NasdaqCM:WKHS

Stock Analysis Report

Executive Summary

Workhorse Group Inc. designs, manufactures, builds, sells, and leases battery-electric vehicles and aircraft in the United States.

Rewards

Earnings are forecast to grow 94.99% per year

Risk Analysis

Makes less than USD$1m in revenue ($395K)

Has less than 1 year of cash runway

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

High growth potential with weak fundamentals.


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Share Price & News

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


Latest Share Price and Events

Stable Share Price: WKHS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

10.2%

WKHS

-1.4%

US Auto Components

-1.2%

US Market


1 Year Return

459.2%

WKHS

5.6%

US Auto Components

15.5%

US Market

Return vs Industry: WKHS exceeded the US Auto Components industry which returned 5.6% over the past year.

Return vs Market: WKHS exceeded the US Market which returned 15.5% over the past year.


Shareholder returns

WKHSIndustryMarket
7 Day10.2%-1.4%-1.2%
30 Day22.8%-3.4%1.4%
90 Day-10.9%7.5%4.7%
1 Year459.2%459.2%7.2%5.6%18.0%15.5%
3 Year-58.5%-58.5%-0.9%-10.9%44.8%35.4%
5 Year132.1%132.1%18.6%1.9%67.3%48.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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


In this section, we usually try to help investors determine whether Workhorse Group is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Workhorse Group has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

Future Growth

How is Workhorse Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

95.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WKHS is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: WKHS is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: WKHS's is expected to become profitable in the next 3 years.

Revenue vs Market: WKHS's revenue (135.9% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: WKHS's revenue (135.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if WKHS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Workhorse Group performed over the past 5 years?

-38.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WKHS is currently unprofitable.

Growing Profit Margin: WKHS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: WKHS is unprofitable, and losses have increased over the past 5 years at a rate of -38.9% per year.

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

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


Return on Equity

High ROE: WKHS's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Workhorse Group's financial position?


Financial Position Analysis

Short Term Liabilities: WKHS has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: WKHS has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: WKHS has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: WKHS's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

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

Debt Coverage by Assets: WKHS has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


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: WKHS has less than a year of cash runway based on its current free cash flow.

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


Next Steps

Dividend

What is Workhorse 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 WKHS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

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

Growing Dividend: Insufficient data to determine if WKHS'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 WKHS'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 Workhorse Group's salary, the management and board of directors tenure and is there insider trading?

3.6yrs

Average board tenure


CEO

Duane Hughes (55yo)

0.8yrs

Tenure

US$1,050,150

Compensation

Mr. Duane Hughes is the Chief Executive Officer of Workhorse Group Inc. since February 5, 2019. He was the President of Workhorse Group Inc. since September 6, 2015 until February 5, 2019 and its Chief Ope ...


CEO Compensation Analysis

Compensation vs Market: Duane's total compensation ($USD0.00) is below average for companies of similar size in the US market ($USD1.13M).

Compensation vs Earnings: Duane's compensation has increased whilst the company is unprofitable.


Board Age and Tenure

3.6yrs

Average Tenure

53.5yo

Average Age

Experienced Board: WKHS's board of directors are considered experienced (3.6 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$161,98714 Jun 19
Arosa Capital Management LP
EntityCompany
Shares178,333
Max PriceUS$0.92
BuyUS$800,00613 Feb 19
H. Samuels
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares841,934
Max PriceUS$0.95
BuyUS$25,00013 Feb 19
Gerald Budde
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares26,310
Max PriceUS$0.95

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 36.5%.


Management Team

  • Steve Burns (59yo)

    Co-Founder & Consultant

    • Tenure: 0yrs
    • Compensation: US$2.37m
  • Duane Hughes (55yo)

    CEO & Director

    • Tenure: 0.8yrs
    • Compensation: US$1.05m
  • Rob Willison

    Chief Operating Officer

    • Tenure: 0.8yrs
  • Greg Ackerson

    Corporate Controller

    • Tenure: 0yrs

Board Members

  • Harry DeMott (52yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$40.00k
  • Ben Samuels (52yo)

    Independent Director

    • Tenure: 4yrs
    • Compensation: US$40.00k
  • Gerald Budde (58yo)

    Independent Director

    • Tenure: 4yrs
    • Compensation: US$40.00k
  • Michael Clark (47yo)

    Director

    • Tenure: 1.3yrs
  • Ray Chess (61yo)

    Chairman

    • Tenure: 4yrs
    • Compensation: US$40.00k
  • Duane Hughes (55yo)

    CEO & Director

    • Tenure: 0.8yrs
    • Compensation: US$1.05m

Company Information

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


Key Information

  • Name: Workhorse Group Inc.
  • Ticker: WKHS
  • Exchange: NasdaqCM
  • Founded: 2007
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: US$190.738m
  • Shares outstanding: 68.86m
  • Website: https://www.workhorse.com

Number of Employees


Location

  • Workhorse Group Inc.
  • 100 Commerce Drive
  • Loveland
  • Ohio
  • 45140
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WKHSNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDDec 2009
1WODB (Deutsche Boerse AG)YesCommon StockDEEURDec 2009
1WOBST (Boerse-Stuttgart)YesCommon StockDEEURDec 2009

Biography

Workhorse Group Inc. designs, manufactures, builds, sells, and leases battery-electric vehicles and aircraft in the United States. It operates through two divisions, Automotive and Aviation. The company al ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/06 00:20
End of Day Share Price2019/12/05 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.