NASDAQ
RAYA
Last Price
US $2.79
Valuation
Financial
Performance
Financial risk - Cash flow debt coverage.
Erayak Power Solution Group Inc. cash flow to debt ratio of -25.37% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.
Financial stability - Healthy cash flow growth.
Erayak Power Solution Group Inc.'s free cash flow has increased -33.04% from $-16.43M last year to $-11.00M, signaling increasing performance
Financial stability - Healthy debt to equity ratio.
Erayak Power Solution Group Inc.'s debt to equity ratio is 0.35, which means that the company's assets are healthy financed, signaling financial stability. READ MORE: A ratio under 0.60 means the company finances its assets with own equity, signaling financial stability and good management.
Financial risk - Healthy debt to equity ratio development.
Erayak Power Solution Group Inc.'s debt has increased relative to shareholder equity from 0.19 last year to 0.35 today, signaling weakened financials
Financial risk - Net debt/EBITDA.
Erayak Power Solution Group Inc. has a net debt to EBITDA ratio of 50.40x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk
Financial stability - ICR.
Erayak Power Solution Group Inc. earns at least as much interest as it pays. Interest obligations are fully covered.
Financial risk - Profit margin growth.
Erayak Power Solution Group Inc.'s profit margin has decreased (65.23%) in the last year from -3.68% to -6.09%, signaling decreasing performance
Financial stability - Short term assets vs short term liabilities.
Erayak Power Solution Group Inc.'s short-term assets of $43.36M exceed its short-term liabilities of $20.77M
Decreasing performance - ROA.
Erayak Power Solution Group Inc.'s return on assets of 0.00% is lower than the 5.00% threshold, indicating inefficient asset utilization
Decreasing performance - Absolute return on equity.
Erayak Power Solution Group Inc.'s return on equity of -4.51%, is lower than 15.00%, indicating bad performance
Decreasing performance - Earnings quality.
Erayak Power Solution Group Inc.'s operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation
Increasing performance - Earnings stability.
Erayak Power Solution Group Inc. had positive net income in 3.00 out of 5 years, indicating stable and consistent earnings
Decreasing performance - Free cash flow.
Erayak Power Solution Group Inc. has negative free cash flow, indicating the company is burning cash rather than generating it
Decreasing performance - FCF yield.
Erayak Power Solution Group Inc. has negative free cash flow, indicating cash burn
Decreasing performance - Healthy earnings growth.
Erayak Power Solution Group Inc.'s yearly earnings has decreased 24.55% since last year from $-1.12M to $-1.39M, signaling decreasing performance
Decreasing performance - Healthy revenue growth.
Erayak Power Solution Group Inc.'s yearly revenue has decreased -24.57% since last year from $30.30M to $22.86M, signaling decreasing performance
Decreasing performance - ROIC.
ROIC -3.44% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.
Decreasing performance - 3-year revenue CAGR.
Erayak Power Solution Group Inc.'s 3-year revenue CAGR of -5.30% is negative, indicating declining revenue over the past 3 years
Increasing performance - Revenue consistency.
Erayak Power Solution Group Inc. had revenue growth in 3.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Erayak Power Solution Group Inc. had positive ROE in 3.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
Erayak Power Solution Group Inc. has insufficient data to evaluate this check.
Overvalued - Earnings yield.
Erayak Power Solution Group Inc. has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails
Overvalued - EBITDA valuation.
Erayak Power Solution Group Inc. is overvalued relative to its fair value price of 0.00 based on EBITDA multiple model
Overvalued - EV/EBITDA.
Erayak Power Solution Group Inc. has an EV/EBITDA ratio of 51.51x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings
Overvalued - PEG ratio value.
Erayak Power Solution Group Inc. has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails
Undervalued - P/B ratio.
Erayak Power Solution Group Inc. has a price-to-book ratio of 0.01x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
Erayak Power Solution Group Inc. has a price-to-sales ratio of 0.01x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue
Profit margin
Current Ratio
Capital Returns
-4.51%
Return on equity
ROIC: -3.44%
Valuation History
-0.24X
Price to Earnings
EV/EBITDA: -33.4X
Cash flow
Profit margin
-39.50%
(FY vs FY)
Cash flow Y/Y
-5.91%
(FY vs FY)
Fair Value
Market $2.79
129073.84%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.