SPI Energy (SPI) has extended its production capabilities through various operational developments and has invested substantially to introduce a new generation of energy-efficient vehicles. However, with low profit margins and increasing production costs, is SPI a buy now? Keep reading to find out.Headquartered in Hong Kong, SPI Energy Co., Ltd. (SPI) provides photovoltaic solutions for business, residential, government, and utility customers and investors. The company also develops electric vehicles and EV charging solutions through its subsidiaries.
Shares of SPI soared 36.3% in price after the company’s Phoenix Motorcars division announced the production of its third-generation drivetrain products on June 9, 2021. Moreover, the stock has gained 353.3% over the past year, driven by bullish sentiments to close the last trading session at $5.44.
However, the stock is currently trading at a stretched valuation. In terms of trailing-12-months EV/EBITDA, SPI is currently trading at 43.77x, which is 135.4% higher than the 18.60x industry average. Its 1,760.31 trailing-12-month EV/EBIT multiple is 6,826.2% higher than the 25.42 industry average.