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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#3452
Positioning
Market Dominance
Manufacturing
Computer Software
$713M
Pending
Detailed business profile pending verification.
Headcount
2.0K
HQ Base
Pending Verification
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| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UL UNILEVER PLC | 78 | 96 | 98 | 59 | - | - | 28.5% | 8.0% | 100.0% | 100.0% | 10.4% | -4.6% | 3.3% | 0.0x | $141.8B | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | 46.1% | 16.6% | 51.3% | 31.9% | 26.8% | -4.0% | 1.0% | 25.0x | $272.1B | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | 10.3% | 3.1% | 24.1% | 7.2% | 4.7% | 14.3% | 0.8% | 25.0x | $11.4B | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | 2.2% | 1.5% | 9.3% | 5.3% | 2.2% | -8.5% | 2.2% | 16.0x | $18.9B | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 35.5% | 19.8% | 48.7% | 29.2% | 24.7% | 4.4% | 0.8% | 32.0x | $181.9B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | 11.8% | 8.8% | 45.9% | 11.3% | 11.1% | 25.7% | 3.7% | 0.0x | $1.8B | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.6% | 7.0% | 66.5% | 17.1% | 15.6% | 39.0% | 0.0% | 0.0x | $115M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | 22.6% | 4.9% | 71.2% | 12.8% | 9.4% | 1.7% | 5.9% | 124.0x | $72.1B | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | 3.0% | 1.1% | 20.9% | 7.3% | 1.3% | 3.0% | 0.9% | 67.0x | $1.2B | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | 8.2% | 3.5% | 55.3% | 25.9% | 12.4% | 0.7% | 1.7% | 0.0x | $87.0B | VS | |
$ECX ECARX Holdings Inc. | 41 | 50 | 22 | 33 | - | - | 76.1% | -105.0% | 20.8% | -15.9% | -17.8% | 15.1% | 0.0% | - | $713M | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -2.5% | -0.1% | 42.5% | 1.3% | -0.2% | 5.9% | 0.0% | 0.2x | - | REF |
ECARX Holdings Inc. (ECX) receives a "Reduce" rating with a composite score of 40.7/100. It ranks #3452 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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YOY expansion rate
Executive Directory Unavailable for ECX
Core pricing power
Operating efficiency
Bottom-line conversion
Equity capital efficiency
Asset base utilization
Direct cash return
Labor Force
2,000
50
60
38
Audit Verdict: Lower quality and stability scores may indicate governance concerns.
No recent insider transactions available for ECX
Lagging peers — losers tend to keep underperforming
Expensive relative to fundamentals — limited margin of safety
Average quality profile
Average volatility — neutral timing signal
Conservative, efficient capex — capital discipline signals management quality
Mid-range overall rating
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Relative valuation derived from Manufacturing sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
No analyst ratings for ECX.
View All RatingsImproving capital utilization rates confirmed
High margin volatility — erratic forensic earnings quality
ROIC -42.3% vs WACC 8.3% (spread -50.6%)
GM 21% vs sector 43%, OM -16% vs sector 1%
Capital turnover 3.37x, R&D intensity 22.7%
Rev growth 15%, 3yr history
Interest coverage -6.6x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
ECARX Holdings Inc. receives a Reduce rating from our analysis, with a composite score of 40.7/100 and 2 out of 5 stars, ranking #3452 out of 7,333 stocks. ECX's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
With a quality score of 50/100, ECX shows adequate but unremarkable business quality. The company reports a return on equity of 76.1% (sector avg: -2.5%), gross margins of 20.8% (sector avg: 42.5%), net margins of -17.8% (sector avg: -0.2%). This suggests the company generates acceptable returns but may lack the competitive positioning or operational efficiency to stand out from peers.
ECX registers a value score of just 22/100, suggesting the stock trades at a significant premium to its fundamental metrics. High-premium valuations like this require strong future execution to avoid multiple compression, and downside risk is elevated if growth disappoints.
ECX shows a solid investment score of 60/100, reflecting measured but productive capital allocation. Key growth metrics include revenue growth of 15.1% vs. a sector average of 5.9% and a return on assets of -105.0% (sector: -0.1%). This suggests the company is investing at an appropriate level to sustain growth without overextending its balance sheet.
ECX is currently showing below-average momentum at 33/100, which may indicate weakening institutional interest or negative sentiment shifts. Revenue growth stands at 15.1% year-over-year, while a beta of 0.78 reflects its sensitivity to broader market moves. Investors should note that declining momentum can precede further price weakness, though contrarian opportunities sometimes emerge at these levels.
ECX's stability score of 38/100 signals elevated volatility and/or leverage concerns. Key stability metrics include a beta of 0.78. Investors should be prepared for wider-than-average price swings and consider position sizing accordingly to manage portfolio risk.
The short interest score of 53/100 for ECX suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include small-cap liquidity risk. With a $713M market cap (small-cap), ECARX Holdings Inc. may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
ECARX Holdings Inc. is a small-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #3452 of 7,333 overall (53rd percentile). Key comparisons include ROE of 76.1% exceeding the -2.5% sector median and operating margins of -15.9% below the 1.3% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While ECX currently exhibits a REDUCE profile, superior opportunities exist within the MANUFACTURING sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Manufacturing Alpha →Quant Factor Profile
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Improvement in Value (22) would have the largest impact on the composite score.
ROE 3171% BELOW SECTOR MEDIAN
Gross Margin 51% BELOW SECTOR MEDIAN
Op. Margin 1329% BELOW SECTOR MEDIAN
AUDIT DATA AS OF DEC 31, 2024 (Q3 FY2024)
We rate ECARX Holdings Inc. (ECX) as a Reduce with a composite score of 40.7/100 at a current price of $1.55. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential and elevated risk of underperformance relative to peers over the next 12 months.
The rating is primarily driven by strength in investment (60th percentile) and quality (50th percentile), which together account for the majority of the composite score. Offsetting weakness in value (22th percentile) and momentum (33th percentile) tempers our overall conviction. We assign a Narrow Moat rating (48/100), Medium uncertainty, and Poor capital allocation.
Key items to watch: momentum to confirm whether the current price trend has legs; the path to profitability; valuation compression risk if growth disappoints. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.
ECARX Holdings Inc. holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 40.7/100 places it at rank #3452 in our full 7,333-stock universe. At $713M in market capitalization, ECARX Holdings Inc. is a small-cap player in the Manufacturing space, which limits certain scale advantages but may allow for more agile strategic execution.
Revenue is growing at 15%, though momentum at the 33th percentile suggests the market has not yet fully recognized this trajectory. This potential disconnect between fundamental improvement and market recognition could represent an opportunity for patient investors if the growth trend persists.
The margin cascade tells an important story: gross margins of 21% (-21.8pp vs sector) narrow to operating margins of -16% (-17.1pp vs sector) and net margins of -17.8%, yielding a gross-to-net conversion rate of -86%. The significant margin erosion from gross to net suggests elevated operating expenses, high interest costs, or other structural drags that warrant monitoring.
At a current price of $1.55, ECARX Holdings Inc. is trading at a premium to fundamental value. Our value factor score of 22/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. The premium valuation implies the market is pricing in significant future growth or quality improvements that are not yet fully reflected in current fundamentals.
The stock currently trades at P/S of 0.2x. We evaluate these multiples in the context of both absolute levels and sector-relative positioning to form our valuation view.
Returns on equity of 76.1% exceed the cost of equity for most companies, indicating genuine shareholder value creation and a reinvestment engine that compounds wealth over time.
Revenue growth of 15% confirms the business is expanding its addressable market — growth at this level typically supports multiple expansion and attracts institutional capital.
The Reduce rating (composite 40.7/100) reflects multi-factor weakness, and historically, stocks in this scoring range have underperformed the market by a meaningful margin.
Thin net margins of -17.8% provide limited cushion against cost pressures, competitive pricing, or macroeconomic headwinds — even small changes in costs could swing the company to a loss.
Weak momentum (33th percentile) suggests institutional selling pressure and unfavorable technical dynamics that may persist.
We assign a Medium uncertainty rating to ECARX Holdings Inc.. The stock presents a balanced risk profile: current negative profitability (net margin -17.8%) and below-average price stability (38th percentile). While not risk-free, the core business fundamentals are adequate to withstand moderate economic stress, and the range of potential outcomes around our fair value estimate is manageable.
Specific risk factors that inform our assessment include: current negative profitability (net margin -17.8%); below-average price stability (38th percentile). Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 38th percentile and quality factor at the 50th percentile provide a quantitative summary of the overall risk landscape.
We identify limited risk mitigants at this time, which contributes to our medium uncertainty assessment. Investors should monitor for improvement in balance sheet metrics, margin stability, and business predictability that could warrant a downgrade in our risk assessment over time.
We rate ECARX Holdings Inc.'s capital allocation as Poor. Key concerns include negative profitability, weak asset returns (ROA -105.0%). Exemplary capital allocators generate ROE above 20% and maintain conservative leverage — ECARX Holdings Inc. significantly underperforms these benchmarks, raising questions about management's ability to create shareholder value.
Investors should scrutinize management's reinvestment decisions and balance sheet trajectory before committing capital. Poor capital allocation often compounds over time: overlevered balance sheets limit strategic flexibility, while low returns on capital destroy shareholder value. We would need to see sustained improvement in profitability metrics and balance sheet discipline before considering an upgrade.
In summary, ECARX Holdings Inc. receives a Reduce rating with a composite score of 40.7/100 (rank #3452 of 7,333). Our quantitative framework assigns a Narrow Moat (48/100, trend: stable), Medium uncertainty, and Poor capital allocation. The average factor score across quality, value, momentum, stability, and investment is 40/100.
Our analysis does not support a constructive view on ECARX Holdings Inc. at this time. The combination of the current quantitative profile, medium uncertainty, and poor capital allocation suggests unfavorable risk-reward at current levels. We recommend investors avoid new positions and existing holders consider reducing exposure.
Analysis derived from Blank Capital Research quantitative terminal. For informational purposes only. No trade solicitation. Past performance not indicative of future results. Consult a qualified advisor.
We assign ECARX Holdings Inc. a Narrow Moat rating with a composite moat score of 48/100. The ROIC-WACC spread of -50.6% is the primary signal of economic value creation. The company possesses identifiable competitive advantages, though they are less entrenched than those of wide-moat peers. Our analysis indicates that ECARX Holdings Inc. can sustain above-average returns on invested capital for at least 10 years, with the strongest contributor being reinvestment efficiency at 20/20.
The strongest moat sources are reinvestment efficiency (20/20) and growth durability (17.2/20). Capital turnover 3.37x, R&D intensity 22.7%. Rev growth 15%, 3yr history. These pillars form the core of ECARX Holdings Inc.'s competitive identity and are the primary drivers of excess returns in our framework.
Areas of relative weakness include financial resilience (1.3/20) and economic value creation (2.5/20). Interest coverage -6.6x. Improvement in these areas could meaningfully widen the moat over time, while deterioration would be an early warning of competitive erosion.
Our moat trend assessment is Stable. Multi-year ROIC and operating margin trajectories show neither meaningful improvement nor deterioration, suggesting the competitive position is steady. We expect ECARX Holdings Inc.'s moat profile to remain largely unchanged absent a material shift in return on capital or industry dynamics.
Key profit drivers include robust top-line growth of 15% expanding the revenue base, returns on equity of 76.1% driving shareholder value creation. The margin cascade from 21% gross to -16% operating to -17.8% net reveals the company's cost structure and reinvestment intensity. Our analysis indicates that profit quality is adequate though not exceptional, with the quality factor at the 50th percentile.
The margin profile shows gross margins of 21%, operating margins of -16%, net margins of -17.8%. Return metrics include ROE of 76.1% and ROA of -105.0%. Relative to the Manufacturing sector, gross margins are 21.8 percentage points below the sector median of 43%, and ROE of 76.1% compares to a sector median of -2.5%.
The balance sheet reflects revenue growth of 15%. Overall balance sheet health is adequate for the current business environment.
Above 50MA
37.18%
Net New Highs
+51081
ECARX Holdings (NasdaqGM:ECX) closed out FY 2025 with Q4 revenue of US$304.7 million and basic EPS of US$0.01, alongside net income of US$2.6 million. On a trailing twelve month basis, the company recorded total revenue of US$847.9 million and a basic EPS loss of US$0.19, reflecting ongoing pressure at the bottom line. The company has reported revenue between US$198.2 million and US$304.7 million over the past six quarters, with quarterly basic EPS ranging from a loss of US$0.14 to a small...
Operator: Good day, and thank you for standing by. Welcome to the ECARX Holdings, Inc. Q4 and Full Year 2025 Earnings Conference Call. At this time, participants are in a listen-only mode.
ECARX (NASDAQ:ECX) outlined what executives described as a turning point in its profitability trajectory, reporting a second consecutive quarter of positive operating income and EBITDA as revenue reached a quarterly record in the fourth quarter of 2025. Management attributed the performance to highe
ECARX reported Q2 2025 earnings with $156 million revenue, shipping 532,000 units. The company achieved a 20% reduction in operating expenses, secured over $1 billion in overseas contracts, and is diversifying its revenue streams beyond automotive through LiDAR technology.