XL Fleet Corp., based in Boston (XL) is a designer and developer of hybrid electric vehicles for the commercial and public vehicle markets in the United States and Canada. XL Fleet turns internal combustion engines into plug-in hybrid electric cars. It also intends to launch a fully electric conversion solution in the near term.
However, as automakers have failed to meet demand for electric vehicles due to supply chain constraints and a shortage of semiconductor chips, the company has so far failed failed to achieve its expected growth.
Closing yesterday’s trading session at $ 3.27, the stock is currently trading near its 52-week low at $ 3.07, indicating a downtrend. In addition, concerns about the effect of the global chip shortage on the electric vehicle industry may further contribute to investor concerns about the future performance of stock prices. And given the stock’s strong valuation and weak financial data, XL could be a risky bet.
Click here to view our Electric vehicle industry Report for 2022
Here is what could influence the performance of XL in the coming months:
XL’s revenue decreased 49.4% year-on-year to $ 3.2 million for the third quarter, ended September 30, 2021. Its operating loss increased 150% from its value from a year ago to reach $ 15.27 million. And the company’s net loss jumped 230.7 percent from a year-ago quarter to $ 7.53 million, while its loss per share rose 66.7 percent year-on-year to 0, $ 05.
15.89% of the last 12 months of XL Gross margin is 55.9% lower than the industry average of 35.9%. In addition, its ROC, EBIT margin and leveraged FCF margin are negative at 13.6%, 216.9% and 174.4%, respectively. And its operating cash flow over the past 12 months was negative at $ 41.01 million, compared to an industry average of $ 183.7 million.
In terms of EV / futures sales, the stock is currently trading at 0.29x, which is 85.9% lower than the industry average 2.03x. And its futures price / book 1.8x is 45.9% lower than the industry average 3.32x. Additionally, RAD futures price / sell 0.03x is 97.3% lower than the industry average 1.42x.
POWR ratings reflect uncertainty
XL has an overall F rating, which equates to a strong sale in our property POWR odds system. POWR scores are calculated by considering 118 separate factors, each factor being weighted to an optimal degree.
Our proprietary scoring system also rates each stock against eight distinct categories. XL has a D rating for value and quality. The negative profit margins of the company and its higher valuation than the sector correspond to these ratings.
Of the 65 C-rated stocks Car parts industry, XL is ranked # 63.
Beyond what I stated above you can see the XL ratings for Stability, Growth, Momentum and Feeling here.
XL’s share has fallen 17.2% over the past month and is currently trading below its 50-day, 200-day moving average of $ 4.53 and $ 6.36, respectively, reflecting bearish sentiment. investors. Moreover, given the slowdown in its operational performance, its growth prospects appear uncertain. So we think the stock is best avoided now.
How does XL Fleet Corp. (XL) compare to his peers?
While XL has an overall rating of F, one might want to consider its industry peers, Genuine Parts Company (GPC), LKQ Corporation (LKQ) and Standard Motors Products Inc. (SMP), which have an overall B (Buy) rating.
Click here to view our Electric Vehicle Industry Report for 2022
XL shares were trading at $ 3.25 a share on Wednesday morning, down $ 0.02 (-0.61%). Year-to-date, XL is down -1.81%, compared to a 0.44% increase in the benchmark S&P 500 over the same period.
About the Author: Pragya Pandey
Pragya is an equity research analyst and financial journalist with a passion for investing. In college, she majored in finance and is currently pursuing the CFA program and is a Level II candidate. Following…