ECARX Holdings (ECX) Stock Analysis & Winston Score

ECARX Holdings is a Chinese technology company that builds the "brains" inside cars — the software and computer chips that power digital dashboards, infotainment screens, and connected vehicle systems. Its main products are automotive computing platforms and operating software sold to automakers, primarily in China, with customers including Geely and Volvo's parent company. ECARX sits at the intersection of the auto parts and automotive software industries, where cars are becoming more like smartphones on wheels.

The company earns revenue by selling hardware modules and licensing software to car manufacturers, rather than selling directly to drivers. It operates mainly in China but has ambitions to expand into other markets, and its close ties to the Geely automotive group give it a reliable customer base and development resources. The key growth driver is the rapid rise of electric and smart vehicles in China, but the company is currently unprofitable, and heavy competition from both local rivals and global tech firms remains a serious risk.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-84.3% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+106.9% YoY

YoY Growth Rate

EPS growth accelerating

Insider Activity

65.9%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$87M cash & investments

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

ECARX Holdings's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

20.9%

Thin — 20.9% gross margin

Operating Margin

2.3%

Thin — 2.3% operating margin

ROCE

5.3%

Weak — 5.3% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY

-29.2%

Shrinking sales (-29.2% YoY)

EPS YoY

N/A

—

Data not available

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion

N/A

Data not available

FCF Margin

0.0%

Thin free cash flow (0.0%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

N/A

—

Data not available

Interest Cover

N/A

Data not available

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Valuation

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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