LCID stock was down more than 6%, but virtually every EV stock was feeling the pain - even industry leader Tesla (NASDAQ: TSLA). On Monday, EV stocks in general took a big hit as a result of this uncertainty. In addition, inflation and interest rates are on the rise while crypto currencies have been tanking.Īll of these big issues - none of which are specific to Lucid - have roiled the stock market in recent weeks. The global shortage of semiconductors is expected to continue for the foreseeable future. North Korea has begun firing off test missiles. Two years after the pandemic first began there is ongoing worry about Omicron’s continued death toll in the U.S and other countries. Worry that Russia might invade Ukraine and kick off a war in Europe. Let’s start off with the very broad strokes. As I’ll attempt to explain, most of the factors that have been hurting Lucid stock aren’t about Lucid at all. In fact, it’s worth less than it was at the end of 2021. Currently sitting at around $35, LCID stock is down more than 20% from that January 11 close. They’re likely less impressed by its performance since. By January 11, it closed at $45.47 for a 19.5% gain since the start of the year. Starting in January 2022, LCID stock began to rally. However, some of those gains were given back after the excitement was over and LCID remained relatively flat through this past December. Stellar reviews of Lucid’s first production EV also didn’t hurt. LCID stock surged last November on news that the first Lucid Air EVs had been delivered to customers.
While LCID has an overall POWR Rating of D, one might want to consider looking at its industry peers, Suzuki Motor Corporation ( SZKMY), Volkswagen AG ( VWAGY), and Honda Motor Company Ltd ( HMC), which have an A (Strong Buy) rating.Source: Around the World Photos / Thus, we believe LCID is best avoided now. Also, it could take a few years for the company to generate a stable revenue stream because of the current semiconductor chip shortage and production cuts. LCID’s weak financials and poor profitability do not justify its stretched valuation. Get all LCID ratings here.Ĭlick here to check out our Automotive Industry Report for 2021 Of the 63 stocks in the D-rated Auto & Vehicle Manufacturers industry, LCID is ranked #51.īeyond what I’ve stated above, we have rated LCID for Momentum and Quality. Given the stock’s bleak growth prospects, negative profit margin, and higher-than-industry valuation multiples, these grades are justified.Īlso, the stock has a C grade for Stability, which indicates the stock’s higher volatility than its peers. Our proprietary rating system also evaluates each stock based on eight distinct categories.S LCID has an F grade for Growth, Value, and Sentiment. The POWR Ratings are calculated considering 118 distinct factors, with each factor weighted to an optimal degree. LCID has an overall D rating, which equates to Sell in our proprietary POWR Ratings system. Furthermore, the stock’s 8.38x forward Price/Book ratio is 145.5% higher than the 3.41x industry average. In addition, its 511.72x forward Price/Sales compares with the 1.20x industry average. In terms of forward EV/Sales, LCID is currently trading at 559.80x, which is significantly higher than the 1.47x industry average.
Also, the company’s cash from operations stood at a negative $815.76 million. Furthermore, LCID’s 27.4% trailing-12months gross profit margin is 23.4% lower than the 35.8% industry average. Its trailing-12-month ROTC and ROA are negative 45.8% and 85.4%, respectively.
0 kommentar(er)
