I found a niche EV company Ayro ticker (AYRO), trading below quick liquidation value.
They makes low-speed electric vehicles for closed campus mobility, urban and community transport, local on-demand and last mile delivery, and government use. It provides four-wheeled purpose-built electric vehicles for universities, business and medical campuses, last mile delivery services, and food service providers.
The company is not profitable, however, they have grown revenue year over year consistently the past four years. The four year compound annual growth rate of sales is 35%. There is only one analyst covering the stock which is a good thing. That analyst is projecting next years full revenue to come in at $10.2 million or over a 300% revenue growth rate.
The current market cap is $33.3 million with the stock at $.89 a share and net current asset value is $43 million. $31.9 million of NCAV is in cash. The current ratio is a whopping 25 with only $2.4 million in total liabilities.
The main problem I see right now is there is no gross profit. I’m not sure how fast and if they can get to gross profitability. If they keep growing sales at a rapid pace that definitely helps the possibility of getting over the hump. The cash burn is roughly $20 million a year and is a risk going forward. I don’t often see vehicle manufacturers near NCAV or NTAV so I found this one intriguing especially considering it being electric which is a fast growing market as we know.
Some comments from management:
We just completed a series of internal tests on the Vanish and will be entering the homologation phase this week to obtain the necessary certifications so that we can begin selling our vehicle in the next 90 days. In parallel with the homologation phase, we plan to begin Low Rate Initial Production, or LRIP, by early June to begin building the first 50 Vanish units that will be used as demo models for our signed dealers. Following LRIP, we plan to enter full-scale production, where we will target building nine Vanish units per day under a single-shift scenario. This pace equates to over 2,000 vehicles per year, although we believe demand could be strong enough for us to consider moving to a double-shift operation as fast as practically possible.
Perhaps even more exciting than receiving indications of interest from new, additional dealers is the potential for signing fleet customers, which typically have numerous storefronts or facilities in many locations that have the potential to purchase many multiples of units for re-sale into their own customer bases.
On the cash situation:
"Lastly, our cash balance at the end of the first quarter was nearly $42 million, which we believe to be sufficient to reach profitability based on our current forecast. Despite ramping manufacturing and marketing activity as the Vanish heads down the homestretch of its pre-launch phase, our net loss was approximately the same as it had been in previous quarters.
-I have no position at time of writing