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1. Company Snapshot

1.a. Company Description

Microvast Holdings, Inc.designs, develops, and manufactures battery systems for electric vehicles and energy storage systems.The company offers a range of cell chemistries, such as lithium titanate oxide, lithium iron phosphate, and nickel manganese cobalt version 1 and 2.It also designs, develops, and manufactures battery components, such as cathode, anode, electrolyte, and separator.


In addition, the company offers battery solutions for commercial vehicles and energy storage systems.Its commercial vehicle markets cover buses, trains, mining trucks, marine and port applications, and automated guided and specialty vehicles, as well as light, medium, heavy-duty trucks in the United States and internationally.The company was incorporated in 2006 and is based in Stafford, Texas.

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1.b. Last Insights on MVST

Negative drivers behind Microvast Holdings' recent performance include the lack of significant innovation in its battery solutions, as evident from the unveiling of its next-generation battery solutions at Smart Energy Week 2025, which may not have been enough to drive substantial growth. Additionally, the company's financial results for Q4 2024 showed a decline in operating income, despite revenue growth, indicating operational inefficiencies. Furthermore, the appointment of a new Chief Financial Officer, Pat Schultz, may be a response to the company's financial challenges rather than a proactive measure to drive growth.

1.c. Company Highlights

2. Microvast Holdings' Q3 2025 Earnings: A Strong Revenue Growth and Improved Profitability

Microvast Holdings reported a record third-quarter revenue of $123.3 million, representing a 21.6% year-over-year increase, with an improved gross profit margin of 37.6%. The company achieved an operating profit of $13 million and adjusted net profit of $11.9 million. The actual EPS came out at $0.04, beating estimates of $0.02. The revenue growth is a testament to the company's focus on efficiency and profitability, which has resulted in consecutive revenue growth over the last several years, indicating an increase in market demand for their high-performance products.

Publication Date: Nov -16

📋 Highlights
  • Record Revenue Growth:: Achieved $123.3 million Q3 revenue, a 21.6% year-over-year increase.
  • Improved Gross Profit Margin:: Gross margin expanded to 37.6%, reflecting enhanced operational efficiency.
  • Operating Profitability:: Generated $13 million operating profit and $11.9 million adjusted net profit.
  • Strong Cash Flow Generation:: Positive operating cash flow of $59.5 million for the nine-month period.
  • Revised Full-Year Guidance:: Raised gross margin target to 32–35% and reaffirmed $450–$475 million annual revenue.

Operational Highlights

The company's vertically integrated battery technology powerhouse and determined push to capture greater market share have positioned it well for the future. Yang Wu, Founder, Chairman, and CEO, expressed confidence in the company's ability to deliver long-term value to shareholders, citing strong sales growth and significant progress on the next wave of advanced products.

Financial Performance and Guidance

The company's operating expenses increased by 22% year-over-year, primarily due to exchange loss and litigation expense. However, Microvast Holdings reported positive adjusted EBITDA of $21.9 million and generated positive operating cash flow of $59.5 million for the nine-month period. The company reaffirmed its initial annual revenue guidance of $450 to $475 million and raised its full-year gross margin target from 32% to a new range of 32% to 35%.

Valuation and Outlook

With a P/S Ratio of 2.94, the market is pricing in a certain level of revenue growth, which is expected to be around 17.7% next year according to analyst estimates. The EV/EBITDA ratio stands at -15.7, indicating that the market is expecting significant EBITDA growth in the future. ROE is currently at -31.97%, which may be a concern, but ROIC is at 2.32%, indicating some return on invested capital.

3. NewsRoom

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Microvast: From 130% Rally To Sharp Pullback, Is The Opportunity Still There?

Dec -04

Source: seekingalpha.com

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MVST's Comeback: Record Revenues Drive Adjusted EBITDA in Q3

Dec -02

Source: zacks.com

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RR vs. Microvast: Which Small-Cap Tech Stock Should You Bet On?

Nov -27

Source: zacks.com

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MVST's Huzhou Phase 3.2: CapEx Trends Support Expansion Plans

Nov -25

Source: zacks.com

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Microvast's Revenues Escalate: Can it Sustain This Trajectory?

Nov -18

Source: zacks.com

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Microvast: Q3 Shows What Happens When Potential Meets Execution

Nov -13

Source: seekingalpha.com

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MVST Stock Skyrockets 2656% in a Year: Still a Buy or Time to Wait?

Nov -11

Source: zacks.com

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Microvast Holdings, Inc. (MVST) Q3 2025 Earnings Call Prepared Remarks Transcript

Nov -11

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.27%)

6. Segments

Electronic Power Products

Expected Growth: 10.27%

Microvast Holdings, Inc.'s Electronic Power Products segment growth of 10.27% is driven by increasing adoption of electric vehicles, rising demand for energy storage systems, and growing need for high-performance batteries in industrial and consumer applications. Additionally, the company's strategic partnerships, expanding production capacity, and innovative product offerings contribute to its rapid growth.

7. Detailed Products

Lithium-Ion Battery Cells

Microvast Holdings, Inc. offers high-performance lithium-ion battery cells designed for electric vehicles, energy storage systems, and other applications.

Battery Management Systems (BMS)

Microvast's BMS solutions provide advanced battery monitoring, charging, and discharging control for safe and efficient battery operation.

Electric Vehicle Charging Systems

Microvast offers fast and efficient electric vehicle charging systems for commercial and residential applications.

Energy Storage Systems (ESS)

Microvast's ESS solutions provide scalable and flexible energy storage for renewable energy systems, grid stabilization, and backup power.

Thermal Management Systems

Microvast's thermal management systems provide advanced cooling and heating solutions for electric vehicles, energy storage systems, and industrial applications.

8. Microvast Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Microvast Holdings, Inc. operates in the electric vehicle battery industry, which has a moderate threat of substitutes. While there are alternative energy storage solutions, such as fuel cells and capacitors, lithium-ion batteries are currently the dominant technology. However, ongoing research and development in alternative technologies could potentially disrupt the industry.

Bargaining Power Of Customers

Microvast Holdings, Inc. has a diverse customer base, including automotive OEMs and battery pack manufacturers. While some customers may have significant bargaining power, the company's diversified customer base and strong relationships mitigate this risk.

Bargaining Power Of Suppliers

Microvast Holdings, Inc. relies on a limited number of suppliers for key components, such as lithium and nickel. While the company has established relationships with its suppliers, it is still vulnerable to supply chain disruptions and price fluctuations.

Threat Of New Entrants

The electric vehicle battery industry is rapidly growing, and new entrants are attracted to the market. However, high barriers to entry, including significant capital expenditures and technological expertise, make it challenging for new companies to enter the market.

Intensity Of Rivalry

The electric vehicle battery industry is highly competitive, with established players such as LG Chem, Panasonic, and Contemporary Amperex Technology. Microvast Holdings, Inc. faces intense competition in terms of pricing, technology, and customer relationships.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 25.00%
Debt Cost 3.95%
Equity Weight 75.00%
Equity Cost 11.95%
WACC 9.95%
Leverage 33.34%

11. Quality Control: Microvast Holdings, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
FuelCell Energy

A-Score: 4.5/10

Value: 9.2

Growth: 3.7

Quality: 3.8

Yield: 0.0

Momentum: 10.0

Volatility: 0.3

1-Year Total Return ->

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Stock-Card
Microvast

A-Score: 4.0/10

Value: 4.8

Growth: 5.6

Quality: 3.2

Yield: 0.0

Momentum: 10.0

Volatility: 0.3

1-Year Total Return ->

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Dragonfly Energy

A-Score: 3.8/10

Value: 9.4

Growth: 2.9

Quality: 5.5

Yield: 0.0

Momentum: 5.0

Volatility: 0.0

1-Year Total Return ->

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Plug Power

A-Score: 3.4/10

Value: 7.4

Growth: 1.2

Quality: 3.4

Yield: 0.0

Momentum: 8.0

Volatility: 0.3

1-Year Total Return ->

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Stock-Card
SKYX

A-Score: 3.1/10

Value: 7.0

Growth: 4.0

Quality: 3.0

Yield: 0.0

Momentum: 3.5

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
Ideal Power

A-Score: 2.7/10

Value: 6.4

Growth: 4.1

Quality: 3.4

Yield: 0.0

Momentum: 1.0

Volatility: 1.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

3.82$

Current Price

3.82$

Potential

-0.00%

Expected Cash-Flows