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Microvast Skyrockets 1162% in a Year: Is the Stock Still Worth Buying?
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Key Takeaways
Microvast surged 1162.3% in a year, far outpacing its industry and the broader market.
Revenues rose 24% in 2024, driven by demand in the APAC and the United States, with EMEA contributing 43%.
Microvast expanded in Huzhou to meet a $320M backlog and partnered with Evoy to enter electric boats.
Microvast Holdings (MVST - Free Report) shares have experienced remarkable growth over the past year. It has soared a whopping 1162.3% in a year, outperforming the 76.2% surge of its industry and 18.1% growth of the Zacks S&P 500 Composite.
MVST outperformed its industry peers, Algorhythm Holdings’ (RIME - Free Report) and Industrial Tech Acquisitions’ (ARBE - Free Report) 98% and 28.4% decline, respectively.
1-Year Price Performance
Image Source: Zacks Investment Research
The year-to-date price performances show that Microvast beats Algorhythm Holdings and Industrial Tech Acquisitions as well. While MVST has gained 36.8%, Algorhythm Holdings and Industrial Tech Acquisitions have plummeted 88% and 24.7%, respectively.
With Microvast’s share prices skyrocketing over the past year, we expect investors to find it enticing to jump on the bandwagon. Let us delve deeper to find out whether adding MVST to their portfolio now is a sound idea.
MVST’s Key Drivers: Expansion, Partnerships & Production
Microvast’s regional expansion and strategic penetration are reflected in its financial performance. Sustained demand for global electrification resulted in the company achieving the $380-million mark in 2024, up 24% year over year. Recent performance shows that MVST registered a 9.2% year-over-year rise in its top line, driven by continued product demand in the Asia-Pacific (APAC) and the United States.
The Europe, Middle East and Africa region accounted for 43% of its revenues in the recently reported quarter. Despite being lower than the year-ago quarter’s 55%, the company experienced growth over the 6 months, showing a 31% increase from the previous year. The APAC region and the United States showed strong growth, with the former reaching 52% from 43% in the same quarter last year, and the latter increasing from 2% to 5% in the June quarter. APAC improved on the back of strong customer demand, and the United States witnessed domestic customer wins.
With the electric vehicle (EV) market booming globally, MVST found an opportunity to diversify into the electric boat market by partnering with Evoy. This collaboration enables Evoy to integrate Microvast’s MV-I battery due to its higher safety and reliability in boat applications. This partnership displays the MVST’s technical prowess in battery manufacturing, opening doors to other EV markets, including defense, aviation and construction equipment.
Beyond this partnership, the company is working to meet existing demand. MVST has reported a backlog of nearly $320 million as of the end of the June-end quarter for its EV battery systems, which equates to 1,342 MWh. MVST has ramped up its production by expanding its capacity in Huzhou, China, to address this backlog.
The company is building a second 2 GWh production line in Huzhou to meet the growing demand. Although the production line is designed to manufacture next-gen 120Ah high-energy cells, it can manufacture other cell formats, including 48Ah, 53.5Ah and 55Ah. With the completion of installation expected by the year-end, we project this investment to improve MVST’s production capacity, facilitating the upsurge in demand for EV batteries in the long run.
Microvast Valuation Appears Compelling
MVST is priced at 10.89 times forward 12-month EPS, significantly lower than the industry’s average of 28.53 times. MVST’s trailing 12-month EV-to-EBITDA ratio is 4.7, which is substantially below the industry average of 39.29. Both these metrics indicate that the company is undervalued, suggesting lower downside risks and high long-term growth prospects.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
MVST’s Strong Top & Bottom-Line Prospects
The Zacks Consensus Estimate for the company’s 2025 revenues is $462.3 million, suggesting 22.9% year-over-year growth. For 2026, the top line is pegged at $563.5 million, indicating a 21.9% year-over-year increase.
The consensus estimate for MVST’s 2025 EPS is kept at 19 cents, suggesting a 170.4% year-over-year upsurge. For 2026, the bottom line is set at 29 cents per share, representing a 52.6% year-over-year increase.
Over the past 60 days, one EPS estimate each for 2025 and 2026 has been revised upward with no downward adjustment. The Zacks Consensus Estimate for 2025 earnings has jumped 46.2%, and the same has increased 20.8% for 2026. These upward revisions highlight analysts' confidence.
Hurry Up & Add Microvast to Your Portfolio
MVST’s regional expansion, despite some hiccups, is impressive. The company has found its way to diversification by partnering with Evoy, which sets it up for testing the waters in other EV markets. Growing consumer demands and customer wins resulted in a backlog that the company is trying to meet by increasing production capacity in Huzhou. These factors provide a solid foundation for MVST's growth trajectory.
We find MVST fundamentally strong and the positive EPS revision reflects analyst confidence. With both valuation metrics hovering significantly lower than the industry, MVST screams undervaluation.
Microvast’s compelling growth narrative, coupled with a strong top and bottom-line outlook and a favorable valuation, compels us to recommend that investors buy this stock right now.
Image: Bigstock
Microvast Skyrockets 1162% in a Year: Is the Stock Still Worth Buying?
Key Takeaways
Microvast Holdings (MVST - Free Report) shares have experienced remarkable growth over the past year. It has soared a whopping 1162.3% in a year, outperforming the 76.2% surge of its industry and 18.1% growth of the Zacks S&P 500 Composite.
MVST outperformed its industry peers, Algorhythm Holdings’ (RIME - Free Report) and Industrial Tech Acquisitions’ (ARBE - Free Report) 98% and 28.4% decline, respectively.
1-Year Price Performance
The year-to-date price performances show that Microvast beats Algorhythm Holdings and Industrial Tech Acquisitions as well. While MVST has gained 36.8%, Algorhythm Holdings and Industrial Tech Acquisitions have plummeted 88% and 24.7%, respectively.
With Microvast’s share prices skyrocketing over the past year, we expect investors to find it enticing to jump on the bandwagon. Let us delve deeper to find out whether adding MVST to their portfolio now is a sound idea.
MVST’s Key Drivers: Expansion, Partnerships & Production
Microvast’s regional expansion and strategic penetration are reflected in its financial performance. Sustained demand for global electrification resulted in the company achieving the $380-million mark in 2024, up 24% year over year. Recent performance shows that MVST registered a 9.2% year-over-year rise in its top line, driven by continued product demand in the Asia-Pacific (APAC) and the United States.
The Europe, Middle East and Africa region accounted for 43% of its revenues in the recently reported quarter. Despite being lower than the year-ago quarter’s 55%, the company experienced growth over the 6 months, showing a 31% increase from the previous year. The APAC region and the United States showed strong growth, with the former reaching 52% from 43% in the same quarter last year, and the latter increasing from 2% to 5% in the June quarter. APAC improved on the back of strong customer demand, and the United States witnessed domestic customer wins.
With the electric vehicle (EV) market booming globally, MVST found an opportunity to diversify into the electric boat market by partnering with Evoy. This collaboration enables Evoy to integrate Microvast’s MV-I battery due to its higher safety and reliability in boat applications. This partnership displays the MVST’s technical prowess in battery manufacturing, opening doors to other EV markets, including defense, aviation and construction equipment.
Beyond this partnership, the company is working to meet existing demand. MVST has reported a backlog of nearly $320 million as of the end of the June-end quarter for its EV battery systems, which equates to 1,342 MWh. MVST has ramped up its production by expanding its capacity in Huzhou, China, to address this backlog.
The company is building a second 2 GWh production line in Huzhou to meet the growing demand. Although the production line is designed to manufacture next-gen 120Ah high-energy cells, it can manufacture other cell formats, including 48Ah, 53.5Ah and 55Ah. With the completion of installation expected by the year-end, we project this investment to improve MVST’s production capacity, facilitating the upsurge in demand for EV batteries in the long run.
Microvast Valuation Appears Compelling
MVST is priced at 10.89 times forward 12-month EPS, significantly lower than the industry’s average of 28.53 times. MVST’s trailing 12-month EV-to-EBITDA ratio is 4.7, which is substantially below the industry average of 39.29. Both these metrics indicate that the company is undervalued, suggesting lower downside risks and high long-term growth prospects.
MVST’s Strong Top & Bottom-Line Prospects
The Zacks Consensus Estimate for the company’s 2025 revenues is $462.3 million, suggesting 22.9% year-over-year growth. For 2026, the top line is pegged at $563.5 million, indicating a 21.9% year-over-year increase.
The consensus estimate for MVST’s 2025 EPS is kept at 19 cents, suggesting a 170.4% year-over-year upsurge. For 2026, the bottom line is set at 29 cents per share, representing a 52.6% year-over-year increase.
Over the past 60 days, one EPS estimate each for 2025 and 2026 has been revised upward with no downward adjustment. The Zacks Consensus Estimate for 2025 earnings has jumped 46.2%, and the same has increased 20.8% for 2026. These upward revisions highlight analysts' confidence.
Hurry Up & Add Microvast to Your Portfolio
MVST’s regional expansion, despite some hiccups, is impressive. The company has found its way to diversification by partnering with Evoy, which sets it up for testing the waters in other EV markets. Growing consumer demands and customer wins resulted in a backlog that the company is trying to meet by increasing production capacity in Huzhou. These factors provide a solid foundation for MVST's growth trajectory.
We find MVST fundamentally strong and the positive EPS revision reflects analyst confidence. With both valuation metrics hovering significantly lower than the industry, MVST screams undervaluation.
Microvast’s compelling growth narrative, coupled with a strong top and bottom-line outlook and a favorable valuation, compels us to recommend that investors buy this stock right now.
Microvast flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.