Fisker Downgraded by Evercore ISI, Financial Tightrope Ahead
December 19, 2023
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Fisker Inc ($NYSE:FSR). has recently been downgraded by Evercore ISI, an independent investment research firm. The downgrade comes after Evercore ISI noted that Fisker is treading a precarious financial path. They specialize in electric car technology and are based in California. The company produces several models of electric cars, including the Karma Revero, Fisker Ocean, and Fisker EMotion. Its innovative vehicles are designed to be attractive, affordable, and energy efficient.
However, despite its impressive range of electric vehicles, Fisker has been unable to secure the funding needed to remain viable in the long term. As such, the company has struggled to keep up with the competition, as well as to meet the demands of the demanding electric vehicle market. This has led to Evercore ISI downgrading Fisker Inc., emphasizing the need for the company to take action in order to ensure its future success. With the right measures in place, Fisker could still progress and turn its financial situation around. However, it remains to be seen if the company will be able to do so.
Price History
On Monday, FISKER INC saw its stock open at $1.6 and close at the same price, representing a 6.9% drop from its last closing price of $1.7. This downward trend follows the Evercore ISI rating downgrade to “Sell” from “Hold”. The company is facing a financial tightrope as the price of its stock continues to remain low. Analysts believe that the company has limited options when it comes to raising capital, due to the fact that the company is still in the early stages of its electric vehicle production.
Furthermore, FISKER INC has yet to show any signs of profitability, which could further hinder its ability to raise capital with investors. In order to remain competitive in the industry, and avoid further financial issues, FISKER INC must find a way to attract more investors, or look for other sources of capital. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Fisker Inc. More…
| Total Revenues | Net Income | Net Margin |
| 73.13 | -464.22 | -663.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Fisker Inc. More…
| Operations | Investing | Financing |
| -419.27 | -71.96 | 506.7 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Fisker Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.39k | 2.05k | 1.24 |
Key Ratios Snapshot
Some of the financial key ratios for Fisker Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | -606.0% |
| FCF Margin | ROE | ROA |
| -661.2% | -65.3% | -11.6% |
Analysis
GoodWhale has conducted an analysis of FISKER INC‘s fundamentals and classified it as a ‘cheetah’ type of company, which we conclude has achieved high revenue or earnings growth but is considered less stable due to lower profitability. This type of company may be attractive to investors who focus on growth rather than stability. Specifically, FISKER INC has a strong growth profile, medium assets and weak dividend and profitability. Furthermore, the company has a low health score of 2/10 considering its cashflows and debt, making it less likely to be able to pay off debt and fund future operations. Consequently, investors may want to proceed with caution when considering investing in FISKER INC. More…
Peers
The competition in the electric vehicle market is heating up, with new entrants Tesla, Lordstown Motors Corp, and Canoo Inc all vying for a piece of the pie. Fisker Inc, an early pioneer in the space, is no stranger to competition, but it remains to be seen if they can hold onto their market share.
– Tesla Inc ($NASDAQ:TSLA)
Tesla, Inc. is an American multinational corporation that specializes in electric vehicles, energy storage, and solar panel manufacturing. Based in Palo Alto, California, Tesla’s mission is to accelerate the world’s transition to sustainable energy. Tesla’s market cap as of 2022 is 687.33B and its ROE is 27.88%. The company’s products include electric cars, batteries, solar panels, and home energy systems.
– Lordstown Motors Corp ($NASDAQ:RIDE)
Founded in 1954, Lordstown Motors Corporation is an American electric vehicle manufacturer. The company’s flagship product is the Endurance, an all-electric pickup truck. Lordstown Motors is headquartered in Lordstown, Ohio, and has a production facility in Mexico.
As of 2022, Lordstown Motors Corporation has a market cap of 369.92 million and a return on equity of -63.07%. The company’s flagship product, the Endurance, is an all-electric pickup truck that is manufactured in Mexico. Lordstown Motors is working to establish itself as a leader in the electric vehicle market, and its market cap and return on equity reflect this goal.
– Canoo Inc ($NASDAQ:GOEV)
Canoo Inc. is a publicly traded company with a market capitalization of 409.99 million as of 2022. The company has a return on equity of -258.12%. Canoo Inc. is a designer and manufacturer of electric vehicles. The company was founded in 2015 and is headquartered in Los Angeles, California.
Summary
Investing in Fisker Inc is a riskier proposition following a downgrade from Evercore ISI. The electric vehicle maker has been walking a financial tightrope, and this downgrade saw its stock price move down the same day. Investors should consider the risks associated with Fisker Inc before investing. It is important to evaluate the company’s financials, management, competitive landscape, and potential for growth in order to make a well-informed decision.
Additionally, investors should monitor the company’s progress and developments on a regular basis.
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