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Nikola Corporation (NKLA)
NASDAQ:NKLA
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Nikola
(NASDAQ:NKLA)
38Underperform
Positive Factors
Operations
Cash on balance sheet implies the company can operate into 1Q25.
Negative Factors
Cash Flow
The company experienced a higher cash burn rate in the recent quarter, which is a concern for liquidity.
Revenue
Revenue for the quarter was below estimates, partially due to a recall that created a revenue headwind.
Nikola (NKLA) vs. S&P 500 (SPY)
Market Cap
$16.98M
Dividend YieldN/A
Average Volume (3M)27.04M
Price to Earnings (P/E)―
Beta (1Y)2.52
Revenue Growth141.23%
EPS Growth69.50%
CountryUS
Employees870
SectorIndustrials
Sector Strength79
IndustryIndustrial Machinery
Share Statistics
EPS (TTM)-14.34
Shares Outstanding84,467,750
10 Day Avg. Volume35,999,255
30 Day Avg. Volume27,042,832
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.20
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap22.77
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit-1.81
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$4.00Price Target Upside1900.00% Upside
Rating ConsensusHold
Number of Analyst Covering0
Nikola Business Overview & Revenue Model
Company DescriptionNikola Corporation (NKLA) is a designer and manufacturer of zero-emission battery-electric and hydrogen-electric vehicles, energy storage systems, and electric vehicle drivetrains. Headquartered in Arizona, the company is focused on revolutionizing the transportation industry by providing innovative solutions in the commercial trucking sector. Nikola's key offerings include electric and hydrogen-powered trucks, which are designed to reduce carbon emissions and provide sustainable transportation alternatives.
How the Company Makes MoneyNikola Corporation generates revenue primarily through the sale and leasing of its electric and hydrogen-powered trucks. The company aims to capitalize on the growing demand for sustainable transportation solutions by offering advanced vehicles to commercial fleet operators. Additionally, Nikola is involved in the development and sale of hydrogen fuel and refueling infrastructure, which supports its vehicle offerings. The company has entered into various partnerships with industry leaders to enhance its technological capabilities and expand its market reach, contributing to its revenue potential. Nikola's revenue streams are bolstered by government incentives and regulations that favor the adoption of zero-emission vehicles, as well as strategic collaborations with companies that provide components and technology for its vehicles.
Nikola Financial Statement Overview
Summary
Nikola is facing significant financial challenges across income, balance sheet, and cash flow statements. The company struggles with profitability and high leverage, posing potential risks to financial stability. While there is revenue growth, the path to sustainable profitability and improved cash flow remains crucial for future viability.Income Statement
Nikola's income statement shows significant challenges with negative gross and net profit margins, indicating the company is operating at a loss. The TTM gross profit margin is -305.52% and the net profit margin is -840.35%, reflecting inefficiencies and high costs relative to revenue. While revenue shows growth from previous periods, profitability remains a critical issue.30
Negative
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 0.93, indicating significant leverage, which may present financial risk. The equity ratio is 36.60%, showing moderate reliance on equity financing. Nikola's return on equity is highly negative at -167.35%, underlining the unprofitability and inefficiency in using shareholders' equity to generate profit.40
Negative
Cash Flow
Cash flow metrics are concerning with a negative free cash flow of -573.13 million USD, reflecting cash burn. The operating cash flow to net income ratio is 0.82, indicating that cash earnings are slightly better than accounting earnings, yet both are negative. Free cash flow growth remains negative, pointing to ongoing cash flow challenges.35
Negative
| Breakdown | ||||
| Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 35.84M | 50.83M | 95.00K | 95.00K | 482.00K | Gross Profit |
| -214.07M | -104.76M | 23.00K | 23.00K | 211.00K | EBIT |
| -649.83M | -748.68M | -693.53M | -368.32M | -88.00M | EBITDA |
| -736.28M | -676.99M | -685.29M | -362.31M | -85.67M | Net Income Common Stockholders |
| -966.28M | -763.57M | -686.86M | -383.68M | -88.66M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 466.36M | 233.41M | 497.24M | 840.91M | 85.69M | Total Assets |
| 1.27B | 1.24B | 989.82M | 1.05B | 229.43M | Total Debt |
| 284.86M | 382.96M | 27.45M | 18.06M | 4.76M | Net Debt |
| -179.85M | 149.56M | -469.79M | -822.86M | -80.93M | Total Liabilities |
| 555.68M | 710.18M | 296.25M | 66.24M | 33.92M | Stockholders Equity |
| 719.17M | 526.48M | 693.57M | 987.48M | 195.51M |
| Cash Flow | Free Cash Flow | |||
| -616.69M | -747.43M | -486.42M | -172.86M | -119.93M | Operating Cash Flow |
| -496.18M | -576.71M | -307.15M | -150.53M | -80.63M | Investing Cash Flow |
| -66.75M | -221.25M | -207.48M | -31.14M | -39.30M | Financing Cash Flow |
| 742.98M | 598.68M | 187.60M | 941.12M | 35.80M |
Nikola Technical Analysis
Negative
0.20
Price Trends
0.80
Negative
1.77
Negative
5.39
Negative
Market Momentum
-0.21
Negative
31.34
Neutral
7.88
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NKLA, the sentiment is Negative. The current price of 0.2 is below the 20-day moving average (MA) of 0.37, below the 50-day MA of 0.80, and below the 200-day MA of 5.39, indicating a bearish trend. The MACD of -0.21 indicates Negative momentum. The RSI at 31.34 is Neutral, neither overbought nor oversold. The STOCH value of 7.88 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NKLA.
Nikola Risk Analysis
Nikola disclosed 67 risk factors in its most recent earnings report. Nikola reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Nikola 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 | $4.28B | 11.80 | 5.33% | 250.46% | 4.10% | -9.26% | |
49 Neutral | $15.85B | ― | -60.48% | ― | 12.09% | 17.65% | |
48 Neutral | $7.71B | ― | -54.15% | ― | 35.71% | 8.24% | |
40 Underperform | $1.75M | ― | -72.67% | ― | 258.96% | 82.54% | |
38 Underperform | $16.98M | ― | -167.38% | ― | 141.23% | 69.50% | |
34 Underperform | $5.59M | ― | -1357.83% | ― | 1262.77% | 2.83% |
* Industrials Sector Average
Performance Comparison
NKLA
Nikola
0.14
-18.98
-99.27%
GOEVQ
Canoo
0.12
-52.48
-99.77%
LCID
Lucid Group
2.53
-0.52
-17.05%
HYZN
Hyzon Motors
0.64
-29.66
-97.89%
RIVN
Rivian Automotive
13.83
3.50
33.88%
Nikola Earnings Call Summary
Earnings Call Date:Feb 20, 2025
(Q3-2024)
| % Change Since: -57.45%|
Next Earnings Date:May 13, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements in sales and sustainability, with strong customer feedback. However, financial challenges and cash constraints were prominent concerns.Q3-2024 Updates
Positive Updates
Record Sales of Hydrogen Fuel Cell Electric Trucks
Nikola reported record sales of hydrogen fuel cell electric trucks with a 78% growth in fuel cell electric vehicle fleet adoption and a nearly 350% increase in hydrogen fuel dispensed at commercial stations.
Expansion of Dealer Network
Nikola expanded its dealer network for the first time since the launch of the fuel cell electric vehicle, allowing more access to both Nikola fuel cells and BEVs in Southern California.
Sustainability Achievements
Nikola's trucks have avoided over 6,000 metric tons of CO2 emissions, equivalent to emissions from over 1,500 gasoline-powered cars in a year.
Positive Customer Feedback and Adoption
Positive feedback and increased adoption from national fleet partners like J.B. Hunt, Kenan Advantage Group, and DHL for Nikola's trucks.
Negative Updates
Financial Losses and Cash Constraints
Reported a gross loss of $62 million compared to $55 million in Q2. Unrestricted cash declined by $58 million, with cash only sufficient to meet obligations until Q1 2025.
BEV Returns Impacting Financials
Revenue was negatively impacted by $8 million due to the repurchase of 20 BEVs.
Company Guidance
During the third quarter of 2024, Nikola Corporation delivered several key metrics and guidance highlights. The company reported record sales of 88 hydrogen fuel cell electric trucks, aligning with their guidance range of 80 to 100 trucks for the quarter. Nikola reiterated its year-end guidance for fuel cell electric vehicle deliveries between 300 and 350 trucks. Year-to-date, there was a 78% increase in fuel cell electric vehicle fleet adoption and a 350% rise in hydrogen fuel dispensed at commercial stations. The company achieved a milestone of over 4 million validation miles across its fleet, avoiding more than 6,000 metric tons of CO2 emissions. Nikola continued expanding its dealer network, now totaling 19 locations across the U.S., and emphasized its position as a leading player in North America's heavy-duty fuel cell electric vehicle market with over 90% market share. Additionally, the company plans to deliver 10 HYLA fueling solutions by year-end and has recorded substantial growth in hydrogen dispensing, reaching over 210 metric tons year-to-date.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.