Rivian Automotive Stock Intrinsic Value – Investment Bank Cautions Investors on Funding Worries for Rivian Automotive
April 15, 2023
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Investment bank, Piper Sandler, has recently issued a warning to investors about their funding worries concerning Rivian Automotive ($NASDAQ:RIVN). The company has downgraded the stock of Rivian due to concerns about their ability to secure enough capital for their operations. Rivian Automotive is an American automotive technology company based in Plymouth, Michigan. The company designs, manufactures and sells electric vehicles. Rivian is best known for producing the world’s first all-electric pickup truck, the R1T. The company is also working on an all-electric SUV, the R1S, which is currently in pre-production.
Rivian has received investments from several companies, including Amazon, Ford Motor Company, and Fidelity Investments. They also have plans to launch their own vehicle sharing service called Rivian Adventure Network. Despite the investments they have received so far, Piper Sandler believes that Rivian faces a serious risk of not having sufficient funds to cover its operating costs. They are urging investors to be cautious when considering investing in the company.
Share Price
On Friday, investment bank Goldman Sachs made a cautious suggestion to its clients, warning them about the possibility of funding worries for Rivian Automotive. As a result of this announcement, the company’s stock opened at $13.9 and then dropped by 6.9%, closing at $13.4. This is compared to its previous closing price of $14.4.
Despite this decline, the company’s stock still managed to remain relatively stable over the past few weeks. Rivian Automotive has seen a sharp decline in its stock price since the start of the year, with the drop becoming more apparent in the past few months. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Rivian Automotive. More…
| Total Revenues | Net Income | Net Margin |
| 1.66k | -6.75k | -407.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Rivian Automotive. More…
| Operations | Investing | Financing |
| -5.05k | -1.37k | 99 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Rivian Automotive. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 17.88k | 4.08k | 14.9 |
Key Ratios Snapshot
Some of the financial key ratios for Rivian Automotive are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | -400.8% |
| FCF Margin | ROE | ROA |
| -387.3% | -28.5% | -23.2% |
Analysis – Rivian Automotive Stock Intrinsic Value
At GoodWhale, we recently conducted an analysis of RIVIAN AUTOMOTIVE‘s wellbeing. After looking at the company’s financials and its competitive environment, we determined that RIVIAN AUTOMOTIVE has an intrinsic value of around $285.3, based on our proprietary Valuation Line. Surprisingly, RIVIAN AUTOMOTIVE’s stock is currently traded at just $13.4, which is undervalued by 95.3%. This is a great opportunity for investors to take advantage of the discrepancy between the intrinsic value and the current market trading price. More…
Peers
Rivian Automotive Inc is an American automotive and energy storage company. Founded in 2009, the company focuses on developing electric vehicles. Rivian has raised over $6 billion from investors including Amazon.com and Ford Motor Company. Rivian’s main competitors are Lucid Group Inc, Tesla Inc, and Ford Motor Co.
– Lucid Group Inc ($NASDAQ:LCID)
As of 2022, Lucid Group Inc has a market cap of 21.21B and a Return on Equity of -29.52%. Lucid Group Inc is a leading provider of marketing and advertising services. The company has a strong focus on delivering high-quality, innovative, and effective marketing and advertising solutions to its clients. Lucid Group Inc has a strong reputation for providing excellent service and delivering results that exceed expectations. The company’s focus on quality and customer satisfaction has resulted in a loyal client base and a strong market position. Lucid Group Inc is well-positioned to continue its growth and success in the marketing and advertising industry.
– Tesla Inc ($NASDAQ:TSLA)
Tesla’s market cap as of 2022 is 695.76B. The company has a Return on Equity of 27.88%. Tesla is an American electric vehicle and clean energy company based in Palo Alto, California. The company specializes in electric vehicle manufacturing, batteries, and solar panel manufacturing. Tesla also offers vehicle service centers, superchargers, and home energy systems.
– Ford Motor Co ($NYSE:F)
As of 2022, Ford Motor Company has a market capitalization of 48.77 billion dollars and a return on equity of 23.7%. The company is one of the largest automakers in the world and is known for its production of cars and trucks. The company also has a strong presence in the world of motorsports, with its vehicles competing in a number of different racing series.
Summary
Rivian Automotive has seen a recent downgrade from Piper Sandler, citing concerns over its funding. This has caused the stock price to drop significantly. For investors considering investing in the company, it is important to examine the financials and competitive landscape in the automotive market to determine if the company’s current valuation is justified. Factors to consider include the company’s debt levels, competitive advantage, and ability to meet consumer demands.
Additionally, investors should pay attention to further news out of the company, such as any updates on its financing or orders for its vehicles. Ultimately, investors should make an educated decision on whether Rivian Automotive presents a good investment opportunity.
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