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Workhorse Group (WKHS)
NASDAQ:WKHS
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Workhorse Group
(NASDAQ:WKHS)
39Underperform
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 (WKHS) vs. S&P 500 (SPY)
Market Cap
$5.28M
Dividend YieldN/A
Average Volume (3M)652.22K
Price to Earnings (P/E)―
Beta (1Y)1.97
Revenue Growth-53.55%
EPS Growth65.29%
CountryUS
Employees143
SectorConsumer Cyclical
Sector Strength73
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)-4.68
Shares Outstanding5,125,592
10 Day Avg. Volume717,184
30 Day Avg. Volume652,217
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.44
Price to Sales (P/S)0.00
P/FCF Ratio-0.10
Enterprise Value/Market Cap3.28
Enterprise Value/Revenue0.45
Enterprise Value/Gross Profit-0.78
Enterprise Value/Ebitda-0.05
Forecast
1Y Price Target
$2.00Price Target Upside122.22% Upside
Rating ConsensusHold
Number of Analyst Covering1
Workhorse Group Business Overview & Revenue Model
Company DescriptionWorkhorse Group Inc., a technology company, engages in design, manufacture, and sale of zero-emission commercial vehicles in the United States. The company offers electric and range-extended medium-duty delivery trucks under the Workhorse brand; and HorseFly Unmanned Aerial System, a custom-designed purpose-built all-electric drone system. It also provides Metron, an air delivery application that tracks the performance of various the vehicles deployed. The company was formerly known as AMP Holding Inc. and changed its name to Workhorse Group Inc. in April 2015. Workhorse Group Inc. was founded in 2007 and is headquartered in Loveland, Ohio.
How the Company Makes MoneyWorkhorse 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 faces substantial financial difficulties, with persistent losses and inconsistent revenue in the income statement, high debt levels and declining equity in the balance sheet, and negative cash flows indicating poor cash generation capabilities.Income Statement
Workhorse Group's income statement reveals significant challenges with sustained net losses and negative EBIT and EBITDA margins. The revenue has shown fluctuations but remains low with high volatility. Gross profit margins are negative over the years, indicating cost management issues. Revenue growth rate is inconsistent, showing a decline in the most recent year. These factors contribute to a weak position in the income statement.30
Negative
Balance Sheet
The balance sheet reflects a high level of debt relative to equity, with a debt-to-equity ratio that suggests high leverage. Stockholders’ equity has decreased significantly, and the equity ratio is low, indicating a weaker financial structure. However, the company has managed to reduce net debt over the years, showing some improvement in managing liabilities.40
Negative
Cash Flow
Cash flow analysis shows negative free cash flow consistently, reflecting challenges in generating cash from operations. The operating cash flow to net income ratio indicates inefficiencies, as it remains negative. Free cash flow growth is also negative, pointing to ongoing struggles in improving cash flow performance.35
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 6.62M | 13.09M | 5.02M | -851.92K | 1.39M | Gross Profit |
| -22.23M | -25.26M | -32.65M | -133.34M | -11.67M | EBIT |
| -73.89M | -105.30M | -129.08M | -185.11M | 116.32M | EBITDA |
| -71.76M | -111.24M | -113.90M | -414.55M | -40.17M | Net Income Common Stockholders |
| -101.79M | -123.92M | -105.47M | -401.34M | 69.78M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 4.12M | 25.85M | 99.28M | 201.65M | 46.82M | Total Assets |
| 93.84M | 141.67M | 182.74M | 228.14M | 632.54M | Total Debt |
| 16.32M | 29.02M | 10.13M | 26.26M | 199.11M | Net Debt |
| 12.20M | 3.18M | -89.15M | -175.39M | 152.29M | Total Liabilities |
| 49.55M | 58.56M | 74.16M | 53.45M | 237.34M | Stockholders Equity |
| 44.29M | 83.11M | 108.59M | 174.69M | 395.20M |
| Cash Flow | Free Cash Flow | |||
| -51.65M | -141.71M | -111.32M | -137.89M | -76.01M | Operating Cash Flow |
| -47.59M | -123.02M | -93.82M | -132.58M | -70.28M | Investing Cash Flow |
| -4.06M | -18.69M | -20.02M | 99.81M | -5.73M | Financing Cash Flow |
| 20.45M | 78.28M | 11.47M | -6.82M | 292.37M |
Workhorse Group Technical Analysis
Negative
0.90
Price Trends
1.74
Negative
4.68
Negative
8.10
Negative
Market Momentum
-0.25
Negative
24.18
Positive
18.52
Positive
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 0.9 is below the 20-day moving average (MA) of 1.11, below the 50-day MA of 1.74, and below the 200-day MA of 8.10, indicating a bearish trend. The MACD of -0.25 indicates Negative momentum. The RSI at 24.18 is Positive, neither overbought nor oversold. The STOCH value of 18.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WKHS.
Workhorse Group Risk Analysis
Workhorse Group disclosed 43 risk factors in its most recent earnings report. Workhorse Group 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
Workhorse Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $7.00B | 11.55 | 3.07% | 3.89% | 2.60% | -21.53% | |
41 Neutral | $6.24M | ― | -42.59% | ― | -34.68% | 34.15% | |
39 Underperform | $5.28M | ― | -188.79% | ― | -53.55% | 65.29% | |
38 Underperform | $8.28M | ― | ― | ― | ― | ||
34 Underperform | $3.75M | ― | 19.40% | ― | -87.22% | 77.29% | |
28 Underperform | $2.58M | ― | ― | ― | ― | ||
20 Underperform | $4.70M | ― | -950.02% | ― | 996.94% | 98.82% |
* Consumer Cyclical Sector Average
Performance Comparison
WKHS
Workhorse Group
0.90
-62.32
-98.58%
AYRO
AYRO
0.43
-0.75
-63.56%
MULN
Mullen Automotive
0.15
-3,371,999.85
-100.00%
EVTV
Envirotech Vehicles
0.25
-1.40
-84.85%
ZAPP
Zapp Electric Vehicles
0.27
-1.03
-79.23%
PEVM
Phoenix Motor Inc
0.19
-0.24
-55.81%
Workhorse Group Earnings Call Summary
Earnings Call Date:May 15, 2025
(Q1-2025)
| % Change Since: -10.00%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
While Workhorse Group reported significant achievements in terms of orders, partnerships, cost reductions, and product expansions, the company also faced challenges with decreased sales, financial losses, and market uncertainties. The balance of these factors suggests a cautious optimism for future growth.Q1-2025 Updates
Positive Updates
W56 Step Van Orders and Deliveries
Booked purchase orders for 27 W56 step vans, with deliveries expected in 60 to 120 days. Delivered FedEx's 2024 order of W56 step vans, expanding to 12 FedEx terminals.
Fleet Expansion and Partnerships
New partnerships with Gateway Fleets and various certified service networks. Expanded dealer and service networks with new partners in key metro markets.
Cost Reduction Achievements
Operating expenses reduced by $9.3 million year-over-year, and monthly operating cash reduced to below $3 million.
Product and Market Expansion
Expanded W56 lineup and received certification for sales in Canada. Completed a successful 2,400-mile cross-country trip with the W56.
Production and Delivery Milestones
Workhorse is the only North American OEM producing electric step vans in-house, with six Class 4 to 6 models in production.
Negative Updates
Decreased Sales and Revenue
Sales for Q1 2025 were $600,000, a decrease of $700,000 compared to $1.3 million in the prior year.
Loss and Financial Challenges
Continued net losses with interest expenses increasing due to higher convertible note balances.
Market Uncertainties and No Revenue Guidance
Cited uncertainty in the EV landscape and did not provide specific annual revenue guidance.
Company Guidance
During the Q1 2025 earnings call for Workhorse Group, key metrics were highlighted to illustrate the company's progress and strategic focus. Year-to-date, Workhorse secured purchase orders for 27 W56 step vans, marking a step towards their goal to ship more vehicles in Q2 than in all of the previous year. They reported a $9.3 million reduction in operating expenses year-over-year, reflecting significant cost-cutting measures. The company also noted an increase in sales momentum, with 18 trucks already shipped in the second quarter. Financially, they maintained a cash position of $2.6 million and reported $27.9 million in restricted cash as of March 31, 2025. Workhorse emphasized their unique position as a North American OEM producing electric step vans in-house, which provides them with a competitive edge in quality control and lead times. Despite prevailing market challenges, they continue to focus on disciplined execution, securing customer trust, and maintaining a lean operating environment to ensure long-term growth.Workhorse Group Corporate Events
Delistings and Listing ChangesStock SplitRegulatory Filings and Compliance
Workhorse Group Regains Nasdaq Compliance After Stock Split
Positive
Apr 2, 2025
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.
Delistings and Listing ChangesStock Split
Workhorse Group Announces Reverse Stock Split
Neutral
Mar 12, 2025
On March 12, 2025, Workhorse Group Inc. announced a 1-for-12.5 reverse stock split of its common stock, effective March 17, 2025. This move aims to regain compliance with Nasdaq’s minimum bid price requirement, although there is no assurance of success. The reverse split will reduce the number of authorized common shares and adjust stockholder positions automatically, without affecting voting rights or ownership percentages.
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.