Is Greenland Technologies a Good Electric Industrial Vehicle Stock to Buy? Drivetrain system manufacturer Greenland Technologies (GTEC) has been making several positive steps, and its shares have been rallying in price lately. However, the question is, is GTEC well-positioned to maintain...
By Nimesh Jaiswal •
This story originally appeared on StockNews
Drivetrain system manufacturer Greenland Technologies (GTEC) has been making several positive steps, and its shares have been rallying in price lately. However, the question is, is GTEC well-positioned to maintain its performance, with increasing competition in the EV space? Read on to learn what we think.
Electric industrial vehicle company Greenland Technologies Holding Corporation (GTEC), which is based in Hangzhou, China, recently launched two zero-emissions vehicles, the GEL-1800 Electric Loader and the GEF-series EV forklift. The company also maintained its $90 million to $100 million guidance for total revenues, which represents an approximately 35% to 49% increase year-over-year in its fiscal year 2021.
Furthermore, the GEX-8000, GTEC's all-electric eight-ton rated load lithium excavator, is scheduled to arrive in January 2022.
GTEC stock has gained 26.8% in price over the past month and 10.5% over the past three months to close yesterday's trading session at $7.34. In addition, analysts expect its EPS and revenue to increase 7.7% and 12.8%, respectively, year-over-year to $0.70 and $112.78 million in its fiscal year 2022. So, GTEC should keep rallying.
Click here to checkout our Electric Vehicle Industry Report for 2021
Here is what I think could influence GTEC's performance in the upcoming months:
Robust Financials
GTEC's revenues increased 39.7% year-over-year to $23.10 million in the third quarter, which ended September 30, 2021. The company's gross profit grew 50% year-over-year to $3.40 million, while its net income came in at $1.30 million, representing a 172.5% year-over-year increase. Also, its EPS was $0.09, up 350% year-over-year.
High Profitability
In terms of trailing-12-month net income margin, GTEC's 10.99% is 72.7% higher than the 6.37% industry average. Similarly, its 21.46% trailing-12-month ROCE is 58.1% higher than the 13.58% industry average. And the stock's trailing-12-month ROTC and ROTA of 8.95% and 6.94%, respectively, are higher than the 6.75% and 5.19% industry averages.
Lower-than-Industry Valuation
In terms of forward EV/S, GTEC's 0.99x is 50.9% lower than the 2.01x industry average. Its 0.83x forward P/S is 48.9% lower than the 1.63x industry average. And the stock's 9.56x and 7.64x respective forward EV/EBIT and EV/EBITDA are lower than the 17.42x and 12.46x industry averages.
POWR Ratings Show Promise
GTEC has an overall B rating, which equates to a Buy in our POWR Ratings system. The POWR Ratings are calculated by accounting for 118 distinct factors, with each factor weighted to an optimal degree.
Our proprietary rating system also evaluates each stock based on eight distinct categories. Among these categories, GTEC has an A grade for Sentiment, which is consistent with its revenue and earnings growth estimates.
GTEC also has a B grade for Quality, which is in sync with its higher-than-industry profitability ratios. In addition, the stock has a C grade for Value, in sync with its lower-than-industry valuation ratios.
Also, the stock has a C grade for Momentum, which is consistent with its 26.8% price gains over the past month and 13.2% decline over the past six months.
Beyond what I have stated above, we have also given GTEC grades for Stability and Growth. Get all the GTEC ratings here.
GTEC is ranked #37 out of 81 stocks in the A-rated Industrial - Machinery industry.
Click here to check out our Industrial Sector Report for 2021
Bottom Line
GTEC reported impressive third-quarter results and maintained its guidance despite rising material and logistic costs. It is well-positioned to benefit from the strong demand. So, we think it could be wise to scoop up its shares now.
How Does Greenland Technologies (GTEC) Stack Up Against its Peers?
GTEC has an overall POWR Rating of B. However, one could also check out these other stocks within the Industrial - Machinery industry with an A (Strong Buy) rating: Tennant Company (TNC), Crane Co. (CR), and GEA Group Aktiengesellschaft (GEAGY).
Click here to checkout our Electric Vehicle Industry Report for 2021
GTEC shares fell $7.34 (-100.00%) in premarket trading Tuesday. Year-to-date, GTEC has declined -0.55%, versus a 24.82% rise in the benchmark S&P 500 index during the same period.
About the Author: Nimesh Jaiswal
Nimesh Jaiswal's fervent interest in analyzing and interpreting financial data led him to a career as a financial analyst and journalist. The importance of financial statements in driving a stock's price is the key approach that he follows while advising investors in his articles.
The post Is Greenland Technologies a Good Electric Industrial Vehicle Stock to Buy? appeared first on StockNews.com
