicles, utility vehicles, go-karts, electric scooters, and electric self-balancing scooters, as well as related parts; and EV parts comprising battery packs, body parts, EV controllers, air conditioning units, and other auto parts. The company was formerly known as Kandi Technologies, Corp. and changed its name to Kandi Technologies Group, Inc. in December 2012. Kandi Technologies Group, Inc. was founded in 2002 and is headquartered in Jinhua, the People's Republic of China.

How the Company Makes MoneyKandi Technologies generates revenue through the sale of its electric vehicles, automotive parts, and off-road vehicles. The company's key revenue streams include direct sales to consumers and commercial clients, as well as partnerships with other automotive manufacturers for supplying parts and collaboration in the EV space. Kandi also benefits from government incentives and subsidies for electric vehicles in China, which support the adoption of EVs and contribute to the company's earnings. Additionally, Kandi has engaged in joint ventures to expand its market reach and enhance its production capabilities, further augmenting its revenue potential.

Kandi Technologies Financial Statement Overview

Summary

Kandi Technologies demonstrates moderate revenue growth and improved gross profit margins, indicating better cost management. However, profitability is a concern with negative EBIT and minimal net profit margin, coupled with significant cash flow challenges.

Income Statement

Neutral

Kandi Technologies shows moderate revenue growth with a positive revenue growth rate of 4.91% in 2023. The gross profit margin improved significantly from previous years to 33.47%, indicating better cost management. However, the company struggles with profitability as reflected by a negative EBIT margin of -10.56% and a minimal net profit margin of 0.01%, showing a challenge in covering operating costs.

Balance Sheet

Positive

The debt-to-equity ratio remains low at 0.10, indicating conservative leverage and low financial risk. The equity ratio of 81.56% suggests a stable financial structure with a high proportion of assets financed by equity. However, the return on equity is negligible at 0.002%, pointing to inefficiencies in generating returns from shareholders' investment.

Cash Flow

Neutral

Kandi Technologies faces significant cash flow challenges with a negative free cash flow and an operating cash flow to net income ratio of -14186.08, implying operational inefficiencies. The free cash flow growth rate is negative, indicating worsening cash generation, which could affect liquidity.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
118.15M	123.60M	117.81M	91.49M	76.92M	135.74M
	Gross Profit
37.00M	41.37M	19.52M	16.25M	13.49M	25.43M
	EBIT
-18.10M	-13.05M	-22.70M	-45.83M	-12.29M	1.70M
	EBITDA
-2.72M	16.71M	-379.32K	41.85M	-5.28M	909.54K
	Net Income Common Stockholders
-7.00M	7.13K	-12.85M	22.86M	-10.39M	-7.19M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.46M	67.70M	165.25M	184.27M	142.08M	5.49M
	Total Assets
73.01M	495.46M	482.98M	520.16M	495.25M	371.22M
	Total Debt
34.80M	41.53M	24.69M	11.36M	92.44K	64.88M
	Net Debt
32.33M	7.78M	-59.37M	-117.86M	-141.99M	59.39M
	Total Liabilities
49.32M	88.95M	85.29M	76.96M	91.48M	153.36M
	Stockholders Equity
23.70M	404.12M	396.97M	443.20M	403.77M	217.86M
Cash Flow		Free Cash Flow
-116.04M	-114.41M	27.66M	-18.90M	-69.07M	-30.48M
	Operating Cash Flow
-115.85M	-101.16M	31.48M	241.69K	-50.88M	-29.89M
	Investing Cash Flow
77.56M	32.28M	-35.03M	22.21M	51.15M	31.25M
	Financing Cash Flow
-6.26M	14.83M	-4.33M	747.93K	126.45M	-6.98M

Kandi Technologies Technical Analysis

Technical Analysis Sentiment

Negative

Last Price1.18

Price Trends

50DMA

1.28

Negative

100DMA

1.25

Negative

200DMA

1.37

Negative

Market Momentum

MACD

>-0.01

Negative

RSI

45.90

Neutral

STOCH

40.09

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KNDI, the sentiment is Negative. The current price of 1.18 is below the 20-day moving average (MA) of 1.20, below the 50-day MA of 1.28, and below the 200-day MA of 1.37, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 45.90 is Neutral, neither overbought nor oversold. The STOCH value of 40.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KNDI.

Kandi Technologies Risk Analysis

Kandi Technologies disclosed 49 risk factors in its most recent earnings report. Kandi Technologies reported the most risks in the “Legal & Regulatory” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Kandi Technologies Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$6.98B	11.38	2.86%	3.90%	2.64%	-22.07%
RENT	54 Neutral	$24.45M	―	47.49%	―	2.68%	43.98%
KNDI	51 Neutral	$103.18M	―	-13.49%	―	3.21%	-6985.88%
GAN	46 Neutral	$87.35M	―	229.13%	―	7.02%	74.19%
REE	45 Neutral	$25.06M	―	-220.85%	―	―	―
NEGG	44 Neutral	$119.68M	―	-45.59%	―	―	―
FFAI	27 Underperform	$110.31M	―	-186.28%	―	8.52%	98.75%

* Consumer Cyclical Sector Average

Performance Comparison

KNDI

Kandi Technologies

1.18

-1.00

-45.87%

NEGG

Newegg Commerce

6.20

-15.20

-71.03%

GAN

1.96

0.62

46.27%

FFAI

Faraday Future Intelligent Electric

1.14

-54.46

-97.95%

REE

REE Automotive

0.82

-4.33

-84.08%

RENT

Rent the Runway

6.57

-26.19

-79.95%

Kandi Technologies Earnings Call Summary

Earnings Call Date:Apr 28, 2025

(Q4-2024)

% Change Since: -0.84%|

Next Earnings Date:May 12, 2025

Earnings Call Sentiment Positive

The earnings call focused on Kandi Technologies' strategic enhancements, product expansions, and partnerships, with no significant challenges highlighted, indicating a strong position for future growth.

Q4-2024 Updates

Positive Updates

Modest Revenue Growth

Kandi Technologies delivered modest yet meaningful revenue growth in 2024, driven by steady demand for electric off-road vehicles and optimization of geographic footprint.

Product Portfolio Expansion

The company strengthened its product portfolio by introducing new models such as the innovator e10K utility vehicle and a new lineup of electric golf carts.

Operational Enhancements

Targeted upgrades to the Taiwan manufacturing footprint increased flexibility, responsiveness, and maintained high standards of quality and efficiency.

Management Incentive Program

Implemented a management incentive program aligning leadership rewards with key performance metrics, motivating improved results.

Strategic Partnership with CBAK Energy

A partnership with CBAK Energy was established to localize lithium cell and pack production in the US, positioning Kandi for sustainable long-term growth.

Negative Updates

Revenue Decline

Third quarter revenue was $29.9 million, a decrease from $36.4 million in the same period of 2023. Nine-month revenue totaled $89.8 million, down 5.7% year-over-year.

Challenges with Stock Price and Shareholder Concerns

The stock is trading at a 15-year low, with concerns about stock buyback and insider buying expressed by shareholders.

Concerns Over Electric Vehicle Segment

The electric off-road vehicle revenue in Q3 was $27.5 million, down 9.2% from the prior year quarter, with the first 9-months slipping 1% to $81.5 million.

Uncertainty in Battery Swap Business

Questions about the future of the battery swap business, with no significant alliances reported and concerns over past minimal revenues.

Company Guidance

In the Kandi Technologies Full Year 2024 Financial Results Call, CEO Feng Chen highlighted several key metrics and strategic initiatives that contributed to the company's performance. Kandi achieved modest yet meaningful revenue growth, driven by steady demand for their electric off-road vehicles and optimization of their geographic footprint. The company maintained profitability and a robust cash position, while investing in product portfolio enhancements and next-generation battery technology. The electric off-road segment remained central to their business, with the introduction of new models like the innovator e10K utility vehicle and electric golf carts, including a limited-edition NFL series. Kandi enhanced operational efficiency through upgrades to its Taiwan manufacturing facilities, and implemented a management incentive program aligned with key performance metrics to boost sales growth and new product development. Looking forward, the company aims to expand its dealer network, deepen strategic partnerships, and execute a US localization roadmap, supported by a partnership with CBAK Energy to localize lithium cell and pack production, leveraging clean energy incentives for sustainable growth.

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.