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MVST Stock Skyrockets 2656% in a Year: Still a Buy or Time to Wait?
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Key Takeaways
Microvast stock soared 2655.9% in a year but fell 4.9% last month amid market correction.
ASSB innovation and Huzhou expansion support MVST's 2025 growth and margin targets.
MVST trades below industry valuation, yet lower ROE and no dividends may deter investors.
Microvast Holdings (MVST - Free Report) shares have experienced staggering growth over the past year. It has skyrocketed 2655.9% during the period, outperforming the 26.1% rise of its industry and 15.9% growth of the Zacks S&P 500 Composite.
Meanwhile, MVST has outperformed its competitors, with Miami International Holdings, Inc. (MIAX - Free Report) and Coherent Corp.’s (COHR - Free Report) soaring 59.2% and 60.3%, respectively.
1-Year Share Price Performance
Image Source: Zacks Investment Research
However, the recent performance paints a different picture, with Microvast shares falling 4.9% in the past month, suggesting that it is riding on a correction phase.
Microvast failed to perform as impressively as its industry peers, Miami International and Coherent Corp, over the past month. Miami International has gained 13.5% and Coherent Corp has increased 44.8%.
Microvast shares’ monumental growth over the past year raises questions on whether it is still a portfolio-friendly stock. Let us analyze further to find out what serves best for investors.
Microvast’s 5-layer all-solid-state battery (ASSB) surpassed 404 charge or discharge cycles at 1C, sustaining high coulombic efficiency and stable capacity retention across the cycle window. This highlights the company’s technological prowess in addressing the industry challenges for reliability and durability at scale.
The high-volume 12-layer prototype testing showed that MVST’s approach provides high structure integrity with minimal losses during charge transfer. It enhances battery longevity and peak performance. Furthermore, the company continued to improve its ASSB by integrating its in-house separator technology, improving its electrode interfacial contact and flexibility. It provides more consistent manufacturing compared with ceramic separators, which are more fragile.
The separator technology is built on polyaramid that improves structural integrity under high temperatures. This innovation not only provides safety but also mechanical strength and ionic efficiency, positioning MVST as a leader in next-gen ASSB technology.
Operationally, the Huzhou Phase 3.2 expansion will add 2 GWh of annual production capacity by the first quarter of 2026. It will serve as a bridge connecting high-performing prototypes to mass-market products.
The ASSB innovation, coupled with the expansion strategy, provides a solid financial base to the company, as evidenced by its third quarter 2025 revenues registering 21.6% year-over-year growth and the gross margin improving by 440 basis points. It also solidifies management’s view on maintaining the initial target of year-over-year revenue growth of 18-25% and fulfilling its anticipated gross margin of 32-35% for 2025.
Microvast’s Discounted Valuation
MVST is priced at 18 times forward 12-month EPS, below the industry average of 25.7 times. Microvast’s trailing 12-month EV-to-EBITDA ratio stands at 7.6, substantially lower than the industry average of 16.1. These metrics confirm MVST’s undervalued position, compelling investors to invest in this stock to achieve long-term gains with a built-in margin of safety.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
MVST’s Promising Top & Bottom-Line Outlook
The Zacks Consensus Estimate for the company’s 2025 revenues is $462.3 million, suggesting 21.7% year-over-year growth. For 2026, the top line is set at $563.5 million, indicating 21.9% year-over-year growth.
The consensus estimate for MVST’s 2025 EPS is kept at 19 cents, hinting at a 170.4% year-over-year upsurge. For 2026, the bottom line is estimated at 29 cents per share. This indicates 52.6% year-over-year growth.
MVST’s Capital Return Lags Industry
Return on equity (ROE) is a profitability metric that assesses how effectively a company utilizes shareholders' equity to generate earnings. By the end of the third quarter of 2025, Microvast reported a ROE of 12.2%, below the industry’s 16%.
Image Source: Zacks Investment Research
The company’s return on invested capital (ROIC) of 6.6% is lower than the industry’s 8%. Low ROE and ROIC raise questions about the company’s lack of a sustainable competitive edge that would enable it to generate higher returns.
Image Source: Zacks Investment Research
Microvast: No Dividend Policy
MVST never declared dividends and does not seem to have any such plan. Therefore, the only way to achieve a return on investment in the company’s stock is share price appreciation, which is not guaranteed. Hence, dividend-seeking investors may find Microvast shares unappealing.
Hold MVST for Now
Microvast’s separator technology, built on polyaramid, has positioned the company at the forefront of next-gen battery ASSB technology. Huzhou Phase 3.2 expansion sets the tone for MVST’s ability to cater to future demand.
Banking on these factors, the company has solidified its financial position. Furthermore, the stock appears fundamentally strong and stays undervalued. On the flip side, the company’s capital returns are unimpressive, stripping away its competitive edge. Moreover, the lack of dividends makes the stock unappealing for dividend-seeking investors.
Looking at the stock’s recent performance, we can conclude that MVST has been riding through a wave of a correction phase. Hence, investors are recommended to adopt a cautious approach and refrain from adding this stock to their portfolio now.
Potential buyers are recommended to hold off on investing and watch for further share price adjustments before buying.
Image: Bigstock
MVST Stock Skyrockets 2656% in a Year: Still a Buy or Time to Wait?
Key Takeaways
Microvast Holdings (MVST - Free Report) shares have experienced staggering growth over the past year. It has skyrocketed 2655.9% during the period, outperforming the 26.1% rise of its industry and 15.9% growth of the Zacks S&P 500 Composite.
Meanwhile, MVST has outperformed its competitors, with Miami International Holdings, Inc. (MIAX - Free Report) and Coherent Corp.’s (COHR - Free Report) soaring 59.2% and 60.3%, respectively.
1-Year Share Price Performance
However, the recent performance paints a different picture, with Microvast shares falling 4.9% in the past month, suggesting that it is riding on a correction phase.
Microvast failed to perform as impressively as its industry peers, Miami International and Coherent Corp, over the past month. Miami International has gained 13.5% and Coherent Corp has increased 44.8%.
Microvast shares’ monumental growth over the past year raises questions on whether it is still a portfolio-friendly stock. Let us analyze further to find out what serves best for investors.
MVST’s Essentials: ASSB & Huzhou Phase 3.2 Expansion
Microvast’s 5-layer all-solid-state battery (ASSB) surpassed 404 charge or discharge cycles at 1C, sustaining high coulombic efficiency and stable capacity retention across the cycle window. This highlights the company’s technological prowess in addressing the industry challenges for reliability and durability at scale.
The high-volume 12-layer prototype testing showed that MVST’s approach provides high structure integrity with minimal losses during charge transfer. It enhances battery longevity and peak performance. Furthermore, the company continued to improve its ASSB by integrating its in-house separator technology, improving its electrode interfacial contact and flexibility. It provides more consistent manufacturing compared with ceramic separators, which are more fragile.
The separator technology is built on polyaramid that improves structural integrity under high temperatures. This innovation not only provides safety but also mechanical strength and ionic efficiency, positioning MVST as a leader in next-gen ASSB technology.
Operationally, the Huzhou Phase 3.2 expansion will add 2 GWh of annual production capacity by the first quarter of 2026. It will serve as a bridge connecting high-performing prototypes to mass-market products.
The ASSB innovation, coupled with the expansion strategy, provides a solid financial base to the company, as evidenced by its third quarter 2025 revenues registering 21.6% year-over-year growth and the gross margin improving by 440 basis points. It also solidifies management’s view on maintaining the initial target of year-over-year revenue growth of 18-25% and fulfilling its anticipated gross margin of 32-35% for 2025.
Microvast’s Discounted Valuation
MVST is priced at 18 times forward 12-month EPS, below the industry average of 25.7 times. Microvast’s trailing 12-month EV-to-EBITDA ratio stands at 7.6, substantially lower than the industry average of 16.1. These metrics confirm MVST’s undervalued position, compelling investors to invest in this stock to achieve long-term gains with a built-in margin of safety.
MVST’s Promising Top & Bottom-Line Outlook
The Zacks Consensus Estimate for the company’s 2025 revenues is $462.3 million, suggesting 21.7% year-over-year growth. For 2026, the top line is set at $563.5 million, indicating 21.9% year-over-year growth.
The consensus estimate for MVST’s 2025 EPS is kept at 19 cents, hinting at a 170.4% year-over-year upsurge. For 2026, the bottom line is estimated at 29 cents per share. This indicates 52.6% year-over-year growth.
MVST’s Capital Return Lags Industry
Return on equity (ROE) is a profitability metric that assesses how effectively a company utilizes shareholders' equity to generate earnings. By the end of the third quarter of 2025, Microvast reported a ROE of 12.2%, below the industry’s 16%.
The company’s return on invested capital (ROIC) of 6.6% is lower than the industry’s 8%. Low ROE and ROIC raise questions about the company’s lack of a sustainable competitive edge that would enable it to generate higher returns.
Microvast: No Dividend Policy
MVST never declared dividends and does not seem to have any such plan. Therefore, the only way to achieve a return on investment in the company’s stock is share price appreciation, which is not guaranteed. Hence, dividend-seeking investors may find Microvast shares unappealing.
Hold MVST for Now
Microvast’s separator technology, built on polyaramid, has positioned the company at the forefront of next-gen battery ASSB technology. Huzhou Phase 3.2 expansion sets the tone for MVST’s ability to cater to future demand.
Banking on these factors, the company has solidified its financial position. Furthermore, the stock appears fundamentally strong and stays undervalued. On the flip side, the company’s capital returns are unimpressive, stripping away its competitive edge. Moreover, the lack of dividends makes the stock unappealing for dividend-seeking investors.
Looking at the stock’s recent performance, we can conclude that MVST has been riding through a wave of a correction phase. Hence, investors are recommended to adopt a cautious approach and refrain from adding this stock to their portfolio now.
Potential buyers are recommended to hold off on investing and watch for further share price adjustments before buying.
Microvast carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.