Is Nikola Corp Stock a Good Investment?
Nikola Corp Investment Advice | NKLA |
- Examine Nikola Corp's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Nikola Corp's leadership team and their track record. Good management can help Nikola Corp navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Construction Machinery & Heavy Transportation Equipment space and any emerging trends that could impact Nikola Corp's business and its evolving consumer preferences.
- Compare Nikola Corp's performance and market position to its competitors. Analyze how Nikola Corp is positioned in terms of product offerings, innovation, and market share.
- Check if Nikola Corp pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Nikola Corp's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Nikola Corp stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Nikola Corp is a good investment.
Sell | Buy |
Hold
Market Performance | Very Weak | Details | |
Volatility | Extremely Dangerous | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very High | Details | |
Economic Sensitivity | Hyperactively responds to market trends | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Nikola Corp Stock
Researching Nikola Corp's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 25.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 0.26. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Nikola Corp recorded a loss per share of 12.34. The entity had not issued any dividends in recent years. The firm had 1:30 split on the 25th of June 2024.
To determine if Nikola Corp is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Nikola Corp's research are outlined below:
| Nikola Corp generated a negative expected return over the last 90 days | |
| Nikola Corp has high historical volatility and very poor performance | |
| Nikola Corp may become a speculative penny stock | |
| Nikola Corp has a very high chance of going through financial distress in the upcoming years | |
| The company reported the previous year's revenue of 35.84 M. Net Loss for the year was (864.62 M) with loss before overhead, payroll, taxes, and interest of (104.76 M). | |
| Nikola Corp currently holds about 319.94 M in cash with (496.18 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.67. | |
| Latest headline from benzinga.com: Acquisition by Vesco John C of 333000 shares of Nikola Corp subject to Rule 16b-3 |
Nikola Corp Quarterly Accounts Payable |
|
Nikola Corp uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Nikola Corp. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Nikola Corp's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 22nd of February 2024 Upcoming Quarterly Report | View | |
| 14th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 22nd of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Nikola Corp's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Nikola Corp's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2024-05-07 | 2024-03-31 | -0.1 | -0.09 | 0.01 | 10 | ||
2020-06-08 | 2020-03-31 | -0.08 | -0.09 | -0.01 | 12 | ||
2024-02-22 | 2023-12-31 | -0.13 | -0.11 | 0.02 | 15 | ||
2022-08-04 | 2022-06-30 | -0.28 | -0.25 | 0.03 | 10 | ||
2020-11-09 | 2020-09-30 | -0.2 | -0.16 | 0.04 | 20 | ||
2023-02-23 | 2022-12-31 | -0.43 | -0.37 | 0.06 | 13 | ||
2022-05-05 | 2022-03-31 | -0.27 | -0.21 | 0.06 | 22 | ||
2021-11-04 | 2021-09-30 | -0.28 | -0.22 | 0.06 | 21 |
Know Nikola Corp's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Nikola Corp is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Nikola Corp backward and forwards among themselves. Nikola Corp's institutional investor refers to the entity that pools money to purchase Nikola Corp's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Sg Americas Securities, Llc | 2024-09-30 | 264.8 K | State Street Corp | 2024-09-30 | 250.9 K | Balyasny Asset Management Llc | 2024-09-30 | 234.1 K | Citigroup Inc | 2024-09-30 | 231.7 K | Charles Schwab Investment Management Inc | 2024-09-30 | 224.1 K | Morgan Stanley - Brokerage Accounts | 2024-09-30 | 183.8 K | Coatue Management Llc | 2024-09-30 | 173.9 K | Goldman Sachs Group Inc | 2024-09-30 | 154.4 K | Tidal Investments Llc. | 2024-09-30 | 140.5 K | Norges Bank | 2024-06-30 | 3.5 M | Vanguard Group Inc | 2024-09-30 | 2.3 M |
Nikola Corp's market capitalization trends
The company currently falls under 'Small-Cap' category with a current market capitalization of 102.21 M.Market Cap |
|
Nikola Corp's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.82) | (0.86) | |
| Return On Capital Employed | (0.64) | (0.67) | |
| Return On Assets | (0.76) | (0.80) | |
| Return On Equity | (1.34) | (1.41) |
Determining Nikola Corp's profitability involves analyzing its financial statements and using various financial metrics to determine if Nikola Corp is a good buy. For example, gross profit margin measures Nikola Corp's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Nikola Corp's profitability and make more informed investment decisions.
Please note, the presentation of Nikola Corp's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Nikola Corp's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Nikola Corp's management manipulating its earnings.
Evaluate Nikola Corp's management efficiency
Nikola Corp has return on total asset (ROA) of (0.3086) % which means that it has lost $0.3086 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (1.2918) %, meaning that it created substantial loss on money invested by shareholders. Nikola Corp's management efficiency ratios could be used to measure how well Nikola Corp manages its routine affairs as well as how well it operates its assets and liabilities. As of December 18, 2024, Return On Tangible Assets is expected to decline to -0.86. In addition to that, Return On Capital Employed is expected to decline to -0.67. At present, Nikola Corp's Non Currrent Assets Other are projected to increase significantly based on the last few years of reporting. The current year's Other Assets is expected to grow to about 192.6 M, whereas Total Assets are forecasted to decline to about 920.5 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 27.02 | 47.70 | |
| Tangible Book Value Per Share | 23.60 | 41.61 | |
| Enterprise Value Over EBITDA | (0.70) | (0.74) | |
| Price Book Value Ratio | 0.97 | 0.92 | |
| Enterprise Value Multiple | (0.70) | (0.74) | |
| Price Fair Value | 0.97 | 0.92 | |
| Enterprise Value | 517.3 M | 491.4 M |
The decision-making processes within Nikola Corp are key to its success in a competitive market. By evaluating these processes, we assess the stock's potential for future gains.
Beta 2.075 |
Basic technical analysis of Nikola Stock
As of the 18th of December 2024, Nikola Corp secures the Standard Deviation of 7.08, risk adjusted performance of (0.20), and Mean Deviation of 4.89. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Nikola Corp, as well as the relationship between them.Nikola Corp's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Nikola Corp insiders, such as employees or executives, is commonly permitted as long as it does not rely on Nikola Corp's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Nikola Corp insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Nikola Corp's Outstanding Corporate Bonds
Nikola Corp issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Nikola Corp uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Nikola bonds can be classified according to their maturity, which is the date when Nikola Corp has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Dana 575 percent Corp BondUS235822AB96 | View | |
| Volcan Compania Minera Corp BondUSP98047AC08 | View | |
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| NIKE INC Corp BondUS654106AH65 | View | |
| NIKE INC 3375 Corp BondUS654106AG82 | View | |
| NIKE INC 2375 Corp BondUS654106AF00 | View | |
| NIKE INC 3875 Corp BondUS654106AE35 | View | |
| NIKE INC 3625 Corp BondUS654106AD51 | View |
Understand Nikola Corp's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Nikola Corp's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.20) | |||
| Market Risk Adjusted Performance | (1.28) | |||
| Mean Deviation | 4.89 | |||
| Coefficient Of Variation | (372.19) | |||
| Standard Deviation | 7.08 | |||
| Variance | 50.08 | |||
| Information Ratio | (0.27) | |||
| Jensen Alpha | (1.94) | |||
| Total Risk Alpha | (2.08) | |||
| Treynor Ratio | (1.29) | |||
| Maximum Drawdown | 42.89 | |||
| Value At Risk | (13.68) | |||
| Potential Upside | 6.76 | |||
| Skewness | 0.176 | |||
| Kurtosis | 2.51 |
| Risk Adjusted Performance | (0.20) | |||
| Market Risk Adjusted Performance | (1.28) | |||
| Mean Deviation | 4.89 | |||
| Coefficient Of Variation | (372.19) | |||
| Standard Deviation | 7.08 | |||
| Variance | 50.08 | |||
| Information Ratio | (0.27) | |||
| Jensen Alpha | (1.94) | |||
| Total Risk Alpha | (2.08) | |||
| Treynor Ratio | (1.29) | |||
| Maximum Drawdown | 42.89 | |||
| Value At Risk | (13.68) | |||
| Potential Upside | 6.76 | |||
| Skewness | 0.176 | |||
| Kurtosis | 2.51 |
Consider Nikola Corp's intraday indicators
Nikola Corp intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Nikola Corp stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 4.7 M | |||
| Daily Balance Of Power | 0.1111 | |||
| Rate Of Daily Change | 1.03 | |||
| Day Median Price | 1.37 | |||
| Day Typical Price | 1.33 | |||
| Price Action Indicator | (0.10) | |||
| Period Momentum Indicator | 0.04 |
Nikola Stock media impact
Far too much social signal, news, headlines, and media speculation about Nikola Corp that are available to investors today. That information is available publicly through Nikola media outlets and privately through word of mouth or via Nikola internal channels. However, regardless of the origin, that massive amount of Nikola data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Nikola Corp news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Nikola Corp relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Nikola Corp's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Nikola Corp alpha.
Nikola Corp Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Nikola Corp can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Nikola Corp Historical Investor Sentiment
Investor biases related to Nikola Corp's public news can be used to forecast risks associated with an investment in Nikola. The trend in average sentiment can be used to explain how an investor holding Nikola can time the market purely based on public headlines and social activities around Nikola Corp. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Nikola Corp's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Nikola Corp and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Nikola Corp news discussions. The higher the estimate score, the more favorable the investor's outlook on Nikola Corp.
Nikola Corp Corporate Management
| Mary MSc | Chief Officer | Profile | |
| Thomas Okray | Chief Officer | Profile | |
| Bruce Kurtt | Senior Operations | Profile | |
| Henry Kwon | Director Relations | Profile | |
| Brian Hoog | Corporate Controller | Profile | |
| Soei Shin | Head Relations | Profile |
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Nikola Corp. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of economic analysis. For information on how to trade Nikola Stock refer to our How to Trade Nikola Stock guide.You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Is Construction Machinery & Heavy Transportation Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Nikola Corp. If investors know Nikola will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Nikola Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (12.34) | Revenue Per Share 1.691 | Quarterly Revenue Growth 1.039 | Return On Assets (0.31) | Return On Equity (1.29) |
The market value of Nikola Corp is measured differently than its book value, which is the value of Nikola that is recorded on the company's balance sheet. Investors also form their own opinion of Nikola Corp's value that differs from its market value or its book value, called intrinsic value, which is Nikola Corp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Nikola Corp's market value can be influenced by many factors that don't directly affect Nikola Corp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Nikola Corp's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Nikola Corp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Nikola Corp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.