Company: Vicinity Motor Corp(formerly Grande West Transportation )
Listings :TSXV , US OTC SOON to be up listed at Nasdaq
Ticker: VMC.V (previously BUS ,) BUSXF at US OTC
Market cap at time of publication: $187 MCAD
Stock price at time of publication: $6.35 CAD ( reverse split price 2.11 CAD)
Evaluation: ~2.7 X sales for 2021 *
Business: Leading supplier of electric, CNG, gas and clean-diesel buses
Comparable peer : Greenpower Motor , Market cap $378 MCAD
Peer evaluation: 27 X sales for 2021
*Assuming sales of 70 MCAD for 2021 which is equal to 200 buses sold for 2021.
Vicinity Motors corp yesterday (17/5 2021) reported their results for Q1 2021 and the numbers are IMPRESSIVE to say the least.
Here are some of the highlights:
- Revenue grew 588% to $27.3 million in the first quarter of 2021, as compared to $4.0 million in the same year-ago quarter.
- Delivered 67 buses for the three months ended March 31, 2021, as compared to 6 buses for the three months ended March 31, 2020.
- Received orders for another ten Vicinity Lightning™ EV buses with expected delivery in 2021.
- Entered into a strategic U.S. distribution agreement with ABC Companies, a leading provider of motorcoach and transit equipment in North America, to distribute the manufacturer’s Vicinity™ heavy-duty vehicles throughout United States.
- The State of Washington and New Mexico selected Vicinity buses in a statewide purchasing contract that gives State transit agencies the right to purchase directly from the Company’s diverse bus portfolio.
- Appointed respected industry veteran, prominent Canadian transit leader and former CEO of BC Transit, Manuel Achadinha, as Chief Operating Officer.
- Announced strategic partnership to explore deploying Exro Technologies’ enhanced powertrain system into Vicinity’s next-generation electric bus fleet, providing high-performance and extended range.
ESG Comment: Vicinity Motors has truly had a record speed development in 2020-2021 as our latest management interview showed. Vicinity Motors is one of the fastest growing electric vehicles bus companies that are trading on the public market , yet they are also among the most undervalued compared to peers such as Lion Electric and Greenpower Motor.
As stated Vicinity Motors recorded a record increase of 588 % in revenues totalling 27.3 million CAD this first quarter , compare this to Lion Electric ,valued at 3.1 billion USD, which reported only 6.2 million MCAD in revenues for Q1 (512 % increase). We think this big difference in valuation is partly due to the fact that Lion Electric was brought to the market at a much higher valuation, due to being a SPAC, and also that Lion Electric is trading on the Nasdaq, which Vicinity Motors also will be doing shortly. Vicinity Motors also showed a net income of 2 million CAD and an EBITDA of 2.6 million CAD for the first quarter, putting the company in profitable territory.
Management seems very confident that the company is heading in the right direction and ESGFIRE remains confident in keeping Vicinity Motors as our top pick for the electric vehicles sector.
To conlude we leave you with the comments on the Q1 2021 report from CEO William Trainer:
“We are leveraging our strong momentum to accelerate the launch of next-generation electric vehicle (EV) products, including our breakthrough Vicinity Lightning™ EV, as well as other exciting, to-be-announced EV opportunities we are pursuing in the background. The land-grab for EV market share is underway and we are well positioned to gain traction through our longstanding partnerships with North American transit agencies.
“I expect to see robust year-over-year growth throughout the remainder of 2021, empowering our drive to create a more sustainable public transportation system. I look forward to providing our shareholders with further updates in the near-term as we launch new products, announce new transit agency customers and successfully execute upon our business plan,” concluded Trainer.
We own shares of this company personally.
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