Nikola Corporation, trading as NASDAQ:NKLA, is an electric vehicle manufacturer based in Phoenix, Arizona. The company, once valued at $30 billion, is known for its electric semi-trucks. Despite its promising start, Nikola has faced significant challenges, including a mass recall of its vehicles and legal issues involving its founder. The company competes in the electric vehicle market, which includes major players like Tesla and Rivian.
Nikola is set to release its quarterly earnings on February 20, 2025. Analysts predict an earnings per share (EPS) of -$2.30 and revenue of approximately $40.86 million. However, the company has recently filed for Chapter 11 bankruptcy, planning to auction its assets. This decision follows a series of setbacks, including a significant drop in stock price and challenges in raising capital.
The bankruptcy filing reveals Nikola's assets are valued between $500 million and $1 billion, while liabilities range from $1 billion to $10 billion. Despite this, the company plans to maintain limited operations, including HYLA fueling, until March 2025. Nikola enters bankruptcy with $47 million in cash to support these activities and the asset sale process, as highlighted by CEO Steve Girsky.
Nikola's financial metrics reflect its struggles. The company has a negative price-to-earnings (P/E) ratio of -0.038 and a price-to-sales ratio of 0.52, indicating investors pay $0.52 for every dollar of sales. The enterprise value to sales ratio is 2.52, while the enterprise value to operating cash flow ratio is -0.37, showing negative cash flow from operations.
The company's debt-to-equity ratio is 0.93, indicating a moderate level of debt compared to equity. Nikola's current ratio is 1.17, suggesting a slightly higher level of current assets than liabilities, which may indicate short-term financial health. Despite these figures, the company's negative earnings yield of -26.50% highlights its lack of profitability.
