BYD Company Limited
Date: February 28, 2024.
Company’s Overview
BYD Company (BYDDF), a Chinese powerhouse, operates across four domains: electronics, automobiles, new energy (solar, batteries), and rail transit. They offer electric vehicles (cars, buses, trucks), battery solutions, solar panels, and even monorail systems. With operations in over 50 countries, they’re leading the charge in sustainable transportation and clean energy solutions.
Competition
Revenue Segments
The Company’s net sales proportions by segment for the most recent quarterly report are composed by:
Related Risks
BYD navigates a bumpy road of potential risks. From industry-wide hurdles like EV demand swings and intense competition to company-specific challenges like expansion execution and talent acquisition, they’ve got their hands full. Rising raw material costs, tech disruptions, and ever-changing regulations add to the mix. But BYD’s not just sitting duck! They’re tackling these risks head-on through strategic expansion, tech innovation, and a focus on quality and sustainability.
BYD isn’t just waiting for the storm, they’re building an ark! They’re tackling industry risks like volatile demand and competition head-on through global expansion, tech investments, and securing raw materials. Quality control shields guard against recalls, while talent magnets attract the best minds. They balance growth with responsible debt management and build resilience against supply chain disruptions. Even cybersecurity and brand reputation get TLC.
Company’s Profitability
The yearly revenues from 2018 till 2023 are:
The yearly net income from 2018 till 2023 is:
The yearly free cash flow from 2018 till 2023 is:
**The 2023 and 2024 values are the expected by the analysts.
Quarterly Reports
The Company’s quarterly results from Q1 2018 till its most recent quarter:
Shares Outstanding
As of today, there is no official announcement from BYD’s management regarding a share repurchase program.
Asset/Liabilities & Current Ratio
BYD’s asset-to-liability ratio of 1.33 suggests a somewhat cautious financial position. While assets exceed liabilities, the margin isn’t substantial, indicating moderate leverage.
However, the current ratio of 0.72 raises a potential concern. This means current assets only cover 72% of current liabilities, implying potential challenges meeting short-term obligations like debts and payables.
Valuation
Based on DCF analysis, BYDDF’s stock price is undervalued. Note that in the analysis we take into consideration also the cash and cash equivalents and the total debt.
Analysts have a positive opinion on BYDDF. The average consensus recommends overweighting or purchasing the stock.
Furthermore, the difference between the current stock prices and the average target price is rather significant, implying a substantial appreciation potential for the stock.
Affiliate
Trade with confidence on Freedom24, your trustworthy and licensed EU broker. Sign up using my referral link (https://freedom24.com/invite_from/2161547) and get a free stock worth up to $700! (Offer for engaged EU residents over 25).
Disclaimer
Please note that I am not a licensed financial advisor and the information provided here should not be construed as financial advice. I am simply sharing my understanding of the topics based on my research and personal experiences. It is always advisable to consult with a qualified financial advisor before making any investment decisions.
The information I provide is based on publicly available sources and my own interpretations. I strive to provide accurate and up-to-date information, but I cannot guarantee the correctness or completeness of the information.
Any opinions expressed here are my own and do not necessarily reflect the views of any other individual or organisation.
Please use your own judgement and conduct your own research before making any investment decisions.
