Rivian Automotive Stock Intrinsic Value – Rivian Gains 4% Following AT&T Deal for Electric Vans and Trucks
December 17, 2023
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Rivian Automotive ($NASDAQ:RIVN), an American electric vehicle manufacturer, saw its stock value rise by 4% following a major deal with telecommunications giant AT&T. The agreement, which was announced on Tuesday, will see Rivian supply AT&T with electric vans and trucks for use throughout the United States. The company’s flagship product is the R1T, an electric pickup truck, and it also offers a range of other electric vehicles including the Adventure Van. The company has seen increased interest due to its commitment to producing vehicles with zero emissions and a focus on sustainability. The deal with AT&T marks Rivian’s first major contract.
This could prove to be a major boost for Rivian, as AT&T holds one of the largest fleets in the country and is a leader in the adoption of green energy. Rivian’s stock price soared after news of the deal broke, as investors hope that it will open up further opportunities for the company. This could be the beginning of a new chapter for Rivian Automotive and could propel the company to the forefront of the electric vehicle industry.
Analysis – Rivian Automotive Stock Intrinsic Value
At GoodWhale, we have conducted an analysis of RIVIAN AUTOMOTIVE‘s financials and concluded that the fair value of a RIVIAN AUTOMOTIVE share is around $232.9. Our proprietary Valuation Line formula was used to calculate this figure. As of today, the stock market rate of RIVIAN AUTOMOTIVE is trading at a significantly lower rate at $22.4, which is undervalued by 90.4%. More…
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 |
| 3.78k | -5.63k | -149.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Rivian Automotive. More…
| Operations | Investing | Financing |
| -5.21k | -2.2k | 1.55k |
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 |
| 16.46k | 5.9k | 11.02 |
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 |
| – | – | -144.2% |
| FCF Margin | ROE | ROA |
| -164.6% | -30.6% | -20.7% |
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 4% spike in their stock price following a deal with AT&T to use their electric vans and trucks for corporate fleets. This indicates a positive outlook for the company, as investors see the potential for growth in the electric vehicle space. Rivian has already gained the reputation of being a leader in this sector, and the AT&T deal could be a sign of more profitable partnerships to come.
Further, the partnership highlights the sustainability of Rivian’s business model, as the company can now capitalize on long-term contracts with major corporations. This is an encouraging sign for investors, as it indicates that Rivian can continue to develop and produce electric vehicles at a competitive cost while still remaining profitable.
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