Is Rivian Automotive Stock a Good Investment?
Rivian Automotive Investment Advice | RIVN |
- Examine Rivian Automotive's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Rivian Automotive's leadership team and their track record. Good management can help Rivian Automotive navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Automobile Manufacturers space and any emerging trends that could impact Rivian Automotive's business and its evolving consumer preferences.
- Compare Rivian Automotive's performance and market position to its competitors. Analyze how Rivian Automotive is positioned in terms of product offerings, innovation, and market share.
- Check if Rivian Automotive pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Rivian Automotive's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Rivian Automotive stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Rivian Automotive is a good investment.
Sell | Buy |
Cautious Hold
Market Performance | Very Weak | Details | |
Volatility | Somewhat reliable | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Average | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Frail | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Rivian Automotive Stock
Researching Rivian Automotive's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 27.0% of the company outstanding shares are owned by corporate insiders. The book value of Rivian Automotive was at this time reported as 5.78. The company has Price/Earnings To Growth (PEG) ratio of 0.13. Rivian Automotive recorded a loss per share of 5.6. The entity had not issued any dividends in recent years.
To determine if Rivian Automotive is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Rivian Automotive's research are outlined below:
| Rivian Automotive generated a negative expected return over the last 90 days | |
| Rivian Automotive has high historical volatility and very poor performance | |
| Rivian Automotive has high likelihood to experience some financial distress in the next 2 years | |
| The company reported the previous year's revenue of 4.43 B. Net Loss for the year was (5.43 B) with loss before overhead, payroll, taxes, and interest of (3.12 B). | |
| Rivian Automotive currently holds about 13.27 B in cash with (4.87 B) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 14.41, which can makes it an attractive takeover target, given it will continue generating positive cash flow. | |
| Rivian Automotive has a frail financial position based on the latest SEC disclosures | |
| Roughly 27.0% of the company outstanding shares are owned by corporate insiders | |
| Latest headline from fool.com: Why Rivian Stock Surged Higher Again Today |
Rivian Automotive uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Rivian Automotive. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Rivian Automotive's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 21st of February 2024 Upcoming Quarterly Report | View | |
| 14th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 21st of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Rivian Automotive's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Rivian Automotive's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2023-02-28 | 2022-12-31 | -1.94 | -1.73 | 0.21 | 10 | ||
2022-11-09 | 2022-09-30 | -1.82 | -1.57 | 0.25 | 13 | ||
2023-08-08 | 2023-06-30 | -1.41 | -1.08 | 0.33 | 23 | ||
2023-05-09 | 2023-03-31 | -1.59 | -1.25 | 0.34 | 21 | ||
2022-03-10 | 2021-12-31 | -1.97 | -2.43 | -0.46 | 23 | ||
2021-12-16 | 2021-09-30 | -5.52 | -7.68 | -2.16 | 39 |
Know Rivian Automotive's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Rivian Automotive is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Rivian Automotive backward and forwards among themselves. Rivian Automotive's institutional investor refers to the entity that pools money to purchase Rivian Automotive's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Renaissance Technologies Corp | 2024-09-30 | 6.3 M | Legal & General Group Plc | 2024-06-30 | 4.9 M | Millennium Management Llc | 2024-06-30 | 4.9 M | Charles Schwab Investment Management Inc | 2024-09-30 | 4.6 M | Northern Trust Corp | 2024-09-30 | 4.3 M | Gilder Gagnon Howe & Co Llc | 2024-09-30 | 3.6 M | Bank Of America Corp | 2024-06-30 | 3.5 M | Abrdn Plc | 2024-09-30 | 3.4 M | Goldman Sachs Group Inc | 2024-06-30 | 3.3 M | Amazon.com Inc | 2024-09-30 | 158.4 M | Vanguard Group Inc | 2024-09-30 | 78.4 M |
Rivian Automotive's market capitalization trends
The company currently falls under 'Large-Cap' category with a current market capitalization of 12.47 B.Market Cap |
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Rivian Automotive's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.32) | (0.34) | |
| Return On Capital Employed | (0.40) | (0.42) | |
| Return On Assets | (0.32) | (0.34) | |
| Return On Equity | (0.59) | (0.56) |
Determining Rivian Automotive's profitability involves analyzing its financial statements and using various financial metrics to determine if Rivian Automotive is a good buy. For example, gross profit margin measures Rivian Automotive's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Rivian Automotive's profitability and make more informed investment decisions.
Evaluate Rivian Automotive's management efficiency
Rivian Automotive has return on total asset (ROA) of (0.2283) % which means that it has lost $0.2283 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (0.6716) %, meaning that it created substantial loss on money invested by shareholders. Rivian Automotive's management efficiency ratios could be used to measure how well Rivian Automotive manages its routine affairs as well as how well it operates its assets and liabilities. As of the 30th of November 2024, Return On Tangible Assets is likely to drop to -0.34. In addition to that, Return On Capital Employed is likely to drop to -0.42. At this time, Rivian Automotive's Non Currrent Assets Other are very stable compared to the past year. As of the 30th of November 2024, Other Assets is likely to grow to about 794.5 M, while Total Assets are likely to drop about 14.1 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 9.65 | 7.12 | |
| Tangible Book Value Per Share | 9.65 | 7.12 | |
| Enterprise Value Over EBITDA | (4.51) | (4.74) | |
| Price Book Value Ratio | 2.43 | 2.55 | |
| Enterprise Value Multiple | (4.51) | (4.74) | |
| Price Fair Value | 2.43 | 2.55 | |
| Enterprise Value | 88.3 B | 92.8 B |
The leadership approach at Rivian Automotive's fosters a culture of excellence and accountability. Our analysis examines how this culture influences financial outcomes and stock valuation.
Beta 2.045 |
Basic technical analysis of Rivian Stock
As of the 30th of November, Rivian Automotive holds the Risk Adjusted Performance of (0.01), coefficient of variation of (4,819), and Variance of 19.21. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Rivian Automotive, as well as the relationship between them.Rivian Automotive's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Rivian Automotive insiders, such as employees or executives, is commonly permitted as long as it does not rely on Rivian Automotive's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Rivian Automotive insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Claire McDonough over a year ago Payment of 1727 shares by Claire McDonough of Rivian Automotive subject to Rule 16b-3 | ||
Krawiec Peter over a year ago Acquisition by Krawiec Peter of 543 shares of Rivian Automotive subject to Rule 16b-3 | ||
Claire McDonough over a year ago Sale by Claire McDonough of 3625 shares of Rivian Automotive |
Rivian Automotive's Outstanding Corporate Bonds
Rivian Automotive issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Rivian Automotive uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Rivian bonds can be classified according to their maturity, which is the date when Rivian Automotive has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Dana 575 percent Corp BondUS235822AB96 | View | |
| Volcan Compania Minera Corp BondUSP98047AC08 | View | |
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| HSBC Holdings PLC Corp BondUS404280DR76 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| International Game Technology Corp BondUS460599AD57 | View | |
| Morgan Stanley 3591 Corp BondUS61744YAK47 | View | |
| MGM Resorts International Corp BondUS552953CD18 | View |
Understand Rivian Automotive's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Rivian Automotive's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.01) | |||
| Market Risk Adjusted Performance | (0.1) | |||
| Mean Deviation | 2.95 | |||
| Coefficient Of Variation | (4,819) | |||
| Standard Deviation | 4.38 | |||
| Variance | 19.21 | |||
| Information Ratio | (0.05) | |||
| Jensen Alpha | (0.22) | |||
| Total Risk Alpha | (0.83) | |||
| Treynor Ratio | (0.11) | |||
| Maximum Drawdown | 28.0 | |||
| Value At Risk | (6.95) | |||
| Potential Upside | 5.37 | |||
| Skewness | 0.0168 | |||
| Kurtosis | 3.24 |
| Risk Adjusted Performance | (0.01) | |||
| Market Risk Adjusted Performance | (0.1) | |||
| Mean Deviation | 2.95 | |||
| Coefficient Of Variation | (4,819) | |||
| Standard Deviation | 4.38 | |||
| Variance | 19.21 | |||
| Information Ratio | (0.05) | |||
| Jensen Alpha | (0.22) | |||
| Total Risk Alpha | (0.83) | |||
| Treynor Ratio | (0.11) | |||
| Maximum Drawdown | 28.0 | |||
| Value At Risk | (6.95) | |||
| Potential Upside | 5.37 | |||
| Skewness | 0.0168 | |||
| Kurtosis | 3.24 |
Consider Rivian Automotive's intraday indicators
Rivian Automotive intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Rivian Automotive stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Rivian Automotive Corporate Filings
F4 | 29th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 12th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
| 7th of November 2024 Other Reports | ViewVerify | |
13A | 7th of October 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934 | ViewVerify |
Rivian Stock media impact
Far too much social signal, news, headlines, and media speculation about Rivian Automotive that are available to investors today. That information is available publicly through Rivian media outlets and privately through word of mouth or via Rivian internal channels. However, regardless of the origin, that massive amount of Rivian data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Rivian Automotive news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Rivian Automotive relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Rivian Automotive's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Rivian Automotive alpha.
Rivian Automotive Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Rivian Automotive can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Rivian Automotive Historical Investor Sentiment
Investor biases related to Rivian Automotive's public news can be used to forecast risks associated with an investment in Rivian. The trend in average sentiment can be used to explain how an investor holding Rivian can time the market purely based on public headlines and social activities around Rivian Automotive. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Rivian Automotive's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Rivian Automotive and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Rivian Automotive news discussions. The higher the estimate score, the more favorable the investor's outlook on Rivian Automotive.
Rivian Automotive Corporate Management
| Jeffrey Baker | Chief Officer | Profile | |
| Sarah OBrien | Chief Officer | Profile | |
| Robert Scaringe | CEO Founder | Profile | |
| CFA CFA | VP Relations | Profile | |
| Anisa Costa | Chief Officer | Profile | |
| Kjell Gruner | Executive Officer | Profile | |
| Michael Callahan | Chief Secretary | Profile |
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Rivian Automotive. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in real. To learn how to invest in Rivian Stock, please use our How to Invest in Rivian Automotive guide.You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
Is Automobile Manufacturers space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Rivian Automotive. If investors know Rivian will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Rivian Automotive listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (5.60) | Revenue Per Share 4.602 | Quarterly Revenue Growth (0.35) | Return On Assets (0.23) | Return On Equity (0.67) |
The market value of Rivian Automotive is measured differently than its book value, which is the value of Rivian that is recorded on the company's balance sheet. Investors also form their own opinion of Rivian Automotive's value that differs from its market value or its book value, called intrinsic value, which is Rivian Automotive's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Rivian Automotive's market value can be influenced by many factors that don't directly affect Rivian Automotive's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Rivian Automotive's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Rivian Automotive is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Rivian Automotive's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.