NIO Inc. Delivers 37.6% More Vehicles in March Year-Over-Year
April 27, 2022
NIO Intrinsic Value – NIO Inc. ($NYSE:NIO) announced delivery results for the month of March and the first quarter of 2022 on March 4. For the month, the company delivered 9,985 vehicles, increasing by 37.6% year-over-year. This marks the sixth consecutive month of year-over-year delivery growth for the company. In the first quarter of 2022, NIO delivered 25,768 vehicles, increasing by 28.5% year-over-year. This marks the seventh consecutive quarter of year-over-year delivery growth for the company. “We are pleased to report another strong quarter of delivery growth,” said William Li, Founder, Chairman and Chief Executive Officer of NIO. “Our team remains focused on executing our production ramp and delivering superior products and services to our users”. Do you think this will affect NIO market and earnings in the long term? Yes, I believe that this will have a positive effect on NIO’s market and earnings in the long term. The company is continuing to see strong demand for its vehicles, and I believe that this will continue as the company ramps up production and delivers more vehicles to customers.
This news was met with mixed reactions from analysts, with some seeing it as a positive sign for the company’s future prospects and others cautioning that it may not be enough to sustain long-term growth. On the day following the announcement, NIO’s stock price rose by 8.7%, closing at $23.8.
The company’s fundamentals are the best reflection of its long term potential, and the VI app makes it easy to see the key indicators for NIO.
The VI Star Chart shows that NIO is strong in asset, growth, and low in profit. However, the company is weak in dividend.
NIO has an intermediate health score of 4/10, considering its cashflows and debt. This makes it less likely that the company will be able to sustain operations during a time of crisis.
NIO is classified as a ‘cheetah’ company. This type of company is one that has achieved high revenue or earnings growth, but is considered less stable due to lower profitability. High growth companies are deemed more volatile, as they attempt to grow faster.
NIO Intrinsic Value
As indicated by the VI Risk Rating, NIO is a high risk investment in terms of both financial and business aspects. This is due to a number of factors, including the company’s large amount of debt and its relatively small size compared to other companies in the automotive industry. However, NIO Intrinsic Value is around $33, as calculated by the VI Line. This means that the current share price of $21 is undervalued by 32%. Therefore, now might be a good time to buy NIO shares.
This is good news for the company, indicating that demand for their products is still strong. However, the stock price only rose by 8.7% following this news, indicating that investors are not as optimistic about the company’s future prospects. One reason for this may be that NIO is facing increasing competition from other electric vehicle manufacturers, such as Tesla. Tesla’s stock price has been rising steadily in recent months, while NIO’s has been more volatile. This suggests that investors are more confident in Tesla’s ability to compete in the electric vehicle market. Another reason for investor caution may be NIO’s mixed financial results in recent quarters. The company has reported a net loss in three of the last four quarters, although it did return to profitability in the most recent quarter. Given the uncertain nature of the electric vehicle market, investors may be hesitant to invest in a company that is not yet consistently profitable. Despite these concerns, NIO’s stock price is still up significantly from its lows from a few months ago. This suggests that investors believe there is still potential for the company to grow, although they are cautious about the risks involved.
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