Tesla, Inc.
Tesla, Inc. Fundamental Analysis
Tesla, Inc. (TSLA) shows weak financial fundamentals with a PE ratio of 349.01, profit margin of 4.00%, and ROE of 4.83%. The company generates $110.1B in annual revenue with weak year-over-year growth of 0.95%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 40.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TSLA's fundamental strength across five key dimensions:
Efficiency Score
WeakTSLA struggles to generate sufficient returns from assets.
Valuation Score
ModerateTSLA shows balanced valuation metrics.
Growth Score
WeakTSLA faces weak or negative growth trends.
Financial Health Score
ExcellentTSLA maintains a strong and stable balance sheet.
Profitability Score
WeakTSLA struggles to sustain strong margins.
Key Financial Metrics
Is TSLA Expensive or Cheap?
P/E Ratio
TSLA trades at 349.01 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TSLA's PEG of -12.44 indicates potential undervaluation.
Price to Book
The market values Tesla, Inc. at 16.12 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 131.42 times EBITDA. This signals the market has high growth expectations.
How Well Does TSLA Make Money?
Net Profit Margin
For every $100 in sales, Tesla, Inc. keeps $4.00 as profit after all expenses.
Operating Margin
Core operations generate 4.59 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.83 in profit for every $100 of shareholder equity.
ROA
Tesla, Inc. generates $2.75 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Tesla, Inc. produces operating cash flow of $17.13B, showing steady but balanced cash generation.
Free Cash Flow
Tesla, Inc. produces free cash flow of $7.22B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.93 in free cash annually.
FCF Yield
TSLA converts 0.40% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
349.01
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-12.44
vs 25 benchmark
P/B Ratio
Price to book value ratio
16.12
vs 25 benchmark
P/S Ratio
Price to sales ratio
16.22
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.10
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.16
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How TSLA Stacks Against Its Sector Peers
| Metric | TSLA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 349.01 | 25.25 | Worse (Expensive) |
| ROE | 4.83% | 1170.00% | Weak |
| Net Margin | 4.00% | 742.00% | Weak |
| Debt/Equity | 0.10 | 0.77 | Strong (Low Leverage) |
| Current Ratio | 2.16 | 9.19 | Strong Liquidity |
| ROA | 2.75% | -6467.00% (disorted) | Weak |
TSLA outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Tesla, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
230.08%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
786.92%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
415.30%
Industry Style: Cyclical, Growth, Discretionary
High Growth