The last-mile delivery market has ballooned into a $20 billion industry in the last 18 months due to rapid e-commerce adoption during the COVID-19 pandemic. The increasing demand for last-mile delivery transportation solutions due to rising e-commerce adoption will also further propel electrification of commercial fleets in coming years. Specifically, commercial vehicle fleet conversion to electric would take priority, as the segment continues to account for more than 80% of total transportation sector GHG emissions. Global electrification of the transportation sector has been viewed as a key element to decarbonizing the economy, as it currently accounts for one of the largest portions of global greenhouse gas (“GHG”) emissions. Material catalysts such as a defined global expansion roadmap and/or consolidation with peers within the supply chain would be required to drive further upside potential in the long-run.ĭecarbonization has become an urgent ordeal within global political agendas as the world continues to trail behind the 7.6% annual emissions reduction goal required to avoid worsening impacts of climate change.Despite high-growth opportunities ahead within the last-mile delivery sector, we believe the stock's current price performance already reflects Workhorse's intrinsic value based on its five- to ten-year growth plan and scale of operations disclosed to date.However, internal headwinds, such as production delays and an active SEC probe, have caused some near-term pressure on Workhorse's valuation over the past year.The company specializes in making purpose-built electric work vans and last-mile delivery drones. This makes strong tailwinds for Workhorse, one of North America's leading electric last-mile delivery vehicle providers.The past 18 months of pandemic-related lockdowns and social distancing measures have accelerated e-commerce adoption, which has inadvertently driven an urgent need for cost-efficient and reliable last-mile delivery transportation solutions.You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Simply Wall St has no position in any stocks mentioned. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. We aim to bring you long-term focused analysis driven by fundamental data. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. This article by Simply Wall St is general in nature. Alternatively, email editorial-team (at). Have feedback on this article? Concerned about the content? Get in touch with us directly. For instance, we've identified 4 warning signs for Workhorse Group (1 shouldn't be ignored) you should be aware of. Risk Analysisĭon't forget that there may still be risks. The company's shares are down 15% from a week ago. Performance of the American Auto industry. on average during the next 3 years, compared to a 18% growth forecast for the Auto industry in the US. Looking ahead, revenue is forecast to grow 76% p.a. Earnings per share (EPS) exceeded analyst estimates by 16%. Workhorse Group EPS Beats Expectations, Revenues Fall Short
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