That also holds true when we look at how its EV business alone could be valued if it were beloved by the market. Similar to BYDs battery production capacity, its vehicle factories have enough unused capacity to meet future demand. Chinese EV companies have been waiting for their chance to enter the U.S. market, and with a new president who embraces EVs and acknowledges Chinas technological success, their time may be here. 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. One of the reasons why some investors prefer the P/CF ratio over the P/E ratio is because the net income of the cash flow portion rightly adds depreciation and amortization back in since these are not cash expenditures. BYD's recent Q3 earnings were strong; and a Biden America and China's latest Five-Year Plan will only benefit EVs. The terms "byddf" and "byddy" stocks are often used interchangeably, but there is a difference between the two. It's an integral part of the Zacks Rank and a critical part in effective stock evaluation. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Byddf and Byddy are both a contraction of "By Dear Foe , and both refer to the inventor's name, James B. 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. That said, the company is a strong player in the Chinese EV market. Members of Best Short Ideas get exclusive ideas and guidance to navigate any climate. Thats well above the companys daily average trading volume of roughly 136,000 shares. The VGM Score are a complementary set of indicators to use alongside the Zacks Rank. First of all, it doesn't face the risk of a possible delisting in the future and it also won't be significantly affected by the possible US-China trade war in the future, as most of its business operates in China. 4 11 11 comments Best Add a Comment repagator8 2 yr. ago They're both good. Nevertheless, for value investors and valuation-conscious stock pickers, it seems like one of the best choices in the EV space. While the one year change shows the current conditions, the longer look-back period shows how this metric has changed over time and helps put the current reading into proper perspective. BYD stock has soared in 2020 but there appears to be more room for the stock to keep climbing. Start your free two-week trial today! Within the Finance Sector, it would fall into the M Industry of Banks & Thrifts. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. On the date of publication, William White. In this case, it's the cash flow growth that's being looked at. Since last months article, the CCP has announced the summary of the 14th Five-Year Plan, and the message is clear: China wants to be self-reliant when it comes to technological innovation, and green technology is the focus. BYDDF is up 398% YTD, and 37% since my article last month. Projected EPS Growth looks at the estimated growth rate for one year. More details here. A yield of 8.57% also means 8.57 cents of earnings for $1 of investment. Hi guys,in this video I want to clarify the question what the difference between the two BYD tickers BYDDF and BYDDY is. NIO delivered 7,257 electric cars in March which took its Q1 2021 deliveries to 20,060 which was ahead of its guidance. Still, compared to many of the EV pure-plays, BYD looks like an absolute bargain. Does a password policy with a restriction of repeated characters increase security? In this example, we are using the consensus earnings estimate for the Current Fiscal Year (F1). Gross margins jumped from 13.9% to 22.3% in the third quarter (60% Q/Q). On top of that, while there are certain risks with investing in the Chinese companies, BYD has a proven track record of creating shareholder value for more than a decade and one of its major shareholders is Warren Buffett's Berkshire Hathaway (BRK.A) (BRK.B), which has more than quadrupled its investment since opening a stake in the company back in 2008. I do much more than just articles at Cash Flow Kingdom: Members get access to model portfolios, regular updates, a chat room, and more. China is a leading EV market, and it looks like Chinese players will have it easier in their home market compared to foreign companies. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. This could, I believe, be due to the fact that the company isn't well-known among retail investors. President-elect Joe Biden has proposed a $2 trillion climate agenda, and his plan is more ambitious and aggressive than any plan proposed by a popular presidential candidate to date. Why would a stock opening price differ from the offering price? Regardless of the many ways investors use this item, whether looking at a stock's price change, an index's return, or a portfolio manager's performance, this time-frame is a common judging metric in the financial industry. I see the most upside for BYDDF, but all three Chinese EV stocks are only in the second inning. BYD also has developed and sells a monorail system called Skyrail, which is being deployed in a wide range of countries, including Brazil, Egypt, and China. Personal Finance & Money Stack Exchange is a question and answer site for people who want to be financially literate. I would look to accumulate these . MULN Stock Alert: UNC Charlotte Orders Mullen Vans, BYDDF Stock: 10 Things to Know About BYD as Investors Hunt for the Next Hot EV Play. A post on popular Reddit group WallStreetBets, which was upvoted over 2,100 times, referred to BYD among the value stocks listed by Keith Gill on his Reddit forum. BYD also trades at a relatively low valuation, at least compared to EV pureplay peers, although BYD still trades at a premium to legacy autos. But, it's made even more meaningful when looking at the longer-term 4 week percent change. To learn more, click here. The best answers are voted up and rise to the top, Start here for a quick overview of the site, Detailed answers to any questions you might have, Discuss the workings and policies of this site. Aside from using absolute numbers, however, you can also find value by comparing the P/E ratio to its relevant industry and its peers. While we dont have the breakup for China, according to Chinas Association of Automotive Manufacturers, the Elon Musk-led company sold 18,318 vehicles in February in China. Revenue was up 40.7% Y/Y and up 11.9% YTD. 1125 N. Charles St, Baltimore, MD 21201. Like the P/E ratio, a lower number is considered better. Also, by looking at the rate of this item, rather than the actual dollar value, it makes for easier comparisons across the industry and peers. When evaluating a stock, it can be useful to compare it to its industry as a point of reference. BYDDF Stock: 10 Things to Know About BYD as Investors Hunt for the Next This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. BYD pays an annual dividend. Copyright 2023 Market Realist. While EV stocks like Tesla and NIO are quite popular on Reddit groups, BYD is not among the popular names on Reddit. For one, part of trading is being able to get in and out of a stock easily. All of those stocks are classified into three groups: Sector, M Industry and X Industry. I have no business relationship with any company whose stock is mentioned in this article. Buffett and BYD | Elite Trader I don't see that quote anywhere in the forum thread you linked to. This is also referred to as the cash yield. I wrote this article myself, and it expresses my own opinions. This could also mean that BYD's peers are very overvalued and that BYD is not undervalued. The time has come. Is BYD bigger than Tesla? - True goodie Strong vehicle sales should continue to attract more investors to BYD, which stands out as one of the more established Chinese electric vehicle companies. When did Buffett buy Byddf? Asking for help, clarification, or responding to other answers. Why does Rolls Royce have 4 separate tickers, on OTC Markets? A ratio of 2 means its assets are twice that of its liabilities. This allows the investor to be as broad or as specific as they want to be when selecting stocks. I stressed the importance of BYDs Blade Battery in my Seeking Alpha article last month, but I should stress it even further. The 20 Day Average Volume is the average daily trading volume over the last 20 trading days. BYD, NIO, and XPeng target different segments. This has some 573,000 shares on the move as of this writing. We estimate commercial NEV sales will grow by 628% over that same period. Ford.? 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. The 13 million miles saved over 16,000 metric tons of GHG emissionsequivalent to removing 13,000 cars from the road. I wrote this article myself, and it expresses my own opinions. None of the other automakers produce their own batteries (have I mentioned that? Zacks Rank Education - Learn about the Zacks Rank, Zacks Rank Home - Zacks Rank resources in one place, Zacks Premium - The only way to fully access the Zacks Rank. How does BYDDF differ from BYDDY? Joe Biden has since been elected President, which could benefit Chinese EV companies as well as make the U.S. an attractive market for Chinese EV OEMs. Long-term Buffett backing always is a good sign, although investors should of course still do their due diligence and consider valuation before making an investment. A Biden America will only benefit BYD. I have no business relationship with any company whose stock is mentioned in this article. BYD saw its shares rise as well, but not to the same degree as Tesla, NIO, and many others. The PEG ratio is the P/E ratio divided by its growth rate. BYD is a Chinese electric batteries maker. Of course, different industries will have different growth rates that are considered good. Researching stocks has never been so easy or insightful as with the ZER Analyst and Snapshot reports. So it's a good idea to compare a stock's debt to equity ratio to its industry to see how it stacks up to its peers first. The financial health and growth prospects of BYDDY, demonstrate its potential to perform inline with the market. How are stocks traded on multiple exchanges. BYD Co., Ltd. engages in the research, development, manufacture, and sale of rechargeable batteries and photovoltaic business. With a 150% growth rate in EV deliveries, BYD grew significantly faster than Tesla, which saw its volumes rise by a little above 100% year over year. According to He Long, president of BYDs battery business unit, nearly every automaker youve ever heard of has reached out to BYD regarding technical cooperation, especially after Blades launch. It's also commonly referred to as a 'liquidity ratio'. 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. Looking for a helping hand in the market? You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. Nasdaq The policy also advocates for improvements in EV components, more funding for efficient charging and battery swapping networks, and a better green car quota system to help OEMs transition to NEVs. That's all I can contribute The EV/EBITDA ratio is a valuation multiple and is often used in addition, or as an alternative, to the P/E ratio. Even though it is not as well-known as some of its peers, its shares still experienced strong gains over the last year, and in absolute terms, they look expensive. I work together with Darren McCammon on his Marketplace Service Cash Flow Club. This translates to a 21% improvement in BYDs gross margin. Its growth ranks in the middle range of the companies in Vehicles & Parts industry. The detailed multi-page Analyst report does an even deeper dive on the company's vital statistics. cross between the bipolar and MOSFET transistors, 13 million miles of zero-emission operations. California ordered $1 billion worth of N95 masks from BYD. If u haven't caught an eye on the stock yet this is just a reminder . How good is it? In 2002, Berkshire Hathaway acquired a majority stake in Tellabs, a defense communications company. A company with a P/E ratio of 40 and a growth rate of 50% would have a PEG ratio of 0.80 (40 / 50 = 0.80). BYD is a Chinese automaker. Manufacturing its own battery cells has always afforded BYD an advantage in its margins, but Blade Battery and BYD Semiconductors IGBT contributed that much more. Buffett appears to think that BYD has brighter prospects than rival Tesla. See rankings and related performance below. On top of that, BYD is only one of the few Chinese EV manufacturers to pay dividends, and it also has a significant insider ownership stake of ~31%, which is a good sign for all the average shareholders, as it's in the direct interest of the management to drive the share price higher. For example, a stock trading at $35 with earnings of $3 would have an earnings yield of 0.0857 or 8.57%. And like the P/E ratio, a lower number is typically considered 'better' than a higher number. Conversely, if the yield on stocks is higher than the 10 Yr., then stocks would be considered undervalued. Currently, BYD manufactures 18 passenger vehicle models, 6 bus models, 4 electric coaches models, 2 van models, 6 truck models, and throughout 2020, it delivered a total of more than 400,000 vehicles. It's not them. What is the difference between BYDDF and BYDDY? | BYDDF vs BYDDY | BYD 3. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Commercial electric vehicles don't get a lot of attention, but there is a lot of potential for disrupting that industry eventually. Am I exposed to currency risk when I invest in shares of a foreign company that are listed domestically? If we narrow that down to the month of September, then five of BYDs cars make it into the top 15 on the list. On top of that, the upcoming spin-off of the semiconductor business along with the addition to the Hang Seng Index will help BYD to unlock more value this quarter and gain more exposure, which in the end should lead to the creation of an additional shareholder value. Conventional wisdom says that a PEG ratio of 1 or less is considered good (at par or undervalued to its growth rate). In recent years, BYD stock has significantly outperformed the S&P 500 index, but earlier this year began to decline along with stocks of its competitors due to the overall market selloff. What positional accuracy (ie, arc seconds) is necessary to view Saturn, Uranus, beyond? 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. Most importantly, though, was the outline of Chinas ambitious Five-Year Plan released last week, in which domestic production of NEVs and technology is central to Chinas economic plans over the next five and 15 years. It wasnt the right time, nor the right market. It develops mostly full-electric and hybrid vehicles such as traditional sedans, SUVs, busses, forklifts, and even trains. 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. Not all EV-related stocks felt the same love over the last year, however. Cash flow itself is an important item on the income statement. Using this item along with the 'Current Cash Flow Growth Rate' (in the Growth category above), and the 'Price to Cash Flow ratio' (several items above in this same Value category), will give you a well-rounded indication of the amount of cash they are generating, the rate of their cash flow growth, and the stock price relative to its cash flow. A positive change in the cash flow is desired and shows that more 'cash' is coming in than 'cash' going out. Now that the CCPs Central Committee has given more detail in Chinas Five-Year Plan, we estimate 6.2 million NEVs sold in 2025 in China, which would meet Chinas goals of 20% of new vehicle sales being NEVs. Analysts Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. Cash flow can be found on the cash flow statement. a decent size positon." When "I viewed all holdings" on ARKQ, I see BYDDY listed as UNsponsored. After all, Tesla didn't grow its sales by 400%+, nor did NIO grow its sales by 1,600%. In April, BYD reported stunning earnings results for Q1. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities. Is there a generic term for these trajectories? Is Byddf stock overvalued? - True goodie In addition, BYD is also cheaper than its peers such as NIO, Tesla, XPeng, and Li Auto, which are trading at 10 to 20 times their sales, as its P/S ratio is less than 4x. This is useful for obvious reasons, but can also put the current day's intraday gains into better context by knowing if the recently completed trading day was up or down. A P/B of 2 means it's selling at 2 times its book value. did not have (either directly or indirectly) any positions in the securities mentioned in this article. Its factories are running at 27.7% capacitysignificantly lower than NIO and Xpeng factories, which are running at full capacity. Since BYDDF is traded on the OTC markets, not many analysts cover the stock. Both NIO and BYD have attractive offerings on the . The longer-term perspective helps smooth out short-term events. Only a few EVs currently use IGBTs, which is a cross between the bipolar and MOSFET transistors that typically older EV platforms like Tesla still use. They could grow their IR team and make the company a better-known EV company, and I assume that they will do so over the years, although not necessarily in the very near term. The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. Not everything is extremely expensive, however. Jianghuai Automobile has risen by more than 8%, and Great Wall Motor has also reached a new high, rising by more than 3%. For example, a P/S ratio of 0.5 means you're paying 50 cents for every $1 of sales the company makes. I wrote this article myself, and it expresses my own opinions. are strong. Only BYD has the ability to produce beyond passenger electric vehicles, and also the batteries to do so. Both are traded Over the Counter (OTC). Byddf stocks are those that are held by the government, while byddy stocks are those that are held by the private sector. The Price to Cash Flow ratio or P/CF is price divided by its cash flow per share. In short, this is how much a company is worth. Our testing substantiates this with the optimum range for price performance between 0-20. BYD (BYDDF) Stock Forecast, Price & News $30.29 -0.65 (-2.10%) (As of 04/28/2023 ET) Compare Today's Range $29.99 $30.75 50-Day Range $25.04 $30.94 52-Week Range $21.29 $43.61 Volume 58,953 shs Average Volume 59,964 shs Market Capitalization $88.18 billion P/E Ratio 59.39 Dividend Yield N/A Price Target N/A The Historical Cash Flow Growth is the longer-term (3-5 year annualized) growth rate of the cash flow change. The X Industry (aka Expanded Industry) is a subset of the M (Medium Sized) Industry, which is a subset of the larger Sector category, which is used to classify all of the stocks in the Zacks Universe. Is this happening to you frequently? Summary. Cash Flow per share ($/share) calculates the amount of incoming cash vs. the amount of outgoing cash for a company. BYDDF is traded on Hong Kong Stock Exchange. BYD is a chinese company that has seen really stable and good growth this year but i havent seen anyone posting about it or commenting that he owns the stock . 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. A company like BYD comes once in a blue moon. However, from a valuation perspective, BYD is the cheapest as compared to NIO, XPeng, as well as Li Motors. Would My Planets Blue Sun Kill Earth-Life? Including the Zacks Rank, Zacks Industry Rank, Style Scores, the Price, Consensus & Surprise chart, graphical estimate analysis and how a stocks stacks up to its peers. It outsold NIO, XPeng, as well as Li Auto in March as well as the first quarter of 2021. The Price to Earnings ratio or P/E is price divided by earnings. On top of that, let's not forget that BYD has also been profitable for the last decade, while a large part of current EV manufacturers is expected to continue to lose money in the following quarters. InvestorPlace is home to all the latest stock news traders will want to know about. We believe purchasing BYDs stock is a good way of exposing your portfolio to the EV industry. This is why Tesla is striving to one-day make its own batteries. Zacks Premium - The way to access to the Zacks Rank. Its among the worlds notable electric vehicle companies. This will have them working together to create an EV similar to the Toyota Corolla. There are 17 Sectors, 60 different M Industries, and 265 X Industries. Also, I anticipate BYD will introduce a battery leasing program within the next year. However, not having a direct presence in the US capital markets is also a good thing for BYD. BYD Company ( OTCPK:BYDDY) ( OTCPK:BYDDF) is an under-followed Chinese EV maker that is active in a range of other businesses as well, and which has Buffett's Berkshire Hathaway ( BRK.A) ( BRK.B . Please. AutoNation (AN) Q1 Earnings Surpass Estimates, Sales Miss, Harrow Health and CDW have been highlighted as Zacks Bull and Bear of the Day, Volkswagen (VWAGY) Appears Well-Poised for EV Supremacy. If you like to enter the world of short selling and learn more about unconventional stock market strategies, then give the service a try and opt for the FREE 14-day trial today! Cash is vital to a company in order to finance operations, invest in the business, pay expenses, etc. Octobers sales numbers were just released: NEV sales grew 85% Y/Y in China, and PEV sales grew by 97% Y/Y. 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. Why is there almost no mention of BYDDY in this sub? : r/stocks - Reddit It is not yet known whether the current leaders in the EV space will remain the top performers for years or decades in terms of market share, but it seems pretty obvious that EV adoption, overall, will continue to grow. Unbeknownst to many, BYD is one of the top passenger EV manufacturers in the world. BYD is not only selling batteries to commercial vehicle producers, but is also designing and manufacturing its own products. BYDDF is traded on Hong Kong Stock Exchange." When I Googled this, I saw "ARKQ (ETF) is holding BYD/BYDDF. If, on the other hand, it went from $1.00 to 90 cents, that would be a -10% change in the consensus estimate revision. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style. Even without news, BYDDF stock is seeing heavy trading today. In this example, the one with the P/E of 40 is the better bargain because it is selling at a discount to its growth rate. 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. It shipped its first 100 cars to Norway in September as a trial run. Byddf and Byddy are both a contraction of "By Dear Foe , and both refer to the inventor's name, James B. Ford. Above 1 means it assets are greater than its liabilities. In terms of unit sales, among NEVs sold this year in China, commercial vehicles account for 17%, and we think commercial vehicles could account for 24% of NEV sales in 2025 under Chinas new plans. Less than 1 means its liabilities exceed its short-term assets (cash, inventory, receivables, etc.). 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. 3. have any clue as to why the stocks have performed so poorly lately (worse than the markets in general). Traditionally, investors would look at the stock with the lower P/E and deem it a bargain. There's room for the stock to keep climbing. Please disable your ad-blocker and refresh. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. This item is updated at 9 pm EST each day. 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). BYD is on track to produce 415k vehicles across all powertrains and vehicle types. I have been following BYD since 2009, and first met with BYD at its headquarters in Shenzhen, China over five years ago. The main competitors of BYD include Bayerische Motoren Werke Aktiengesellschaft (BMWYY), Bayerische Motoren Werke Aktiengesellschaft (BAMXF), DENSO (DNZOY), Compagnie Gnrale des tablissements Michelin Socit en commandite par actions (MGDDY), Mercedes-Benz Group (MBGAF), Stellantis (STLA), Ferrari (RACE), Ford Motor (F), General Motors (GM), Site design / logo 2023 Stack Exchange Inc; user contributions licensed under CC BY-SA. The Five-Year Plan stresses the role of commercial NEVs in meeting the 20% of new total sales. BYD trades under two ticker symbols on the OTC markets, BYDDFand BYDDY. 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. First, BYD is a battery producer that does not only use the batteries it manufactures for its own EVs, but also sells batteries to other OEMs on top of that. EV play Hi folks. These are, however, issues that could be dealt with if management wants to. Market Realist is a registered trademark. Haven't seen a single frontpage post including BYD so far, EDIT : Apparently in the US Market the company is found as BYDDF, EDIT2: There also exists a stock named BYDDY idk the difference between BYDDF and BYDDY tho. Should I buy Byd Co. (BYDDY) - Zacks Especially in huge cities where air pollution is a serious concern, such as in parts of China, growing e-bus adoption seems very likely. They both trade in OTC markets in the U.S. Companies such as NIO, Tesla, XPeng are mostly focused on developing and selling EVs, while BYD has a wider approach. Is this happening to you frequently? Moreover, when comparing stocks in different industries, it can become even more important to look at the relative measures, since different stocks in different industries have different values that are considered normal. If you want to reach out, you can send a direct message here on Seeking Alpha, or an email to jonathandavidweber@gmail.com. It is used to help gauge a company's financial health. While the F1 consensus estimate and revision is a key driver of stock prices, the Q1 consensus is an important item as well, especially over the short-term, and particularly as a stock approaches its earnings date. Real time prices by BATS. I want to note that I do not believe that BYD should be valued at $200+ billion. On the date of publication, William Whitedid not have (either directly or indirectly) any positions in the securities mentioned in this article. 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 a company's expenses are growing faster than their sales, this will reduce their margins. What's the difference between Byddf and Byddy? Folder's list view has different sized fonts in different folders. BYD reminds me way more of a chinese Tesla than NIO because BYD also . Since there is a fair amount of discretion in what's included and not included in the 'ITDA' portion of this calculation, it is considered a non-GAAP metric. BYD is trading for around $70 billion, though, and thus way cheaper than what one would expect when looking at how its peers are valued. Berkshire Hathaway chairman and legendary value investor are among the investors of Chinese electric vehicle company BYD (BYDDF). So the PEG ratio tells you what you're paying for each unit of earnings growth.