NasdaqGS:KNDI

Stock Analysis Report

Executive Summary

Kandi Technologies Group, Inc., through its subsidiaries, designs, develops, manufactures, and commercializes electric vehicle (EV) products and parts and off-road vehicles in the People’s Republic of China and internationally.

Risk Analysis

Earnings have declined by -40.45% per year over past 5 years

Has less than 1 year of cash runway

Currently unprofitable and not forecast to become profitable over the next 3 years

Shareholders have been diluted in the past year



Snowflake Analysis

Adequate balance sheet and overvalued.

Share Price & News

How has Kandi Technologies Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: KNDI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.5%

KNDI

-0.7%

US Auto Components

0.6%

US Market


1 Year Return

-15.6%

KNDI

1.1%

US Auto Components

24.6%

US Market

Return vs Industry: KNDI underperformed the US Auto Components industry which returned 1.9% over the past year.

Return vs Market: KNDI underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

KNDIIndustryMarket
7 Day-5.5%-0.7%0.6%
30 Day-4.7%-3.6%3.0%
90 Day-16.5%1.3%10.6%
1 Year-15.6%-15.6%2.7%1.1%27.3%24.6%
3 Year-1.3%-1.3%-2.5%-12.4%50.5%40.8%
5 Year-65.8%-65.8%19.9%2.9%78.9%59.1%

Price Volatility Vs. Market

How volatile is Kandi Technologies Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Kandi Technologies Group undervalued compared to its fair value and its price relative to the market?

1.07x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate KNDI's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate KNDI's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: KNDI is unprofitable, so we can't compare its PE Ratio to the Auto Components industry average.

PE vs Market: KNDI is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate KNDI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: KNDI is good value based on its PB Ratio (1.1x) compared to the US Auto Components industry average (1.3x).


Next Steps

Future Growth

How is Kandi Technologies Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

20.2%

Forecasted Automobiles industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Kandi Technologies Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Kandi Technologies Group performed over the past 5 years?

-40.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KNDI is currently unprofitable.

Growing Profit Margin: KNDI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: KNDI is unprofitable, and losses have increased over the past 5 years at a rate of -40.4% per year.

Accelerating Growth: Unable to compare KNDI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: KNDI is unprofitable, making it difficult to compare its past year earnings growth to the Auto Components industry (4.1%).


Return on Equity

High ROE: KNDI has a negative Return on Equity (-1.78%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kandi Technologies Group's financial position?


Financial Position Analysis

Short Term Liabilities: KNDI's short term assets ($210.1M) exceed its short term liabilities ($129.7M).

Long Term Liabilities: KNDI's short term assets ($210.1M) exceed its long term liabilities ($35.9M).


Debt to Equity History and Analysis

Debt Level: KNDI's debt to equity ratio (31.8%) is considered satisfactory.

Reducing Debt: KNDI's debt to equity ratio has increased from 23% to 31.8% over the past 5 years.


Balance Sheet

Inventory Level: KNDI has a high level of physical assets or inventory.

Debt Coverage by Assets: KNDI's debt is covered by short term assets (assets are 3x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: KNDI has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: KNDI has less than a year of cash runway if free cash flow continues to grow at historical rates of 75.7% each year.


Next Steps

Dividend

What is Kandi Technologies Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate KNDI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate KNDI's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if KNDI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if KNDI's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of KNDI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Kandi Technologies Group's salary, the management and board of directors tenure and is there insider trading?

6.2yrs

Average management tenure


CEO

Xiaoming Hu (62yo)

12.6yrs

Tenure

US$826,269

Compensation

Mr. Xiaoming Hu has been Chief Executive Officer and President of Kandi Technolgies Group, Inc. (alternate name: Kandi Technologies Corp.) since June 29, 2007. Mr. Hu has been President and Chief Executive ...


CEO Compensation Analysis

Compensation vs Market: Xiaoming's total compensation ($USD826.27K) is about average for companies of similar size in the US market ($USD1.08M).

Compensation vs Earnings: Xiaoming's compensation has been consistent with company performance over the past year.


Management Age and Tenure

6.2yrs

Average Tenure

48yo

Average Age

Experienced Management: KNDI's management team is seasoned and experienced (6.2 years average tenure).


Board Age and Tenure

7.7yrs

Average Tenure

64yo

Average Age

Experienced Board: KNDI's board of directors are considered experienced (7.7 years average tenure).


Insider Trading

Insider Buying: KNDI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$23,55025 Nov 19
Henry Yu
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$4.71
BuyUS$49,70017 May 19
Xiaoming Hu
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares10,000
Max PriceUS$4.97
BuyUS$579,65216 May 19
Xiaoming Hu
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares122,032
Max PriceUS$4.75
BuyUS$756,24028 Mar 19
Xiaoming Hu
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares137,000
Max PriceUS$5.52

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.6%.


Management Team

  • Emily Zhu (48yo)

    Interim Chief Financial Officer

    • Tenure: 1yrs
    • Compensation: US$1.38m
  • Xiaoming Hu (62yo)

    Chairman

    • Tenure: 12.6yrs
    • Compensation: US$826.27k
  • Henry Wang (46yo)

    Chief Strategy Officer

    • Tenure: 3.2yrs
    • Compensation: US$15.55k
  • Cathy Cao

    Executive Vice President of Finance

    • Tenure: 9.3yrs
  • Kewa Luo

    Manager of Investor Relations


    Board Members

    • Jerry B. Lewin (64yo)

      Independent Director

      • Tenure: 9.2yrs
      • Compensation: US$50.50k
    • Xiaoming Hu (62yo)

      Chairman

      • Tenure: 12.6yrs
      • Compensation: US$826.27k
    • Henry Yu (65yo)

      Independent Director

      • Tenure: 8.5yrs
      • Compensation: US$42.10k
    • Liming Chen (82yo)

      Independent Director

      • Tenure: 7.7yrs
      • Compensation: US$9.07k
    • Yi Lin (66yo)

      Independent Director

      • Tenure: 2.7yrs
      • Compensation: US$8.73k
    • Lin Wang (30yo)

      Director

      • Tenure: 0.08yrs
    • Chenming Sun (54yo)

      Director

      • Tenure: 0.08yrs

    Company Information

    Kandi Technologies Group, Inc.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Kandi Technologies Group, Inc.
    • Ticker: KNDI
    • Exchange: NasdaqGS
    • Founded: 2002
    • Industry: Auto Parts and Equipment
    • Sector: Automobiles
    • Market Cap: US$237.249m
    • Shares outstanding: 52.84m
    • Website: https://www.kandivehicle.com

    Number of Employees


    Location

    • Kandi Technologies Group, Inc.
    • Jinhua City Industrial Zone
    • Jinhua
    • Zhejiang Province
    • 321016
    • China

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    KNDINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 2007
    K8ADB (Deutsche Boerse AG)YesCommon StockDEEURJul 2007
    KNDISWX (SIX Swiss Exchange)YesCommon StockCHCHFJul 2007
    0QZ7LSE (London Stock Exchange)YesCommon StockGBUSDJul 2007

    Biography

    Kandi Technologies Group, Inc., through its subsidiaries, designs, develops, manufactures, and commercializes electric vehicle (EV) products and parts and off-road vehicles in the People’s Republic of China and internationally. It offers off-road vehicles, including go-karts, all-terrain vehicles, utility vehicles, and other vehicles for sale to distributors or consumers; and EV parts comprising battery packs, EV drive motors, EV controllers, air conditioners, and other electric products. Kandi Technologies Group, Inc. has a strategic cooperation agreement with Jiangsu Jinpeng Group Ltd. to jointly develop the EV market in China. The company was formerly known as Kandi Technologies, Corp. and changed its name to Kandi Technologies Group, Inc. in December 2012. Kandi Technologies Group, Inc. was founded in 2002 and is headquartered in Jinhua, the People’s Republic of China. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/23 00:09
    End of Day Share Price2020/01/22 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.