NasdaqGM:NIU

Stock Analysis Report

Executive Summary

Niu Technologies designs, manufactures, and sells smart electric-scooters in the People's Republic of China.

Rewards

Earnings are forecast to grow 62.67% per year

Became profitable this year

Risk Analysis

Shareholders have been substantially diluted in the past year



Snowflake Analysis

Exceptional growth potential with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0.8%

NIU

2.8%

US Auto

1.5%

US Market


1 Year Return

24.0%

NIU

51.2%

US Auto

20.1%

US Market

Return vs Industry: NIU underperformed the US Auto industry which returned 51.2% over the past year.

Return vs Market: NIU exceeded the US Market which returned 20.1% over the past year.


Shareholder returns

NIUIndustryMarket
7 Day0.8%2.8%1.5%
30 Day2.9%21.2%1.4%
90 Day4.3%39.9%8.7%
1 Year24.0%24.0%55.4%51.2%22.7%20.1%
3 Yearn/a65.2%50.5%50.1%40.5%
5 Yearn/a69.9%41.1%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

48.52x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: NIU is poor value based on its PE Ratio (48.5x) compared to the Auto industry average (27.7x).

PE vs Market: NIU is poor value based on its PE Ratio (48.5x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: NIU is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: NIU is overvalued based on its PB Ratio (6.7x) compared to the US Auto industry average (3.6x).


Next Steps

Future Growth

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

62.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NIU's forecast earnings growth (62.7% per year) is above the savings rate (1.7%).

Earnings vs Market: NIU's earnings (62.7% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NIU's revenue (33.4% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: NIU's revenue (33.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NIU's Return on Equity is forecast to be high in 3 years time (36.8%)


Next Steps

Past Performance

How has Niu Technologies performed over the past 5 years?

55.0%

Last years revenue growth


Earnings and Revenue History

Quality Earnings: NIU has high quality earnings.

Growing Profit Margin: NIU became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: NIU has become profitable over the past 5 years, growing earnings by 0% per year.

Accelerating Growth: NIU has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: NIU has become profitable in the last year, making it difficult to compare its past year earnings growth to the Auto industry (-18.9%).


Return on Equity

High ROE: NIU's Return on Equity (13.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Niu Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: NIU's short term assets (CN¥1.5B) exceed its short term liabilities (CN¥942.2M).

Long Term Liabilities: NIU's short term assets (CN¥1.5B) exceed its long term liabilities (CN¥20.8M).


Debt to Equity History and Analysis

Debt Level: NIU's debt to equity ratio (36.8%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if NIU's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: NIU's debt is covered by short term assets (assets are 5.7x 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: NIU is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: Insufficient data to determine if NIU has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage4.0%forecastin3Years0%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate NIU'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 NIU's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NIU'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 NIU's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.2yrs

Average management tenure


CEO

Yan Li (40yo)

2.2yrs

Tenure

0

Dr. Yan Li has served as the chairman of board of directors of Niu Technologies since March 2018, its chief executive officer since December 2017 and its chief operating officer since January 2016. Prior t ...


Leadership Team

NamePositionTenureCompensationOwnership
Yan Li
Chairman2.2yrsno data4.45% CN¥31.0m
Hardy Peng Zhang
CFO & Compliance Officer1.8yrsno datano data
Jason Yang
Investor Relations Manager0yrsno datano data
Yilin Hu
VP of Research & Development and Director5.4yrsno datano data

2.2yrs

Average Tenure

39yo

Average Age

Experienced Management: NIU's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yan Li
Chairman2.2yrsno data4.45% CN¥31.0m
Yilin Hu
VP of Research & Development and Director5.4yrsno datano data
Mei-Wei Cheng
Independent Director1.3yrsno datano data
Julian Juul Wolhardt
Independent Director1.3yrsno datano data
Xiaojun Li
Independent Director1.3yrsno datano data
Changqing Ye
Independent Director1.3yrsno datano data
Hongwei Lee
Director4.8yrsno datano data
Jinshu Zhang
Independent Director1.3yrsno datano data

1.3yrs

Average Tenure

45.5yo

Average Age

Experienced Board: NIU's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 252.6%.


Top Shareholders

Company Information

Niu Technologies's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Niu Technologies
  • Ticker: NIU
  • Exchange: NasdaqGM
  • Founded: 2014
  • Industry: Motorcycle Manufacturers
  • Sector: Automobiles
  • Market Cap: US$695.795m
  • Shares outstanding: 74.34m
  • Website: https://www.niu.com

Number of Employees


Location

  • Niu Technologies
  • Building A
  • 11th Floor
  • Beijing
  • 100102
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NIUNasdaqGM (Nasdaq Global Market)YesSPON ADS EACH REP 2 ORD SHS CL AUSUSDOct 2018
0O9DB (Deutsche Boerse AG)YesSPON ADS EACH REP 2 ORD SHS CL ADEEUROct 2018

Biography

Niu Technologies designs, manufactures, and sells smart electric-scooters in the People's Republic of China. The company offers N, M, and U series e-scooters with various models or specifications under the NIU brand name. It also provides scooter accessories, such as raincoats, gloves, knee pads, storage baskets and tail boxes, smart phone holders, backrests, and locks; lifestyle accessories, which includes T-shirts, coats, jeans, hats, bags, jewelry, notebook, badges, key chain, and mugs; performance upgrade components that comprises of upgraded wheels, shock absorbers, brake calipers, and carbon fiber body panels; and professional mountain and road bicycles. In addition, the company, through its NIU app, offers online repair request, DIY repairs, service station locator, theft reporting, and smart services, as well as NIU cover, which provides insurance services; and NIU Care that offers maintenance service and reserve service in offline service stations. The company sells and services its products through city partner system, as well as through own online store and third-party e-commerce platforms. As of December 31, 2018, it operated through 233 city partners and 760 franchised stores in China in approximately 178 cities in the People's Republic of China, as well as 22 distributors in 27 countries internationally. The company was founded in 2014 and is headquartered in Beijing, 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 Analysis2020/02/17 01:34
End of Day Share Price2020/02/14 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.