CBAK Energy Technology Inc. Common Stock (CBAT)

FairStock Score: 52/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable competitive advantages, honest accounting, and a margin of safety. CBAK Energy manufactures lithium-ion and sodium-ion rechargeable batteries for electric vehicles and energy storage. In the latest reported quarter, fiscal Q1 2026, revenue was $69.6 million but net income was -$9.3 million, a -13.34% margin. That tells me scale is not yet producing profits. FairStock's calculated return on equity is -16.17% and return on capital employed is -3.94%, so the business is consuming value on an accounting basis. Debt/equity is 0.50, and FairStock's Altman Z-score of -0.54 suggests elevated financial distress risk. Still, trailing free cash flow is positive at $35.6 million, giving a 49.4% FCF yield on the $72.0 million market cap. I would need to understand whether that cash generation is sustainable or driven by working capital. At $1.22 on 2026-10-13, FairStock's calculated price/book is 1.03 and P/E is -6.78; asset value may offer some support, but negative earnings make the P/E meaningless. Top-line growth is rapid, yet profit growth is deeply negative in the provided figures, so sales are not translating into earnings. The company does not qualify for a Lynch category because only 0 years of filed annual results are available, versus the 3 needed. I see a speculative turnaround, not a proven compounder. Without a moat evident in the numbers, consistent profits, and a sturdier balance sheet, I would demand a much larger discount than book value.

In plain English: CBAK Energy makes rechargeable batteries for electric vehicles and energy storage. The business is growing sales but currently loses money, with weak returns and signs of financial stress in the figures provided. At $1.22, the stock trades near its accounting net asset value, so it is not obviously expensive, but the losses make it hard to call cheap.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer