The Lion Electric Company, trading under the symbol NYSE:LEV, is set to release its quarterly earnings on February 26, 2025. Analysts predict an earnings per share (EPS) of -$0.13, with revenue expected to be around $33.7 million. Lion Electric specializes in manufacturing electric vehicles, particularly buses, and faces competition from other electric vehicle manufacturers.
Despite a negative price-to-earnings (P/E) ratio of -0.43, Lion Electric's stock is valued at 32 cents for every dollar of sales, as indicated by its price-to-sales ratio of 0.32. This suggests that while the company is not currently profitable, its stock is relatively inexpensive compared to its sales. However, the enterprise value to sales ratio of 2.39 shows that the company's overall valuation is higher relative to its revenue.
The company faces challenges in generating cash flow, as highlighted by an enterprise value to operating cash flow ratio of -7.63. This means that Lion Electric is struggling to convert its operations into cash, which is crucial for sustaining business activities. Additionally, the negative earnings yield of -2.32% further emphasizes the company's lack of profitability, indicating that investors are not receiving returns on their investments.
Lion Electric's financial health is also under scrutiny due to its debt-to-equity ratio of 1.06, which shows that the company has slightly more debt than equity. This could pose risks if the company is unable to manage its debt effectively. However, a current ratio of 1.12 suggests that Lion Electric has a modest ability to cover its short-term liabilities with its short-term assets, providing some reassurance to investors.
The company is currently under investigation by Bronstein, Gewirtz & Grossman, LLC, following a report by the Kennebec Journal. Federal agents visited Winthrop schools to investigate potential fraud related to Lion Electric's buses. This legal scrutiny, along with the Schall Law Firm's fraud investigation, adds to the challenges faced by Lion Electric, impacting investor confidence and the company's future prospects.
