With 12 weeks representing a meaningful part of a year, this time period will show whether a stock has been enjoying strong investor demand, or if it's in consolidation, or distress. A higher number means the more debt a company has compared to its capital structure. Still, though, they only make cars. ROE values, like other values, can vary significantly from one industry to another. Nasdaq Does a password policy with a restriction of repeated characters increase security? It only takes a minute to sign up. It operates through the following segments: Rechargeable Batteries and Photovoltaic Products, Mobile Handset Components, Assembly Service and Other Products, and Automobiles and Related Products and Other Products. If the P/S ratio is 1, that means you're paying $1 for every $1 of sales the company makes. Not everything is extremely expensive, however. I have no business relationship with any company whose stock is mentioned in this article. Please disable your ad-blocker and refresh. BYD ( OTCPK:BYDDF, OTCPK:BYDDY) released its third quarter earnings, where net income was up 781% Y/Y and EPS up 3,000% Y/Y. I wrote this article myself, and it expresses my own opinions. How good is it? Buffett's Berkshire Hathaway holds a stake of more than 8% in BYD, which makes the EV play one of Buffett's top 10 holdings. Thereby, it's still not too late to add BYD's shares to your portfolio, if you're looking to add exposure to the EV industry. Market capitalizations of the likes of Tesla, NIO, and many more soared as new capital was rushing into the sector: Market capitalization increases of hundreds of percentage points seem baffling for sure, and it seems quite questionable whether those are warranted by the companies' underlying growth. EPS increased 3,000% from HK$0.02 to HK$0.62 Y/Y. The company made its latest dividend payment in September 2020 and distributed $0.0169 per share. This could, I believe, be due to the fact that the company isn't well-known among retail investors. 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 company operates in the automotive business through its subsidiary, BYD Auto. Our testing substantiates this with the optimum range for price performance between 0-20. Is there a generic term for these trajectories? BYD Company is a China-based vehicle maker that mainly focuses on manufacturing automobiles. Why do share prices obtained from models often differ than the actual stock price? BYD has four factories in China with a production capacity of 1.5 million vehicles per year. On the date of publication, William Whitedid not have (either directly or indirectly) any positions in the securities mentioned in this article. If you do not, click Cancel. Please disable your ad-blocker and refresh. It's another great way to determine whether a company is undervalued or overvalued with the denominator being cash flow. The company has a lot of potential in both personal and commercial EVs and offers exposure to the high-growth battery industry on top of that. NIO delivered 7,257 electric cars in March which took its Q1 2021 deliveries to 20,060 which was ahead of its guidance. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. This allows the investor to be as broad or as specific as they want to be when selecting stocks. If the volume is too light, in absolute terms or for a relatively large position, it could be difficult to execute a trade. They were Tesla , BYD Co. (OTCPK:BYDDY) (OTCPK:BYDDF), NIO Ltd. , Renault , and Fisker Inc. . BYD is thus, with relatively comparable offerings, taking market share versus Tesla. It takes the consensus estimate for the current fiscal year (F1) divided by the EPS for the last completed fiscal year (F0) (actual if reported, the consensus if not). The ever popular one-page Snapshot reports are generated for virtually every single Zacks Ranked stock. All rights reserved. A positive change in the cash flow is desired and shows that more 'cash' is coming in than 'cash' going out. Now Berkshire's stake is worth well over $5 billion and BYD is in the top 10 largest holdings of the fund to date. The EV/EBITDA ratio is a valuation multiple and is often used in addition, or as an alternative, to the P/E ratio. It was an anxious time for BYD, because it felt that it needed validation in the U.S. to achieve sales in China, but the U.S. market wasnt ready for a mid-priced EV or PHEV, especially one from a Chinese company. This new EV will be exclusive to the Chinese automotive market. Less than 1 means its liabilities exceed its short-term assets (cash, inventory, receivables, etc.). It is essentially the inverse of the P/E ratio. It sold a total of 16,301 battery-powered EVs in the month. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. 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. Most brokers let you trade in OTC stocks and you. Aside from using absolute numbers, however, you can also find value by comparing the P/E ratio to its relevant industry and its peers. To subscribe to this RSS feed, copy and paste this URL into your RSS reader. Some investors seek out stocks with the best percentage price change over the last 52 weeks, expecting that momentum to continue. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Investors who discover that Buffett has a significant stake in BYD stock often wonder whether the company pays a dividend. The main difference between byddf and byddy stocks is that byddf stocks are considered to be more reliable. The reasons for this disconnect are likely two-fold. As for BYD last month, it sold 87% of e-buses in China, and it has already sold nearly twice as many e-buses in China this year since the same period last year. a decent size positon. Founded in 2003, the company is a leading player in Asia. A higher number means the company has more debt to equity, whereas a lower number means it has less debt to equity. Cash is vital to a company in order to finance operations, invest in the business, pay expenses, etc. 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. For example, a P/S ratio of 0.5 means you're paying 50 cents for every $1 of sales the company makes. First, BYDDF and BYDDY are versions of BYD stock. It's not them. It measures a company's ability to pay short-term obligations. As they say, 'price follows volume'. BYD has an incredible domestic market for its products. BYD stock has soared in 2020 but there appears to be more room for the stock to keep climbing. Others will look for a pullback on the week as a good entry point, assuming the longer-term price changes (4 week, 12 weeks, etc.) This seems like an approach that could pay off in the long run. Why does Rolls Royce have 4 separate tickers, on OTC Markets? What is the symbol (which looks similar to an equals sign) called? For now, BYD mostly sells its cars in its home market China, but exports to foreign markets have started and will likely continue to climb going forward, as BYD seeks to expand its international operations and gain market share in Europe, for example. BYD is a diversified producer and apart from passenger cars, it also sells commercial vehicles rail transit, batteries, and electronics. (Video) Secret BYD Insider information - BYD will 10X stock price by 2025 What's the difference between Byddf and Byddy? 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). Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank. Can a stock exchange company actually go bust? Thanks to such a successful performance and triple-digit growth, it's very likely that BYD's stock will keep its momentum and will continue to rebound to its latest highs. and our If BYD were to keep that rate throughout the remainder of the year, they would sell 220,000 EVs in 2021, but due to the Chinese New Year in Q1 and planned production growth, that is likely a conservative estimate, and it seems reasonable to assume that BYD will actually sell more than 220,000 EVs this year. BYD (OTCMKTS:BYDDF) stock is on the move today despite a lack of news concerning the electric vehicle (EV) company. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. Seeing a stock's EPS change over 1 week is important. All Rights Reserved. Reddit and its partners use cookies and similar technologies to provide you with a better experience. Zacks' proprietary data indicates that Byd Co., Ltd. is currently rated as a Zacks Rank 1 and we are expecting an above average return from the BYDDY shares relative to the market in the next few months. Buffett is known for his value investing strategy. ROE is always expressed as a percentage. This time period essentially shows you how the consensus estimate has changed from the time of their last earnings report. Beyond China, BYD has bus factories in Brazil, Canada, the U.S., and Europe. An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. By clicking Accept all cookies, you agree Stack Exchange can store cookies on your device and disclose information in accordance with our Cookie Policy. By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. While a Biden Administration is certainly good news for the future of the U.S., it will still be far behind China in terms of addressing climate change. 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. InvestorPlace is home to all the latest stock news traders will want to know about. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. 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. Given that no company in the world makes more commercial NEVs than BYD, and few are planning any such electrified fleet of similar scale or depth, BYD may have even more market share of the 1.19 million commercial NEVs sold in China in 2025. The BYD Company stock holds buy signals from both short and long-term moving averages giving a positive forecast for the stock. Considering this, we believe that BYD is a solid BUY for us at the current price, as it has more than enough catalysts for growth. What does 'They're at four. BYD (OTCPK:BYDDF) (OTCPK:BYDDY) is one of the most popular Chinese EV manufacturers that doesn't have as much exposure as its peers since its stock is not trading directly on major American exchanges. This translates to a 21% improvement in BYDs gross margin. BYD Co., Ltd. engages in the research, development, manufacture, and sale of rechargeable batteries and photovoltaic business. Summary. I have no business relationship with any company whose stock is mentioned in this article. cross between the bipolar and MOSFET transistors, 13 million miles of zero-emission operations. The 1 Week Price Change displays the percentage price change over the last 5 trading days using the most recently completed close to the close from 5 days before. How can investors buy BYD stock and what can they expect? A P/B of 2 means it's selling at 2 times its book value. BYD went back to the drawing board, and shifted its focus on making commercial electric vehicles until the passenger EV market matured in China. So be sure to compare a stock to its industry's growth rate when sizing up stocks from different groups. The difference is that BYDDY is the ADR of BYD stock, while BYDDF is its H-shares and BYDDY trades at roughly twice what BYDDF trades at. The 52 week price change is a good reference point. 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. Growth Style - Learn more about the Growth Style. NYSE and AMEX data is at least 20 minutes delayed. 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. Conventional wisdom also has it that if the yield on the stock market (S&P 500 for example) is lower that the yield on the 10 Yr., then stocks would be considered overvalued. Shareholder Equity (which is the difference between Total Assets and Total Liabilities) can be found on the Balance Sheet. Members of Best Short Ideas get exclusive ideas and guidance to navigate any climate. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.27% per year. All Rights Reserved. Thanks to such a growth of the market, there's every reason to believe that BYD will be able to achieve its goal of generating $150 billion in annual revenue by the end of the current decade. A change in margin can reflect either a change in business conditions, or a company's cost controls, or both. BYD's recent Q3 earnings were strong; and a Biden America and China's latest Five-Year Plan will only benefit EVs. After all, BYD has ambitious goals of becoming a global leader in EV technologies and growing its sales to $100+ billion over the next couple of years, and it would only be reasonable to then also upgrade investor communication. 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. I am not receiving compensation for it (other than from Seeking Alpha). Entering text into the input field will update the search result below, still can invest in the company by purchasing its shares via an OTC market and benefiting from the possible appreciation of its stock, as there's every reason to believe that the sales of its electric vehicles in China will only increase in the following decade. The 1 week price change reflects the collective buying and selling sentiment over the short-term. Jianghuai Automobile has risen by more than 8%, and Great Wall Motor has also reached a new high, rising by more than 3%. 'BYDDY vs BYDDF'. I don't see that quote anywhere in the forum thread you linked to. I am not receiving compensation for it (other than from Seeking Alpha). If a company's net margin is 15%, for example, that means its net income (or profit) is 15 cents for every $1 of sales the company makes. Historical EPS Growth Rate looks at the average annual (trailing 12 months) EPS growth rate over the last 3-5 years of actual earnings. Tesla delivered 184,800 EVs globally in Q1 2021. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. BYDDF has great potential according to the articles I read and seems like a safer choice but NIO on the other hand is more risky but i'm assuming a higher profit from investing if it goes up like the way it has been in the past few weeks. Note; companies will typically sell for more than their book value in much the same way that a company will sell at a multiple of its earnings. View the latest BYD Co. Ltd. (BYDDF) stock price, news, historical charts, analyst ratings and financial information from WSJ. Ideally, an investor would like to see a positive EPS change percentage in all periods, i.e., 1 week, 4 weeks, and 12 weeks. Like the earnings yield, which shows the anticipated yield (or return) on a stock based on the earnings and the price paid, the cash yield does the same, but with cash being the numerator instead of earnings. To learn more, click here. The worldwide electric vehicle market is on track to reach $803 billion in 2027 from $162 billion in 2019. If a company's expenses are growing faster than their sales, this will reduce their margins. It saw an opportunity in electric cars amid the push to curb climate change and jumped on it. Would My Planets Blue Sun Kill Earth-Life? A lot of people/funds can only buy BYDDY, but many brokers can buy BYDDF or 1211:HK in Hong Kong as well. A company like BYD comes once in a blue moon, and its stock is already up 398% YTD. I am/we are long BYDDF, NIO, XPEV, TSLA, BYDDY. This has some 573,000 shares on the move as of this writing. BYDDF is traded on Hong Kong Stock Exchange." When I Googled this, I saw "ARKQ (ETF) is holding BYD/BYDDF. byddf vs byddy What's the difference in the two tickers? 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. Collectively, the two components (the battery cost at the pack level) account for 38-42% of the total manufacturing cost of an EV, by our estimates. BYD reminds me way more of a chinese Tesla than NIO because BYD also has other fields they do things in . Many investors prefer EV to just Market Cap as a better way to determine the value of a company. We use cookies to understand how you use our site and to improve your experience. A 'good' number would usually fall within the range of 1.5 to 3. A sales/assets ratio of 2.50 means the company generated $2.50 in revenue for every $1.00 of assets on its books. By accepting all cookies, you agree to our use of cookies to deliver and maintain our services and site, improve the quality of Reddit, personalize Reddit content and advertising, and measure the effectiveness of advertising. The primary goal of the Cash Flow Kingdom Income Portfolio is to produce an overall yield in the 7% - 10% range. And like the P/E ratio, a lower number is typically considered 'better' than a higher number. In this report, we will shine some light on this lesser-known EV play and outline why Buffett has chosen BYD over the likes of Tesla (. Still, compared to many of the EV pure-plays, BYD looks like an absolute bargain. Personal Finance & Money Stack Exchange is a question and answer site for people who want to be financially literate. And within the M Industry, it might further be delineated into the X Industry group called Banks Northeast.
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