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Workhorse Group - AI Stock Analysis

Analysis generated May 21, 2024

Workhorse Group Inc. (NASDAQ: WKHS) is an American technology company focused on providing sustainable and cost-effective electric vehicles (EVs) and drones to commercial transportation sectors. Their primary offerings include electric delivery trucks and aircraft systems designed to improve last-mile delivery efficiency. Headquartered in Loveland, Ohio, the company's operations reflect a commitment to reshaping the logistics and transportation industries through electrification and innovative solutions.

Fundamental Analysis

For the last quarter, Workhorse Group reported a revenue of $1.3M, which represents a significant decrease of 69.61% compared to the previous quarter. This sharp decline is concerning as it suggests potential issues in sales or production. Compared to the same quarter last year, the revenue decrease of 20.91% also indicates underlying challenges that the company must address to stabilize and grow its revenue stream.

Net income for the last quarter was reported at $29M, showing an increase of 35.48% compared to the previous quarter. This spike is a positive indicator of the company’s operational efficiency efforts paying off. However, compared to the same quarter last year, the net income saw a decline of 16.80%, suggesting that Workhorse Group still faces significant financial challenges year-over-year.

The EBITDA for the last quarter stood at $24M, marking an increase of 30.54% from the previous quarter and a 4.75% increase year-over-year. This modest growth in EBITDA is encouraging, signifying the company’s ability to generate earnings before interest, taxes, depreciation, and amortization.

Technical Analysis

Today’s stock price for Workhorse Group is $0.21, which marks a 31.25% uptrend compared to a month ago, indicating a short-term positive momentum. However, the stock price is down by 77.17% compared to a year ago, which raises concerns about its long-term prospects.

Currently, the trend is bullish with the SMA10 at $0.22, slightly higher than the previous SMA10 of $0.22, suggesting potential upward movement. The Relative Strength Index (RSI) stands at 34.6, indicating a neutral market condition.

Alternative Data Analysis

Looking into job postings and employee sentiment, Workhorse Group currently has 0 open positions according to the most popular job boards. This 100% decline in job postings over the past couple of months indicates efforts to cut costs or a stall in growth, which is not favorable for a company in its growth phase. Additionally, the business outlook for employees is down by 21%, reflecting a concerning trend in company morale and future expectations.

From a customer acquisition standpoint, Workhorse Group’s website has an estimate of 19,000 visitors, a steep decline of 79% in recent months, which can suggest a decrease in customer interest or engagement. The mobile app downloads have not shown any significant change, with no apparent growth or decline.

Regarding customer engagement, Workhorse Group has 8,300 Instagram followers and 23,000 Twitter followers, with both social media platforms showing no meaningful increase or decrease in followers over the past couple of months. These stagnant metrics indicate a possible plateau in customer engagement.

According to AltIndex's AI score, Workhorse Group’s current AI score is 40, signaling a sell recommendation. The AI score integrates fundamental, technical, and alternative data analyses to offer an overall stock outlook.

Conclusion and Recommendation

Overall, Workhorse Group presents a mixed picture. On the fundamental front, declining revenues and a fluctuation in net income and EBITDA highlight operational challenges faced by the company. Technically, despite recent bullish trends, the stock price is significantly lower year over year, indicating long-term concerns. Alternative data further paints a worrisome picture with decreasing job postings, business outlook, web traffic, and stagnant customer engagement.

Based on the comprehensive analysis, Workhorse Group faces significant headwinds that overshadow its short-term positive trends. The fundamental and alternative data indicate underlying challenges that could impact long-term growth and stability. Therefore, the recommendation is to sell due to the company's persistent issues reflected across various metrics and the concerning AI score of 40 from AltIndex.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.