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REE AUTOMOTIVE LTD - CLASS A (REE) Stock Fundamental Analysis

NASDAQ:REE - Nasdaq - IL0011786154 - Common Stock - Currency: USD

7.76  -0.09 (-1.15%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to REE. REE was compared to 83 industry peers in the Automobile Components industry. The financial health of REE is average, but there are quite some concerns on its profitability. REE is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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0

1. Profitability

1.1 Basic Checks

In the past year REE has reported negative net income.
In the past year REE has reported a negative cash flow from operations.
In the past 5 years REE always reported negative net income.
In the past 5 years REE always reported negative operating cash flow.
REE Yearly Net Income VS EBIT VS OCF VS FCFREE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 -100M -200M -300M -400M -500M

1.2 Ratios

REE has a worse Return On Assets (-76.23%) than 96.39% of its industry peers.
REE has a worse Return On Equity (-190.08%) than 91.57% of its industry peers.
Industry RankSector Rank
ROA -76.23%
ROE -190.08%
ROIC N/A
ROA(3y)-101.77%
ROA(5y)-97.2%
ROE(3y)-136.44%
ROE(5y)-120.27%
ROIC(3y)N/A
ROIC(5y)N/A
REE Yearly ROA, ROE, ROICREE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 -50 -100 -150 -200

1.3 Margins

The Profit Margin and Operating Margin and Gross Margin are not available for REE so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
REE Yearly Profit, Operating, Gross MarginsREE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 0 -1M -2M -3M -4M -5M

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4

2. Health

2.1 Basic Checks

REE does not have a ROIC to compare to the WACC, probably because it is not profitable.
REE has less shares outstanding than it did 1 year ago.
Compared to 1 year ago, REE has a worse debt to assets ratio.
REE Yearly Shares OutstandingREE Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 20M 40M 60M 80M
REE Yearly Total Debt VS Total AssetsREE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 50M 100M 150M 200M 250M

2.2 Solvency

REE has an Altman-Z score of -9.24. This is a bad value and indicates that REE is not financially healthy and even has some risk of bankruptcy.
REE has a Altman-Z score of -9.24. This is amonst the worse of the industry: REE underperforms 90.36% of its industry peers.
REE has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
REE has a Debt to Equity ratio of 0.43. This is in the lower half of the industry: REE underperforms 69.88% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.43
Debt/FCF N/A
Altman-Z -9.24
ROIC/WACCN/A
WACC8.83%
REE Yearly LT Debt VS Equity VS FCFREE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 0 100M -100M 200M

2.3 Liquidity

REE has a Current Ratio of 3.21. This indicates that REE is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.21, REE belongs to the top of the industry, outperforming 89.16% of the companies in the same industry.
A Quick Ratio of 3.15 indicates that REE has no problem at all paying its short term obligations.
REE has a Quick ratio of 3.15. This is amongst the best in the industry. REE outperforms 93.98% of its industry peers.
Industry RankSector Rank
Current Ratio 3.21
Quick Ratio 3.15
REE Yearly Current Assets VS Current LiabilitesREE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 50M 100M 150M 200M 250M

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3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 16.18% over the past year.
Looking at the last year, REE shows a very negative growth in Revenue. The Revenue has decreased by -45.57% in the last year.
Measured over the past years, REE shows a very strong growth in Revenue. The Revenue has been growing by 60.35% on average per year.
EPS 1Y (TTM)16.18%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%43.72%
Revenue 1Y (TTM)-45.57%
Revenue growth 3Y60.35%
Revenue growth 5YN/A
Sales Q2Q%-94.76%

3.2 Future

REE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.51% yearly.
Based on estimates for the next years, REE will show a very strong growth in Revenue. The Revenue will grow by 187.02% on average per year.
EPS Next Y54.53%
EPS Next 2Y25.82%
EPS Next 3Y24.86%
EPS Next 5Y0.51%
Revenue Next Year-92.5%
Revenue Next 2Y302.05%
Revenue Next 3Y483.75%
Revenue Next 5Y187.02%

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
REE Yearly Revenue VS EstimatesREE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 200M 400M 600M 800M
REE Yearly EPS VS EstimatesREE Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 -2 -4 -6 -8 -10

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1

4. Valuation

4.1 Price/Earnings Ratio

REE reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for REE. No positive earnings are expected for the next year.
Industry RankSector Rank
PE N/A
Fwd PE N/A
REE Price Earnings VS Forward Price EarningsREE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 20

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
REE Per share dataREE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 -4 -6

4.3 Compensation for Growth

A more expensive valuation may be justified as REE's earnings are expected to grow with 24.86% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y25.82%
EPS Next 3Y24.86%

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0

5. Dividend

5.1 Amount

REE does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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REE AUTOMOTIVE LTD - CLASS A

NASDAQ:REE (2/21/2025, 8:00:01 PM)

7.76

-0.09 (-1.15%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)12-17 2024-12-17/bmo
Earnings (Next)03-13 2025-03-13/amc
Inst Owners32.38%
Inst Owner Change-59.04%
Ins Owners6.26%
Ins Owner Change0%
Market Cap172.74M
Analysts80
Price Target15.98 (105.93%)
Short Float %1.48%
Short Ratio2.65
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)13.35%
Min EPS beat(2)-9.61%
Max EPS beat(2)36.3%
EPS beat(4)1
Avg EPS beat(4)-6.37%
Min EPS beat(4)-31.01%
Max EPS beat(4)36.3%
EPS beat(8)4
Avg EPS beat(8)4.89%
EPS beat(12)8
Avg EPS beat(12)9.76%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-89.11%
Min Revenue beat(2)-100%
Max Revenue beat(2)-78.22%
Revenue beat(4)0
Avg Revenue beat(4)-79%
Min Revenue beat(4)-100%
Max Revenue beat(4)-66.57%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)9.3%
PT rev (3m)16.05%
EPS NQ rev (1m)-62.78%
EPS NQ rev (3m)42.38%
EPS NY rev (1m)2.63%
EPS NY rev (3m)-1.76%
Revenue NQ rev (1m)-100%
Revenue NQ rev (3m)-100%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-32.13%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 275.94
P/FCF N/A
P/OCF N/A
P/B 2.99
P/tB 2.99
EV/EBITDA N/A
EPS(TTM)-7.2
EYN/A
EPS(NY)-4.02
Fwd EYN/A
FCF(TTM)-3.63
FCFYN/A
OCF(TTM)-3.49
OCFYN/A
SpS0.03
BVpS2.59
TBVpS2.59
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -76.23%
ROE -190.08%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM N/A
FCFM N/A
ROA(3y)-101.77%
ROA(5y)-97.2%
ROE(3y)-136.44%
ROE(5y)-120.27%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score1
Asset Turnover0
Health
Industry RankSector Rank
Debt/Equity 0.43
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 104.35%
Cap/Sales 513.58%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 3.21
Quick Ratio 3.15
Altman-Z -9.24
F-Score1
WACC8.83%
ROIC/WACCN/A
Cap/Depr(3y)442.86%
Cap/Depr(5y)376.3%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)16.18%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%43.72%
EPS Next Y54.53%
EPS Next 2Y25.82%
EPS Next 3Y24.86%
EPS Next 5Y0.51%
Revenue 1Y (TTM)-45.57%
Revenue growth 3Y60.35%
Revenue growth 5YN/A
Sales Q2Q%-94.76%
Revenue Next Year-92.5%
Revenue Next 2Y302.05%
Revenue Next 3Y483.75%
Revenue Next 5Y187.02%
EBIT growth 1Y14.5%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year42.64%
EBIT Next 3Y30.47%
EBIT Next 5Y21.5%
FCF growth 1Y28.68%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y24.88%
OCF growth 3YN/A
OCF growth 5YN/A