AI Tesla Fundamental Analysis
Based on StockTargetAdvisor’s AI stock analysis, details Tesla’s stock fundamentals on which the company can be assessed.
Positive Fundamentals
- Superior Risk Adjusted Returns: Tesla has shown strong performance compared to its sector peers on a risk-adjusted basis, placing it in the top quartile.
- Positive Cash Flow and Free Cash Flow: Tesla has demonstrated positive total cash flow and free cash flow in the most recent four quarters, indicating healthy financial operations.
- Superior Return on Assets and Invested Capital: Tesla’s management has delivered better returns on assets and invested capital compared to its peers, positioning it in the top quartile.
- High Market Capitalization: Tesla ranks among the largest entities in its sector, indicating stability and market prominence.
- Superior Earnings Growth: Tesla has exhibited top quartile earnings growth over the previous five years compared to its sector, reflecting strong financial performance.
- High Gross Profit to Asset Ratio: Tesla’s Gross Profit to Asset Ratio is among the top quartile compared to its peers, which is favorable for long-term value investors.
- Superior Return on Equity: Tesla’s return on equity in the most recent four quarters has outperformed its peers, placing it in the top quartile.
Negative Fundamentals
- Overpriced Compared to Book Value and Earnings: Tesla’s stock is trading at a higher valuation compared to its peers based on price to book value and price to earnings ratios, suggesting it may be overvalued.
- High Volatility: Tesla’s total returns have been volatile over the past five years, exceeding the sector median. Investors should be aware of the risks associated with such volatility.
- Overpriced on Cash Flow and Free Cash Flow Basis: Tesla’s stock is trading at a premium compared to its peers based on price to cash flow and price to free cash flow ratios, which may warrant caution for potential investors.
Today’s analyst ratings on Tesla
What are the analysts saying about Tesla’s stock?
HSBC Securities (USA) reduced their target from USD 143 to USD 138 and maintained a “Reduce” rating.
J.P. Morgan Chase & Co also lowered their target from USD 130 to USD 115 and maintained an “Underweight” rating.
Truist Financial reduced their target from USD 193 to USD 176 but maintained a “Hold” rating.
Deutsche Bank reiterated their “Buy” rating but lowered their target from USD 200 to USD 189.
Morningstar maintained their “Hold” rating with a target of USD 195.
Tesla Stock Forecast & Analysis
Based on the analysis of 28 analysts, the average target price for Tesla Inc over the next 12 months is USD 233.44, indicating a potential upside from the current stock price. Additionally, the average analyst rating for Tesla Inc is “Buy,” suggesting positive sentiment among analysts regarding the company’s future prospects.
Stock Target Advisor’s own analysis of Tesla Inc indicates a slightly bullish outlook, based on 9 positive signals and 5 negative signals. This suggests that while there are some positive indicators for Tesla’s stock, there are also some concerns to be mindful of.
As of the last closing, Tesla Inc’s stock price stood at USD 166.63. Over recent periods, the stock has experienced fluctuations:
- Over the past week, Tesla’s stock price has decreased by -6.21%, indicating short-term downward pressure.
- Over the past month, the stock price has decreased by -17.77%, reflecting a more significant decline over a slightly longer period.
- Over the last year, Tesla’s stock price has decreased by -14.45%, indicating a decline in value over the longer term.
Final Analysis
Overall, while Tesla exhibits strong fundamentals in terms of financial performance and growth, investors should carefully evaluate its valuation and risk factors before making investment decisions.
