Romeo Power, Inc.

Report azionario NYSE:RMO

Capitalizzazione di mercato: US$65.1m

This company has been acquired

The company may no longer be operating, as it has been acquired. Find out why through their latest events.

Romeo Power Gestione

Criteri Gestione verificati 0/4

Informazioni chiave

Susan Brennan

Amministratore delegato

US$4.3m

Compenso totale

Percentuale dello stipendio del CEO5.26%
Mandato del CEO1.2yrs
Proprietà del CEO0.06%
Durata media del management1.2yrs
Durata media del Consiglio di amministrazione1.8yrs

Aggiornamenti recenti sulla gestione

Recent updates

Seeking Alpha • Aug 09

Romeo Power: Merger With Nikola Is A Must

Infamous electric truck manufacturer Nikola is buying electric vehicle battery manufacturer Romeo Power. This merger arbitrage case is currently offering a 24% annualized return. The acquisition is likely to be approved by Romeo Power’s shareholders as the transaction has a strong strategic rationale while also providing the target with much needed liquidity. Vertical merger in the commercial electric vehicle (EV) space. Heavy-duty EV manufacturer Nikola (NKLA) is acquiring its lithium-ion battery supplier Romeo Power (RMO). The consideration is all-stock and values each RMO share at 0.1186 of NKLA stock. At current prices, the spread is at 8% and seems to be largely explained by borrowing fees which stand at ~10% on IB. A spike in borrowing fees remains a risk here and could erode the entire spread. Expected closing is in Oct'22 which would imply a 24% annualized return after deducting borrowing fees. NKLA Borrow Fees (Interactive Brokers) To acquire RMO, NKLA will launch a tender offer. The merger requires that at least 50% of RMO's shareholders participate in the exchange. All shares not tendered will be canceled and an amount equivalent to stock-consideration will be paid to these equity holders in cash. Other merger conditions, including regulatory approval and no bankruptcy of the target before the merger closes (discussed below), do not seem likely to present any issues here. For this reason, merger close hinges on the majority of shareholders participating in the tender. I see several reasons why this is likely: The transaction has strong strategic rationale as both companies are already tightly vertically integrated - RMO is NKLA's key battery pack supplier. Moreover, the combined company is projected to realize substantial cost synergies. The merger is expected to ease RMO's liquidity issues and avoid bankruptcy as the combined company will be able more easily raise funding for its operations. Moreover, NKLA will provide the target company with interim funding before the merger closes. The acquisition values RMO at a significant premium to the unaffected share price. RMO's shareholder base, which is largely institutional, has not voiced any concerns over the transaction. Strategic Rationale Strategic rationale for the combined company seems evident as NKLA seeks to secure and expand the supply of battery packs used in its electric semi-trucks. NKLA has recently emphasized that a short supply of battery packs, which are essential and the most expensive elements in electric truck production, has been one of the biggest obstacles in scaling NKLA's truck production. Despite the fact that NKLA already purchases the majority of RMO's battery packs - the buyer made 62% of the company's revenues in 2021 - capturing the remaining RMO's battery cell supply seems like a clear strategic benefit for NKLA in the current supply chain environment. With the transaction, NKLA will acquire RMO's newly built battery manufacturing facility and start to develop its in-house battery production capabilities. What is important to emphasize here is that RMO produces high-volume nickel-based battery cells as opposed to entry-level low-cost lithium iron phosphate or high performance specialty application technologies. Put simply, the company focuses on battery packs that can produce the longest range performance in trucks. Meanwhile, long range has been a focus of NKLA and has been highlighted as a key competitive advantage. In this light, the products of both companies seem highly complementary. NKLA's CEO during Q2'22 earnings call discussing the company's Tre BEV semi-truck: And as you point out, at this point, we have the longest range truck that we know about out there and it's performing extremely well. Romeo Power Investor Presentation, May 9, 2022 Moreover, the companies already have a strong ongoing engineering collaboration as some of NKLA's engineers have been working with RMO on battery packs which were produced for NKLA. More specifically, the companies worked closely on battery module and pack architecture, thermal systems and software battery management systems. With NKLA's knowledge of the target company and highly overlapping cell technology used/produced, the company estimates annual cost savings of up to $350m by 2026 - very significant compared to $694m and $96m in NKLA's and RMO's operating expenses in 2021. Cost synergies are expected to come from non-cell related battery pack costs (mostly battery enclosure cost savings) which are projected to be lower by 30%-40% by the end of 2023. Shareholders I expect RMO's shareholders to approve the merger given its strong strategic rationale. The all-stock structure of the deal will allow current RMO shareholders to realize synergies expected for the combined company. Moreover, the merger was announced at a 34% premium to RMO's closing price. At current NKLA share price, the premium to RMO's pre-announcement closing price is even higher at 56%. RMO's shareholder base appears to a significant degree institutional - six largest institutional shareholders, including Vanguard, Blackrock and Renaissance Technologies, hold a combined 24% stake. Another 10% is owned by Yorkville Advisors who acquired its stake via an equity purchase agreement (SEPA) with the company in Feb'22 at the average price of ~$1.50/share. I see incentives for these shareholders to approve the transaction to preserve the value of their shares given RMO's risk of bankruptcy and NKLA's superior liquidity position (see Financials below). Adding the company's management (2.5% stake) and smaller institutional shareholders, the count should handily exceed 50%. So far, none of the shareholders have voiced any opposition to the merger. Proxy advisory firms ISS and Glass Lewis have not issued their recommendations yet. Financials Ever since the IPO in Apr'19, RMO has been struggling to reach profitability. Recently, cash burn from SG&A and R&D has stood at around $25m-$30m while the current net cash position is at ~$38m. Production has picked up significantly this year, however, even assuming that the management could execute on its revenue guidance of $40m-$50m in 2022, the standalone company could realistically maintain its operations only through around H1'23. This suggests that there is a risk of bankruptcy should the company continue as a standalone entity. That said, the company becoming insolvent before the merger closes does not seem likely given recent production pick-up, current net cash position and interim funding to be provided by NKLA. Selected RMO financial data: 2019 2020 Q1'21 Q2'21 Q3'21 Q4'21 2021 2022 Q1 2022 Q2 Revenues 8.5 9.0 1.1 0.9 5.8 9.1 16.8 11.6 5.7 Gross Income -9.0 -8.7 -3.8 -5.0 -4.7 -7.8 -21.3 -17.7 -14.0 SG&A 13.9 17.3 18.0 22.9 17.6 22.2 80.7 22.2 18.7 R&D 11.2 8.0 3.8 1.8 4.7 5.0 15.3 6.7 7.1 Operating Income -38.5 34.3 -25.5 -29.7 -27.0 -35.0 -117.3 -82.0 -39.8 Net Income -59.9 -7.6 90.0* -28.7 -18.0 -33.4 10.0 -81.1 -40.4
Seeking Alpha • Mar 01

Where Art Thou Cash, Romeo?

History shows that only companies that need to raise cash urgently do Equity Lines of Credit. Other public companies in the space saw their share price decline 50% to 70% after issuance on their Equity Lines commenced. RMO's proposed Equity Line of Credit, relative to starting market cap, is about 18x larger than the Equity Line that NKLA embarked on before its stock declined 50%!
Seeking Alpha • Sep 17

Romeo Power: Battery Technology Junior May Have Got Strategy Wrong

Romeo Power is a small EV battery manufacturer based out of Los Angeles, California. The product of a SPAC deal consummated pre-pandemic, the timing could not have been harsher. Premised on out-of-the park growth and revenue numbers, the venture may have missed shifts in the automotive supply chain. With OEMs progressively looking to control battery manufacturing, this firm could possibly be left out in the cold.
Articolo di analisi • Aug 24

Romeo Power's (NYSE:RMO) Shareholders May Want To Dig Deeper Than Statutory Profit

Romeo Power, Inc.'s ( NYSE:RMO ) healthy profit numbers didn't contain any surprises for investors. We think this is...

Analisi delle retribuzioni degli amministratori delegati

Come è cambiata la remunerazione di Susan Brennan rispetto agli utili di Romeo Power?
DataCompenso totaleStipendioUtili della società
Jun 30 2022n/an/a

-US$177m

Mar 31 2022n/an/a

-US$163m

Dec 31 2021US$4mUS$225k

US$10m

Compensazione vs Mercato: La retribuzione totale di Susan ($USD 4.29M ) è superiore alla media delle aziende di dimensioni simili nel mercato US ($USD 672.31K ).

Compensazione vs guadagni: Dati insufficienti per confrontare la retribuzione di Susan con le performance aziendali.

AMMINISTRATORE DELEGATO

Susan Brennan (59 yo)

1.2yrs
Mandato
US$4,286,750
Compensazione

Ms. Susan Seilheimer Brennan has been Non-Executive Director of Senior PLC since January 1, 2015. She served as the Executive Vice President and Chief Operating Officer of Bloom Energy Corporation since No...

Gruppo dirigente

NomePosizioneMandatoCompensazioneProprietà
Susan Brennan
President1.2yrsUS$4.29m0.064%
$ 41.6k
Lionel Selwood
Senior Advisor & Consultant1.2yrsUS$7.65m0.036%
$ 23.1k
Kerry Shiba
CFO, Treasurer & Board Observer1.3yrsNessun dato0.014%
$ 8.9k
Anne Devine
Chief Operating Officerless than a yearNessun datoNessun dato
Yun Han
Chief Accounting Officer1.3yrsNessun dato0.013%
$ 8.2k
Matthew Sant
General Counsel & Company Secretary1.3yrsNessun dato0.025%
$ 16.3k
Rosalie Rogers
Chief People Officerless than a yearNessun datoNessun dato
Lauren Webb
Chief Strategy & Commercial Officer and Director1.3yrsNessun dato0.028%
$ 18.2k
Leon Kaunitz
Senior Vice President of Product Engineeringless than a yearNessun datoNessun dato
1.2yrs
Durata media
50yo
Età media

Gestione esperta: Il team dirigenziale di RMO non è considerato esperto (durata media 1.2 anni), il che suggerisce un nuovo team.

Membri del Consiglio di amministrazione

NomePosizioneMandatoCompensazioneProprietà
Susan Brennan
President1.8yrsUS$4.29m0.064%
$ 41.6k
Kerry Shiba
CFO, Treasurer & Board Observer1.2yrsNessun dato0.014%
$ 8.9k
Lauren Webb
Chief Strategy & Commercial Officer and Director1.8yrsNessun dato0.028%
$ 18.2k
Laurene Horiszny
Director1.2yrsUS$22.49kNessun dato
Paul Williams
Independent Director1.8yrsUS$308.73k0.012%
$ 7.5k
Robert Mancini
Independent Chairman1.8yrsUS$353.48k0.76%
$ 496.4k
Donald Gottwald
Independent Director1.8yrsUS$301.80k0.012%
$ 7.5k
Philip Kassin
Independent Director1.8yrsUS$313.73k0.78%
$ 507.4k
Timothy Stuart
Independent Director1.8yrsNessun datoNessun dato
1.8yrs
Durata media
62yo
Età media

Consiglio di amministrazione esperto: Il consiglio di amministrazione di RMO non è considerato esperto (durata media del mandato 1.8 anni), il che suggerisce un nuovo consiglio.

Analisi aziendale e situazione dei dati finanziari

DatiUltimo aggiornamento (ora UTC)
Analisi dell'azienda2022/10/16 07:01
Prezzo dell'azione a fine giornata2022/10/14 00:00
Utili2022/06/30
Utili annuali2021/12/31

Fonti dei dati

I dati utilizzati nella nostra analisi aziendale provengono da S&P Global Market Intelligence LLC. I seguenti dati sono utilizzati nel nostro modello di analisi per generare questo report. I dati sono normalizzati, il che può comportare un ritardo nella disponibilità della fonte.

PacchettoDatiTempisticaEsempio Fonte USA *
Dati finanziari della società10 anni
  • Conto economico
  • Rendiconto finanziario
  • Bilancio
Stime di consenso degli analisti+3 anni
  • Previsioni finanziarie
  • Obiettivi di prezzo degli analisti
Prezzi di mercato30 anni
  • Prezzi delle azioni
  • Dividendi, scissioni e azioni
Proprietà10 anni
  • Top azionisti
  • Insider trading
Gestione10 anni
  • Team di leadership
  • Consiglio di amministrazione
Sviluppi principali10 anni
  • Annunci aziendali

* Esempio per i titoli statunitensi, per i titoli non statunitensi si utilizzano forme e fonti normative equivalenti.

Se non specificato, tutti i dati finanziari si basano su un periodo annuale ma vengono aggiornati trimestralmente. Si tratta dei cosiddetti dati TTM (Trailing Twelve Month) o LTM (Last Twelve Month). Per saperne di più.

Modello di analisi e Snowflake

I dettagli del modello di analisi utilizzato per generare questo report sono disponibili sulla nostra pagina GitHub; abbiamo anche delle guide su come utilizzare i nostri report e dei tutorial su YouTube.

Scoprite il team di livello mondiale che ha progettato e realizzato il modello di analisi Simply Wall St.

Metriche di settore e industriali

Le nostre metriche di settore e di sezione sono calcolate ogni 6 ore da Simply Wall St; i dettagli del nostro processo sono disponibili su Github.

Fonti analitiche

Romeo Power, Inc. è coperta da 3 analisti. di questi analisti ha fornito le stime di fatturato o di utile utilizzate come input per il nostro report. Le stime degli analisti vengono aggiornate nel corso della giornata.

AnalistaIstituzione
Gregory LewisBTIG
Adam JonasMorgan Stanley
Gabriel DaoudTD Cowen