Tesla Inc Stock Analysis, Valuation (NASDAQ:TSLA)

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$344.99 $6.1 (1.74%) TSLA stock closing price Sep 25, 2017 (Closing)
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Tesla Inc
Updated on : Sep 25, 2017
previous close
TSLA 344.8 (0%)
S&P 500 2496.7 (0%)
Closing Price On: Sep 25, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Auto Manufacturers domestic
Sector :
Auto-Tires-Trucks
5 Quarter Revenue
Revenue Growth
2017-Q2
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
-6.8%
Sector Average:
7.3%
5 Quarter Net Profit
Net Margins
2017-Q2
%
LTM Margin
Debt/Equity Ratio
Debt:
7.94B
Debt/Equity Ratio:
 1.28
Compared to the industry
Cash Flow
Operating cash flow:
-$200.2M
Net Income:
-$336.4M
PROS      CONS
Recent Growth
High Debt Burden
FCF Margin
FCF Yield
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
PE: N/A
TSLA PS :
5.7
Industry PS :
0.7
Sector:   Auto-Tires-Trucks.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
-4.1%
Return on Equity:
-16.8%
Free Cash Flow Margin:
-41.6%
Free Cash Flow Yield:
-5.76%
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Tesla Inc Stock Analysis

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Tesla’s revenue has constantly climbed higher as the company is putting all its efforts to expand its topline. This has led to the creation of massive infrastructure causing Amazon’s assets to balloon. Tesla’s stock analysis highlights the contradiction in the exponential growth of its topline and its non-existent bottom line. After the years of operations many investors had started questioning if the zero profit business model of the company will allow it to survive in this heavily contested arena in the future.

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Tesla Inc Stock Rating 2.8/5

Our Tesla Inc stock opinion is based on fundamentals of the company. This Tesla Inc stock analysis is based on latest 2017 Q2 earnings. The stock price analysis takes into account the company's valuation metrics.

Should you buy TSLA stock?

  • Tesla Inc's revenue growth came in at 119.6% in 2017 Q2.

Should you sell TSLA stock?

  • Tesla Inc is debt laden and has a high debt/equity ratio of  1.28.
  • The company has negative Free Cash Flows (FCF), with a negative FCF margin of -41.6%.
  • The company has a negative free cash flow yield of -5.76%.

Comments on this video and Tesla Inc stock

Tesla’s price trend has reflected this debate which has led to stagnation and volatility in Tesla stock price. Tesla stock price history shows that the stock has performed much better than its competitors since its listing. The company has managed to grow its revenues at fast pace. Tesla’s financial analysis also shows a lot of room for cost cutting, which should help the company to boost its profits.

Tesla PE ratio chart is non existent because of lack of profits. However, Tesla is making strong progress towards achieving profitability. The company has released new models which will help in continuing the strong revenue growth and achieving profitability. The increasing awareness about global warming and climate change will also help in driving demand for Tesla's electric cars.