Company Overview
CBAK Energy Technology, Inc. is engaged in the manufacture, commercialization, and distribution of standard and customized lithium and sodium batteries, serving markets in Mainland China, Europe, and internationally. Operating within the Industrials sector and the Electrical Equipment & Parts industry, the company functions as a specialized provider of critical energy storage solutions. The entity maintains a market capitalization of $72.25M, reports annual revenue of $161.76M, and employs 1,463 individuals across its operations. These valuation and revenue figures indicate that the company operates as a mid-sized entity within the broader battery manufacturing landscape, possessing significant operational scale relative to its current market valuation. The disparity between the substantial revenue base and the modest market cap suggests that the stock market is currently pricing in significant risks or expecting a structural reset in earnings before the company's true value is fully reflected in the share price. The employee count of 1,463 further underscores the labor-intensive nature of manufacturing and distribution, which is typical for companies in the electrical equipment sector.
Financial Health
The company generated $161.76M in revenue over the trailing twelve months, yet recorded a net income loss of $-6,511,222 and an EBITDA of $-9,592,242. The substantial gap between the positive revenue and the significant negative net income reveals a cost structure where operating expenses and cost of goods sold exceed gross profits by a wide margin, resulting in a bottom-line deficit. Free cash flow stands at $-9,106,051, indicating that the company is burning cash faster than it generates from operations, which limits its financial flexibility for capital expenditures or unexpected market downturns without external financing. Gross margin sits at 10.8%, while the operating margin is -6.6% and the profit margin is -4.0%, collectively indicating that the company struggles to convert sales into profit due to high overheads or aggressive pricing pressures. On the balance sheet, the company holds $10.56M in cash against $38.07M in debt, creating a net negative cash position, while the debt-to-equity ratio of 32.14 highlights a highly leveraged financial structure. The current ratio of 0.69 signifies that current assets are insufficient to cover current liabilities, pointing to potential short-term liquidity challenges. Return on Equity is -7.0% and Return on Assets is -3.1%, metrics that reveal management is currently destroying shareholder value and utilizing assets inefficiently to generate returns.
Valuation Assessment
The P/E Ratio (TTM) is listed as N/A due to the negative earnings, whereas the Forward P/E is 2.47, a discrepancy that implies the market is pricing in a complete turnaround in earnings trajectory to achieve profitability in the near future. The Price to Book ratio is 0.59, indicating that the stock trades at less than half of its book value, which suggests the market is valuing the company at a significant discount to its tangible asset base. The Price to Sales ratio of 0.45 and the EV/EBITDA of -10.09 provide alternative valuation perspectives that emphasize revenue quality over profitability, suggesting the market is focusing on the top-line growth potential despite the negative earnings multiple. The 52-week high is $1.25 and the 52-week low is $0.57, meaning the current price sits somewhere within this range, reflecting the high volatility associated with small-cap industrial stocks. The Beta of 1.31 indicates that the stock is expected to be 31% more volatile than the broader market, necessitating a higher risk premium from investors.
Growth & Income
Revenue growth for the year-over-year period stands at 36.5%, while earnings growth is listed at 15062.1%, a figure that mathematically reflects a transition from a larger loss to a smaller loss rather than traditional profit expansion. The earnings growth rate is technically higher than revenue growth because the denominator (net income) is negative, implying that the improvement in profitability is not yet driven by operational scaling but by a reduction in losses. As a non-dividend payer, the company reports a dividend yield of N/A and a payout ratio of 0.0%, which explains that it reinvests all available resources back into the business rather than distributing income to shareholders. The overall growth and income profile presents a high-risk, high-volatility scenario where top-line expansion is occurring, but income generation remains elusive, resulting in a capital-intensive growth phase with no current shareholder yield.