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

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

2.64  +0.13 (+5.18%)

After market: 2.76 +0.12 (+4.55%)

Fundamental Rating

3

Taking everything into account, REE scores 3 out of 10 in our fundamental rating. REE was compared to 81 industry peers in the Automobile Components industry. While REE seems to be doing ok healthwise, there are quite some concerns on its profitability. REE is quite expensive at the moment. 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.
REE had a negative operating cash flow in the past year.
REE had negative earnings in each of the past 5 years.
REE had a negative operating cash flow in each of the past 5 years.
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

With a Return On Assets value of -76.23%, REE is not doing good in the industry: 97.53% of the companies in the same industry are doing better.
REE has a worse Return On Equity (-190.08%) than 92.59% 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.
The number of shares outstanding for REE has been reduced compared to 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

Based on the Altman-Z score of -9.88, we must say that REE is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -9.88, REE is doing worse than 95.06% of the companies in the same industry.
A Debt/Equity ratio of 0.43 indicates that REE is not too dependend on debt financing.
The Debt to Equity ratio of REE (0.43) is worse than 70.37% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.43
Debt/FCF N/A
Altman-Z -9.88
ROIC/WACCN/A
WACC8.47%
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

A Current Ratio of 3.21 indicates that REE has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.21, REE belongs to the best of the industry, outperforming 87.65% of the companies in the same industry.
REE has a Quick Ratio of 3.15. This indicates that REE is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of REE (3.15) is better than 92.59% 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

The Earnings Per Share is expected to grow by 0.51% on average over the next years.
REE is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 253.58% yearly.
EPS Next Y45.2%
EPS Next 2Y25.17%
EPS Next 3Y23.91%
EPS Next 5Y0.51%
Revenue Next Year-92.7%
Revenue Next 2Y293.94%
Revenue Next 3Y438.7%
Revenue Next 5Y253.58%

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 500M 1B 1.5B 2B 2.5B
REE Yearly EPS VS EstimatesREE Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 -2 -4 -6 -8 -10

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1

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for REE. In the last year negative earnings were reported.
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 30

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 -4 -6

4.3 Compensation for Growth

REE's earnings are expected to grow with 23.91% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y25.17%
EPS Next 3Y23.91%

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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 (4/21/2025, 8:00:01 PM)

After market: 2.76 +0.12 (+4.55%)

2.64

+0.13 (+5.18%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)12-17 2024-12-17/bmo
Earnings (Next)04-29 2025-04-29/amc
Inst Owners32.38%
Inst Owner Change-59.04%
Ins Owners6.26%
Ins Owner Change0%
Market Cap79.99M
Analysts80
Price Target15.98 (505.3%)
Short Float %1.61%
Short Ratio5.87
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)0%
PT rev (3m)9.3%
EPS NQ rev (1m)-23.42%
EPS NQ rev (3m)-66.19%
EPS NY rev (1m)-20.51%
EPS NY rev (3m)-17.33%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)-100%
Revenue NY rev (1m)-2.6%
Revenue NY rev (3m)-2.6%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 127.78
P/FCF N/A
P/OCF N/A
P/B 1.39
P/tB 1.39
EV/EBITDA N/A
EPS(TTM)-7.2
EYN/A
EPS(NY)-4.18
Fwd EYN/A
FCF(TTM)-2.67
FCFYN/A
OCF(TTM)-2.56
OCFYN/A
SpS0.02
BVpS1.9
TBVpS1.9
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 -9.88
F-Score1
WACC8.47%
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 Y45.2%
EPS Next 2Y25.17%
EPS Next 3Y23.91%
EPS Next 5Y0.51%
Revenue 1Y (TTM)-45.57%
Revenue growth 3Y60.35%
Revenue growth 5YN/A
Sales Q2Q%-94.76%
Revenue Next Year-92.7%
Revenue Next 2Y293.94%
Revenue Next 3Y438.7%
Revenue Next 5Y253.58%
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