Is Nio Stock a Good Investment?

Nio Investment Advice

NIO

To provide specific investment advice or recommendations on Nio Class A stock, we recommend investors consider the following general factors when evaluating Nio Class A. This will help you to make an informed decision on whether to include Nio in one of your diversified portfolios:

Examine Nio'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 Nio's leadership team and their track record. Good management can help Nio navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Automobile Manufacturers space and any emerging trends that could impact Nio's business and its evolving consumer preferences.
Compare Nio's performance and market position to its competitors. Analyze how Nio is positioned in terms of product offerings, innovation, and market share.
Check if Nio pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about Nio'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 Nio Class A 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 Nio Class A is a good investment.

Sell

Buy

Strong Sell

We provide investment recommendation to complement the last-minute expert consensus on Nio Class A. Our dynamic recommendation engine harnesses a multidimensional algorithm to analyze the entity's potential to grow using all technical and fundamental data available at the time. To make sure Nio Class A is not overpriced, please verify all Nio Class A fundamentals, including its price to sales, book value per share, retained earnings, as well as the relationship between the cash and equivalents and target price . Given that Nio Class A has a price to earning of 10.16 X, we recommend you to check Nio market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your last-minute risk tolerance and investing horizon.

Market Performance	Modest	Details
Volatility	Moderately volatile	Details
Hype Condition	Under hyped	Details
Current Valuation	Undervalued	Details
Odds Of Distress	Above Average	Details
Economic Sensitivity	Follows the market closely	Details
Investor Sentiment	Impartial	Details
Analyst Consensus	Buy	Details
Financial Strenth (F Score)	Poor	Details
Financial Leverage	Not Rated	Details
Reporting Quality (M-Score)	Unlikely Manipulator	Details

Examine Nio Stock

Researching Nio'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). The company recorded a loss per share of 1.51. Nio Class A last dividend was issued on the 2nd of May 2016.

To determine if Nio 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 Nio's research are outlined below:

	Nio Class A had very high historical volatility over the last 90 days
	Nio Class A has high likelihood to experience some financial distress in the next 2 years
	The company reported the last year's revenue of 55.62 B. Reported Net Loss for the year was (20.72 B) with profit before taxes, overhead, and interest of 5.14 B.
	Nio Class A has about 19.89 B in cash with (1.38 B) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 27.32, which can makes it an attractive takeover target, given it will continue generating positive cash flow.
	Nio Class A has a poor financial position based on the latest SEC disclosures
	Latest headline from electrek.co: No, BYD is not taking over NIO as fake rumors claim

Nio Quarterly Long Term Debt

11.61 Billion

Nio 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 Nio Class A. 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 Nio'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.

	6th of March 2024 Upcoming Quarterly Report	View
	14th of June 2024 Next Financial Report	View
	31st of December 2023 Next Fiscal Quarter End	View
	6th of March 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 Nio'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 Nio's investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2022-09-07	2022-06-30	-1.15	-1.34	-0.19	16
2020-05-28	2020-03-31	-1.85	-1.6	0.25	13
2021-08-11	2021-06-30	-0.68	-0.42	0.26	38
2020-11-17	2020-09-30	-1.11	-0.82	0.29	26
2024-03-05	2023-12-31	-2.36	-2.81	-0.45	19
2021-03-01	2020-12-31	-0.47	-1.05	-0.58	123
2020-08-11	2020-06-30	-1.84	-1.08	0.76	41
2019-05-28	2019-03-31	-3.23	-2.42	0.81	25

Know Nio's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Nio is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Nio Class A backward and forwards among themselves. Nio's institutional investor refers to the entity that pools money to purchase Nio'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
Millennium Management Llc	2024-06-30	4.7 M
D. E. Shaw & Co Lp	2024-09-30	4.1 M
Marshall Wace Asset Management Ltd	2024-06-30	4 M
Susquehanna International Group, Llp	2024-06-30	3.6 M
Deutsche Bank Ag	2024-06-30	3.4 M
Voloridge Investment Management, Llc	2024-09-30	3.4 M
Amvescap Plc.	2024-06-30	3.3 M
Jane Street Group Llc	2024-06-30	3.2 M
Canada Pension Plan Investment Board	2024-09-30	3.1 M
Blackrock Inc	2024-06-30	60.5 M
Morgan Stanley - Brokerage Accounts	2024-06-30	31.5 M

Note, although Nio's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Nio's market capitalization trends

The company currently falls under 'Mid-Cap' category with a total capitalization of 9.66 B.

Market Cap

109.51 Billion

Nio's profitablity analysis

	Last Reported	Projected for Next Year
Return On Tangible Assets	(0.18)	(0.19)
Return On Capital Employed	(0.38)	(0.40)
Return On Assets	(0.18)	(0.19)
Return On Equity	(0.83)	(0.79)

The company has Net Profit Margin of (0.32) %, which means that it does not effectively control expenditures or properly executes on its pricing strategies. This is way below average. In the same way, it shows Net Operating Margin of (0.3) %, which entails that for every $100 of revenue, it lost $0.3.

Determining Nio's profitability involves analyzing its financial statements and using various financial metrics to determine if Nio is a good buy. For example, gross profit margin measures Nio'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 Nio's profitability and make more informed investment decisions.

Evaluate Nio's management efficiency

Nio Class A has Return on Asset of (0.1468) % which means that on every $100 spent on assets, it lost $0.1468. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of (1.0479) %, meaning that it generated no profit with money invested by stockholders. Nio's management efficiency ratios could be used to measure how well Nio manages its routine affairs as well as how well it operates its assets and liabilities. As of the 25th of November 2024, Return On Tangible Assets is likely to drop to -0.19. In addition to that, Return On Capital Employed is likely to drop to -0.4. At this time, Nio's Fixed Asset Turnover is very stable compared to the past year.

	Last Reported	Projected for Next Year
Book Value Per Share	17.41	18.28
Tangible Book Value Per Share	17.27	18.13
Enterprise Value Over EBITDA	(6.58)	(6.91)
Price Book Value Ratio	4.28	4.50
Enterprise Value Multiple	(6.58)	(6.91)
Price Fair Value	4.28	4.50
Enterprise Value	126.9 B	109.5 B

The operational strategies employed by Nio management play a crucial role in its market positioning. Assessing these strategies alongside financial data helps us evaluate the stock's investment potential.

Beta

1.903

Basic technical analysis of Nio Stock

As of the 25th of November, Nio secures the Mean Deviation of 3.79, downside deviation of 4.84, and Risk Adjusted Performance of 0.0715. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Nio Class A, as well as the relationship between them.

Nio's Outstanding Corporate Bonds

Nio 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. Nio Class A 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 Nio bonds can be classified according to their maturity, which is the date when Nio Class A 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.

	US62912XAC83 Corp Bond US62912XAC83	View
	US62912XAF15 Corp Bond US62912XAF15	View

View All Nio Corporate Bonds

Understand Nio's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Nio'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	0.0715
	Market Risk Adjusted Performance	0.5359
	Mean Deviation	3.79
	Semi Deviation	4.39
	Downside Deviation	4.84
	Coefficient Of Variation	1216.62
	Standard Deviation	5.09
	Variance	25.87
	Information Ratio	0.0565
	Jensen Alpha	0.3144
	Total Risk Alpha	(0.39)
	Sortino Ratio	0.0594
	Treynor Ratio	0.5259
	Maximum Drawdown	23.87
	Value At Risk	(7.21)
	Potential Upside	10.96
	Downside Variance	23.38
	Semi Variance	19.31
	Expected Short fall	(3.88)
	Skewness	0.5464
	Kurtosis	0.5049

	Risk Adjusted Performance	0.0715
	Market Risk Adjusted Performance	0.5359
	Mean Deviation	3.79
	Semi Deviation	4.39
	Downside Deviation	4.84
	Coefficient Of Variation	1216.62
	Standard Deviation	5.09
	Variance	25.87
	Information Ratio	0.0565
	Jensen Alpha	0.3144
	Total Risk Alpha	(0.39)
	Sortino Ratio	0.0594
	Treynor Ratio	0.5259
	Maximum Drawdown	23.87
	Value At Risk	(7.21)
	Potential Upside	10.96
	Downside Variance	23.38
	Semi Variance	19.31
	Expected Short fall	(3.88)
	Skewness	0.5464
	Kurtosis	0.5049

Consider Nio's intraday indicators

Nio 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 Nio 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	2.4 M
	Daily Balance Of Power	(0.77)
	Rate Of Daily Change	0.96
	Day Median Price	4.75
	Day Typical Price	4.72
	Price Action Indicator	(0.17)
	Period Momentum Indicator	(0.17)
	Relative Strength Index	48.56

Nio Corporate Filings

6K	20th of November 2024 A report filed by foreign private issuers with SEC. A foreign private issuer is a non-U.S. company with securities traded on U.S. exchanges.	View Verify
	9th of July 2024 Other Reports	View Verify
	21st of May 2024 Other Reports	View Verify

Nio time-series forecasting models is one of many Nio's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Nio's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Nio Stock media impact

Far too much social signal, news, headlines, and media speculation about Nio that are available to investors today. That information is available publicly through Nio media outlets and privately through word of mouth or via Nio internal channels. However, regardless of the origin, that massive amount of Nio 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 Nio 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 Nio 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 Nio's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Nio alpha.

Nio Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Nio 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.

Nio Class A Historical Investor Sentiment

Investor biases related to Nio's public news can be used to forecast risks associated with an investment in Nio. The trend in average sentiment can be used to explain how an investor holding Nio can time the market purely based on public headlines and social activities around Nio Class A. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.

Nio'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 Nio 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 Nio news discussions. The higher the estimate score, the more favorable the investor's outlook on Nio.

Nio Corporate Directors

Hai Wu	Independent Director	Profile
James Mitchell	Director	Profile
Ting Lee	Independent Director	Profile
Ganesh Iyer	Chief Information Officer, Managing Director	Profile

When determining whether Nio Class A offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Nio's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Nio Class A Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Nio Class A Stock: