NIO Inc. American depositary shares each representing one Class A ordinary share (NIO)

FairStock Score: 28/100 — RISKY

Key Financials

AI Analysis

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

I approach NIO as a manufacturer with an interesting battery-swap ecosystem, but the numbers do not yet show a Buffett-style business. At the 2026-10-13 close of $3.56, the market value is $15.7B. In the latest reported quarter, fiscal Q2 2026, revenue was $32.1B, yet net income was -$721.6M, a -2.25% margin. That is a lot of sales activity and not enough profit. FairStock calculations show P/E -13.19, P/B 14.83, ROE -45.32%, ROCE -2.02%, and D/E 2.03. A Piotroski F-Score of 3/9 and Altman Z-Score of 0.32 point to weak financial strength and real distress risk. The provided growth rates—69.06% revenue and 85.96% profit—suggest rapid movement, but I cannot name a period from the supplied facts, and profit growth from a loss base is not the same as durable owner earnings. The Lynch category is none because only 0 years of filed results are available, and the FairStock score is 28/100. NIO's power solutions and brand may create some customer stickiness, but auto manufacturing is capital-intensive and competitive. I prefer consistent earning power, low leverage, and a margin of safety. NIO has none of those today, though its 52-week range of $3.36–$7.54 and beta of 0.92 show the market has already discounted a great deal. Until positive margins and a stronger balance sheet appear, this remains speculative rather than a Graham-style bargain.

In plain English: NIO sells smart electric cars and battery-swapping and charging services, mainly in China and some other countries. Sales are growing quickly, but the company still loses money and carries a lot of debt, and its financial safety checks look weak. At $3.56 on 2026-10-13, the price looks expensive compared with its current profits and accounting value, even though the stock is near the low end of its 52-week range.

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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