CBAK Energy Technology Ltd (CBAT) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA against its history

Needs positive EBITDA and price history.

P/B below the industry

CBAK Energy Technology's price-to-book of 0.89 is below the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of 1.79.

Trading below fair value

The share price of $1.05 is below our fair value estimate of $2.68.

Margin of safety over 20%

The price is 60.8% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -7.8% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 50.5% over the last twelve months; the Electronic and Other Electrical Equipment and Components, except Computer Equipment median is 1.6%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin slipping

Gross margin was 6.4% over the last twelve months, against 18.2% a year earlier.

Return on equity under 15%

Return on equity was -15.1% over the last twelve months and averaged 11.7% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was -16.5%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

CBAK Energy Technology's return on equity of -15.1% is above the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of -31.2%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was -7.4% over the last twelve months, against a 5-year average of 22.7%.

Net margin above the industry

CBAK Energy Technology's net margin of -7.4% is above the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of -64.6%.

High debt

Debt is 42.8% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 26.2% five years ago to 42.8%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 179% of total debt.

Interest not well covered

Operating income covers interest expense -22.4 times; we look for at least 5.

Short-term assets don't cover short-term debts

Current assets are 0.65 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is -0.28; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

CBAK Energy Technology has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.