Don't Miss These Facts About NIO

Now trading at a price of $8.5, NIO has moved 0.7% so far today.

NIO returned losses of -28.0% last year, with its stock price reaching a high of $16.18 and a low of $7.0. Over the same period, the stock underperformed the S&P 500 index by -51.0%. As of April 2023, the company's 50-day average price was $10.48. NIO Inc. designs, develops, manufactures, and sells smart electric vehicles in China. Based in Shanghai, China, the large-cap Consumer Discretionary company has 26,763 full time employees. NIO has not offered a regular dividend during the last year.

The Company Trades Below Its Net Current Asset Value:

2019-04-02 2020-05-14 2021-04-06 2022-04-29
Revenue (MM) $4,951 $7,825 $16,258 $36,136
Gross Margins -5.0% -15.0% 12.0% 19.0%
Operating Margins -194% -142% -28% -12%
Net Margins -195.0% -144.0% -33.0% -11.0%
Net Income (MM) -$9,661 -$11,287 -$5,299 -$3,986
Net Interest Expense (MM) $10 -$210 -$259 $274
Depreciation & Amort. (MM) -$474 -$999 -$1,046 -$1,708
Earnings Per Share -$70.23 -$11.08 -$4.74 -$8.94
EPS Growth n/a 84.22% 57.22% -88.61%
Diluted Shares (MM) 332 1,030 1,183 1,183
Free Cash Flow (MM) -$5,268 -$7,015 $2,916 $6,044
Capital Expenditures (MM) -$2,644 -$1,707 -$965 -$4,078
Net Current Assets (MM) $1,477 -$14,476 $23,427 $18,821
Long Term Debt (MM) $1,168 $7,155 $5,938 $9,739
LT Debt to Equity 0.14 -1.48 0.19 0.26

NIO has slimmer gross margins than its peers, consistently negative margins with a positive growth rate, and an unconvincing cash flow history. On the other hand, the company benefits from an excellent current ratio and a strong EPS growth trend. Furthermore, NIO has weak revenue growth and a flat capital expenditure trend.

NIO does not have a meaningful trailing P/E ratio since its earnings per share are negative. Its forward EPS guidance is negative too, at $-0.71. The average P/E ratio for the Consumer Discretionary sector is 22.33. On the other hand, the market is undervaluing NIO in terms of its equity because its P/B ratio is 0.98. In comparison, the sector average is 3.12.

Overview of NIO's Market Factors:

The largest shareholder is Baillie Gifford and Company, whose 8% stake in the company is worth $1,015,233,663.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.