A post on popular Reddit group WallStreetBets, which was upvoted over 2,100 times, referred to BYD among the value stocks listed by Keith Gill on his Reddit forum. Moreover, the company also has its hand in other areas of tech including batteries and solar panels.. This translates to a 21% improvement in BYDs gross margin. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. Article printed from InvestorPlace Media, https://investorplace.com/2021/12/byddf-stock-10-things-to-know-about-byd-as-investors-hunt-for-the-next-hot-ev-play/. The X Industry (aka Expanded Industry) is a subset of the M (Medium Sized) Industry, which is a subset of the larger Sector category, which is used to classify all of the stocks in the Zacks Universe. How good is it? 3. 3. Shareholder Equity (which is the difference between Total Assets and Total Liabilities) can be found on the Balance Sheet. When comparing this ratio to different stocks in different industries, take note that some businesses are more capital intensive than others. So be sure to compare a stock to its industry's growth rate when sizing up stocks from different groups. BYD also trades at a relatively low valuation, at least compared to EV pureplay peers, although BYD still trades at a premium to legacy autos. The 13 million miles saved over 16,000 metric tons of GHG emissionsequivalent to removing 13,000 cars from the road. A company with an ROE of 10%, for example, means it created 10 cents of assets for every $1 of shareholder equity in a given year. While we dont have the breakup for China, according to Chinas Association of Automotive Manufacturers, the Elon Musk-led company sold 18,318 vehicles in February in China. Like the P/E ratio, a lower number is considered better. The income number is listed on a company's Income Statement. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Many other growth items are considered as well. I wrote this article myself, and it expresses my own opinions. Byddf and Byddy are both a contraction of "By Dear Foe , and both refer to the inventor's name, James B. Ford. Did the drapes in old theatres actually say "ASBESTOS" on them? BYD is a company that is encroaching on the high-growth EV industry through a multi-faceted strategy that includes personal EVs, commercial EVs, and battery manufacturing. For BYD's newest model, Han (performance of a Tesla Model S for the price of a Model 3), we estimate the IGBT and battery at the pack level combined cost to be only 25.4% of the total manufacturing cost, despite the cars narrower gross margins. BYD saw its shares rise as well, but not to the same degree as Tesla, NIO, and many others. quotes delayed at least 15 minutes, all others at least 20 minutes. This initiative will help accelerate the transition from diesel to electric buses in the U.S. As of July, BYD buses in the U.S. had logged 13 million miles of zero-emission operations, which is the distance of 520 trips around the world. EV stocks have been a favorite investment of many throughout the last year, and currently, many stocks in this space seem to be priced for perfection. A yield of 8.57% also means 8.57 cents of earnings for $1 of investment. Zacks Ranks stocks can, and often do, change throughout the month. Cash Flow per share ($/share) calculates the amount of incoming cash vs. the amount of outgoing cash for a company. The majority of our articles have bearish sentiment and reflect our short stance on the market. In this case, it's the cash flow growth that's being looked at. It sold a total of 16,301 battery-powered EVs in the month. But, it's made even more meaningful when looking at the longer-term 4 week percent change. Enterprise Value / Earnings Before Interest, Taxes, Depreciation and Amortization is a valuation metric used to measure a company's value and is helpful in comparing one stock to another. Its all the same company. The company made its latest dividend payment in September 2020 and distributed $0.0169 per share. This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. The company's financial condition is fair and its profitability is fair. Within the VGM Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F. As an investor, you want to buy srocks with the highest probability of success. While it's headquartered in Shenzhen, China, it has manufacturing facilities in China, the US, and in other parts of the world such as Brazil and Canada. You can get up to speed on that news by checking out the links below! So, as with other valuation metrics, it's a good idea to compare it to its relevant industry. Looking at the "Followers" the stock has here on Seeking Alpha, about 12,000, we see that the company is much less followed compared to the likes of NIO (173,000), XPeng (XPEV) (44,000), or even Nikola (NKLA) (53,000). Tesla, with annual deliveries of about 800,000 vehicles, is valued at roughly $700 billion, or about $900,000 per car they sell. BYD is trading for around $70 billion, though, and thus way cheaper than what one would expect when looking at how its peers are valued. People may receive compensation for some links to products and services on this website. BYD has the cheapest EV battery in the industry, and it plans to sell its newest batteryBlade Batteryto other automakers. This is a medium-term price change metric. NIO is a play on the high-end electric car market while XPeng offers affordable electric cars. It's then divided by the number of shares outstanding to determine how much cash is generated per share. Thats all Ill say. Zacks Rank Education -- Learn more about the Zacks Rank The Price to Earnings ratio or P/E is price divided by earnings. BYD Semiconductor is the only Chinese company (not just EV manufacturer) that can produce IGBTs independently, and is 72.3% owned by its parent company, BYD Co. Ltd. BYD Semiconductor is expected to go public, though no timeframe has been given. BYD figured this out almost two decades ago. The price of "BYDDY" appears to always be twice the price of "BYDDF". AutoNation (AN) Q1 Earnings Surpass Estimates, Sales Miss, Harrow Health and CDW have been highlighted as Zacks Bull and Bear of the Day, Volkswagen (VWAGY) Appears Well-Poised for EV Supremacy. Zacks Style Scores Education - Learn more about the Zacks Style Scores. With Chinas new Five-Year Plan targeting urban transportation as a way to curb carbon emissions, BYD will be a clear winner in the space because it has the available capacity to electrify entire cities and regions. See rankings and related performance below. We expect BYDs passenger NEV sales in China to grow by 346%, Teslas by 162%, NIOs by 510%, and Xpengs by 629% over the next four years. NIO has allocated many staff members for its export business unit, aiming to sell 7,000 ES8 and ES6 SUVs in Europe within two years. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style. The Current Ratio is defined as current assets divided by current liabilities. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Start your free two-week trial today! The Investment Community where "Cash Flow is King". First, BYDDF and BYDDY are versions of BYD stock. The Price to Cash Flow ratio or P/CF is price divided by its cash flow per share. [11] BYD Co., Ltd. engages in the research, development, manufacture, and sale of rechargeable batteries and photovoltaic business. * indicates the important links in the menu. The primary goal of the Cash Flow Kingdom Income Portfolio is to produce an overall yield in the 7% - 10% range. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. In this example, the one with the P/E of 40 is the better bargain because it is selling at a discount to its growth rate. BYDDF trades at HKD:USD conversion rate (0.13) of the HK shares, so that makes financial breakdowns in USD easier, and BYDDY trades at 2x BYDDF. On top of that, while there are certain risks with investing in the Chinese companies, BYD has a proven track record of creating shareholder value for more than a decade and one of its major shareholders is Warren Buffett's Berkshire Hathaway (BRK.A) (BRK.B), which has more than quadrupled its investment since opening a stake in the company back in 2008. BYD soared more than 5%, another record high The stock has risen by more than 60% since September, & its total market value has exceeded 370 billion. So be sure to compare it to its group when comparing stocks in different industries. Since there is a fair amount of discretion in what's included and not included in the 'ITDA' portion of this calculation, it is considered a non-GAAP metric. This has been, still is, and certainly will continue to be what differentiates BYD the most. This is also referred to as the cash yield. The ever popular one-page Snapshot reports are generated for virtually every single Zacks Ranked stock. Long-term Buffett backing always is a good sign, although investors should of course still do their due diligence and consider valuation before making an investment. While the F1 consensus estimate and revision is a key driver of stock prices, the Q1 consensus is an important item as well, especially over the short-term, and particularly as a stock approaches its earnings date. Since bonds and stocks compete for investors' dollars, a higher yield typically needs to be paid to the stock investor for the extra risk being assumed vs. the virtual risk-free investment offered in U.S.-backed Treasuries. The financial health and growth prospects of BYDDY, demonstrate its potential to perform inline with the market. In 2020, EV stocks around the globe have jumped upwards, delivering hefty returns for shareholders. Net Margin is defined as net income divided by sales. It's typically categorized as a valuation metric and is most often quoted as Cash Flow per Share and as a Price to Cash flow ratio. That does not mean that all companies with large growth rates will have a favorable Growth Score. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. The 20 Day Average Volume is the average daily trading volume over the last 20 trading days. Is This an Income Stream Which Induces Fear? Investors who discover that Buffett has a significant stake in BYD stock often wonder whether the company pays a dividend. Most importantly, though, was the outline of Chinas ambitious Five-Year Plan released last week, in which domestic production of NEVs and technology is central to Chinas economic plans over the next five and 15 years. I have no business relationship with any company whose stock is mentioned in this article. Notably, Buffett is invested in the company since 2008 despite the fact that EV stocks dont exactly fit into his definition of value stocks. The other. This measure is expressed as a percentage. Entering text into the input field will update the search result below, ) is an under-followed Chinese EV maker that is active in a range of other businesses as well, and which has Buffett's Berkshire Hathaway (, ) as one of its top shareholders. I have been following BYD since 2009, and first met with BYD at its headquarters in Shenzhen, China over five years ago. BYD is thus, with relatively comparable offerings, taking market share versus Tesla. If you have questions feel free to ask them via direct messaging or through the comment section. A ratio under 40% is generally considered to be good.But note; this ratio can vary widely from industry to industry. A higher number is better than a lower one as it shows how effective a company is at generating revenue from its assets. All of those stocks are classified into three groups: Sector, M Industry and X Industry. It was an anxious time for BYD, because it felt that it needed validation in the U.S. to achieve sales in China, but the U.S. market wasnt ready for a mid-priced EV or PHEV, especially one from a Chinese company. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. Value investors will typically look for stocks with P/E ratios under 20, while growth investors and momentum investors are often willing to pay much more. Thats well above the companys daily average trading volume of roughly 136,000 shares. BYD is not necessarily looking like a steal, but I believe that shares are looking way more reasonably valued compared to most of its peers. Zacks Style Scores Education - Learn more about the Zacks Style Scores.
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