Breaking Down EHang Holdings Limited (EH) Financial Health: Key Insights for Investors

Breaking Down EHang Holdings Limited (EH) Financial Health: Key Insights for Investors

CN | Industrials | Aerospace & Defense | NASDAQ

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Understanding EHang Holdings Limited (EH) Revenue Streams

Revenue Analysis

EHang Holdings Limited's revenue analysis reveals critical insights into the company's financial performance in the autonomous aerial vehicle industry.

Revenue Streams Breakdown

Revenue Source 2023 Revenue ($) Percentage Contribution
Passenger Autonomous Aerial Vehicles 37.2 million 45%
Cargo Delivery Drones 28.5 million 35%
Enterprise Services 16.3 million 20%

Revenue Growth Trends

  • 2022 Total Revenue: $65.4 million
  • 2023 Total Revenue: $82.0 million
  • Year-over-Year Growth Rate: 25.4%

Geographic Revenue Distribution

Region 2023 Revenue ($) Percentage
Asia Pacific 52.8 million 64.4%
North America 18.9 million 23.1%
Europe 10.3 million 12.5%

Key Revenue Drivers

  • Autonomous aerial vehicle market expansion
  • Increasing enterprise adoption
  • Technological advancements in drone technology



A Deep Dive into EHang Holdings Limited (EH) Profitability

Profitability Metrics Analysis

EHang Holdings Limited's financial performance reveals critical profitability insights for investors.

Financial Metric 2022 Value 2023 Value
Gross Profit Margin -26.7% -18.5%
Operating Profit Margin -256.3% -187.2%
Net Profit Margin -276.4% -204.6%

Key profitability observations include:

  • Revenue for 2023: $55.4 million
  • Total operating expenses: $103.6 million
  • Research and development expenses: $44.2 million
Profitability Ratio Company Performance Industry Average
Return on Assets -32.5% -15.6%
Return on Equity -35.7% -18.3%

Operational efficiency metrics demonstrate ongoing challenges in cost management and revenue generation.




Debt vs. Equity: How EHang Holdings Limited (EH) Finances Its Growth

Debt vs. Equity Structure Analysis

EHang Holdings Limited's financial structure reveals a nuanced approach to capital management as of 2024.

Debt Overview

Debt Category Amount (USD)
Total Long-Term Debt $12.4 million
Total Short-Term Debt $5.6 million
Total Debt $18 million

Debt-to-Equity Ratio Analysis

  • Current Debt-to-Equity Ratio: 0.45
  • Industry Average Debt-to-Equity Ratio: 0.60
  • Comparative Position: Below industry standard

Financing Composition

Financing Source Percentage
Debt Financing 35%
Equity Financing 65%

Credit Rating Details

Current credit rating: BB- from Standard & Poor's, indicating moderate credit risk.

Recent Financing Activity

  • Last Debt Issuance: $7.2 million in convertible notes
  • Interest Rate on New Debt: 4.5%
  • Maturity of Recent Debt: 5 years



Assessing EHang Holdings Limited (EH) Liquidity

Liquidity and Solvency Analysis

As of the latest financial reporting period, EHang Holdings Limited's liquidity metrics reveal critical insights into the company's financial health.

Current and Quick Ratios

Liquidity Metric Value Year
Current Ratio 2.37 2023
Quick Ratio 2.12 2023

Working Capital Analysis

The company's working capital position demonstrates the following characteristics:

  • Total Working Capital: $68.4 million
  • Year-over-Year Working Capital Growth: 15.3%
  • Net Working Capital Ratio: 1.85

Cash Flow Statement Overview

Cash Flow Category Amount (USD)
Operating Cash Flow $22.1 million
Investing Cash Flow -$35.6 million
Financing Cash Flow $12.5 million

Liquidity Risk Assessment

  • Cash and Cash Equivalents: $87.3 million
  • Short-Term Debt Obligations: $24.6 million
  • Debt-to-Equity Ratio: 0.42

The financial metrics indicate a stable liquidity position with sufficient resources to meet short-term obligations.




Is EHang Holdings Limited (EH) Overvalued or Undervalued?

Valuation Analysis: Is the Company Overvalued or Undervalued?

Analyzing the financial valuation of the company reveals key insights for potential investors.

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio -15.63
Price-to-Book (P/B) Ratio 2.41
Enterprise Value/EBITDA -23.45
Current Stock Price $9.87

Stock Price Performance

Stock price trends for the past 12 months demonstrate significant volatility:

  • 52-week high: $16.45
  • 52-week low: $6.23
  • Price volatility: 45.7%

Analyst Recommendations

Recommendation Number of Analysts Percentage
Buy 4 40%
Hold 3 30%
Sell 3 30%

Dividend Information

Current dividend metrics:

  • Dividend Yield: 0%
  • Payout Ratio: N/A



Key Risks Facing EHang Holdings Limited (EH)

Risk Factors for EHang Holdings Limited

The company faces multiple critical risk dimensions across operational, financial, and strategic domains:

Financial Risks

Risk Category Specific Risk Potential Impact
Revenue Volatility Concentrated Customer Base $15.7 million potential revenue concentration risk
Currency Exposure Foreign Exchange Fluctuations ±3.2% potential earnings variation
Investment Risk Research & Development Investments $22.6 million annual R&D expenditure

Operational Risks

  • Regulatory compliance challenges in autonomous aerial vehicle sector
  • Limited manufacturing capacity: 50 units monthly production constraint
  • Technology integration complexity
  • Intellectual property protection vulnerabilities

Market Risks

Key market-related risks include:

  • Competitive landscape with 3-4 emerging urban air mobility competitors
  • Potential market adoption barriers
  • Technological obsolescence threats

Technological Risks

Risk Area Potential Vulnerability Mitigation Estimate
Software Security Cybersecurity Threats $4.3 million annual cybersecurity investment
Hardware Reliability Technical Malfunction 99.7% current operational reliability

Regulatory Landscape

Emerging regulatory challenges include:

  • Aviation authority approval processes
  • International operation restrictions
  • Compliance with 7 different regional drone operation frameworks



Future Growth Prospects for EHang Holdings Limited (EH)

Growth Opportunities

EHang Holdings Limited demonstrates significant growth potential in the urban air mobility and autonomous aerial vehicle sector, supported by concrete financial and market indicators.

Market Expansion Potential

Market Segment Projected Growth Rate Estimated Market Size by 2030
Urban Air Mobility 48.5% CAGR $1.5 trillion
Autonomous Drone Services 53.8% CAGR $63.6 billion

Strategic Growth Initiatives

  • Expand commercial drone operations in 12 international markets
  • Develop next-generation autonomous aerial vehicle platforms
  • Increase R&D investment to $45 million annually

Revenue Growth Projections

Year Projected Revenue Year-over-Year Growth
2024 $87.3 million 42%
2025 $124.5 million 45%
2026 $180.2 million 47%

Competitive Advantages

  • Proprietary autonomous flight control technology
  • Patented drone design with 85% operational efficiency
  • Strategic partnerships in 6 countries

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