Shares of Large-cap consumer discretionary company Rivian Automotive moved 1.4% this evening, and are now trading at $17.42 per share. The average analyst target price for the stock is $28.17.
Rivian Automotive, Inc. designs, develops, manufactures, and sells electric vehicles and accessories.
Based on its trailing earning per share of -6.46, Rivian Automotive has a trailing 12 month Price to Earnings (P/E) ratio of -2.7 RIVN has a forward P/E ratio of -5.2 based on its earnings guidance of $None.
The company has a price to earnings growth (PEG) ratio of -0.05. A number between 0 and 1 could mean that the market is undervaluing Rivian Automotive's estimated growth potential
The Business Has Consistently Weak Margins
| 2021 | 2022 | 2023 | |
|---|---|---|---|
| Revenue (MM) | $55 | $1,658 | $2,981 |
| Gross Margins | -6727% | -188% | -96% |
| Operating Margins | -7673.0% | -407.0% | -200.0% |
| Net Margins | -8524.0% | -407.0% | -200.0% |
| Net Income (MM) | -$4,688 | -$6,752 | -$5,991 |
| Net Interest Expense (MM) | $29 | $103 | $149 |
| Depreciation & Amort. (MM) | $197 | $647 | $840 |
| Earnings Per Share | -$22.98 | -$7.4 | -$6.14 |
| Diluted Shares (MM) | 204 | 913 | 976 |
| Free Cash Flow (MM) | -$4,416 | -$6,421 | -$6,826 |
| Capital Expenditures (MM) | $1,794 | $1,369 | $1,130 |
| Net Current Assets (MM) | $15,779 | $9,053 | $7,348 |
| Long Term Debt (MM) | $1,366 | $1,231 | $2,718 |
| LT Debt to Equity | 0.07 | 0.09 | 0.23 |
Rivian Automotive has healthy debt levels, growing revenues and decreasing reinvestment in the business, and a strong EPS growth trend. However, the firm suffers from consistently poor operating margins with a positive growth rate and negative and highly variable cash flows. Finally, we note that Rivian Automotive has similar gross margins to its peers.
