Another advantage of BYD is that it ended Q1 with $2.1 billion in cash and with an interest coverage ratio of 5.5x it has more than enough resources to easily service its debt, reinvest available resources into its growth, and continue to pay dividends to its shareholders. While a P/B of less than 3 would mean it's trading at a discount to the market, different industries have different median P/B values. 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. A yield of 8.57% also means 8.57 cents of earnings for $1 of investment. Commercial electric vehicles don't get a lot of attention, but there is a lot of potential for disrupting that industry eventually. This is, compared to legacy automakers such as Volkswagen (OTCPK:VWAGY), General Motors (GM), Ford (F), or Toyota (TM), still not a low valuation, though, as those mostly trade for 0.5-1 times sales. I stressed the importance of BYDs Blade Battery in my Seeking Alpha article last month, but I should stress it even further. ), so BYD has almost limitless battery partnership opportunities in the road ahead, especially because it has the cheapest and safest battery in the industry. Analysts Disclosure: I am/we are long XPEV, BYDDF. There are 17 Sectors, 60 different M Industries, and 265 X Industries. 3. The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. What does 'They're at four. 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. Our testing substantiates this with the optimum range for price performance between 0-20. The 1 Week Price Change displays the percentage price change over the last 5 trading days using the most recently completed close to the close from 5 days before. A small portion of the firm's top line comes from the sale of rechargeable batteries. BYD isnt the only Chinese EV maker eyeing the European market. The detailed multi-page Analyst report does an even deeper dive on the company's vital statistics. How to force Unity Editor/TestRunner to run at full speed when in background? NIO is a play on the high-end electric car market while XPeng offers affordable electric cars. The EV/EBITDA ratio is a valuation multiple and is often used in addition, or as an alternative, to the P/E ratio. The Momentum Score takes all of this and more into account. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service. Cash is vital to a company in order to finance operations, invest in the business, pay expenses, etc. BYD (OTCMKTS:BYDDF) stock is on the move today despite a lack of news concerning the electric vehicle (EV) company. Learn more about Zacks Equity Research reports. The Growth Scorecard evaluates sales and earnings growth along with other important growth measures. Conversely, if the yield on stocks is higher than the 10 Yr., then stocks would be considered undervalued. The Historical Cash Flow Growth is the longer-term (3-5 year annualized) growth rate of the cash flow change. We use cookies to understand how you use our site and to improve your experience. 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. At this stage, BYD's major advantage is that it's already one of the most dominant companies in the EV industry in China, which is also the biggest EV market in the world. Buying NIO and XPEV is straightforward. Zacks' proprietary data indicates that Byd Co., Ltd. is currently rated as a Zacks Rank 1 and we are expecting an above average return from the BYDDY shares relative to the market in the next few months. 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 this report, we will shine some light on this lesser-known EV play and outline why Buffett has chosen BYD over the likes of Tesla (TSLA), NIO (NIO), and other better-known EV companies. Lastly BYDDY is an ADR while BYDDF is H share, but who cares? Biden knows the U.S. has fallen behind China in the clean energy race; his campaign website even says, In 2017, China invested $3 in renewable energy for every $1 in America, giving China an edge on the technologies of tomorrowBy 2030, the Biden Administration will put the United States back in the drivers seat. An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. The company has proven that it knows how to capitalize on opportunities as they arise. Should you buy BYDDF stock now? Note; companies will typically sell for more than their book value in much the same way that a company will sell at a multiple of its earnings. Market Realist is a registered trademark. It also includes an industry comparison table to see how your stock compares to its expanded industry, and the S&P 500. BYD North America supplies buses to over 50 customers in the U.S. alone, with over 400 buses on U.S. streets (more than any other electric bus). Investors like this metric as it shows how a company finances its operations, i.e., what percentage is financed thru shareholder equity or debt. Entering text into the input field will update the search result below. Chinas fast-expanding middle-class population is also an advantage for BYD, especially in the luxury car market. Trying to figure out difference between BYDDY and BYDDF. It's not them. The Momentum Scorecard table also displays the values for its respective Industry along with the values and Momentum Score of its three closest peers. If you do not, click Cancel. All Rights Reserved. comments sorted by Best Top New Controversial Q&A Add a Comment On top of that, let's not forget that BYD has also been profitable for the last decade, while a large part of current EV manufacturers is expected to continue to lose money in the following quarters. If you liked our writing style and our view on the market dont forget to subscribe. It develops mostly full-electric and hybrid vehicles such as traditional sedans, SUVs, busses, forklifts, and even trains. All Rights Reserved. I wrote this article myself, and it expresses my own opinions. Summary. A positive change in the cash flow is desired and shows that more 'cash' is coming in than 'cash' going out. EV play Hi folks. This item is updated at 9 pm EST each day. A company like BYD comes once in a blue moon. What's the difference between Byddf and Byddy? A higher number is better than a lower one as it shows how effective a company is at generating revenue from its assets. The difference is that BYDDY is the ADR of BYD stock, while BYDDF is its H-shares. Thanks to such a growth of the market, there's every reason to believe that BYD will be able to achieve its goal of generating $150 billion in annual revenue by the end of the current decade. We believe purchasing BYDs stock is a good way of exposing your portfolio to the EV industry. A lot of people make that mistake. If you look into trading profiles, they're are just replicas of each other with same trading volume,buy/sell signals etc. Xpeng is also looking to dip its toes into the cold waters of the Norwegian fjords. BYD reminds me way more of a chinese Tesla than NIO because BYD also . The Current Ratio is defined as current assets divided by current liabilities. BYD is a Chinese EV maker that's backed by billionaire investor Warren Buffett. The time has come. This means that more and more batteries are needed, which means that the battery manufacturing business BYD is active in should do well, whether the EV leader in 2030 is Tesla, Volkswagen, or any other company. The Momentum Scorecard focuses on price and earnings momentum and indicates when the timing is right to enter a stock. Members of Best Short Ideas get exclusive ideas and guidance to navigate any climate. Others will look for a pullback on the week as a good entry point, assuming the longer-term price changes (4 week, 12 weeks, etc.) This includes personalizing content and advertising. I am not receiving compensation for it (other than from Seeking Alpha). I don't understand this forum post - "BYDDY is a sponsored ADR. As states and municipalities become more environmentally conscious and frugal, they are starting to buy electric buses to reduce their carbon footprint. While EV stocks like Tesla and NIO are quite popular on Reddit groups, BYD is not among the popular names on Reddit. This is also useful to know when comparing a stock's daily volume (which can be found on a ticker's hover-quote) to that of its average volume. So, when comparing one stock to another in a different industry, it's best make relative comparisons to that stock's respective industry values. That also holds true when we look at how its EV business alone could be valued if it were beloved by the market. Why do share prices obtained from models often differ than the actual stock price? Once again, cash flow is net income plus depreciation and other non-cash charges. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. According to He Long, president of BYDs battery business unit, nearly every automaker youve ever heard of has reached out to BYD regarding technical cooperation, especially after Blades launch. But note, different industries have different margin rates that are considered good. The financial health and growth prospects of BYDDY, demonstrate its potential to perform inline with the market. The primary goal of the Cash Flow Kingdom Income Portfolio is to produce an overall yield in the 7% - 10% range. It is essentially the inverse of the P/E ratio. These are, however, issues that could be dealt with if management wants to. It operates through the following segments: Rechargeable Batteries and Photovoltaic Products, Mobile Handset Components, Assembly Service and Other Products, and Automobiles and Related Products and Other Products. This shows the percentage of profit a company earns on its sales. Both NIO and BYD have attractive offerings on the . Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body. Asking for help, clarification, or responding to other answers. The policy roadmap specifically emphasizes Chinas targets for NEVs; it now expects NEVs to make up 20% of new vehicle sales by 2025, and more than half of sales by 2035NEVs make up only 5% of new sales today. A value greater than 1, in general, is not as good (overvalued to its growth rate). What positional accuracy (ie, arc seconds) is necessary to view Saturn, Uranus, beyond? The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. None of the other automakers produce their own batteries (have I mentioned that? If you were to apply a 21% improvement in Teslas automotive gross margin over the last four quarters (granted this isnt comparing apples to apples), it would have made an additional $1.29B in automotive gross profit. We estimate commercial NEV sales will grow by 628% over that same period. The (F1) EPS Estimate Weekly Change calculates the percentage change in the consensus earnings estimate for the current year (F1) over the last week. A company like BYD comes once in a blue moon, and its stock is already up 398% YTD. Nasdaq I wrote this article myself, and it expresses my own opinions. (Video) Secret BYD Insider information - BYD will 10X stock price by 2025 This could also mean that BYD's peers are very overvalued and that BYD is not undervalued. How does BYDDF differ from BYDDY? You can get up to speed on that news by checking out the links below! 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/. 1125 N. Charles St, Baltimore, MD 21201. For that reason, sometimes it might be hard for investors outside of China to find fresh financial information on the company, as its English IR section on the official website is not updated as frequently as the Chinese IR section. You can buy any of the stock versions because they represent the same company. The Earnings Yield (also known as the E/P ratio) measures the anticipated yield (or return) an investment in a stock could give you based on the earnings and the price paid. Of course, different industries will have different growth rates that are considered good. BYD Company is a China-based vehicle maker that mainly focuses on manufacturing automobiles. In 2020, EV stocks around the globe have jumped upwards, delivering hefty returns for shareholders. If you have an ad-blocker enabled you may be blocked from proceeding. ", When I Googled this, I saw "ARKQ (ETF) is holding BYD/BYDDF. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. I am not receiving compensation for it (other than from Seeking Alpha). Chinese EV stocks including BYDDF, NIO, XPeng Motors, and Li Auto are popular among U.S. investors. Nevertheless, foreign investors still can invest in the company by purchasing its shares via an OTC market and benefiting from the possible appreciation of its stock, as there's every reason to believe that the sales of its electric vehicles in China will only increase in the following decade. Bears of Wall Street is a community of traders and financial analysts, who take a pragmatic approach to valuing companies. Besides electric cars, BYDs other products include electric bikes, rechargeable batteries, and solar panels. After the P/E ratio, it's one of the most common valuation metrics. The respective items are ranked and graded into five groups: A, B, C, D and F. 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 stocks with the highest probability of success. When it comes to buying BYD stock, it can be a little confusing for some investors trying to figure out the difference between BYDDF and BYDDY. BYD was not looking at the U.S. market as a major revenue stream, but rather to establish its brand overseas. Earnings estimate revisions are the most important factor influencing stocks prices. What is the symbol (which looks similar to an equals sign) called? I am not receiving compensation for it (other than from Seeking Alpha). California ordered $1 billion worth of N95 masks from BYD. While a Biden Administration is certainly good news for the future of the U.S., it will still be far behind China in terms of addressing climate change. Zacks Style Scores Education - Learn more about the Zacks Style Scores. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body. It's calculated as earnings divided by price. The Price to Earnings ratio or P/E is price divided by earnings. BYD already has a presence in the U.S., with its North American headquarters located in Los Angeles. This is also commonly referred to as the Asset Utilization ratio. ", Improving the copy in the close modal and post notices - 2023 edition, New blog post from our CEO Prashanth: Community is the future of AI, Use of chatGPT and other AI generators is banned. It wasnt the right time, nor the right market. Beyond China, BYD has bus factories in Brazil, Canada, the U.S., and Europe. Cash Flow per share ($/share) calculates the amount of incoming cash vs. the amount of outgoing cash for a company. Its Value Score of C indicates it would be a neutral pick for value investors. The company is an EV OEM, but on top of that, BYD also has exposure to the space through other business units. You will need to open an account with a broker that supports the stock, fund the account, and place your order for BYDDY stock. A strong cash flow is important for covering interest payments, particularly for highly leveraged companies. The longer-term perspective helps smooth out short-term events. Where and how do investors buy BYD stock and is it a good investment? But, typically, an aggressive growth trader will be interested in the higher growth rates. It's then divided by the number of shares outstanding to determine how much cash is generated per share. BYDDF is traded on Hong Kong Stock Exchange." When I Googled this, I saw "ARKQ (ETF) is holding BYD/BYDDF. Manufacturing its own battery cells has always afforded BYD an advantage in its margins, but Blade Battery and BYD Semiconductors IGBT contributed that much more. I am told BYD will make things easier/clearer when it spins off its battery unit and IGBT semiconductor unit, though if they only list on STAR, HK, SZ, Shanghai, and not in U.S./OTC (which is the new retaliatory trend for Chinese companies), it will be difficult for many U.S. investors to own the spin-offs. In addition to all of the proprietary analysis in the Snapshot, the report also visually displays the four components of the Zacks Rank (Agreement, Magnitude, Upside and Surprise); provides a comprehensive overview of the company business drivers, complete with earnings and sales charts; a recap of their last earnings report; and a bulleted list of reasons to buy or sell the stock.