GTEC Stock Fair Value – Greenland Technologies Reports Missed Expectations with Negative EPS and Lower Than Expected Revenue
November 21, 2023
🌧️Trending News
Greenland Technologies Holding ($NASDAQ:GTEC) Corporation (GTEC) recently reported their quarterly earnings and unfortunately missed expectations. Greenland Technologies Holding Corporation is a leading provider of advanced technology products and services to the global aerospace, defense, and security industries. It specializes in electronics manufacturing services, air and missile defense, networked communications, navigation systems, and other related products and services. They are based in Virginia Beach, Virginia and have operations around the world.
The company’s stock took a hit after the earnings were reported, as investors were disappointed in the lower-than-expected results. Despite the lower-than-expected results, Greenland Technologies Holding Corporation is still considered a strong player in the industry and has a solid customer base to build upon.
Earnings
Greenland Technologies Holding released their earnings report for the second quarter of FY2023 ending June 30, 2021. The report indicated that total revenue had grown from 28.2M USD to 23.57M USD over the last three years, an increase of 36.9%.
However, expectations for the quarter were significantly higher than what was achieved. Greenland Technologies Holding reported negative earnings per share due to lower than expected revenue. This is in stark contrast to the year-on-year growth that the company has reported in the past. Investors have reacted negatively to the results and shares in the company have dropped substantially in recent days.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for GTEC. More…
| Total Revenues | Net Income | Net Margin |
| 86.64 | 4.13 | 4.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for GTEC. More…
| Operations | Investing | Financing |
| 8.59 | -0.47 | 4.44 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for GTEC. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 154.2 | 68.86 | 5.55 |
Key Ratios Snapshot
Some of the financial key ratios for GTEC are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 20.1% | -3.4% | 8.7% |
| FCF Margin | ROE | ROA |
| 9.9% | 6.5% | 3.0% |
Market Price
Monday marked a tumultuous day for investors in Greenland Technologies Holding, when the company reported disappointing earnings. Revenue came in lower than expected, and the earnings per share reported was negative. Both of these factors quickly sent Greenland stock tumbling, with its opening price at $3.0 and closing at $2.9, representing a dip of 14.4% from its prior closing price of 3.3.
Investors had expected more robust performance from Greenland Technologies, and the important figures disappointed all who turned an eye to the results. Further analysis of the earnings report will be necessary to better understand the company’s future prospects, but the initial reaction has been a sharp downward plunge in stock price. Live Quote…
Analysis – GTEC Stock Fair Value
At GoodWhale, we conducted an extensive analysis of GREENLAND TECHNOLOGIES HOLDING’s fundamentals, and our proprietary Valuation Line concluded that the intrinsic value of GREENLAND TECHNOLOGIES HOLDING stock is around $3.8. Currently, the stock is traded at $2.9, meaning that it is undervalued by 23.7%. This presents an opportunity for potential investors to purchase GREENLAND TECHNOLOGIES HOLDING stock for a lower price than its intrinsic value. More…
Peers
Greenland Technologies Holding Corp is in a tight competition with four of its major competitors: Cummins Inc, JE Cleantech Holdings Ltd, ItN Nanovation AG, and other industry players. Each company is striving to offer the best solutions and services for their customers in order to gain a competitive edge in the market. As the competition intensifies, innovation and efficiency become increasingly important for success.
– Cummins Inc ($NYSE:CMI)
Cummins Inc is a global power leader that designs, manufactures, sells, and services diesel and alternative fuel engines and related technologies. With a market cap of 33.13B as of 2023, Cummins Inc is a successful and well-established company. The company’s Return on Equity (ROE) of 21.74% is higher than the industry average, indicating that the firm is able to generate more profits from its investments in comparison to its peers. This highlights Cummins Inc’s strong financial performance and its efficient management of resources.
– JE Cleantech Holdings Ltd ($NASDAQ:JCSE)
JE Cleantech Holdings Ltd is a clean energy and environmental management company based in Hong Kong. They specialize in developing and delivering innovative solutions for organizations to help them reduce their environmental impact and meet sustainability objectives. As of 2023, the company has a market cap of 7.88M, which means the company’s worth is nearly 8M. Additionally, JE Cleantech has a Return on Equity of 3.05%, indicating that their returns on investment are relatively low compared to other companies. Overall, JE Cleantech is continuing to pursue its mission of providing customers with green solutions that are cost-effective and environmentally friendly.
Summary
Greenland Technologies Holding Corporation, is an integrated electronic products and services provider to the industrial, education, medical, consumer, and automotive sectors. Recently, the company reported their third quarter GAAP earnings per share of -$0.07 and revenue of $21.84 million, both of which missed analyst expectations by $2.43 million. In response, the company’s stock price dropped the same day. This news has caused some investors to become concerned about the company’s future prospects.
However, despite this poor performance in the short-term, the long-term potential for Greenland Technologies Holding Corporation should not be overlooked. Investors taking a long-term view may find that this company holds considerable potential to generate future profits and returns.
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