XPeng reported third-quarter revenue at the low end of its guidance. Excluding inventory write-off, vehicle margin of negative 3% indicates continued pressure from price promotions amid industry competition. But management guided a margin turnaround in the fourth quarter and meaningful improvement next year on larger volume, lower battery cost, and cost reduction initiatives that have been taken.
XPeng’s leadership in autonomous driving technology will differentiate the company and help the company defend its market share in the mass market segment amid intensifying competition.
Rising competition among mass-market NEV models will place heavy pricing pressure on XPeng. As a mass-market brand, the company will need to offer aggressive promotions and discounts to consumers, which will weigh on its vehicle margin outlook.
|
Metric
|
XPEV
|
LI
|
01211
|
|---|---|---|---|
Price/Earnings (Normalized) | — | 39.67 | 20.29 |
Price/Book Value | 3.93 | 5.50 | 4.42 |
Price/Sales | 4.78 | 2.95 | 0.96 |
Price/Cash Flow | — | 7.68 | 3.76 |
|
Metric
|
XPEV
|
LI
|
01211
|
|---|---|---|---|
Quick Ratio | 0.97 | 1.52 | 0.38 |
Current Ratio | 1.44 | 1.69 | 0.66 |
Interest Coverage | −50.22 | 45.16 | 21.71 |
|
Metric
|
XPEV
|
LI
|
01211
|
|---|---|---|---|
Return on Assets (Normalized) | −14.20% | 8.88% | 4.96% |
Return on Equity (Normalized) | −28.69% | 18.06% | 23.00% |
Return on Invested Capital (Normalized) | −23.16% | 12.05% | 17.49% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|
TSLA
| Tesla Inc | Qxpdm | $784.3 Bil | |
TM
| Toyota Motor Corp ADR | Sbfg | $250.6 Bil | |
MBGAF
| Mercedes-Benz Group AG | Vblfs | $67.9 Bil | |
BMWYY
| Bayerische Motoren Werke AG ADR | Gkmzgw | $67.1 Bil | |
RACE
| Ferrari NV | Cnbh | $66.6 Bil | |
STLA
| Stellantis NV | Pwtf | $63.0 Bil | |
VWAGY
| Volkswagen AG ADR | Wjml | $61.7 Bil | |
VWAPY
| Volkswagen AG ADR | Fwlk | $61.7 Bil | |
HMC
| Honda Motor Co Ltd ADR | Mxd | $50.1 Bil | |
F
| Ford Motor Co | Mrpd | $41.5 Bil |
