Worksport Ltd. Fundamental Analysis (NASDAQ: WKSP)
Worksport Ltd. (NASDAQ: WKSP) shows moderate financial fundamentals with a PE ratio of -0.13, profit margin of -1.14%, and ROE of -1.02%. The company generates $0.0B in annual revenue with strong year-over-year growth of 89.78%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -143.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze WKSP's fundamental strength across five key dimensions:
Efficiency Score
WeakWKSP struggles to generate sufficient returns from assets.
Valuation Score
ExcellentWKSP trades at attractive valuation levels.
Growth Score
ExcellentWKSP delivers strong and consistent growth momentum.
Financial Health Score
ExcellentWKSP maintains a strong and stable balance sheet.
Profitability Score
WeakWKSP struggles to sustain strong margins.
Key Financial Metrics
Is WKSP Expensive or Cheap?
P/E Ratio
WKSP trades at -0.13 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, WKSP's PEG of -0.00 indicates potential undervaluation.
Price to Book
The market values Worksport Ltd. at 0.19 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.10 times EBITDA. This is generally considered low.
How Well Does WKSP Make Money?
Net Profit Margin
For every $100 in sales, Worksport Ltd. keeps $-1.14 as profit after all expenses.
Operating Margin
Core operations generate -1.10 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-1.02 in profit for every $100 of shareholder equity.
ROA
Worksport Ltd. generates $-74.59 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Worksport Ltd. generates limited operating cash flow of $-37.19M, signaling weaker underlying cash strength.
Free Cash Flow
Worksport Ltd. generates weak or negative free cash flow of $-38.56M, restricting financial flexibility.
FCF Per Share
Each share generates $-1.93 in free cash annually.
FCF Yield
WKSP converts -3.65% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-0.13
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.19
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.34
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.29
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.79
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-1.02
vs 25 benchmark
ROA
Return on assets percentage
-0.75
vs 25 benchmark
ROCE
Return on capital employed
-0.84
vs 25 benchmark
How WKSP Stacks Against Its Sector Peers
| Metric | WKSP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -0.13 | 24.50 | Better (Cheaper) |
| ROE | -101.85% | 962.00% | Weak |
| Net Margin | -114.49% | -2429.00% (disorted) | Weak |
| Debt/Equity | 0.29 | 0.63 | Strong (Low Leverage) |
| Current Ratio | 3.79 | 2.37 | Strong Liquidity |
| ROA | -74.59% | 346.00% | Weak |
WKSP outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Worksport Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
1970.66%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
-625.35%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
-961.16%
Industry Style: Cyclical, Growth, Discretionary
Declining