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VinFast Auto (VFS)
NASDAQ:VFS
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VinFast Auto
(NASDAQ:VFS)
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Rating:44Neutral
Price Target:
$3.00
▼(-7.12% Downside)
VinFast Auto's overall stock score is primarily impacted by its weak financial performance and bearish technical indicators. While the company shows strong growth potential, significant financial instability and valuation challenges weigh heavily on the score.
Positive Factors
International Expansion
VinFast's strategic expansion into India and Southeast Asia enhances its market position and growth prospects, leveraging new consumer bases and partnerships.
Revenue Growth
Strong revenue growth indicates increasing demand and successful market penetration, supporting long-term business sustainability and expansion.
Strategic Spin-Off
The spin-off provides significant capital to support VinFast's growth initiatives, enhancing its ability to invest in new technologies and market expansion.
Negative Factors
Negative Gross Margin
Persistent negative gross margins highlight cost management challenges, impacting profitability and requiring strategic adjustments to improve financial health.
High Cash Burn
High cash burn raises concerns about financial sustainability, necessitating effective cash management to ensure long-term operational viability.
Financial Leverage
High leverage and negative equity indicate financial instability, limiting flexibility and increasing risk, which could hinder future growth and investment capacity.
VinFast Auto (VFS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.55B
Dividend YieldN/A
Average Volume (3M)508.98K
Price to Earnings (P/E)―
Beta (1Y)1.68
Revenue Growth79.49%
EPS Growth-22.72%
CountryUS
Employees17,823
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)-0.35
Shares Outstanding2,338,812,700
10 Day Avg. Volume611,812
30 Day Avg. Volume508,983
Financial Highlights & Ratios
PEG Ratio-0.12
Price to Book (P/B)-1.46
Price to Sales (P/S)5.45
P/FCF Ratio-5.09
Enterprise Value/Market Cap1.84
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit>-0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$5.75Price Target Upside78.02% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
VinFast Auto Business Overview & Revenue Model
Company DescriptionVinFast Auto Ltd., an automotive manufacturer, engages in Automobiles and E-scooter related business in Vietnam and the United States. The company operates through Automobiles, E-scooter, Spare Parts, and Aftermarket Services segments. The Automobiles segment offers design, development, manufacturing, and sale of cars and electric buses. The E-scooter segment provides design, development, manufacturing, and sales of e-scooters. The Spare Parts, and Aftermarket Services segment engages in sale of spare parts and aftermarket services for automobiles and e-scooters. VinFast Auto Ltd. is based in Hai Phong City, Vietnam. The company operates as a subsidiary of Vingroup Joint Stock Company.
How the Company Makes MoneyVinFast Auto generates revenue primarily through the sale of its electric vehicles, which include cars, scooters, and buses. The company’s revenue streams are driven by its ability to design, manufacture, and market these vehicles both domestically in Vietnam and in international markets. VinFast leverages strategic partnerships with global technology firms and suppliers to enhance its product offerings and operational efficiencies. Additionally, the company may derive income from after-sales services, maintenance packages, and potential governmental incentives or subsidies aimed at promoting eco-friendly transportation solutions. Key factors contributing to its earnings include the growing global demand for electric vehicles, brand reputation, and its ability to scale production and distribution effectively.
VinFast Auto Key Performance Indicators (KPIs)
Any
Electric Vehicles Delivered
Tracks the number of electric vehicles sold, reflecting market demand, production capacity, and the company's competitive position in the EV market.
Tracks the number of electric vehicles sold, reflecting market demand, production capacity, and the company's competitive position in the EV market.
Data provided by:
Main Street Data
Main Street DataVinFast Auto Earnings Call Summary
Earnings Call Date:Sep 04, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 02, 2025
Earnings Call Sentiment Positive
The earnings call highlighted VinFast's strong delivery and revenue growth, successful international expansion, and strengthened financial position. However, concerns were noted regarding negative gross margins, increased warranty provision rates, and high cash burn. Despite these challenges, the company's strategic initiatives and growth potential indicate a positive outlook.Q2-2025 Updates
Positive Updates
Significant Delivery and Revenue Growth
VinFast reported a 172% year-over-year delivery growth and a 92% year-over-year revenue growth in Q2 2025.
Expansion of Manufacturing Capacity
The company inaugurated two new factories in Vietnam and India, significantly increasing their design capacity.
Strong Growth in E-Scooter Deliveries
E-scooter and electric bike deliveries rose by 55% quarter-over-quarter and 432% year-over-year in Q2 2025.
Successful International Expansion
VinFast launched pre-booking in India and expanded its presence in Southeast Asia with strategic partnerships in Indonesia and the Philippines.
Strengthened Financial Position
VinFast's financial position was bolstered by a $1.6 billion spin-off of completed R&D assets to a new entity, Novatech.
Negative Updates
Negative Gross Margin
The company's gross margin was negative 41% in Q2 2025, compared to negative 35% in Q1 2025.
Increased Warranty Provision Rates
Higher warranty provision rates impacted gross margins, reflecting typical early-year costs for first-generation products.
High Cash Burn
Operating cash flow for Q2 2025 was negative $463 million, with an expected operating outflow of $400-600 million per quarter in the near term.
Company Guidance
During VinFast's Second Quarter 2025 financial results webcast, the company provided several key metrics and guidance. VinFast reported a 172% year-over-year increase in deliveries for Q2, totaling 35,837 units, and a 92% growth in revenue. For the first half of 2025, the company delivered 72,167 units, reflecting a 223% increase year-over-year. E-scooter deliveries also surged, with 69,580 units delivered in Q2, marking a 55% rise quarter-over-quarter and a 432% increase year-over-year. VinFast aims to double its 2024 delivery numbers by the end of 2025, supported by strong demand in Vietnam, international expansion, and new model launches like VF 6 and VF 7. The company also highlighted the strategic spin-off of its completed R&D assets, which is expected to bring in $1.6 billion in cash to support long-term growth. Despite a negative gross margin of 41% in Q2, the company anticipates improvement as new vehicle platforms and international operations scale.VinFast Auto Financial Statement Overview
Summary
VinFast Auto is facing significant financial challenges across all key areas. The income statement reveals persistent losses, the balance sheet is burdened with high debt and negative equity, and cash flow from operations is consistently negative. These factors combined suggest a company struggling to achieve financial sustainability, with critical attention needed on cost management and operational efficiency improvements.Income Statement
VinFast Auto's income statement shows significant challenges, with negative gross and net profit margins indicating a lack of profitability. The company has been unable to generate a positive gross profit, and net losses have increased over the periods. Revenue growth is apparent, but it is overshadowed by widening losses, signaling inefficiencies and cost management issues.25
Negative
Balance Sheet
The balance sheet highlights high financial risk, with negative stockholders' equity indicating insolvency. The debt-to-equity ratio is concerningly high due to substantial debt levels, which could limit future financing options. The equity ratio is negative, raising alarms about the company's financial stability and sustainability.30
Negative
Cash Flow
VinFast Auto's cash flow statement reflects ongoing cash flow challenges, with negative operating and free cash flows. Despite the availability of financing cash flows, the inability to generate positive operating cash flow is a major concern. The free cash flow to net income ratio is negative, indicating that the company is not generating any surplus cash from operations.35
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 61.74T | 44.02T | 27.88T | 14.97T | 16.03T | 13.69T |
| Gross Profit | -28.57T | -25.28T | -13.35T | -12.27T | -9.26T | -6.70T |
| EBITDA | -53.35T | -51.85T | -42.07T | -35.05T | -22.87T | -9.50T |
| Net Income | -81.79T | -77.27T | -57.35T | -49.78T | -32.18T | -18.95T |
Balance Sheet | ||||||
| Total Assets | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 85.32T | 92.91T |
| Cash, Cash Equivalents and Short-Term Investments | 16.28T | 4.13T | 4.10T | 4.28T | 3.03T | 828.75B |
| Total Debt | 82.62T | 10.00T> | 10.00T> | 68.50T | 75.75T | 54.29T |
| Total Liabilities | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 86.73T |
| Stockholders Equity | -10.00T> | -10.00T> | -10.00T> | -10.00T> | -76.93T | 6.15T |
Cash Flow | ||||||
| Free Cash Flow | -55.09T | -47.16T | -78.60T | -53.31T | -34.98T | -19.02T |
| Operating Cash Flow | -36.87T | -30.47T | -53.65T | -35.63T | -28.97T | -9.35T |
| Investing Cash Flow | -17.66T | -16.03T | -23.02T | -16.04T | 2.42T | -1.84T |
| Financing Cash Flow | 68.62T | 49.00T | 77.42T | 52.95T | 28.86T | 10.45T |
VinFast Auto Technical Analysis
Negative
3.23
Price Trends
3.44
Negative
3.49
Negative
3.61
Negative
Market Momentum
-0.06
Positive
40.59
Neutral
38.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VFS, the sentiment is Negative. The current price of 3.23 is below the 20-day moving average (MA) of 3.33, below the 50-day MA of 3.44, and below the 200-day MA of 3.61, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 40.59 is Neutral, neither overbought nor oversold. The STOCH value of 38.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VFS.
VinFast Auto Risk Analysis
VinFast Auto disclosed 100 risk factors in its most recent earnings report. VinFast Auto 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
VinFast Auto Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | 25.96B | 24.44 | 11.33% | ― | 7.49% | -21.06% | |
55 Neutral | 20.61B | -34.56 | -18.51% | ― | 66.53% | 48.17% | |
51 Neutral | 15.67B | -4.61 | -379.72% | ― | 9.60% | -5.91% | |
49 Neutral | 17.45B | -4.45 | -57.76% | ― | 2.73% | 45.63% | |
44 Neutral | $7.55B | ― | 36.15% | ― | 79.49% | -22.72% | |
43 Neutral | 6.48B | -1.83 | -95.34% | ― | 39.01% | 7.12% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
VFS
VinFast Auto
3.23
-0.37
-10.28%
NIO
Nio
7.37
2.05
38.53%
LI
Li Auto
25.75
3.55
15.99%
XPEV
XPeng, Inc. ADR
21.66
12.10
126.57%
LCID
Lucid Group
21.10
-13.50
-39.02%
RIVN
Rivian Automotive
14.38
2.47
20.74%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.