So be sure to compare it to its group when comparing stocks in different industries. The Price to Book ratio or P/B is calculated as market capitalization divided by its book value. (Book value is defined as total assets minus liabilities, preferred stocks, and intangible assets.) In short, this is how much a company is worth. Investors use this metric to determine how a company’s stock price stacks up to its intrinsic value. The detailed multi-page Analyst report does an even deeper dive on the company’s vital statistics. It also includes an industry comparison table to see how your stock compares to its expanded industry, and the S&P 500.
- The overall score is a great starting point for investors that are beginning to evaluate a stock.
- I/we have a beneficial long position in the shares of RIVN either through stock ownership, options, or other derivatives.
- A company’s earnings reviews provide a brief indication of a stock’s direction in the short term, where in the case of Rivian Automotive Inc.
- For Q3, analysts expect revenue of $551.57 million, implying year-over-year revenue growth of 55,057%.
- Furthermore, unless new supply-chain restrictions are imposed in 2023, I believe Rivian Automotive will be able to double its production next year.
As Rivian mentioned above, it has identified a few of these challenges and is now working to address them. For example, the company has added a second production shift to accelerate production. The company has experienced “unforeseen challenges” as a result, setting production back. To overcome this, Rivian’s CEO says it has first worked to establish the supply chains necessary. Scaringe says there’s still room to stretch prices with different options, such as dual or quad motors. He adds Rivian’s unique capabilities continue driving demand. However, with stock price of Rivian Automotive is down 72% this year many investors are wondering how Rivian lost almost three-fourths of its value.
RIVN Related ETFs
When investors are in "risk-off" mode, unprofitable DotBig EV companies are often the first to be sold.
The ever popular one-page Snapshot reports are generated for virtually every single Zacks Ranked stock. It’s packed with all of the company’s key stats and salient decision making information. Including the Zacks Rank, Zacks Industry Rank, Style Scores, the Price, Consensus & Surprise chart, graphical DotBig estimate analysis and how a stocks stacks up to its peers. Although electric vehicles may very well represent the future of transportation, investors should consider diversifying into infrastructural market ideas. The company’s loss from operations widened 124.7% year-over-year to $559.20 million.
Rivian Automotive Analyst Opinions
A ratio of 2 means its assets are twice that of its liabilities. A ‘good’ number would usually fall within the range of 1.5 to 3. Like most ratios, this number will vary from industry to industry. Cash flow itself is an important item on the income statement. While the one year change shows the RIVN stock current conditions, the longer look-back period shows how this metric has changed over time and helps put the current reading into proper perspective. Also, by looking at the rate of this item, rather than the actual dollar value, it makes for easier comparisons across the industry and peers.
Electric car sales grew faster than any other auto industry segment. According to the Electrified Light Vehicle Sales Report, Americans bought 67% more electric vehicles in the third quarter than in the year-ago period. A financial researcher and avid investor with a keen eye for innovation and disruption, as well as growth buy-outs and value stocks. DotBig Lucid’s recent stock drop was due to the struggles it is having getting its production ramped up. It has cut 2022 production targets twice and only expects between 6,000 and 7,000 of its vehicles to be produced this year. It also has laid out plans to raise as much as another $8 billion over the next several years to fund and grow its operations.
The Barchart Technical Opinion widget shows you today’s overally Barchart Opinion with general information on how to interpret the short and longer RIVN stock term signals. Unique to Barchart.com, Opinions analyzes a stock or commodity using 13 popular analytics in short-, medium- and long-term periods.
Private Companies
Rivian Automotive’s annualized 3Q-22 sales are already around $2.1 billion, and the company plans to ramp up production in the fourth quarter as well as in 2023. The market anticipates about 220% annual sales growth for Rivian in 2023, which I believe is very achievable given how quickly deliveries are increasing. Despite concerns over a slowing auto industry, Scaringe says he is confident the company can sell everything it makes with a strong order backlog that stretches into 2024. Rising interest rates, geopolitical tension, and supply chain bottlenecks have slowed Rivian’s momentum while presenting hurdles for the company’s future. Ahead of earnings, investors are clearly nervous, as RIVN stock is trading at its lowest level since July. For a binary event like earnings, investors are hoping it will be enough to stop the bleeding and reverse the losses.
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Customers are clearly interested in purchasing an R1T or R1S, as Rivian Automotive reported a significant increase in reservations since its last update based on June figures. https://dotbig.com/markets/stocks/RIVN I believe the sales multiple is extremely compelling, given Rivian Automotive’s potential to become one of the major EV players in the auto industry in the future.
The low range of the estimate sits at $435.5 million, while the high sits at $673.9 million. The https://dotbig.com/ massive ramp up in revenue is attributable to the company fulfilling orders for its EVs.
News
Recent price changes and earnings estimate revisions indicate this stock lacks momentum and would be a lackluster choice for momentum investors. Some investors seek out stocks with the best percentage price change over the last 52 weeks, expecting that momentum to continue. Others look for those that have lagged the market, believing those are the ones ripe for the biggest increases to come. https://dotbig.com/markets/stocks/RIVN closed at $29.53 and is up $0.26 during pre-market trading.
To that end, Scaringe says Rivian is building a “portfolio of relationships” for different setups. He adds that the recently passed Inflation Reduction Act supports domestic investments, which will help drive EV growth and ease the transition. Although the company is confident, investors are more hesitant, wondering if and when Rivian will turn a profit and how it gets there. RJ Scaringe, CEO of Rivian , sat down with Charlie Coldicott, head of global automotive research at Redburn, to discuss demand, supply chain constraints, the R2 platform, profitability, and more. Rivian just announced new plans to expand its mission toward 100% renewable energy usage.