Mullen Automotive Inc (NASDAQ: MULN) is a company located in southern California that produces electric vehicles (EV) for both passengers and commercial purposes. It was established on April 20, 2010, and operates from Brea, CA.
Last week the company announced significant improvements in product performance by increasing the range of its vehicles using its recently acquired joint venture Energy Management Module (EMM) technology. Tests conducted by Element Materials Technology, a global testing, inspection, and certification leader, demonstrated a 60% increase in efficiency, raising the driving range from 269 to 431 miles. Mullen engineers also tested the EMM technology on the company's Class 1 EV Cargo Van, showing a 75% increase in range for the 42-kWh lithium-ion battery pack.
The EMM technology is now being integrated into the final stages of product development and will be introduced across all Mullen commercial and consumer vehicle programs. A U.S. provisional patent application has been filed to cover the technology. Mullen Automotive, which owns 51% of MAEO, LLC, aims to license the EMM technology for use in electric vehicles across the automotive industry.
As of 24 Apr 2023, Mullen Automotive Inc's stock is trading at $0.10, and year-to-date (YTD), it is down by 69%. Over the past 12 months, the stock is down by 93%, whilst the S&P 500 is down by 4%, which means the stock has underperformed the broader market by approximately 89% over this period.
Is Mullen Automotive Inc a long-term investment opportunity? Let’s take a closer look at the company's fundamentals to find out.
Why Is Fundamental Analysis Important?
Fundamentals represent a collection of essential indicators that, when evaluated collectively, can help determine if a company is a promising long-term investment. For many years, investors have utilized fundamental analysis to examine an organization's financial stability and potential for growth. By assessing these critical aspects, investors can make informed decisions about the viability of a particular investment.
On balance, stock prices are usually driven by a company’s financial performance over the long term, and it makes sense to analyze a company’s fundamentals in detail before deciding to invest.
There are a number of fundamental metrics to analyze, but we'll be focusing on the earnings per share (EPS) and debt.
What do Mullen Automotive Inc’s fundamentals tell us about the investment opportunity? Let's have a look.
Mullen Automotive Inc's Stock by the Numbers
First, let's look at Mullen Automotive Inc's EPS, which serves as an indicator of profitability. This metric is calculated by taking a company's net income (after dividends on preferred stock) and dividing this by the number of outstanding shares.
Based on its most recent financials, Mullen Automotive's EPS is negative because the company is not profitable, and earnings before interest and taxes (EBIT) have been plummeting year over year.
As a potential investor, it's crucial to examine a company's debt levels to gauge the investment risk associated with it. A high debt load can be a warning sign, especially if the company is unable to generate sufficient free cash flow to meet its debt obligations. Evaluating a company's debt position can provide valuable insight into its financial stability and help you make more informed investment decisions.
Mullen Automotive Inc has total liabilities of $145.6m as of 24 Apr 2023.
Is Mullen Automotive Inc a Good Investment?
The underlying trends at Mullen Automotive Inc don't inspire much confidence. MULN is hemorrhaging money and is far from profitable.
Before making any investment decisions, it's essential to consider various factors beyond this general analysis based on historical data. This article doesn't account for your personal investment objectives or financial situation, nor does it examine macro factors such as geopolitical issues, internal company changes, or individual business practices that can significantly affect a company's long-term outlook. It's crucial to conduct your own thorough research and due diligence before deciding to invest.
Mullen Technologies, Inc. is an innovative electric vehicle (EV) manufacturer and technology company headquartered in Brea, California. With a focus on creating a sustainable future, Mullen is dedicated to designing, engineering, and manufacturing high-performance EVs and advancing clean energy solutions. Its product portfolio includes electric cars, energy storage solutions, and unique battery technologies. Mullen's mission is to provide the global market with affordable and efficient green transportation solutions that reduce carbon emissions and contribute to a more sustainable world.
What's Next for Your Investment Portfolio?
To deepen your understanding and expand your investment strategies, consider exploring our investing guides on topics such as buying OTC and TSX stocks, finding investment opportunities, and the benefits of investing in gold.
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