Polar Power, Inc.

Polar Power, Inc. (NASDAQ: POLA) designs, manufactures and distributes direct current (DC) power systems to deliver reliable and low-cost energy to Off-grid, bad-grid, and backup power, electric vehicle (EV) charging, and nano-grid applications.

Key Highlights

• The company reported YoY growth of 37% in net sales to USD 4.14 million in Q3FY21 (ended September 30, 2021) compared to USD 2.50 million in Q3FY20.
• However, due to decreased operational expenses, POLA reported net income of USD 942 thousand in Q3FY21 vs. net loss of USD 4.72 million in Q3FY20.
• As of September 30, 2021, the company had cash and cash equivalents of USD 7.71 million and total debt of USD 0.57 million.
• POLA's Q3FY21 cash cycle of 343 days is significantly higher than the industry median of 82 days.
• Its ROE was 4.2% in Q3FY21 vs. the industry median of 3.3%.
• POLA’s net margin for Q3FY21 was 22.8%, significantly higher than the industry median of 8.9%.
• 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 3.25 to USD 30.82.
• POLA's stock price decreased 53.75% and 67.38% in the past six and nine months, respectively.

Technical Price Chart (as of January 14, 2022). Analysis by Kalkine

Conclusion: Considering the topline growth, visibility into profitability, technical indicators, and associated risks, we recommend a "Watch" rating on the stock at the closing price of USD 3.33, up 0.30%, as of January 14, 2022.

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