Don't Buy QuantumScape Before Checking Its Fundamentals!

By Harris Dyer • Friday, March 14 09:52 • Permanent Link

With gains of 3.0%, QuantumScape was one of the winners on Wall Street today. Its shares are now trading at $4.28 and have logged a 1.0% daily outperformance of the S&P 500. Don't join the feeding frenzy before checking some basic facts about this stock:

QuantumScape has moved -27.1% over the last year, and the S&P 500 logged a change of 7.9%
QS has an average analyst rating of hold and is -25.0% away from its mean target price of $5.7 per share
Its trailing earnings per share (EPS) is $-0.94
QuantumScape has a trailing 12 month Price to Earnings (P/E) ratio of -4.5 while the S&P 500 average is 29.3
Its forward earnings per share (EPS) is $-0.84 and its forward P/E ratio is -5.1
The company has a Price to Book (P/B) ratio of 2.0 in contrast to the S&P 500's average ratio of 4.74
QuantumScape is part of the Consumer Cyclical sector, which has an average P/E ratio of 22.6 and an average P/B of 3.19
The company has a free cash flow of $-157885872, which refers to the total sum of all its inflows and outflows of cash over the last quarter
QuantumScape Corporation, a research and development stage company, focuses on the development and commercialization of solid-state lithium-metal batteries for electric vehicles and other applications. The company was founded in 2010 and is headquartered in San Jose, California.

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.