Electric vehicle transportation company Bird Global (BRDS) recently announced its global expansion plans for the summer, and its sales have skyrocketed since then. However, let’s take a closer look at the fundamentals of the company and evaluate whether it is a good investment opportunity. Read more.
Last week, Bird Global, Inc. (BRDS) announced new and expanded programs in Europe, the US and Canada that demonstrate the company’s commitment to urban partners, understanding of local transportation needs and investments in innovative technologies. The company expects tens of millions of trips around the world in the coming months.
Currently, the BRDS trading volume is 34.54 million and its average volume is 14.51 million. Such a sharp change in trading volume indicates a significant increase in investor interest in the company’s shares.
However, the company’s immediate outlook looks bleak. And in this article, I will explain why these EV stocks should not be added to your portfolios.
Following the news, shares of the electric vehicle company rose 34.2% over the past five days, ending the latest trading session at $0.26. However, they have fallen 89.2% in the last year and 36.6% in the last nine months.
Here’s what could affect BRDS performance in the near term:
Poor financial performance
During the fiscal year ended December 31, 2022, BRDS product sales decreased 25.2% year-over-year to $13.33 million. Its total operating expenses rose 96.2% year on year to $506.06 million, while operating losses increased 100.4% year on year to $471.36 million. In addition, its net loss rose 66.9% year on year to $358.74 million.
What’s more, in the fiscal fourth quarter ending December 31, 2023, BRDS product sales were down 93.7% year-over-year to $564,000. The operating loss was $29.10 million and the net loss was $36.41 million.
Negative EBIT and EBITDA for the last 12 months BRDS of 104.44% and 103.53% are significantly lower than the industry average of 9.72% and 13.29%. Its negative net income over the past 12 months and free cash flow margins of 146.63% and 8.48% are lower than the industry averages of 6.49% and 3.85%.
In addition, negative ROCE, ROTC and COMPANY 219.52%, 69.61% and 158.98% are significantly lower than the industry averages of 13.67%, 6.96% and 5.16% respectively.
Powr ratings reflect bleak outlook
BRDS is rated F overall, in line with strong sales in our own Power Ratings system. POWR ratings are calculated based on 118 different factors, each of which is optimally weighted.
Stocks are rated F for quality, consistent with their negative rate of return.
It received a D for growth, in line with its weak financial performance in the most recent quarter. Its D score for stability is justified by a 60-month beta of 2.25.
Among the 88 stocks in Industry – Services industry, BRDS is ranked 84th.
In addition to the scores above, BRDS scores for height, value, and mood can be accessed. Here.
While the stock has been gaining momentum lately, it has fallen over 85% over the past year and is currently trading below its 200-day moving average of $0.33.
In addition, given the poor fundamentals, the momentum may not be sustained. Thus, it would be ideal to avoid stocks.
Stocks to consider instead of Bird Global, Inc. (BRDS)
Unfortunately, the chances of BRDS doing well in the coming weeks and months are greatly reduced. However, there are many good stocks in the industrial services industry with impressive PoWR ratings. So instead, consider these three stocks rated A (strong buy):
Koch Holding AS (HOLES)
Limbach Holdings, Inc. (paintwork)
EMCOR Group, Inc. (EME)
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Shares of BRDS fell $0.26 (-100.00%) in premarket trading on Tuesday. YTD, the BRDS is up 44.28% compared to the 7.87% gain in the underlying S&P 500 over the same period.
About the author: Critique Sarmah
Her interest in risky tools and her passion for writing made Kritika an analyst and financial journalist. She has a BA in Commerce and is currently pursuing a CFA program. Through her fundamental approach, she aims to help investors identify untapped investment opportunities.
Fast Buy or Sell: These Electric Vehicle Stocks Have Seen Insane Volume Lately Due To Global Expansion appeared first on stocknews.com