Workhorse Group (WKHS) AI Stock Analysis

• Market Cap: $9.57M
• Dividend Yield: N/A
• Average Volume (3M): 654.52K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.76
• Revenue Growth: -53.55%
• EPS Growth: 65.29%
• Country: US
• Employees: 143
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Auto - Manufacturers
• EPS (TTM): -4.68
• Shares Outstanding: 9,473,055
• 10 Day Avg. Volume: 528,563
• 30 Day Avg. Volume: 654,519
• PEG Ratio: <0.01
• Price to Book (P/B): 0.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.25
• Enterprise Value/Market Cap: 6.04
• Enterprise Value/Revenue: 1.85
• Enterprise Value/Gross Profit: -2.80
• Enterprise Value/Ebitda: -0.18
• 1Y Price Target: $2.00
• Price Target Upside: 106.19% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 42 Neutral
• Price Target: $1.00 ▲(3.09%Upside)

Workhorse Group's stock score is primarily impacted by severe financial instability, including significant losses and high leverage. Technical signals offer limited support, and valuation remains a key concern due to negative earnings. Earnings call highlights modest operational improvements, and regaining Nasdaq compliance is a positive, yet the overall outlook remains cautious.

Positive Factors

Government Contracts

Workhorse was awarded a General Service Administration (GSA) contract, enabling streamlined procurement of their vehicles by federal agencies.

Revenue Growth

The company's revenue estimates have been increased for FY2024 and FY2025, suggesting growth expectations.

Strategic Partnerships

Workhorse secured a three-year Master Framework Agreement with FedEx, under which they've already shipped 15 trucks and expect more orders in 2025.

Negative Factors

Dependency on Government Policies

Workhorse's success may become dependent on the government upholding its previous new energy objectives and driving electrification, which is currently uncertain.

Financial Challenges

The forecasted adjusted EBITDA remains negative, indicating ongoing financial challenges.

Market Uncertainty

The stock is rated Neutral, reflecting uncertainty about its future performance.

Workhorse Group Business Overview & Revenue Model

Company Description

Workhorse Group Inc. is a technology company focused on providing sustainable and cost-effective electric transportation solutions. Based in Loveland, Ohio, the company operates primarily in the automotive and aerospace sectors, specializing in the design and manufacture of high-performance, battery-electric vehicles and aircraft. Workhorse Group is known for its electric delivery vans and trucks, as well as its innovative unmanned aerial systems.

How the Company Makes Money

Workhorse Group generates revenue primarily through the sale of its electric vehicles and related products. The company designs and manufactures electric delivery vans and commercial trucks, catering to businesses seeking environmentally friendly transportation solutions. Additionally, Workhorse Group offers technology solutions for last-mile delivery, including its HorseFly drone system, which integrates with delivery vehicles to enhance efficiency. Key revenue streams include vehicle sales, technology licensing, and potential service contracts. Strategic partnerships with logistics companies and fleet operators also play a significant role in driving sales and expanding market reach. However, as the company is in a growth phase, it may also rely on capital raises and investments to fund operations and product development.

Workhorse Group Financial Statement Overview

Summary

Workhorse Group is experiencing severe financial difficulties with negative profitability and declining sales. High leverage and reduced equity raise concerns about financial stability, while negative cash flows highlight cash management issues.

Income Statement

Workhorse Group's income statement shows significant challenges. The gross profit margin remains negative, indicating cost of goods sold exceeds revenue, with a TTM gross loss of $20.6 million. Net profit margin is also deeply negative at -1576%, reflecting substantial losses. Revenue has decreased over time, with a 10.5% decline from the previous year, indicating potential struggles in market penetration and sales effectiveness. EBIT and EBITDA margins are negative, further emphasizing inefficiencies and high operational costs.

Balance Sheet

The balance sheet highlights financial instability, with a high debt-to-equity ratio of 1.62 in TTM, suggesting significant leverage. Stockholders' equity has decreased, leading to a low equity ratio of 27.2%, raising concerns about financial stability. However, the presence of cash and short-term investments is a positive aspect, though it has declined. Overall equity has been notably reduced, impacting the company's ability to withstand financial stress.

Cash Flow

Cash flow analysis reveals challenges, with negative free cash flow indicating cash outflows are not covered by operations. The operating cash flow to net income ratio is negative, showcasing inefficiencies in generating cash from operations. Financing activities have provided some liquidity, but reliance on external funding is high. The lack of free cash flow growth further underlines cash management issues.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.92M	6.62M	13.09M	5.02M	-851.92K	1.39M
	Gross Profit
-20.65M	-22.23M	-25.26M	-32.65M	-133.34M	-11.67M
	EBIT
-63.00M	-73.89M	-105.30M	-129.08M	-185.11M	116.32M
	EBITDA
-60.85M	-71.76M	-111.24M	-113.90M	-414.55M	-40.17M
	Net Income Common Stockholders
-93.28M	-101.79M	-123.92M	-105.47M	-401.34M	69.78M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
23.87M	4.12M	25.85M	99.28M	201.65M	46.82M
	Total Assets
50.67M	93.84M	141.67M	182.74M	228.14M	632.54M
	Total Debt
39.02M	16.32M	29.02M	10.13M	26.26M	199.11M
	Net Debt
15.15M	12.20M	3.18M	-89.15M	-175.39M	152.29M
	Total Liabilities
85.59M	49.55M	58.56M	74.16M	53.45M	237.34M
	Stockholders Equity
-34.91M	44.29M	83.11M	108.59M	174.69M	395.20M
Cash Flow		Free Cash Flow
-38.84M	-51.65M	-141.71M	-111.32M	-137.89M	-76.01M
	Operating Cash Flow
-37.78M	-47.59M	-123.02M	-93.82M	-132.58M	-70.28M
	Investing Cash Flow
-1.06M	-4.06M	-18.69M	-20.02M	99.81M	-5.73M
	Financing Cash Flow
62.70M	20.45M	78.28M	11.47M	-6.82M	292.37M

Workhorse Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.97
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WKHS, the sentiment is Negative. The current price of 0.97 is above the 20-day moving average (MA) of 0.94, below the 50-day MA of 1.06, and below the 200-day MA of 6.70, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 44.97 is Neutral, neither overbought nor oversold. The STOCH value of 50.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WKHS.

Workhorse Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$6.86B	11.07	2.77%	4.27%	2.66%	-24.95%
MULN	44 Neutral	$6.23M	―	-3842.15%	―	2136.62%	99.30%
AYRO	42 Neutral	$3.49M	―	19.40%	―	-98.78%	92.98%
WKHS	42 Neutral	$9.57M	―	-188.79%	―	-53.55%	65.29%
EVTV	39 Underperform	$4.29M	―	-132.63%	―	-47.62%	8.34%
PEVM	38 Underperform	$9.86M	0.73		―	―	―
ZAPPF	28 Underperform	$476.38K	―		―	―	―

Workhorse Group Corporate Events

Workhorse Group Regains Nasdaq Compliance After Stock Split

On April 2, 2025, Workhorse Group Inc. announced it had regained compliance with Nasdaq’s minimum bid price requirement, following a 1-for-12.5 reverse stock split on March 17, 2025. This compliance is crucial for maintaining its listing on the Nasdaq, which can impact the company’s market positioning and access to liquidity.