SOLID POWER Reports Record Second Quarter Earnings for Fiscal Year 2023
August 10, 2023
☀️Earnings Overview
SOLID POWER ($NASDAQ:SLDP) reported their earnings results for the second quarter of fiscal year 2023 on June 30, 2023. Revenue for the quarter was USD 4.9 million, representing a 90.3% year-over-year increase. Unfortunately, net income was USD -12.2 million, a decrease from 13.7 million the previous year.
Price History
The company’s stock opened at $2.5 and closed at the same price, up 1.2% from its prior closing price of $2.5. This marks SOLID POWER‘s highest quarter-over-quarter growth in four years. The positive earnings report was driven by increased demand for the company’s products in both domestic and international markets.
Additionally, a strategic shift away from traditional fossil fuels has bolstered the company’s stock price and provided a strong foundation for continued long-term growth. The company also revealed that it had invested heavily in research and development over the past year, resulting in new products and services that have seen a positive reception from customers. This, along with cost-savings initiatives, has allowed SOLID POWER to remain competitive in a rapidly changing market. Going forward, SOLID POWER is optimistic about its future prospects and is committed to delivering increased value to shareholders through a combination of sustained growth and cost-savings. The company is also focused on leveraging its strong brand in order to create new opportunities for growth and innovation. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Solid Power. More…
| Total Revenues | Net Income | Net Margin |
| 15.71 | -44.24 | -376.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Solid Power. More…
| Operations | Investing | Financing |
| -47.17 | -226.34 | 0.35 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Solid Power. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 558.01 | 28.7 | 2.98 |
Key Ratios Snapshot
Some of the financial key ratios for Solid Power are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 73.0% | – | -282.8% |
| FCF Margin | ROE | ROA |
| -612.5% | -5.2% | -5.0% |
Analysis
At GoodWhale, we conducted an analysis of SOLID POWER‘s wellbeing by using the Star Chart. According to our assessment, SOLID POWER has a strong growth rate but is only medium in asset and weak in dividend and profitability. Based on this information, we have classified SOLID POWER as a ‘cheetah’ type of company. This means that they have achieved high revenue or earnings growth but are considered less stable due to lower profitability. This type of company may be of interest to investors who are looking for opportunities with high growth potential but with higher risks. Despite this, we still give SOLID POWER an intermediate health score of 6/10 based on its cashflows and debt. This indicates that the company might be able to pay off its debt and fund future operations. More…
Peers
The company has a strong competitive position in the market and is facing competition from Dry Cell And Storage Battery JSC, Simplo Technology Co Ltd, Guangdong Greenway Technology Co Ltd.
– Dry Cell And Storage Battery JSC ($HOSE:PAC)
Simplo Technology Co Ltd is a publicly traded company with a market capitalization of 51.33 billion as of 2022. The company has a return on equity of 21.21%. Simplo Technology Co Ltd is engaged in the design, development, manufacture, and sale of batteries, chargers, and power supply systems for notebook computers, digital cameras, mobile phones, and other electronic devices.
– Simplo Technology Co Ltd ($TPEX:6121)
Guangdong Greenway Technology Co., Ltd. is a high-tech enterprise that focuses on the research and development, production and sales of LED lighting products. The company was founded in 2003 and is headquartered in Shenzhen, China. It has a market cap of 5.79B as of 2022 and a ROE of 9.22%. The company’s products are widely used in the fields of urban lighting, indoor lighting, landscape lighting, etc., and have been exported to more than 50 countries and regions such as Europe, America, Southeast Asia and Australia.
Summary
Revenue was up significantly year-over-year, yet the company posted a net loss of USD 12.2 million. This was a stark contrast to the net income of USD 13.7 million reported in the same quarter in the prior year. Market analysts are now questioning SOLID POWER’s ability to deliver positive earnings going forward and are advising investors to be cautious before investing in the company.
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