Company Overview
Workhorse Group, Inc. operates within the consumer cyclical sector as a manufacturer of electric trucks and associated fleet charging solutions. The company focuses on medium-duty fleet applications, providing vehicles such as the Argo electric truck and Argo chassis that integrate proprietary battery, drivetrain, and cab systems. This business scope positions the firm within the auto manufacturers industry, targeting commercial logistics and utility fleets that require electrified transport capabilities. The company's financial scale is defined by a market capitalization of $24.37M and annual revenue of $17.42M, supported by an employee base of 143 individuals. These valuation and revenue figures indicate that Workhorse Group, Inc. maintains a very small market presence relative to established large-cap automotive peers, reflecting the early-stage nature of its electric vehicle manufacturing efforts and the high risk inherent in transitioning to new powertrain technologies.
Financial Health
The company reported revenue of $17.42M over the trailing twelve months, yet it posted a net income of $-59,927,688, revealing a severe structural deficit where costs and expenses significantly exceed total sales. The EBITDA figure of $-36,666,780 further underscores the operational challenges, showing that the core business operations are generating substantial losses before financing and non-cash items. Free cash flow stands at $-29,551,714, indicating that the company is burning through cash reserves to fund operations and capital expenditures, which limits its immediate financial flexibility without external financing. Profitability is further eroded by three distinct margin metrics: a gross margin of -39.6%, an operating margin of -96.6%, and a profit margin of 0.0%, all of which signal that the company is unable to retain any value from its sales after accounting for production and overhead costs. On the balance sheet, cash holdings of $3.78M are heavily outweighed by total debt of $103.71M, creating a precarious leverage position where liabilities exceed liquid assets by a factor of nearly thirty. The current ratio of 0.29 confirms a critical liquidity shortfall, meaning the company possesses less than one-third of the current assets necessary to cover its short-term obligations. Return on equity and return on assets are reported as N/A and -33.7% respectively, with the negative ROA demonstrating that management is effectively destroying shareholder value and utilizing assets inefficiently to generate returns.
Valuation Assessment
Valuation multiples for the stock reflect the absence of earnings, with a trailing P/E ratio of 0.04 and a forward P/E of -1.55. The discrepancy between the near-zero trailing multiple and the negative forward multiple implies that the market is pricing in continued losses or expects earnings to remain negative in the near future. The price-to-book ratio is -0.32, indicating that the market values the company at less than one-third of its book value, which suggests significant skepticism regarding the recoverability of its assets or the viability of its future cash flows. Alternative valuation metrics such as the price-to-sales ratio of 1.40 and an EV/EBITDA of -3.43 provide context on the company's revenue multiple relative to its valuation, though the negative EV/EBITDA highlights the dominance of debt in its capital structure. Price action over the last year shows a 52-week high of $67.32 and a 52-week low of $2.73; while the specific current price is not provided in the facts, the wide range indicates extreme volatility and a speculative trading environment where the stock trades at a significant discount relative to its recent peak. The beta is listed as N/A, which precludes a direct assessment of price volatility relative to the broader market based on historical standard deviation metrics available in the dataset.
Growth & Income
Revenue growth year-over-year is reported at an extraordinary 19278.5%, driven by the base effects of prior minimal sales, while earnings growth is N/A due to the negative net income position. This divergence implies that while top-line activity has expanded massively from a tiny base, profitability has not followed suit, suggesting that revenue expansion is currently decoupled from operational efficiency. As a non-dividend payer, the company does not distribute a dividend yield or utilize a payout ratio, meaning it retains all earnings or losses to fund operations and growth initiatives rather than returning capital to shareholders. The overall growth and income profile is characterized by hyper-growth in top-line metrics combined with deep structural losses and no distribution of income, reflecting a high-risk, capital-intensive growth strategy typical of early-stage electric vehicle manufacturers.