Is NikolaCorp Stock a Good Investment?

NikolaCorp Investment Advice

  NKLA
To provide specific investment advice or recommendations on NikolaCorp stock, we recommend investors consider the following general factors when evaluating NikolaCorp. This will help you to make an informed decision on whether to include NikolaCorp in one of your diversified portfolios:
  • Examine NikolaCorp's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
  • Research NikolaCorp's leadership team and their track record. Good management can help NikolaCorp navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
  • Consider the overall health of the Construction Machinery & Heavy Transportation Equipment space and any emerging trends that could impact NikolaCorp's business and its evolving consumer preferences.
  • Compare NikolaCorp's performance and market position to its competitors. Analyze how NikolaCorp is positioned in terms of product offerings, innovation, and market share.
  • Check if NikolaCorp pays a dividend and its dividend yield and payout ratio.
  • Review what financial analysts are saying about NikolaCorp's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in NikolaCorp stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if NikolaCorp is a good investment.
 
Sell
 
Buy
Strong Sell
We provide investment recommendation to complement the last-minute expert consensus on NikolaCorp. Our dynamic recommendation engine harnesses a multidimensional algorithm to analyze the entity's potential to grow using all technical and fundamental data available at the time. To make sure NikolaCorp is not overpriced, please verify all NikolaCorp fundamentals, including its cash and equivalents, cash flow from operations, and the relationship between the gross profit and debt to equity . As NikolaCorp appears to be a penny stock we also strongly suggest to check its price to book numbers.

Market Performance

InsignificantDetails

Volatility

Extremely DangerousDetails

Hype Condition

Over hypedDetails

Current Valuation

UndervaluedDetails

Odds Of Distress

Very HighDetails

Economic Sensitivity

Hyperactively responds to market trendsDetails

Investor Sentiment

AlarmedDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

InapplicableDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails

Examine NikolaCorp Stock

Researching NikolaCorp's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 34.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.34. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. NikolaCorp recorded a loss per share of 1.21. The entity had not issued any dividends in recent years.
To determine if NikolaCorp is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding NikolaCorp's research are outlined below:
NikolaCorp had very high historical volatility over the last 90 days
NikolaCorp has some characteristics of a very speculative penny stock
NikolaCorp has a very high chance of going through financial distress in the upcoming years
The company reported the previous year's revenue of 35.84 M. Net Loss for the year was (864.62 M) with loss before overhead, payroll, taxes, and interest of (104.76 M).
NikolaCorp currently holds about 319.94 M in cash with (501.14 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.67.
Latest headline from talkmarkets.com: Nikola Stock Price Faces These Risks In 2024

NikolaCorp Quarterly Accounts Payable

44.13 Million

NikolaCorp uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in NikolaCorp. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to NikolaCorp's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
22nd of February 2024
Upcoming Quarterly Report
View
14th of May 2024
Next Financial Report
View
31st of December 2023
Next Fiscal Quarter End
View
22nd of February 2024
Next Fiscal Year End
View
30th of September 2023
Last Quarter Report
View
31st of December 2022
Last Financial Announcement
View
Earnings surprises can significantly impact NikolaCorp's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises NikolaCorp's investors have experienced.
Reported
Fiscal Date
Estimated EPS
Reported EPS
Surprise
2020-06-08
2020-03-31-0.08-0.09-0.0112 
2024-02-22
2023-12-31-0.13-0.110.0215 
2022-08-04
2022-06-30-0.28-0.250.0310 
2020-11-09
2020-09-30-0.2-0.160.0420 
2023-02-23
2022-12-31-0.43-0.370.0613 
2022-05-05
2022-03-31-0.27-0.210.0622 
2021-11-04
2021-09-30-0.28-0.220.0621 
2021-02-25
2020-12-31-0.23-0.170.0626 

Know NikolaCorp's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as NikolaCorp is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading NikolaCorp backward and forwards among themselves. NikolaCorp's institutional investor refers to the entity that pools money to purchase NikolaCorp's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Morgan Stanley - Brokerage Accounts2023-12-31
4.5 M
Susquehanna International Group, Llp2023-12-31
4.3 M
Mirae Asset Global Investments (korea) Co Ltd2023-12-31
4.2 M
The Toronto-dominion Bank2023-12-31
4.2 M
Alps Advisors Inc2023-12-31
3.3 M
Weiss Asset Management Lp2023-12-31
M
Bank Of New York Mellon Corp2023-12-31
2.6 M
Goldman Sachs Group Inc2023-12-31
2.3 M
Swiss National Bank2023-12-31
2.1 M
Norges Bank2023-12-31
107 M
Vanguard Group Inc2023-12-31
77.1 M
Note, although NikolaCorp's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

NikolaCorp's market capitalization trends

The company currently falls under 'Mid-Cap' category with a current market capitalization of 1.02 B. Market capitalization usually refers to the total value of a company's stock within the entire market. To calculate NikolaCorp's market, we take the total number of its shares issued and multiply it by NikolaCorp's current market price. To manage market risk and economic uncertainty, many investors today build portfolios that are diversified across equities with different market capitalizations. However, as a general rule, conservative investors tend to hold large-cap stocks, and those looking for more risk prefer small-cap and mid-cap equities.

Market Cap

664.87 Million

NikolaCorp's profitablity analysis

NikolaCorp's profitability indicators refer to fundamental financial ratios that showcase NikolaCorp's ability to generate income relative to its revenue or operating costs. If, let's say, NikolaCorp is currently losing money, the management's focus should be on how to reverse that trend. However, when revenue exceeds expenses, NikolaCorp's executives or investors may be in less hurry to break that information down - which is where profitability analysis comes into play. Gaining a greater understanding of NikolaCorp's profitability requires more research than a typical breakdown of NikolaCorp's financial statements. By doing a profitability analysis, companies can identify areas needing attention, and investors can make a profitable trade.
Last ReportedProjected for Next Year
Return On Tangible Assets(0.79)(0.83)
Return On Capital Employed(0.61)(0.64)
Return On Assets(0.74)(0.78)
Return On Equity(1.34)(1.41)
Determining NikolaCorp's profitability involves analyzing its financial statements and using various financial metrics to determine if NikolaCorp is a good buy. For example, gross profit margin measures NikolaCorp's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of NikolaCorp's profitability and make more informed investment decisions.
The data published in NikolaCorp's official financial statements usually reflect NikolaCorp's business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of NikolaCorp. For example, before you start analyzing numbers published by NikolaCorp accountants, it's critical to develop an understanding of what NikolaCorp's liquidity, profitability, and earnings quality are in the context of the Machinery space in which it operates.
Please note, the presentation of NikolaCorp's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, NikolaCorp's management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in NikolaCorp's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of NikolaCorp. Please utilize our Beneish M Score to check the likelihood of NikolaCorp's management manipulating its earnings.

Evaluate NikolaCorp's management efficiency

NikolaCorp has return on total asset (ROA) of (0.3091) % which means that it has lost $0.3091 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (1.3882) %, meaning that it created substantial loss on money invested by shareholders. NikolaCorp's management efficiency ratios could be used to measure how well NikolaCorp manages its routine affairs as well as how well it operates its assets and liabilities. As of April 13, 2024, Return On Tangible Assets is expected to decline to -0.83. In addition to that, Return On Capital Employed is expected to decline to -0.64. At present, NikolaCorp's Non Currrent Assets Other are projected to increase significantly based on the last few years of reporting. The current year's Other Assets is expected to grow to about 192.6 M, whereas Total Assets are forecasted to decline to about 926.4 M.
Last ReportedProjected for Next Year
Book Value Per Share 0.90  1.09 
Net Current Asset Value 0.00  0.00 
Tangible Asset Value 0.00  0.00 
Tangible Book Value Per Share 0.79  0.95 
Enterprise Value Over EBITDA(0.86)(0.90)
Price Book Value Ratio 0.97  0.92 
Enterprise Value Multiple(0.86)(0.90)
Price Fair Value 0.97  0.92 
Enterprise Value518.8 M492.8 M
The analysis of NikolaCorp's management efficiency is an essential part of evaluating and assessing the financial and operational performance of the entity. It is also vital to analyze NikolaCorp's future growth prospects and the overall market conditions to determine the value and potential of its stock. The analysis involves studying a range of financial metrics such as revenue, earnings, profit margins, cash flow, debt, market share, and external factors such as economic trends, industry outlook, competition, and government regulations. The goal of NikolaCorp Stock analysis is to determine whether it is undervalued, fairly valued, or overvalued and to make informed investment decisions.
Beta
1.948

Basic technical analysis of NikolaCorp Stock

As of the 13th of April 2024, NikolaCorp secures the Risk Adjusted Performance of 0.0115, downside deviation of 6.64, and Mean Deviation of 4.54. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of NikolaCorp, as well as the relationship between them. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of past prices, or the prices will eventually revert. We were able to break down and interpolate nineteen technical drivers for NikolaCorp, which can be compared to its peers in the industry. Please verify NikolaCorp information ratio and the relationship between the maximum drawdown and skewness to decide if NikolaCorp is priced some-what accurately, providing market reflects its recent price of 0.7 per share. As NikolaCorp is a penny stock we also strongly advise to check its total risk alpha numbers.

NikolaCorp's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific NikolaCorp insiders, such as employees or executives, is commonly permitted as long as it does not rely on NikolaCorp's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases NikolaCorp insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

Understand NikolaCorp's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing NikolaCorp's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

Consider NikolaCorp's intraday indicators

NikolaCorp intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of NikolaCorp stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
NikolaCorp time-series forecasting models is one of many NikolaCorp's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary NikolaCorp's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

NikolaCorp Stock media impact

Far too much social signal, news, headlines, and media speculation about NikolaCorp that are available to investors today. That information is available publicly through NikolaCorp media outlets and privately through word of mouth or via NikolaCorp internal channels. However, regardless of the origin, that massive amount of NikolaCorp data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of NikolaCorp news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of NikolaCorp relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to NikolaCorp's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive NikolaCorp alpha.

NikolaCorp Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards NikolaCorp can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

NikolaCorp Historical Investor Sentiment

Investor biases related to NikolaCorp's public news can be used to forecast risks associated with an investment in NikolaCorp. The trend in average sentiment can be used to explain how an investor holding NikolaCorp can time the market purely based on public headlines and social activities around NikolaCorp. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
NikolaCorp's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for NikolaCorp and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average NikolaCorp news discussions. The higher the estimate score, the more favorable the investor's outlook on NikolaCorp.

Be your own money manager

Our tools can tell you how much better you can do entering a position in NikolaCorp without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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NikolaCorp Corporate Management

Elected by the shareholders, the NikolaCorp's board of directors comprises two types of representatives: NikolaCorp inside directors who are chosen from within the company, and outside directors, selected externally and held independent of NikolaCorp. The board's role is to monitor NikolaCorp's management team and ensure that shareholders' interests are well served. NikolaCorp's inside directors are responsible for reviewing and approving budgets prepared by upper management to implement core corporate initiatives and projects. On the other hand, NikolaCorp's outside directors are responsible for providing unbiased perspectives on the board's policies.
Mary MScChief OfficerProfile
Thomas OkrayChief OfficerProfile
Bruce KurttSenior OperationsProfile
Henry KwonDirector RelationsProfile
Brian HoogCorporate ControllerProfile
Britton EsqChief SecretaryProfile

How to buy NikolaCorp Stock?

To provide specific investment advice or recommendations on NikolaCorp stock, we recommend investors consider the following general factors when evaluating NikolaCorp. This will help you to make an informed decision on whether to include NikolaCorp in one of your diversified portfolios:
  • Examine NikolaCorp's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
  • Research NikolaCorp's leadership team and their track record. Good management can help NikolaCorp navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
  • Consider the overall health of the Construction Machinery & Heavy Transportation Equipment space and any emerging trends that could impact NikolaCorp's business and its evolving consumer preferences.
  • Compare NikolaCorp's performance and market position to its competitors. Analyze how NikolaCorp is positioned in terms of product offerings, innovation, and market share.
  • Check if NikolaCorp pays a dividend and its dividend yield and payout ratio.
  • Review what financial analysts are saying about NikolaCorp's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in NikolaCorp stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if NikolaCorp is a good investment.

Already Invested in NikolaCorp?

The danger of trading NikolaCorp is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of NikolaCorp is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than NikolaCorp. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile NikolaCorp is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether NikolaCorp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of NikolaCorp's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Nikolacorp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Nikolacorp Stock:
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in NikolaCorp. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of economic analysis.
For information on how to trade NikolaCorp Stock refer to our How to Trade NikolaCorp Stock guide.
You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.

Complementary Tools for NikolaCorp Stock analysis

When running NikolaCorp's price analysis, check to measure NikolaCorp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy NikolaCorp is operating at the current time. Most of NikolaCorp's value examination focuses on studying past and present price action to predict the probability of NikolaCorp's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move NikolaCorp's price. Additionally, you may evaluate how the addition of NikolaCorp to your portfolios can decrease your overall portfolio volatility.
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Is NikolaCorp's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of NikolaCorp. If investors know NikolaCorp will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about NikolaCorp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(1.21)
Revenue Per Share
0.045
Quarterly Revenue Growth
0.757
Return On Assets
(0.31)
Return On Equity
(1.39)
The market value of NikolaCorp is measured differently than its book value, which is the value of NikolaCorp that is recorded on the company's balance sheet. Investors also form their own opinion of NikolaCorp's value that differs from its market value or its book value, called intrinsic value, which is NikolaCorp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because NikolaCorp's market value can be influenced by many factors that don't directly affect NikolaCorp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between NikolaCorp's value and its price, as these two are different measures arrived at by various means. Investors typically determine if NikolaCorp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, NikolaCorp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.