Earnings calendar for the week 03Jun24 - is NIO worth a shot?
Earnings Calendar (03Jun24)
Let us look at NIO in detail. $NIO Inc.(NIO)$
Recent performance of NIO:
Revenue grew from $719 million in 2018 to $7.78 billion in 2023.
The 10-year median margin of gross profit is 2.7%. This is low for a product-based company.
The company started with an operating loss of $376 million in 2016. It ended the year 2023 with a further $3.17 billion loss.
Earnings per share (EPS) continue to be in the negative with 2023 ending with -$1.74. The company continues to make a loss after eight years of operations despite grants from the Chinese government.
NIO’s stock price fell over 28% from a year ago and continues to make a loss since the beginning.
Investing has given this a “Strong Buy” rating.
For the coming earnings, the forecast from investing is -$2.2 and $10.43 billion for the EPS and revenue respectively.
If the business cannot break even or reduce losses over the years, I could not shortlist the company. There has been much hype about this business and the battery swap technology can be a strong competitive advantage in the future. Without breaking even soon, I would not shortlist this company for now.
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