The Han sedan can go nearly 376 miles on a single charge. During the first quarter, the company sold 55,000 New Energy Vehicles, or NEVs, with 53,000 of those being plug-in EVs. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. So, as with other valuation metrics, it's a good idea to compare it to its relevant industry. Considering this, we believe that BYD is one of the most attractive EV companies on the market right now and purchasing its stock is a good way of exposing your portfolio to the EV industry. Moreover, the company also has its hand in other areas of tech including batteries and solar panels.. BYDDF stock trades at an NTM enterprise value to EBITDA multiple of 23.04x which looks reasonable considering the bloated valuations of other pure-play EV companies. I wrote this article myself, and it expresses my own opinions. Entering text into the input field will update the search result below, ) is an under-followed Chinese EV maker that is active in a range of other businesses as well, and which has Buffett's Berkshire Hathaway (, ) as one of its top shareholders. First and foremost, BYD makes the two most expensive components of an electric vehicle itselfthe battery and IGBTand again, BYD is the only automaker to produce either component. BYD went back to the drawing board, and shifted its focus on making commercial electric vehicles until the passenger EV market matured in China. It outsold NIO, XPeng, as well as Li Auto in March as well as the first quarter of 2021. However, not having a direct presence in the US capital markets is also a good thing for BYD. This approach seems sensible and has the potential to be less volatile and cyclical compared to an approach of going all-in on personal EVs, where market share battles could lead to wide margin swings. How are stocks traded on multiple exchanges. That also holds true when we look at how its EV business alone could be valued if it were beloved by the market. Byddf stocks are those that are held by the government, while byddy stocks are those that are held by the private sector. BYD has released its delivery report for March and Q1 2021. NIO is a play on the high-end electric car market while XPeng offers affordable electric cars. Members of Best Short Ideas get exclusive ideas and guidance to navigate any climate. As for the risks, we see only a couple of them. BYD isnt the only Chinese EV maker eyeing the European market. You may need to check with your broker to see if they also support the BYDDF stock version of BYD. To update my top 5, I would remove Renault and add in XPeng Inc. . Entering text into the input field will update the search result below. Projected EPS Growth looks at the estimated growth rate for one year. First of all, it doesn't face the risk of a possible delisting in the future and it also won't be significantly affected by the possible US-China trade war in the future, as most of its business operates in China. At this stage, BYD's major advantage is that it's already one of the most dominant companies in the EV industry in China, which is also the biggest EV market in the world. So be sure to compare a stock to its industry's growth rate when sizing up stocks from different groups. BYD expects battery production capacity will reach 65 GWh by the end of this year, 75 GWh in 2021, and 100 GWh in 2022. This could, I believe, be due to the fact that the company isn't well-known among retail investors. BYD can't be described as inexpensive at all. Another advantage of BYD is that it ended Q1 with $2.1 billion in cash and with an interest coverage ratio of 5.5x it has more than enough resources to easily service its debt, reinvest available resources into its growth, and continue to pay dividends to its shareholders. The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. Buffett owns a 25 percent stake in BYD stock through his company Berkshire Hathaway. Is this happening to you frequently? Including the Zacks Rank, Zacks Industry Rank, Style Scores, the Price, Consensus & Surprise chart, graphical estimate analysis and how a stocks stacks up to its peers. Byddf and Byddy are both a contraction of "By Dear Foe , and both refer to the inventor's name, James B. Stack Exchange network consists of 181 Q&A communities including Stack Overflow, the largest, most trusted online community for developers to learn, share their knowledge, and build their careers. To learn more, click here. Using this item along with the 'Current Cash Flow Growth Rate' (in the Growth category above), and the 'Price to Cash Flow ratio' (several items above in this same Value category), will give you a well-rounded indication of the amount of cash they are generating, the rate of their cash flow growth, and the stock price relative to its cash flow. With Chinas new Five-Year Plan targeting urban transportation as a way to curb carbon emissions, BYD will be a clear winner in the space because it has the available capacity to electrify entire cities and regions. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. NYSE and AMEX data is at least 20 minutes delayed. And, of course, the 4 week change helps put the 1 week change into context. Zacks' proprietary data indicates that Byd Co., Ltd. is currently rated as a Zacks Rank 1 and we are expecting an above average return from the BYDDY shares relative to the market in the next few months. A company like BYD comes once in a blue moon, and its stock is already up 398% YTD. Like the earnings yield, which shows the anticipated yield (or return) on a stock based on the earnings and the price paid, the cash yield does the same, but with cash being the numerator instead of earnings. ""BYDDY is a sponsored ADR. By accepting all cookies, you agree to our use of cookies to deliver and maintain our services and site, improve the quality of Reddit, personalize Reddit content and advertising, and measure the effectiveness of advertising. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. Blade and IGBT contributed to a 781% Y/Y increase in net income from $40M to $370M. And margin rates can vary significantly across these different groups. Warren Buffett Owns BYD Stock And So Should You (BYDDF) If you like to enter the world of short selling and learn more about unconventional stock market strategies, then give the service a try and opt for the FREE 14-day trial today! A lot of people/funds can only buy BYDDY, but many brokers can buy BYDDF or 1211:HK in Hong Kong as well. For Chinas EVs, low-cost no longer means low-quality. Our investments include short sales of common stock. Considering that there's currently a shortage of batteries, BYD will likely be able to improve the performance of its battery business in Q2, as very few automakers have the possibility of producing batteries in-house. After all, BYD has ambitious goals of becoming a global leader in EV technologies and growing its sales to $100+ billion over the next couple of years, and it would only be reasonable to then also upgrade investor communication. The firm generates almost half its revenues from the sale of components for mobile phones. Cross listing question with example. In 2008, Buffett and company sold the . A P/B of 2 means it's selling at 2 times its book value. Article printed from InvestorPlace Media, https://investorplace.com/2021/12/byddf-stock-10-things-to-know-about-byd-as-investors-hunt-for-the-next-hot-ev-play/. Valuations aren't low, but they are way more reasonable compared to most other EV stocks. Since last months article, the CCP has announced the summary of the 14th Five-Year Plan, and the message is clear: China wants to be self-reliant when it comes to technological innovation, and green technology is the focus. What is the symbol (which looks similar to an equals sign) called? This seems like a very reasonable comparison, as BYD's EVs are not at all cheap entry-level cars, unlike some of the offerings by other Chinese EV manufacturers. First, BYD is a battery producer that does not only use the batteries it manufactures for its own EVs, but also sells batteries to other OEMs on top of that. It currently has a Growth Score of D. Recent price changes and earnings estimate revisions indicate this would not be a good stock for momentum investors with a Momentum Score of D. The Zacks Equity Research reports, or ZER for short, are our in-house, independently produced research reports. Visit www.zacksdata.com to get our data and content for your mobile app or website. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. Summary. 4 11 11 comments Best Add a Comment repagator8 2 yr. ago They're both good. It develops mostly full-electric and hybrid vehicles such as traditional sedans, SUVs, busses, forklifts, and even trains. NIO (NIO) and Xiaopeng (Xpeng) Motors (XPEV) are two publicly traded companies whose electric cars are selling well in China, and both are expected to enter the European market soon. How to interpret option trades in a stock pending buyout. A change in margin can reflect either a change in business conditions, or a company's cost controls, or both. ), so BYD has almost limitless battery partnership opportunities in the road ahead, especially because it has the cheapest and safest battery in the industry. If a company's net margin is 15%, for example, that means its net income (or profit) is 15 cents for every $1 of sales the company makes. BYD is a lesser-known EV company, even though it is a major player in different markets. The company operates in the automotive business through its subsidiary, BYD Auto. A D/E ratio of 2 might be par for the course in one industry, while 0.50 would be considered normal for another. The longer-term perspective helps smooth out short-term events. Like most ratios, this number will vary from industry to industry. What does "UNsponsored" and "sponsored" mean? Only a few EVs currently use IGBTs, which is a cross between the bipolar and MOSFET transistors that typically older EV platforms like Tesla still use. BYD figured this out almost two decades ago. Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F. As an investor, you want to buy stocks with the highest probability of success. Ironically, it may be the U.S. market that will soon be begging for BYD cars, as well as EVs from NIO, Xpeng, and other Chinese OEMs. A sales/assets ratio of 2.50 means the company generated $2.50 in revenue for every $1.00 of assets on its books. Offers may be subject to change without notice. BYD Company BYD Co. Ltd. (" B uild Y our D reams" Chinese: ) is a publicly listed Chinese conglomerate manufacturing company headquartered in Shenzhen, Guangdong, China. Like the P/E ratio, a lower number is considered better. BYDDY: What are Zacks experts saying now? These are, however, issues that could be dealt with if management wants to. While our testing has found that a P/S ratio of <2 is the optimum range for returns, be sure to compare this ratio to its respective industry. A post on popular Reddit group WallStreetBets, which was upvoted over 2,100 times, referred to BYD among the value stocks listed by Keith Gill on his Reddit forum. When comparing this ratio to different stocks in different industries, take note that some businesses are more capital intensive than others. Should you buy BYDDF stock now? If a stock's EPS consensus estimate is $1.10 now vs. $1.00 the week before, that will be reflected as a 10% change. The scores are based on the trading styles of Value, Growth, and Momentum. Delayed quotes by FIS. Should You Follow Warren Buffett and Buy BYD (BYDDF) Stock? Founded in 2003, the company is a leading player in Asia. Debt to Equity (or D/E ratio) is total liabilities divided by total shareholder equity. The Five-Year Plan stresses the role of commercial NEVs in meeting the 20% of new total sales. One of the major investors of BYD is. Copenhagen appears to be the location of the first NIO House outside of China. . E-bus technologies look promising and have a range of tailwinds. I have no business relationship with any company whose stock is mentioned in this article. BYD reminds me way more of a chinese Tesla than NIO because BYD also . Considering this, we believe that the opportunities of owning BYD outweigh the current risks. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. Cash Flow is net income plus depreciation and other non-cash charges. I work together with Darren McCammon on his Marketplace Service Cash Flow Club. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Overall, the company delivered sold more than 23,000 new energy vehicles in the month. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. They could grow their IR team and make the company a better-known EV company, and I assume that they will do so over the years, although not necessarily in the very near term. BYD ( OTCPK:BYDDF, OTCPK:BYDDY) released its third quarter earnings, where net income was up 781% Y/Y and EPS up 3,000% Y/Y. I am not receiving compensation for it (other than from Seeking Alpha). EV play Hi folks. This ratio essentially compares the P/E to its growth rate, thus, for many, telling a more complete story than just the P/E ratio alone. Similar to BYDs battery production capacity, its vehicle factories have enough unused capacity to meet future demand. If a company's expenses are growing faster than their sales, this will reduce their margins. China is a leading EV market, and it looks like Chinese players will have it easier in their home market compared to foreign companies. Why would a stock opening price differ from the offering price? Enterprise Value (EV) is Market Capitalization + Debt - Cash. BYD, of course, also sells its own passenger EVs that compete with the offerings of NIO, Tesla, etc. I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. Where and how do investors buy BYD stock and is it a good investment? Now that the CCPs Central Committee has given more detail in Chinas Five-Year Plan, we estimate 6.2 million NEVs sold in 2025 in China, which would meet Chinas goals of 20% of new vehicle sales being NEVs. Both are traded Over the Counter (OTC). None of the other automakers produce their own batteries (have I mentioned that? How does the broker benefit from shorting stock? When you take a step back, though, the most important part of the company is that BYD makes the batteries for all of its vehicles, which no other automaker does. The latest data suggests that in 2021 the sales of EVs in China will already increase by more than 50% Y/Y, as China expects 20% of its car sales to be electric by the end of 2025. While the one year change shows the current conditions, the longer look-back period shows how this metric has changed over time and helps put the current reading into proper perspective. In 2018, California approved a ban on diesel bus sales by 2029, and committed to a 100% zero emissions fleet by 2040. The Historical Cash Flow Growth is the longer-term (3-5 year annualized) growth rate of the cash flow change. A tremendous advantage BYD has over other battery producers is the new Blade Battery production lines it is quickly ramping in China to meet demand. In fact, BYD's Tang and Han models can be described as premium cars that sell for similar prices as do Tesla's offerings. BYD has the cheapest EV battery in the industry, and it plans to sell its newest batteryBlade Batteryto other automakers. 3. Connect and share knowledge within a single location that is structured and easy to search. Why is there almost no mention of BYDDY in this sub? : r/stocks - Reddit BYD: The King Of Electric Vehicles (OTCMKTS:BYDDF) If the volume is too light, in absolute terms or for a relatively large position, it could be difficult to execute a trade. This translates to a 21% improvement in BYDs gross margin. BYDDF is traded on Hong Kong Stock Exchange. It's quite confusing, but you can own any of them. Asking for help, clarification, or responding to other answers. A higher number means the company has more debt to equity, whereas a lower number means it has less debt to equity. Personal Finance & Money Stack Exchange is a question and answer site for people who want to be financially literate. I don't understand this forum post "BYDDY is a sponsored ADR. ), providing every U.S. city with a population of at least 100,000 with zero-emissions public transportation, rebuilding infrastructure to be more energy efficient and able to withstand the effects of climate change, banning new oil and gas permitting on public lands and water, and establishing programs to develop renewables on those lands and waters (aiming to double offshore wind by 2030). Is BYD bigger than Tesla? - True goodie As states and municipalities become more environmentally conscious and frugal, they are starting to buy electric buses to reduce their carbon footprint. Is This an Income Stream Which Induces Fear? BYD (OTCPK:BYDDF, OTCPK:BYDDY) released its third quarter earnings, where net income was up 781% Y/Y and EPS up 3,000% Y/Y. Even without news, BYDDF stock is seeing heavy trading today. 'BYDDY vs BYDDF'. The financial health and growth prospects of BYDDY, demonstrate its potential to perform inline with the market. I first wrote about BYD in 2016, calling it The biggest company youve never heard of. I have been a patient shareholder since 2010, tracked its progress closely, and waited for BYD to move in when the time was right. The best answers are voted up and rise to the top, Start here for a quick overview of the site, Detailed answers to any questions you might have, Discuss the workings and policies of this site. In contrast, the net income that goes into the earnings portion of the P/E ratio does not add these in, thus artificially reducing the income and skewing the P/E ratio. People tend to use electric vehicles to mean electric cars, which they certainly are, but passenger vehicles are only a portion of electric vehicles. It also includes an industry comparison table to see how your stock compares to its expanded industry, and the S&P 500. Real time prices by BATS. A small portion of the firm's top line comes from the sale of rechargeable batteries. BYD (OTCMKTS:BYDDF) stock is on the move today despite a lack of news concerning the electric vehicle (EV) company. Start your free two-week trial today! For now, BYD mostly sells its cars in its home market China, but exports to foreign markets have started and will likely continue to climb going forward, as BYD seeks to expand its international operations and gain market share in Europe, for example. E-buses, for example, are a viable alternative to ICE-powered buses, as low average speed and travel range means that range considerations are not a major issue for the electricity-powered versions. BYD Co., Ltd. engages in the research, development, manufacture, and sale of rechargeable batteries and photovoltaic business. Cash flow itself is an important item on the income statement. Please. With 12 weeks representing a meaningful part of a year, this time period will show whether a stock has been enjoying strong investor demand, or if it's in consolidation, or distress. Partnerships have been formed with Norwegian importers, and BYD plans to expand to other Western European markets as NEV market share continues to rise. The X Industry (aka Expanded Industry) is a subset of the M (Medium Sized) Industry, which is a subset of the larger Sector category, which is used to classify all of the stocks in the Zacks Universe. Is there a generic term for these trajectories? It's also commonly referred to as a 'liquidity ratio'. NIO has allocated many staff members for its export business unit, aiming to sell 7,000 ES8 and ES6 SUVs in Europe within two years. BYD, however, trades at a discount compared to most of the better-known EV stocks, thus one may argue that they are trading at a more reasonable price: While peers such as NIO, Tesla, XPeng, and LI are trading for 10-25 times sales, BYD trades at 3.7 times its sales. Within the VGM Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F. As an investor, you want to buy srocks with the highest probability of success. In April, BYD reported stunning earnings results for Q1. 5. The EV/EBITDA ratio is a valuation multiple and is often used in addition, or as an alternative, to the P/E ratio. Its Value Score of C indicates it would be a neutral pick for value investors. People may receive compensation for some links to products and services on this website. Buffet owns the stock and its a really really popular stock to own in germany . 2023 InvestorPlace Media, LLC. On the date of publication, William Whitedid not have (either directly or indirectly) any positions in the securities mentioned in this article. So the PEG ratio tells you what you're paying for each unit of earnings growth. All of those stocks are classified into three groups: Sector, M Industry and X Industry. In 2002, Berkshire Hathaway acquired a majority stake in Tellabs, a defense communications company. Did the drapes in old theatres actually say "ASBESTOS" on them? How to invest in byd? (2023) The 4 Week Price Change displays the percentage price change for the most recently completed 4 weeks (20 trading days). Only BYD has the ability to produce beyond passenger electric vehicles, and also the batteries to do so. NIO stock also rose over 1,100 percent in 2020 which was ahead of Teslas 740 percent rise in the year. The time has come. With a 150% growth rate in EV deliveries, BYD grew significantly faster than Tesla, which saw its volumes rise by a little above 100% year over year. ", "ARKQ (ETF) is holding BYD/BYDDF. I don't see that quote anywhere in the forum thread you linked to. On top of that, while there are certain risks with investing in the Chinese companies, BYD has a proven track record of creating shareholder value for more than a decade and one of its major shareholders is Warren Buffett's Berkshire Hathaway (BRK.A) (BRK.B), which has more than quadrupled its investment since opening a stake in the company back in 2008.

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