VinFast Auto's Upcoming Quarterly Earnings and Financial Challenges

• VinFast Auto (NASDAQ:VFS) is set to release its quarterly earnings with expectations of an EPS of -$0.26 and revenue of $418.9 million.
• The company faces financial challenges with a negative P/E ratio of -3.76 and a high price-to-sales ratio of 6.96.
• VinFast is receiving a significant funding boost of $3.35 billion from its parent company, Vingroup, to support its global expansion and financial stability.

VinFast Auto, listed on the NASDAQ as VFS, is preparing to release its quarterly earnings on November 21, 2024. Analysts expect the earnings per share to be -$0.26, with projected revenue of approximately $418.9 million. VinFast is an electric vehicle manufacturer that has been expanding its presence in the U.S. and Canadian markets with its flagship VF 9 all-electric SUV.

The VF 9 is a 7-passenger, 3-row SUV, designed for eco-conscious consumers seeking premium electric vehicle options. In the U.S., the VF 9 is available through VinFast's retail network in California, with prices starting at $69,800 for the Eco version and $73,800 for the Plus version. The company has also launched the VF 9 in Canada, with prices starting at $77,321 for the Eco trim and $81,321 for the Plus trim.

Despite its expansion efforts, VinFast faces financial challenges. The company has a negative price-to-earnings (P/E) ratio of -3.76, indicating negative earnings. The price-to-sales ratio is 6.96, suggesting investors are paying nearly 7 times the company's sales. Additionally, the enterprise value to sales ratio is 9.14, reflecting the company's valuation relative to its sales.

VinFast's financial situation is further highlighted by its negative operating cash flow, with an enterprise value to operating cash flow ratio of -5.98. The earnings yield is -26.60%, underscoring the company's negative earnings. The debt-to-equity ratio is -0.45, indicating more liabilities than equity, and the current ratio is 0.32, suggesting potential liquidity challenges.

To address these challenges, VinFast is set to receive a significant funding boost of 85 trillion dong ($3.35 billion) from its founder and parent company, Vingroup, by 2026. This funding aims to help the company reach its break-even point. Despite the financial hurdles, VinFast remains committed to its global expansion and providing innovative electric vehicle options.