$1.27
arrow_drop_down0.78%Is FFIE a Buy or Sell based on AI Analysis?
Fundamental Analysis
Faraday Future Intelligent Electric (FFIE) shows a positive price-to-sales ratio of 3.55, indicating that investors are willing to pay $3.55 for every dollar of revenue generated by the company. Additionally, the stock boasts a low price-to-book ratio of 0.01, reflecting a potential undervaluation of the company's assets. The company's strong net debt to assets ratio of 0.64 suggests that it has more assets than debt, indicating a sound financial position. Furthermore, the company has a relatively high insider ownership value of 12.53%, which can be seen as a positive signal of confidence in the company's future performance. Lastly, the company has a market capitalization of $76.81M, indicating it is a small-cap company with significant growth potential. However, it is important to note that Faraday Future Intelligent Electric (FFIE) has negative operating income, net income, and EBITDA, which raises concerns about the company's profitability. The company also has a negative return on assets of -31.46% and a negative return on equity of -194.9%, indicating that it is not effectively utilizing its assets to generate profits for shareholders. Additionally, the company's low current ratio of $0.67 and quick ratio of $0.48 suggest potential liquidity issues, as the company may struggle to meet its short-term obligations. Furthermore, the company's high beta of 1.64 indicates that the stock is more volatile compared to the overall market, increasing the risk for investors. Overall, while FFIE shows potential in certain fundamental indicators, there are significant red flags that investors should consider before making investment decisions.
Positive Development
The company's stock price increased by 1.16 in the week of May 20-27, indicating a slight increase in investor interest and confidence. The company is listed as a potential beneficiary of the meme stock frenzy, with a notable increase in the stock price during this period. The company's cash ratio is 0.0350418410041841, which indicates that the company has a sufficient amount of cash to cover its short-term liabilities.
Negative Development
The company's negative earnings per share (EPS) and negative net margin indicate that the company is not profitable and is not generating enough revenue to cover its expenses. The company's high long-term debt-to-equity ratio of 0.4435 suggests that the company may be over-leveraged and may be struggling to manage its debt. The company's quick ratio of 0.4226 indicates that the company may not have sufficient liquid assets to meet its short-term liabilities.
Technical Analysis
Faraday Future Intelligent Electric, trading under the symbol FFIE, currently has a technical rating of NEUTRAL. The stock has shown signs of volatility in recent trading sessions, with a one-month price change percent of 2.43% and a seven-day price change percent of -39.29%. The technical indicators for the stock indicate a mixed sentiment, with three technical buy indicators (ATR, WILLR, and STOCHRSI) and five technical hold indicators (RSI, MACD, CCI, ADX, and ROC) present as of the last update on April 25, 2024. The stock's price has seen a slight upward trend in recent months, with a year-to-date price change percent of 97.94%. Furthermore, Faraday Future Intelligent Electric has a beta of 1.64, indicating that the stock is slightly more volatile than the overall market. The company's technical analysis also highlights key financial metrics such as operating margin (-12.07K%), return on assets (-31.46%), and return on equity (-194.9%). These metrics provide insight into the company's operational efficiency, profitability, and financial health. The stock's price-to-book ratio of 0.01 suggests that it may be undervalued relative to its book value. Overall, the technical analysis of Faraday Future Intelligent Electric provides investors with valuable information about the stock's performance and stability in the market.
Conclusion and recommendation
Based on the data provided, Faraday Future Intelligent Electric (FFIE) appears to be a penny stock trading at a price of $1.19 with a market capitalization of $76.81M. The company has shown significant volatility in its stock price over various time periods, with a three-month price change of 410.51% and a seven-day price change of -39.29%. Despite a negative return on equity of -194.9% and a high debt-to-equity ratio of 0.51, FFIE has seen positive year-to-date price change percent of 97.94%. The company has a relatively low current ratio of 0.67 and a negative operating margin of -12.07K%, which may be cause for concern. In conclusion, investors should exercise caution when considering investing in Faraday Future Intelligent Electric. While the company has shown significant price volatility and positive year-to-date performance, its high debt levels and negative operating margin raise red flags. The lack of dividends, earnings growth, and positive financial ratios further indicate potential risks associated with investing in FFIE. It is recommended that investors conduct further research and analysis before making any investment decisions in this company.