Polar Power, Inc.

Polar Power, Inc. (NASDAQ: POLA) designs, manufactures and distributes direct current (DC) power systems to deliver reliable and low-cost energy to Off-grid, bad-grid, and backup power, electric vehicle (EV) charging, and nano-grid applications.

Key Highlights

• The company reported YoY growth of 37% in net sales to USD 4.14 million in Q3FY21 (ended September 30, 2021) compared to USD 2.50 million in Q3FY20.
• However, due to decreased operational expenses, POLA reported net income of USD 942 thousand in Q3FY21 vs. net loss of USD 4.72 million in Q3FY20.
• As of September 30, 2021, the company had cash and cash equivalents of USD 7.71 million and total debt of USD 0.57 million.
• POLA's Q3FY21 cash cycle of 343 days is significantly higher than the industry median of 82 days.
• Its ROE was 4.2% in Q3FY21 vs. the industry median of 3.3%.
• POLA’s net margin for Q3FY21 was 22.8%, significantly higher than the industry median of 8.9%.
• Stock is currently trading below its crucial short-term (50-day) and long-term (200-day) SMA support levels, a bearish indicator.
• The stock is leaning towards the lower end of its 52-week range of USD 3.25 to USD 30.82.
• POLA's stock price decreased 53.75% and 67.38% in the past six and nine months, respectively.

Technical Price Chart (as of January 14, 2022). Analysis by Kalkine

Conclusion: Considering the topline growth, visibility into profitability, technical indicators, and associated risks, we recommend a "Watch" rating on the stock at the closing price of USD 3.33, up 0.30%, as of January 14, 2022.

*The reference data in this report has been partly sourced from REFINITIV.

Disclaimer

The advice given by Kalkine Canada Advisory Services Inc. and provided on this website is general information only and it does not take into account your investment objectives, financial situation and the particular needs of any particular person. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. The website www.kalkine.ca is published by Kalkine Canada Advisory Services Inc. The link to our Terms & Conditions has been provided please go through them. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations later.