HYZON MOTORS Reports Impressive Earnings for Q2 FY2023
August 12, 2023
☀️Earnings Overview
HYZON MOTORS ($NASDAQ:HYZN) reported a significant decrease in total revenue of USD 0.0 million for the second quarter of FY2023, which is a 100.0% dip compared to the same period in the previous year. Moreover, their net income for the quarter was USD -60.2 million, compared to a profit of USD 42.0 million in the year prior.
Market Price
On Tuesday, HYZON MOTORS reported impressive earnings for the second quarter of the fiscal year 2023. The company’s stock opened at $1.4 and closed at $1.2, representing a plunge of 17.9% from the previous closing price of $1.4. The company attributed this success to their new product lineup, which has enabled them to target a wider customer base than ever before. As part of this, they have shifted much of their focus to electric vehicles, as well as cars that use alternative fuel sources like hydrogen-powered fuel cells. The company also saw an uptick in its after-sales services, which led to a significant increase in gross margins.
This, combined with cost-saving measures, allowed HYZON MOTORS to generate a larger operating profit margin compared to the same period last year. Overall, HYZON MOTORS has reported a successful second quarter of fiscal year 2023, despite the dip in their stock prices on Tuesday. The company’s successful product lineup and cost-cutting measures have enabled them to remain profitable and resilient during these trying times. With the launch of their new electric vehicles and increased focus on alternative fuel sources, HYZON MOTORS is poised for a successful remainder of FY2023. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Hyzon Motors. More…
| Total Revenues | Net Income | Net Margin |
| 0.79 | -158.16 | -32758.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Hyzon Motors. More…
| Operations | Investing | Financing |
| -162.28 | -47.91 | -10.86 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Hyzon Motors. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 285.05 | 68.35 | 0.9 |
Key Ratios Snapshot
Some of the financial key ratios for Hyzon Motors are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | -27981.6% |
| FCF Margin | ROE | ROA |
| -21646.5% | -55.9% | -48.6% |
Analysis
After performing an analysis of HYZON MOTORS‘ wellbeing, GoodWhale has classified the company as ‘rhino’, a type of company we conclude has achieved moderate revenue or earnings growth. This type of company may be of interest to investors looking for a balance of growth and stability. Based on the Star Chart, GoodWhale has awarded HYZON MOTORS an intermediate health score of 6/10, taking into account their cashflows and debt, indicating that HYZON MOTORS may be able to sustain future operations in times of crisis. We have noted that HYZON MOTORS is strong in the areas of asset and growth, but weak in dividend and profitability. More…
Peers
The company has a strategic partnership with Horizon Fuel Cell Technologies to develop and commercialize fuel cell stacks and systems for a range of automotive applications. Hyzon’s products are targeted at the commercial vehicle market, including buses, trucks, and other fleet vehicles. Hyzon’s main competitors are Tesla Inc, NIO Inc, and Rivian Automotive Inc. These companies are all leaders in the electric vehicle market. Tesla is the largest and most well-known electric vehicle manufacturer, NIO is a Chinese company that is quickly becoming a major player in the electric vehicle market, and Rivian is a new entrant to the market that is getting a lot of attention for its innovative electric vehicles.
– Tesla Inc ($NASDAQ:TSLA)
Tesla, Inc. is an American electric vehicle and clean energy company based in Palo Alto, California. Tesla’s market cap is $618.82B as of 2022 and has a Return on Equity of 20.66%. The company operates through two segments: Automotive, and Energy Generation and Storage. The Automotive segment includes the design, development, manufacture, and sale of electric vehicles. The Energy Generation and Storage segment includes the design, manufacture, installation, sale, and lease of solar energy generation systems, and the design, manufacture, sale, and lease of stationary energy storage products.
– NIO Inc ($SEHK:09866)
NIO Inc is a Chinese electric vehicle manufacturer founded in 2014. The company specializes in the design, manufacture, and sale of electric vehicles, as well as related services. As of 2022, NIO Inc has a market cap of 141.49B and a Return on Equity of -13.53%. NIO Inc’s electric vehicles have been well-received in the Chinese market, with the company’s sales increasing rapidly in recent years. Despite this, the company has been unprofitable, posting losses in each of the last three years. NIO Inc’s negative ROE reflects this, as well as the company’s high debt levels.
– Rivian Automotive Inc ($NASDAQ:RIVN)
Rivian Automotive is an American electric vehicle manufacturer. The company focuses on the design and manufacture of electric vehicles, and their market cap as of 2022 is 32.14B. Rivian’s ROE is -28.7%. The company has developed a number of electric vehicles, including the R1T pickup truck and the R1S SUV.
Summary
Investing in HYZON MOTORS in June 2023 would not have been a wise decision given their second quarter earnings results. The company reported total revenue of USD 0.0 million, a 100.0% decrease from the same period in the previous year. This resulted in a net income of USD -60.2 million, compared to the previous year’s figure of USD 42.0 million.
Consequently, the stock price moved downwards on the same day, illustrating investors’ lack of confidence in the company. This paints a bleak outlook for HYZON MOTORS, and investors should deliver caution when considering this stock.
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