Buy or Sell ,LCID
Prepared by: Kalyaa Pradeep for TheoryOfStocks on April 24, 2024
Stock Information
| Company Name | Lucid Group Inc |
| Symbol | LCID |
| Market Cap | $6.41B |
Lucid Group Inc
Lucid Group, Inc. a technology company, designs, engineers, manufactures, and sells electric vehicles (EV), EV powertrains, and battery systems. It also designs and develops proprietary software in-house for Lucid vehicles. The company sells vehicles directly to consumers through its retail sales network and direct online sales, including Lucid Financial Services. Lucid Group, Inc. was founded in 2007 and is headquartered in Newark, California. Lucid Group, Inc. operates as a subsidiary of Ayar Third Investment Company.. This belongs to Consumer Cyclical sector & classified under Auto Manufacturers industry
Analysis for Lucid Group Inc
Our Approach
Our proprietary analysis employs a weighted average approach integrating both functional and technical parameters, tailored to the sector, industry, and microeconomic factors. This methodology assigns dynamic weights to the parameters, with a focus on recent trends, ensuring a nuanced evaluation for informed investment decisions
Price & EPS
The stock has steadily declined from $6.89 in June 2023 to $2.38 in April 2024, indicating a bearish trend. With an RSI value of 34.62, signifying oversold conditions, there's potential for a short-term rebound. Trading below its 50-day and 200-day moving averages suggests long-term weakness. Despite this, the oversold RSI hints at a possible near-future reversal.
Revenue & Profit
Revenue has varied notably from $3.98M in 2020 to $595.27M in 2023, indicating instability. Negative gross profit suggests higher costs than revenue. End cash position decreased from $640.42M in 2020 to $1.37M in 2023, while debt increased from $980K to $2.43B. EPS remained negative throughout, signifying sustained losses. Conclusion: The company's financial strength appears weak due to fluctuating revenue, negative gross profit, declining cash reserves, increasing debt, and persistent losses reflected in negative EPS values.
Other Aspects
Overall, the quarterly growth analysis presents mixed results, with the company's financial strength, particularly in free cash flow, showing signs of deterioration. The negative trend in free cash flow suggests potential challenges in meeting financial obligations. However, operating cash flow and end cash position have displayed more stability recently. LCID, operating in the electric vehicle (EV) market, is subject to sector performance, influenced by factors like technology, government policies, and commodity prices. Positive sector developments, along with Saudi Arabia's substantial investment in LCID, indicate growth potential. LCID pays no dividend, with a Beta of 1.021, and a proprietary Buy/Sell analysis at 26.21, suggesting caution.
Conclusion: Cautious Buy
Taking into account all the mentioned factors, including proprietary derived parameters of the stock, alongside its sector and macroeconomic conditions, our analysis from the Weighted Average AI model suggests a rank of 3 - indicating a Cautious Buy. At the time of writing this article, Lucid stock price is around $2.55.