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.