BYD has four factories in China with a production capacity of 1.5 million vehicles per year. Theres also a huge global market. It's another great way to determine whether a company is undervalued or overvalued with the denominator being cash flow. BYD has the cheapest EV battery in the industry, and it plans to sell its newest batteryBlade Batteryto other automakers. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Most importantly, though, was the outline of Chinas ambitious Five-Year Plan released last week, in which domestic production of NEVs and technology is central to Chinas economic plans over the next five and 15 years. A change in margin can reflect either a change in business conditions, or a company's cost controls, or both. BYD Auto was founded. When did Buffett buy Byddf? Enterprise Value / Earnings Before Interest, Taxes, Depreciation and Amortization is a valuation metric used to measure a company's value and is helpful in comparing one stock to another. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.27% per year. Especially in huge cities where air pollution is a serious concern, such as in parts of China, growing e-bus adoption seems very likely. Traditionally, investors would look at the stock with the lower P/E and deem it a bargain. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. The 12 Week Price Change displays the percentage price change over the most recently completed 12 weeks (60 days). BYD is a Chinese automaker. The ever popular one-page Snapshot reports are generated for virtually every single Zacks Ranked stock. If you were to apply a 21% improvement in Teslas automotive gross margin over the last four quarters (granted this isnt comparing apples to apples), it would have made an additional $1.29B in automotive gross profit. Currently, BYD manufactures 18 passenger vehicle models, 6 bus models, 4 electric coaches models, 2 van models, 6 truck models, and throughout 2020, it delivered a total of more than 400,000 vehicles. Most importantly, under the new Five-Year Plans outline, we estimate BYDs commercial vehicle sales will grow by 1,543%, at which point BYD would have a competitive 29% market share in the Chinese NEV commercial vehicle space. BYD already has a presence in the U.S., with its North American headquarters located in Los Angeles. Electric buses have higher upfront costs than non-electric buses, but their total cost of ownership makes them significantly cheaper to operate. It's packed with all of the company's key stats and salient decision making information. The policy also advocates for improvements in EV components, more funding for efficient charging and battery swapping networks, and a better green car quota system to help OEMs transition to NEVs. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. BYD soared more than 5%, another record high The stock has risen by more than 60% since September, & its total market value has exceeded 370 billion. Entering text into the input field will update the search result below. A higher number is better than a lower one as it shows how effective a company is at generating revenue from its assets. Liked the article? They could grow their IR team and make the company a better-known EV company, and I assume that they will do so over the years, although not necessarily in the very near term. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body. Summary. If you look into trading profiles, they're are just replicas of each other with same trading volume,buy/sell signals etc. If you have an ad-blocker enabled you may be blocked from proceeding. To subscribe to this RSS feed, copy and paste this URL into your RSS reader. This time period essentially shows you how the consensus estimate has changed from the time of their last earnings report. If you like to enter the world of short selling and learn more about unconventional stock market strategies, then give the service a try and opt for the FREE 14-day trial today! While the one year change shows the current conditions, the longer look-back period shows how this metric has changed over time and helps put the current reading into proper perspective. Looking for a helping hand in the market? Most brokers let you trade in OTC stocks and you. The Han sedan can go nearly 376 miles on a single charge. When did Buffett buy Byddf? But they all have their place in the Growth style. A P/B of 2 means it's selling at 2 times its book value. A company like BYD comes once in a blue moon. 'BYDDY vs BYDDF'. It also operates in North America via its U.S. headquarters in Los Angeles, Calif. Add in BYD's promising commercial EV business and its growing battery manufacturing business, and BYD could be valued at several hundred billion dollars. The financial health and growth prospects of BYDDY, demonstrate its potential to perform inline with the market. BYD announced in September its participation in a statewide contract will allow American transit agencies to leverage Californias purchase power to buy U.S.-built zero-emission BYD electric coach buses. LKQ Q1 Earnings & Sales Beats Estimates, Sales Remain Flat Y/Y, Autoliv (ALV) Q1 Earnings & Sales Top Estimates, Rise Y/Y. BYD (OTCMKTS:BYDDF) stock is on the move today despite a lack of news concerning the electric vehicle (EV) company. Byddf stocks are those that are held by the government, while byddy stocks are those that are held by the private sector. The BYD Company stock holds buy signals from both short and long-term moving averages giving a positive forecast for the stock. BYDDF stock trades at an NTM enterprise value to EBITDA multiple of 23.04x which looks reasonable considering the bloated valuations of other pure-play EV companies. How can investors buy BYD stock and what can they expect? The 4 week price change is a good reference point for the individual stock and how it's performed in relation to its peers. BYD was not looking at the U.S. market as a major revenue stream, but rather to establish its brand overseas. The terms "byddf" and "byddy" stocks are often used interchangeably, but there is a difference between the two. Valuations aren't low, but they are way more reasonable compared to most other EV stocks. Some of the items you'll see in this category might look very familiar, while other items might be quite new to some. NIO has allocated many staff members for its export business unit, aiming to sell 7,000 ES8 and ES6 SUVs in Europe within two years. Am I exposed to currency risk when I invest in shares of a foreign company that are listed domestically? I have been following BYD since 2009, and first met with BYD at its headquarters in Shenzhen, China over five years ago. Cross listing question with example. The other. If, on the other hand, it went from $1.00 to 90 cents, that would be a -10% change in the consensus estimate revision. Analysts Disclosure: I am/we are long XPEV, BYDDF. To learn more, see our tips on writing great answers. * indicates the important links in the menu. Now that the CCPs Central Committee has given more detail in Chinas Five-Year Plan, we estimate 6.2 million NEVs sold in 2025 in China, which would meet Chinas goals of 20% of new vehicle sales being NEVs. and our But, typically, an aggressive growth trader will be interested in the higher growth rates. Value investors will typically look for stocks with P/E ratios under 20, while growth investors and momentum investors are often willing to pay much more. byddf vs byddy What's the difference in the two tickers? Its also worth pointing out we saw the companys stock jump when markets opened this morning only to suffer a fall shortly afterward. A post on popular Reddit group WallStreetBets, which was upvoted over 2,100 times, referred to BYD among the value stocks listed by Keith Gill on his Reddit forum. Some BYD employees joke that I know the company better than they. So the PEG ratio tells you what you're paying for each unit of earnings growth. This measure is expressed as a percentage. ROE values, like other values, can vary significantly from one industry to another. In addition, BYD is also cheaper than its peers such as NIO, Tesla, XPeng, and Li Auto, which are trading at 10 to 20 times their sales, as its P/S ratio is less than 4x. A sales/assets ratio of 2.50 means the company generated $2.50 in revenue for every $1.00 of assets on its books. This includes personalizing content and advertising. Connect and share knowledge within a single location that is structured and easy to search. Cookie Notice If you wish to go to ZacksTrade, click OK. I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The demand has been particularly strong for the companys Han luxury electric sedan. The company's financial condition is fair and its profitability is fair. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. If a stock's EPS consensus estimate is $1.10 now vs. $1.00 the week before, that will be reflected as a 10% change. 1. which of the two Buffett owns, 2. if it matters which one you might buy (as I said they have always moved in lock step, so it would seem if Buffett hit a home run on the one he owns, the owners of the other would do just fine too. That is a 33% cost reduction from battery and IGBT costs alone for BYD compared to the best-selling EV model in the world. China has among the most favorable policies toward the electric vehicle industry in the world, which bodes well for BYD. The 13 million miles saved over 16,000 metric tons of GHG emissionsequivalent to removing 13,000 cars from the road. This longer-term historical perspective lets the user see how a company has grown over time. Parabolic, suborbital and ballistic trajectories all follow elliptic paths. Within the Finance Sector, it would fall into the M Industry of Banks & Thrifts. Bears of Wall Street is a community of traders and financial analysts, who take a pragmatic approach to valuing companies. In addition to all of the proprietary analysis in the Snapshot, the report also visually displays the four components of the Zacks Rank (Agreement, Magnitude, Upside and Surprise); provides a comprehensive overview of the company business drivers, complete with earnings and sales charts; a recap of their last earnings report; and a bulleted list of reasons to buy or sell the stock. After last weeks article, many people commented that they didnt know which BYD tickers they should buy. NIO (NIO) and Xiaopeng (Xpeng) Motors (XPEV) are two publicly traded companies whose electric cars are selling well in China, and both are expected to enter the European market soon. Article printed from InvestorPlace Media, https://investorplace.com/2021/12/byddf-stock-10-things-to-know-about-byd-as-investors-hunt-for-the-next-hot-ev-play/. The change is made all the more important the closer proximity it is to the stock's earnings date since it is generally believed that the most recent estimates are the most accurate since it's using the most up-to-date information leading up to the report. A company like BYD comes once in a blue moon, and its stock is already up 398% YTD. When evaluating a stock, it can be useful to compare it to its industry as a point of reference. Folder's list view has different sized fonts in different folders. Berkshire Hathaway chairman and legendary value investor are among the investors of Chinese electric vehicle company BYD (BYDDF). This seems like a very reasonable comparison, as BYD's EVs are not at all cheap entry-level cars, unlike some of the offerings by other Chinese EV manufacturers. NIO is a play on the high-end electric car market while XPeng offers affordable electric cars. BYD has an incredible domestic market for its products. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. While currently, BYD has a market cap of ~$100 billion, its forward P/E of ~130x is lower than to P/E's of other growing companies that don't grow at a triple-digit rate, as was the case in Q1. The 20 day average establishes this baseline. Tesla delivered 184,800 EVs globally in Q1 2021. The longer-term perspective helps smooth out short-term events. Its factories are running at 27.7% capacitysignificantly lower than NIO and Xpeng factories, which are running at full capacity. We believe purchasing BYDs stock is a good way of exposing your portfolio to the EV industry. I am not receiving compensation for it (other than from Seeking Alpha). Ill admit, it seems confusing, but here is the rundown: BYDDF and BYDDY are both OTC, but BYDDY is the ADR, and BYDDF is H-shares. BYD Co., Ltd. engages in the research, development, manufacture, and sale of rechargeable batteries and photovoltaic business. China is a leading EV market, and it looks like Chinese players will have it easier in their home market compared to foreign companies. Ford.? The company is an EV OEM, but on top of that, BYD also has exposure to the space through other business units. BYDDF is traded on Hong Kong Stock Exchange" Where did that quote come from? The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. Using this item along with the 'Current Cash Flow Growth Rate' (in the Growth category above), and the 'Price to Cash Flow ratio' (several items above in this same Value category), will give you a well-rounded indication of the amount of cash they are generating, the rate of their cash flow growth, and the stock price relative to its cash flow. Is this happening to you frequently? Is this happening to you frequently? Commercial vehicles are easier for governments to implement, and offset significantly more carbon than passenger vehicles, since they tend to be larger and are driving more than passenger vehicles, such as taxis, buses, garbage trucks, etc. Under those estimates, we are forecasting passenger NEV sales will grow by 429% in 2025 from the end of this year in China. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. A company with a P/E ratio of 40 and a growth rate of 50% would have a PEG ratio of 0.80 (40 / 50 = 0.80). This has been, still is, and certainly will continue to be what differentiates BYD the most. What's the difference between Byddf and Byddy? This item is updated at 9 pm EST each day. BYDDF stock versus 50 and 200-day moving average. If a stock's Q1 estimate revision decreases leading up to its earnings release, that's usually a negative sign, whereas an increase is typically a positive sign. It's calculated as earnings divided by price. In general, a lower number or multiple is usually considered better that a higher one. NIOs European expansion, ironically codenamed Marco Polo, is rumored to have already started. All Rights Reserved. BYD Company is a China-based vehicle maker that mainly focuses on manufacturing automobiles. Projected EPS Growth looks at the estimated growth rate for one year. It wasnt the right time, nor the right market. First and foremost, BYD makes the two most expensive components of an electric vehicle itselfthe battery and IGBTand again, BYD is the only automaker to produce either component. Its all the same company. For example, a stock trading at $35 with earnings of $3 would have an earnings yield of 0.0857 or 8.57%. BYDDF is a good way to play the EV market. I am told BYD will make things easier/clearer when it spins off its battery unit and IGBT semiconductor unit, though if they only list on STAR, HK, SZ, Shanghai, and not in U.S./OTC (which is the new retaliatory trend for Chinese companies), it will be difficult for many U.S. investors to own the spin-offs. The latest data suggests that in 2021 the sales of EVs in China will already increase by more than 50% Y/Y, as China expects 20% of its car sales to be electric by the end of 2025. If you have an ad-blocker enabled you may be blocked from proceeding. This is, compared to legacy automakers such as Volkswagen (OTCPK:VWAGY), General Motors (GM), Ford (F), or Toyota (TM), still not a low valuation, though, as those mostly trade for 0.5-1 times sales. The price of "BYDDY" appears to always be twice the price of "BYDDF". It takes the consensus sales estimate for the current fiscal year (F1) divided by the sales for the last completed fiscal year (F0) (actual if reported, the consensus if not). Growth traders and investors will tend to look for growth rates of 20% or higher. Delayed quotes by FIS. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Copyright 2023 Market Realist. This is why Tesla is striving to one-day make its own batteries. After the P/E ratio, it's one of the most common valuation metrics. This means that more and more batteries are needed, which means that the battery manufacturing business BYD is active in should do well, whether the EV leader in 2030 is Tesla, Volkswagen, or any other company. Could a subterranean river or aquifer generate enough continuous momentum to power a waterwheel for the purpose of producing electricity? Considering this, we believe that the opportunities of owning BYD outweigh the current risks. Strong vehicle sales should continue to attract more investors to BYD, which stands out as one of the more established Chinese electric vehicle companies. BYDDF is traded on Hong Kong Stock Exchange." When I Googled this, I saw "ARKQ (ETF) is holding BYD/BYDDF. Especially interested in electric vehicles, autonomous vehicles, 5G, telemedicine, batteries, clean water, and renewable energy.