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WeRide
(NASDAQ:WRD)
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Rating:46Neutral
Price Target:
$4.50
▼(-23.86% Downside)
Action:Reiterated
Date:10/09/26
The score is held down primarily by weak financial quality—large ongoing losses and accelerating cash burn—alongside bearish technicals (below key moving averages with negative MACD). The earnings call adds some support due to strong growth and margin progress with solid cash on hand, but valuation remains constrained by current losses and the absence of dividend yield data.
Positive Factors
Revenue and margin growth
Rapid revenue growth alongside expanding gross margin indicates improving commercial traction and unit economics across the portfolio. If sustained, this combination can support greater operating leverage, strengthen market positioning, and improve the company’s ability to fund autonomous mobility expansion.
Negative Factors
Persistent cash burn
Consistently negative operating and free cash flow, with a material deterioration in 2025, shows that commercial growth is not yet translating into self-funded operations. Continued investment therefore depends on the existing cash reserve and successful execution of the path to breakeven.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and margin growth
Rapid revenue growth alongside expanding gross margin indicates improving commercial traction and unit economics across the portfolio. If sustained, this combination can support greater operating leverage, strengthen market positioning, and improve the company’s ability to fund autonomous mobility expansion.
Read all positive factors
WeRide (WRD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.61B
Dividend YieldN/A
Average Volume (3M)2.80M
Price to Earnings (P/E)―
Beta (1Y)2.08
Revenue Growth108.63%
EPS Growth40.63%
CountryUS
Employees3,801
SectorGeneral
Sector StrengthN/A
IndustrySoftware - Application
Share Statistics
EPS (TTM)-5.04
Shares Outstanding317,415,000
10 Day Avg. Volume3,860,183
30 Day Avg. Volume2,804,772
Financial Highlights & Ratios
PEG Ratio0.27
Price to Book (P/B)2.37
Price to Sales (P/S)27.32
P/FCF Ratio-11.91
Enterprise Value/Market Cap0.75
Enterprise Value/Revenue1.46
Enterprise Value/Gross Profit4.45
Enterprise Value/Ebitda-0.79
Forecast
1Y Price Target
$13.00Price Target Upside119.97% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-3.72
Revenue Forecast (FY)$1.06B
WeRide Business Overview & Revenue Model
Company Description
WeRide Inc. is dedicated to pioneering and refining an autonomous driving technology platform. The company delivers a range of intelligent mobility solutions, including self-driving taxis (Robotaxi), buses (Robobus), delivery vans (Robovan), and s...
WeRide Earnings Call Summary
Earnings Call Date:Aug 12, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Dec 02, 2026
Earnings Call Sentiment Positive
The call highlighted strong top-line acceleration, margin expansion and rapid commercialization—notably from the L2+/L3 product ramp and overseas asset-light robotaxi deployments—along with meaningful operational improvements (fleet scale, utilization, and growing overseas contribution). At the same time, the company remains loss-making with substantial R&D and operating expenditures, dependency on partners and regulatory exposures, and ambitious forward targets that carry execution risk. On balance, the positive commercial and margin momentum and a solid cash position outweigh the remaining execution and market risks in the near term.Positive Updates
Strong Revenue Growth and Diversification
Total revenue RMB 232 million, up 82% year-over-year and 103% quarter-over-quarter; overseas revenue now ~40% of group revenue and increased 164% YoY (~170% QoQ).
Negative Updates
Continuing Operating Losses and Large Absolute Losses
Despite margin progress, the company remains loss-making: net loss RMB 401 million and EBITDA loss RMB 335 million in Q2; profitability progress is early and full-year breakeven targeted only for 2029 with positive cash flow in a single quarter targeted by 2028.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue Growth and Diversification
Total revenue RMB 232 million, up 82% year-over-year and 103% quarter-over-quarter; overseas revenue now ~40% of group revenue and increased 164% YoY (~170% QoQ).
Read all positive updates
Company Guidance
Management guided that WeRide will accelerate overseas expansion and enter “meaningful growth” by end‑2026, targeting steady‑state annualized technology service revenue per robotaxi of >USD 50,000 (management also cited a USD 40k–60k range per vehicle), and expects its L2+/L3 business to exceed 100,000 installed vehicles by year‑end (and to surpass 0.5 million cumulative deliveries next year), with an overarching goal of achieving a single‑quarter positive cash flow by 2028 and full‑year breakeven in 2029. These targets are supported by current momentum — Q2 revenue RMB232m (+82% YoY, +103% QoQ) with L4 revenue RMB125m (+47% YoY), L2+/L3 revenue up ~26x YoY, gross profit RMB87m and gross margin 37.5% (+9.4pp YoY), ~RMB5.4bn cash on hand, an L4 fleet of ~3,400 units (robotaxi >1,800), ~30,000 L2+/L3 units delivered in the quarter, average daily rides/vehicle 21 (+24% QoQ), peak 28, registered users in China +35% QoQ and ride‑hailing revenue +140% sequentially — all cited as drivers of improving margins, capital efficiency and a path to self‑sustaining cash generation.WeRide Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
72
Positive
Cash Flow
27
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 830.83M | 684.59M | 361.13M | 401.84M | 527.54M | 138.17M |
| Gross Profit | 272.24M | 206.82M | 110.72M | 183.48M | 232.54M | 51.66M |
| EBITDA | -1.54B | -1.48B | -2.41B | -1.85B | -1.21B | -935.86M |
| Net Income | -1.65B | -1.65B | -2.52B | -1.95B | -1.30B | -1.01B |
Balance Sheet | ||||||
| Total Assets | 7.76B | 8.94B | 7.69B | 5.61B | 5.39B | 3.31B |
| Cash, Cash Equivalents and Short-Term Investments | 5.38B | 7.13B | 6.57B | 4.53B | 4.51B | 2.78B |
| Total Debt | 615.83M | 379.67M | 143.02M | 53.41M | 67.87M | 93.83M |
| Total Liabilities | 1.36B | 1.04B | 627.75M | 8.67B | 7.47B | 4.27B |
| Stockholders Equity | 6.40B | 7.91B | 7.07B | -3.05B | -2.08B | -964.97M |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -1.57B | -679.10M | -511.84M | -753.07M | -532.30M |
| Operating Cash Flow | 0.00 | -1.32B | -593.60M | -474.89M | -670.38M | -506.67M |
| Investing Cash Flow | 0.00 | 1.51B | 325.50M | -546.94M | -2.20B | 460.90M |
| Financing Cash Flow | 0.00 | 2.30B | 2.82B | 446.95M | 2.18B | 2.60B |
WeRide Technical Analysis
Negative
5.91
Price Trends
5.71
Negative
5.98
Negative
6.88
Negative
Market Momentum
-0.28
Positive
35.42
Neutral
21.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WRD, the sentiment is Negative. The current price of 5.91 is above the 20-day moving average (MA) of 5.33, above the 50-day MA of 5.71, and below the 200-day MA of 6.88, indicating a bearish trend. The MACD of -0.28 indicates Positive momentum. The RSI at 35.42 is Neutral, neither overbought nor oversold. The STOCH value of 21.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WRD.
WeRide Risk Analysis
WeRide disclosed 88 risk factors in its most recent earnings report. WeRide 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
WeRide Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $2.69B | -43.85 | -18.45% | ― | 62.82% | 52.15% | |
56 Neutral | $5.82B | -1.37 | -40.43% | ― | 5.00% | -36.49% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
49 Neutral | $11.34B | -12.04 | -43.12% | ― | 400.00% | 1.19% | |
46 Neutral | $1.61B | -6.35 | -23.93% | ― | 108.63% | 40.63% | |
46 Neutral | $88.24M | -0.79 | -118.08% | ― | 41.09% | 9.05% |
* General Sector Average
WRD
WeRide
4.78
-5.84
-54.99%
INVZ
Innoviz Technologies
0.30
-2.08
-87.56%
OUST
Ouster
37.27
1.11
3.07%
AUR
Aurora Innovation
5.66
0.24
4.43%
MBLY
Mobileye Global, Inc. Class A
6.84
-8.58
-55.64%
WeRide Corporate Events
WeRide Reports Stable Share Capital and Confirms Public Float Compliance in September 2026
Oct 7, 2026
On October 7, 2026, WeRide Inc. filed a Form 6-K with the U.S. Securities and Exchange Commission noting that it had submitted its monthly return for equity issuer to the Hong Kong Stock Exchange, covering movements in its share capital for the mo...
WeRide Raises Revenue and Expands Global Robotaxi Footprint in First-Half 2026
Sep 14, 2026
WeRide filed a Form 6-K on September 14, 2026, incorporating its Hong Kong 2026 interim report into existing U.S. registration statements and providing updated financial and governance information for the six months ended June 30, 2026. The compan...
WeRide Reports Stable August 2026 Share Capital and Confirms Hong Kong Float Compliance
Sep 4, 2026
On September 4, 2026, WeRide Inc. filed a Form 6-K with the U.S. Securities and Exchange Commission reporting its monthly return for equity movements for August 2026 on the Hong Kong Stock Exchange. The filing shows that authorized share capital r...
WeRide Reports Stable July 2026 Share Capital and Confirms Public Float Compliance
Aug 6, 2026
WeRide Inc. reported its July 2026 share capital movements through a Form 6-K filed with the U.S. Securities and Exchange Commission on August 6, 2026, in parallel with a monthly return submitted to Hong Kong Exchanges and Clearing. The filing sho...
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.