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VVPR is a highly speculative stock with major risks tied to its financial stability

M_
M_KabeshInvested
Community Contributor

Published

February 02 2025

Updated

February 02 2025

Based on its current status with a low market cap (~$5 million), severe revenue decline, and significant net losses, VivoPower International (VVPR) faces a critical period through 2025.

VVPR is a highly speculative stock with major risks tied to its financial stability. The company's success hinges on its ability to execute its growth strategy, particularly in the EV and renewable energy markets. Through 2025, the stock's price is likely to remain volatile, with limited upside unless there is a substantial turnaround in its operational performance. Investors should approach with caution and monitor key earnings reports and updates on strategic initiatives.

Bear Case: If the company fails to generate meaningful revenue or improve its financials, the stock could drop further to $0.50–$1.00, facing delisting risks.

Base Case: If moderate progress is made with funding utilization and revenue stabilization, the stock could trade in the $1.50–$3.00 range.

Bull Case: If VVPR executes well on strategic initiatives, achieving new contracts and revenue growth, the stock could recover to $3–$5, though this would require significant improvement in financials.

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Disclaimer

The user M_Kabesh has a position in NasdaqCM:VVPR. Simply Wall St has no position in any of the companies mentioned. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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Fair Value
US$2.4
62.3% undervalued intrinsic discount
M_Kabesh's Fair Value
Future estimation in
PastFuture-747m39m201620192022202520282030Revenue US$20.1mEarnings US$2.8m
% p.a.
Decrease
Increase
Current revenue growth rate
0.00%
Renewable Energy revenue growth rate
0.24%