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BYD Company Limited

BYDDY
41
Auto - Manufacturers · Consumer Cyclical
Price
$11.31
-0.12 (-1.05%)
Market Cap
$102.75B
Exchange
Other OTC
Winston Score
41
Winston is serious
Mixed quality — meaningful strengths and weaknesses.

Share count rising — dilution

+4.7% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 8.62B (2021) → 9.03B (2025)

BYD is a Chinese company that makes electric cars, plug-in hybrid vehicles, and rechargeable batteries. It sells cars directly to consumers in China and increasingly in Europe, Southeast Asia, and Latin America. BYD is one of the largest electric vehicle manufacturers in the world and also makes batteries for other automakers and electronics companies.

The company earns money by selling vehicles, batteries, and energy storage systems. Most of its revenue comes from China, where it benefits from strong government support for electric vehicles and a massive home market. BYD's main competitive advantage is that it makes many of its own key components, including batteries, which helps control costs. The biggest risks it faces are slowing EV demand growth, intense price competition in China, and trade barriers in Europe and other markets that could limit its international expansion.

Winston Score History

Score breakdown

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Quality

Gross Margin
18.8%
Thin — 18.8% gross margin
Operating Margin
4.8%
Thin — 4.8% operating margin
ROCE
1.9%
Weak — 1.9% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
-4.9%
Shrinking sales (-4.9% YoY)
EPS YoY
-41.9%
Earnings shrinking (-41.9% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency
0/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
194%
Turns 194% of profit into real cash
FCF Margin
-11.2%
Burning cash (-11.2%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity
0.53
Conservative — low debt load (0.53)
Interest Cover
10.38x
Comfortably covers interest (10.4x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
3.8x
Attractive valuation — P/E 3.8

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward
+2.1
GROWING
Earnings expected to grow — slightly cheaper on forward P/E

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Dividends

Dividend Yield
1.25%
Small dividend — 1.25% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth
+1386.9%
Dividend growing fast (1386.9% YoY)

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