Romeo Power, Inc.

RMO Details

Romeo Power, Inc (NYSE: RMO) is a lithium-ion battery module and pack manufacturer for commercial electric cars. It supports large-scale sustainable mobility by supplying long-lasting batteries with a more extended range of energy-dense battery modules and packs.

Key Highlights:

• The company has recorded a significant increase in a net loss of USD 17.95 million in Q3FY21 compared to USD 8.92 million in Q3FY20 due to the high cost of revenue and outrageous operating expenses.
• The company reported solid jump in topline in the third quarter of 2021, with total revenue nudged to USD 5.76 million compared to USD 0.68 million reported in the same period of the previous financial year.
• The company has posted a lower cash and cash equivalents to USD 53.28 million as of 30 September 2021 compared to USD 292.44 as of 31 December 2020.
• As the company is in early stage, it needs extra cash for operational expenses. It may need to raise additional capital for ongoing operations, producing revenue. Therefore, putting an adverse impact on investors sentiments.
• At the last closing, RMO shares traded below 50-day and 200-day SMA, implies a long-term bearish trend in the stock.

Conclusion:

Considering the solid jump in the topline , continuous losses, weak cash position, and bearish technical indicators, we recommend a "Watch" rating on the stock at the closing price of USD 2.36, up 25.53% as of January 31, 2022.

RMO’s Daily Technical Chart as of date (as on January 31, 2022).Source: REFINITIV, Analysis by Kalkine Group.

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