XL Fleet Corp.

XL Fleet Corp. (NYSE: XL) is a North American provider of fleet electrification solutions for commercial vehicles, including infrastructure such as charging stations that allow clients to effectively plug in their electrified vehicles.

Key Highlights

• The company reported YoY decline of 49.43% in revenues to USD 3.20 million in Q3FY21 (ended September 30, 2021) compared to USD 6.33 million in Q3FY20.
• XL's net loss increased to USD 7.53 million during Q3FY21 vs. USD 2.28 million in Q3FY20.
• As of September 30, 2021, the company had cash and cash equivalents of USD 366.75 million and total debt of USD 1.25 million.
• XL's Q3FY21 cash cycle of 553 days is significantly higher than the industry median of 48 days.
• Its ROE was -2.0% in Q3FY21 vs. the industry median of 2.5%.
• Negative Net Margin of 235.3% whereas Peer’s Median stood at 3.7%.
• On February 02, 2022, XL stated that Cielo Hernandez, its Chief Financial Officer, has resigned to seek other career options as of January 31, 2022.While the Company searches for a permanent successor, Chris Goldner, XL Fleet's Corporate Controller, has been named Interim Chief Financial Officer, beginning February 1, 2022.
• Stock is currently trading below its crucial short-term (50-day) and long-term (200-day) SMA support levels, a bearish indicator.
• The stock has made a new 52-week low today.
• XL's stock price decreased 75.53% and 76.06% in the past six and nine months, respectively.

Technical Price Chart (as of February 23, 2022). Analysis by Kalkine

Conclusion: Considering the declining topline, long-term profitability issues, technical indicators, and associated risks, we recommend a "Avoid" rating on the stock at the closing price of USD 1.63, down 9.94%, as of February 23, 2022.

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