Workhorse Group Inc.

Workhorse Group Inc. (NASDAQ: WKHS) is a technology company specializing in solutions for the commercial transportation industry. Electric delivery vehicles and drone systems are among the company's products.

Key Highlights

• The company reported YoY growth of 85% in net revenues to USD 1.15 million in 9MFY21 (ended September 30, 2021) compared to USD 740.95 thousand in 9MFY20.
• However, due to increased operational expenses, WKHS' net loss expanded to USD 245.24 million during 9MFY21 vs. USD 210.71 million in 9MFY20.
• As of September 30, 2021, the company had cash and cash equivalents of USD 230.42 million and total debt of USD 180.30 million.
• Its ROE was -44.6% in Q3FY21 vs. the industry median of 0.9%.
• On January 04, 2022, appointed Robert Bob Ginnan as its Chief Financial Officer (CFO) effective immediately. Mr. Ginnan carries more than 20 years of experience in leadership and senior finance.
• Stock is currently trading below its crucial short-term (50-day) and long-term (200-day) SMA support levels, a bearish indicator.
• The stock is leaning towards the lower end of its 52-week range of USD 3.90 to USD 42.96.
• WKHS' stock price decreased 67.06% and 69.08% in the past six and nine months, respectively.

Technical Price Chart (as of January 11, 2022). Analysis by Kalkine

Conclusion: Considering the topline growth, long-term profitability issues, technical indicators, and associated risks, we recommend a "Watch" rating on the stock at the closing price of USD 4.04, up 1.00%, as of January 11, 2022.

*The reference data in this report has been partly sourced from REFINITIV.  

Disclaimer - This report has been issued by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and prepared by Kalkine and its related bodies corporate authorised to provide general financial product advice. Kalkine.com.au and associated pages are published by Kalkine.

Any advice provided in this report is general advice only and does not take into account your objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Statement or other offer document for the securities or other financial products referred to in Kalkine reports. You should obtain a copy of the relevant Product Disclosure Statement, Information Statement or offer document and consider the statement or document before making any decision about whether to acquire the security or product.

You should also seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice in this report or on the Kalkine website. Not all investments are appropriate for all people.

The information in this report and on the Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of information contained in its reports, newsletters and websites. All information represents our views at the date of publication and may change without notice.

Kalkine does not guarantee the performance of, or returns on, any investment. To the extent permitted by law, Kalkine excludes all liability for any loss or damage arising from the use of this report, the Kalkine website and any information published on the Kalkine website (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine hereby limits its liability, to the extent permitted by law, to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

On the date of publishing this report (referred to on the Kalkine website), employees and/or associates of Kalkine and its related entities do not hold interests in any of the securities or other financial products covered on the Kalkine website unless those persons comply with certain safeguards, procedures, and disclosures.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.