Cenntro: An Established EV Manufacturer with Massive Growth Potential
Cenntro Electric Group (Nasdaq: CENN) is making waves in the EV industry with their innovative hydrogen-powered Class 8 tractor and strong track record of building and shipping quality electric vehicles.
Key Investment FactorsKey Factors
- Cenntro is a well-established EV manufacturer with a track record of building and shipping vehicles, including 3,600 vehicles sold and shipped to 16 countries.
- Cenntro has launched a hydrogen-powered Class 8 tractor that will be displayed at the Consumer Electronics Show in January 2023 and available for purchase in Q3 2023.
- The Class 8 truck market is large, with over 250,000 trucks sold in the US in 2019, and Cenntro's entry into the market with an EV option presents a significant growth opportunity.
- The demand for EVs, including Class 8 trucks, is increasing due to environmental concerns and government regulations, which may benefit Cenntro.
- CENN has a low market cap despite being a strong EV manufacturer, which may make it undervalued.
Overview
Cenntro (NASDAQ: CENN) is an emerging player in the electric vehicle (EV) market, with a strong track record of building and shipping quality EVs to customers in 16 countries.
The company's focus on sustainability and innovative technology is evident in their expansion into the highly sought-after Class 8 truck market, with the unveiling of their hydrogen-powered Class 8 tractor at the 2023 CES.
Cenntro's extensive patent portfolio, with 238 patents, and low market cap make it an undervalued investment opportunity with potential for growth in the EV industry.
3,600
Vehicles Delivered
20+ million
Miles Traveled
238+
Patents Granted
32+
Countries Certified
16+
Countries Shipped
6+
Assembly Plants
Product Range
Cenntro offers a range of 6 electric commercial vehicles, including the Metro for multi-purpose transportation, the Logistar 400 for urban delivery, the LS260 van, the Logistar 200 for transporting light goods, the Logistar 100 van, and the TeeMak for off-road use. These vehicles serve various industries and offer a range of payload capacities and cargo space.
New Vehicles Unveiled
Cenntro is set to unveil its new Logistar 300 commercial van and Logimax 864 hydrogen powered semi tractor at the 2023 Consumer Electronics Show.
The Logistar 300, a Class 3 vehicle, will be available in van and truck variations and will be equipped with a 118 kWh lithium iron phosphate battery, a max speed of 75 mph and a range of 273 miles.
The Logimax 864 is a 6x4 semi-tractor powered by hydrogen fuel cells and will be available in Q3 2023 in North America and Europe.
New EV Centers and More
The company has just announced on December 1st the opening of 6 more EV centers around the world. Cenntro has launched six EV centers in support of its global distribution system expansion in Spain, Italy, Poland, Turkey, Morocco, and the Dominican Republic.
Market Opportunity
The electric vehicle (EV) truck market is growing and Cenntro is well positioned to take advantage of this trend with its EV Class 8 tractor. In 2020, over 71,770 Class 8 trucks were sold in the US, and the market is divided among six major players. However, the EV component of Cenntro's truck sets it apart and gives it a strong starting point in the market. The EV market for Class 8 trucks is not yet dominated by any one company, so Cenntro has an equal opportunity to succeed. The company's EV trucks may appeal to businesses looking to reduce their carbon footprint and operating costs.
Cenntro has a number of competitors in the market, including Rivian, Workhorse, Nicola, Arrival, Green Power, ELMS, and Mullen, but it is the only one with certified and ready-to-sell products. This puts Cenntro in a strong position in the market and could be a factor in its future success.
Fundamentals on the Stock Price
We feel that, if this positive trend continues (and there's no reason why it shouldn't) this stock should be at least $2 or $3 dollars per share. The stock is suffering from lack of analyst coverage, although it has received some attention on Seeking Alpha who calls for $1.5/share in ideal scenario.
If we include an EV/EBITDA of 25x and a discount of 5%, the net present value of future free cash flow would stand at $207.5 million. Besides, the equity valuation would stand at almost $385 million, and the fair price would be $1.5 per share.
According to FinViz, there are 261m shares outstanding and about 161m float. Insiders own 38%, institutions own about 8%. The 52 Week range is .32 - 7.80 so it's now at the all time low.
The CENN stock appears to be a good bargain at its current price, given the company's strong track record of producing and selling electric commercial vehicles. Cenntro is a well-established company that is actively producing and shipping its products, rather than just an idea on paper.
Conclusion
Cenntro Electric Group (NASDAQ: CENN) is a promising investment opportunity in the growing electric vehicle market. The company has a strong track record of building and delivering quality EVs, as well as a comprehensive patent portfolio and experience in vehicle manufacturing.
In addition, Cenntro has recently entered the highly sought-after Class 8 truck market, further positioning the company for success. With over 3,000 vehicles delivered, over 200 patents, and a low market cap, Cenntro is an undervalued and potentially lucrative investment opportunity.
The company's merger and its non-North American origin may have caused some confusion and may be contributing to the lack of attention the stock is currently receiving.