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MVST, Microvast Holdings Inc.

Electrical Equipment capital-intensive UnprofitableDistress / turnaround

Microvast Holdings Inc. is a global leader in advanced specialized battery technologies.

We specialize in the design, development, and manufacturing of battery components and systems primarily for electric commercial vehicles and energy storage systems ("ESS").

Our guiding principle is to innovate lithium-ion battery designs from the ground up without relying on legacy technologies.

Latest annual: FY2025 10-K

MVST · Microvast Holdings Inc.

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$428M

+12.6% YoY · 32% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $372M 5-yr avg $294M

Gross margin 30% 5-yr avg 7%

Operating margin −4.4% 5-yr avg −53.9%

ROIC −3% 5-yr avg −31%

Owner-earnings margin 7% 5-yr avg −53%

Free cash flow margin 7% 5-yr avg −53%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

Situation: Unprofitable. No sustained operating profit across the record; an earnings multiple has nothing to rest on. What the record does show is revenue, the gross-margin trajectory, and the burn against the cash on hand. Distress / turnaround. Thin interest coverage, or operating cash burned against real debt, across the record. The balance sheet carries this situation; the debt schedule sets the clock.
What moves the needle: Operating margin has run around −35% through the cycle on a 4.4% gross margin, the operating line deeply negative — so the lever is the path to a margin at all: revenue growth against the cost curve and the cash runway, not the level of a margin that isn't there yet. Inventory runs near 38% of sales, so how fast it turns back into cash — and the risk of writing it down when demand softens — sits alongside the margin. On its own account, the filing leans hardest on customer concentration, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has rarely cleared the cost of capital (median −30%, above 15% in 0 of 5 years). Owner earnings, the cash-based check, have been thin too. This is price-taker territory, where the balance sheet and the cycle matter more than any multiple; the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

The record

Ten years of arithmetic, read across the cycle.

The record, 2019–2025

realized figures from each filing · older years to the left

2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMMar 2026
								Income statement
$76M	$108M	$152M	$204M	$307M	$380M	$428M	$372M	RevenueRevenue
−0%	16%	−28%	4%	19%	31%	—	30%	Gross marginGross mgn
20%	18%	67%	50%	32%	21%	14%	15%	SG&A / revenueSG&A/rev
34%	15%	23%	21%	15%	11%	8%	9%	R&D / revenueR&D/rev
($54M)	($29M)	($194M)	($160M)	($107M)	($116M)	$7M	($16M)	Operating incomeOp. inc.
−70.5%	−27.1%	−127.7%	−78.2%	−34.8%	−30.6%	1.6%	−4.4%	Operating marginOp. mgn
$3M	($2M)	($206M)	($158M)	($106M)	($195M)	($29M)	($43M)	Net incomeNet inc.
								Cash flow & returns
$13M	$16M	($45M)	($54M)	($75M)	$3M	$76M	$46M	Operating cash flowOp. cash
$10M	$18M	$79M	$13M	($34M)	$167M	$102M	$85M	Working capital & otherWC & other
$20M	$19M	$88M	$151M	$187M	$28M	$20M	$20M	CapexCapex
26.5%	17.3%	57.8%	73.8%	60.9%	7.3%	4.6%	5.5%	Capex / revenueCapex/rev
($7M)	($3M)	($133M)	($205M)	($262M)	($25M)	$56M	$26M	Owner earningsOwner earn.
−9.0%	−2.9%	−87.4%	−100.2%	−85.5%	−6.6%	13.1%	6.9%	Owner earnings marginOE mgn
($7M)	($3M)	($133M)	($205M)	($262M)	($25M)	$56M	$26M	Free cash flowFCF
−9.0%	−2.9%	−87.4%	−100.2%	−85.5%	−6.6%	13.1%	6.9%	Free cash flow marginFCF mgn
—	-52%	-58%	-30%	-14%	-21%	—	-3%	ROICROIC
—	-48%	-30%	-26%	-19%	-50%	-7%	-9%	Return on equityROE
—	−48%	−30%	−26%	−19%	−50%	−7%	−9%	Retained to equityRetained/eq
								Balance sheet
$560M	$304M	$481M	$256M	$50M	$73M	$105M	$408M	Cash & investmentsCash+inv
—	$76M	$89M	$119M	$139M	$121M	$156M	$124M	ReceivablesReceiv.
—	$45M	$53M	$84M	$150M	$143M	$89M	$95M	InventoryInvent.
$269K	$42M	$40M	$45M	$113M	$65M	$47M	$46M	Accounts payablePayables
—	$79M	$102M	$159M	$176M	$199M	$198M	$172M	Operating working capitalOper. WC
$396K	$189M	$707M	$545M	$426M	$428M	$449M	$426M	Current assetsCur. assets
$269K	$184M	$176M	$252M	$403M	$330M	$488M	$444M	Current liabilitiesCur. liab.
1.5×	1.0×	4.0×	2.2×	1.1×	1.3×	0.9×	1.0×	Current ratioCurr. ratio
$280M	$405M	$995M	$985M	$1.1B	$952M	$1.0B	$987M	Total assetsAssets
—	$61M	$59M	$46M	$79M	$112M	$106M	$139M	Total debtDebt
—	($243M)	($422M)	($210M)	$29M	$39M	$1M	($269M)	Net debt / (cash)Net debt
-8.5×	-5.1×	-35.9×	-48.1×	-40.6×	-12.0×	1.4×	-3.3×	Interest coverageInt. cov.
($320M)	$5M	$687M	$613M	$564M	$388M	$411M	$466M	Shareholders’ equityEquity
—	0.0%	54.5%	44.4%	21.2%	8.1%	0.7%	0.9%	Stock comp / revenueSBC/rev
								Per share
8.0M	99.0M	186M	303M	311M	318M	325M	385M	Shares out (diluted)Shares
$9.59	$1.09	$0.82	$0.67	$0.99	$1.19	$1.32	$0.96	Revenue / shareRev/sh
$0.43	$-0.02	$-1.11	$-0.52	$-0.34	$-0.61	$-0.09	$-0.11	EPS (diluted)EPS
$-0.86	$-0.03	$-0.71	$-0.68	$-0.84	$-0.08	$0.17	$0.07	Owner earnings / shareOE/sh
$-0.86	$-0.03	$-0.71	$-0.68	$-0.84	$-0.08	$0.17	$0.07	Free cash flow / shareFCF/sh
$2.54	$0.19	$0.47	$0.50	$0.60	$0.09	$0.06	$0.05	Cap. spending / shareCapex/sh
$-40.19	$0.05	$3.69	$2.02	$1.81	$1.22	$1.26	$1.21	Book value / shareBVPS

The diluted share count moved ×12.43 into 2020 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.

The diluted share count moved ×1.88 into 2021 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.

The diluted share count moved ×1.63 into 2022 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.

Per-share growththe realized rate an owner's share compounded

	6-yr	5-yr
Revenue / share	−28.2%/yr	+3.9%/yr
Capital spending / share	−46.3%/yr	−20.2%/yr
Book value / share	—	+90.4%/yr

The record, charted

FY2019–2025

Each measure over its full record; the current point and the worst year marked.

Share count

325Mpeak FY2025

ROIC

−21%low FY2021

Gross margin

31%low FY2021

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$56Mowner earningsvs.($29M)net incomelow FY2023

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetained

Each year's operating cash, by what management did with it: the mix, and how it drifts.

FY2019FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business turned a $29M loss into $56M of owner earnings: more cash than the profit line showed, after the non-cash charges and the capital it put back in.

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	($29M)	($195M)	($106M)	($158M)	($206M)
Stock-based compensationreal costnon-cash, but a real cost	+$3M	+$31M	+$65M	+$91M	+$83M
Working capital & othertiming of cash in and out, other non-cash items	+$102M	+$167M	−$34M	+$13M	+$79M
Cash from operations	$76M	$3M	($75M)	($54M)	($45M)
Capital expenditurecash put back in to keep running and to grow	−$20M	−$28M	−$187M	−$151M	−$88M
Owner earnings	$56M	($25M)	($262M)	($205M)	($133M)
Owner-earnings marginowner earnings ÷ revenue	13%	-7%	-85%	-100%	-87%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position . The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $3M), owner earnings is nearer $53M.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? 1.4×

Thin

Operating income $7M ÷ interest expense $5M

What this means
Operating profit covers interest, but with little room. A bad year, a refinancing at higher rates, or a revenue wobble closes the gap fast.
How heavy is the debt, net of cash? $1M · 0.2× operating profit

Modest net debt

Cash $105M − debt $106M

What this means
Netting $105M of cash and short-term investments against $106M of debt leaves $1M owed, about 0.2× a year's operating profit (15.2× on the gross debt, before the cash). It also holds $282M in longer-dated marketable securities; counting those, it sits at net cash of $281M. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? 192d

Long (60+ days)

DSO 133 + DIO 125 − DPO 66 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.

Is it a good business?

Return on invested capital -30%

Below average through the cycle

5-yr median, range -58%–-14%; the latest year is left out — large non-operating charges put its operating line well above pretax profit

Industry peers: median 3%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 5 years, so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 13%

Positive this year, negative across the cycle

latest $56M = operating cash $76M − maintenance capex $20M (positive this year), after an earlier loss stretch (7-yr median -9%)

Industry peers: median -0%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 13% of revenue this year, a -9% median across 7 years. Treating stock comp as the real expense it is (less $3M of SBC) leaves $53M.
Are earnings backed by cash? $76M

Loss, but cash-generative

Net income ($29M) · cash from operations $76M

What this means
The company reported a net loss, so a conversion ratio isn't meaningful. What matters then is whether operations still threw off cash, here, they did.

How is the cash used?

Where do the earnings go? —

Not enough data

What this means
The filing data didn't include the inputs for this check.
Investing or harvesting? —

Not enough data

What this means
The filing data didn't include the inputs for this check.

Graham’s defensive tests · 0 of 5 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Miss

Revenue ≥ $2B · $428M

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Miss

Current ratio ≥ 2× · 0.92×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Miss

Debt ≤ working capital · $106M vs ($40M) WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Miss

A profit every year (7-yr record) · 6 loss years

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · none paid

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth —

Earnings +33% over the record · —

What this means
Earnings were negative early in the record, a growth rate isn't meaningful.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $-0.33/share (latest year $-0.09), the averaged base the calculator's gate runs on, and book value is $1.23/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2019–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 1 of 7

What this means
Lost money in 6 year(s), look at what happened there before trusting the average.
Return on capital ≥ 15% 0 of 6 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin −75% → −21% (3-yr avg ends)

What this means
Through the cycle the operating margin widened — about −75% early to −21% lately, median −35% — pricing power intact or improving.
Reinvestment, incremental ROIC 8%

What this means
Reinvested capital came back at only a modest incremental return — near the cost of capital, where extra growth adds little per dollar. The record shows whether it is a soft stretch or a thinning moat.
Worst year 2021 · −127.7% op. margin

What this means
Operations went underwater in 2021, understand why before trusting the good years.
How management talks about it Promotional

What this means
The record is compounding, but the filing leans on a promoter’s vocabulary rather than the per-share, return-on-capital terms an owner uses. The results back the talk here; the register is still worth noting.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

In its own filing Raised, but not as a competitor

The filing raises AI among its risks, but in other terms (security, regulation, energy or the like), not as a competitor to its product.

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Mar 31, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$426M

Cash & short-term investments$126M
Receivables$124M
Inventory$95M
Other current assets$81M

Current liabilities$444M

Accounts payable$46M
Other current liabilities$398M

Current ratio0.96×all current assets ÷ what's due · Graham looked for 2×

Quick ratio0.74×stricter: inventory excluded

Cash ratio0.28×strictest: cash alone against what's due

Working capital($18M)the cushion left after near-term bills

Revenue, latest quarter vs. a year ago−48.0%the freshest read on whether the business is still growing

Current ratio, recent quarters1.1× → 1.0×

Deeper floors

Tangible book value$464Mequity stripped of goodwill & intangibles

Net current asset value($96M)Graham's net-net: current assets less all liabilities

Debt incl. operating leases$30M$17M of it operating leases

Deferred revenue$7Mcustomer cash collected before delivery; operating float

From the company's latest filing.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid.

Insider ownership44.8%
The stake all directors and executive officers hold together, per the 2025 proxy: skin in the game, the first thing Munger reads.
Stock-based compensation$3M
The slice of the business handed to employees in shares this year, 1% of revenue, equal to 44% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

What an owner would ask, FY2025

read the 10-K →

How much of the revenue rides on one buyer?
≈$82M · 22% of revenue on the largest customers (TTM)
“For the year ended December 31, 2025, the two largest customers accounted for 22% and 17% of our net revenues respectively.”verify →
Which reported numbers are a judgment call?
Management names Income taxes, Inventory, Stock compensation as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Electrical Equipment

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
FLNCFluence Energy Inc.	$2.3B	4%	-5.0%	-32%	-6%
NOVTNovanta Inc.	$981M	43%	10.3%	9%	10%
KNKnowles Corporation	$593M	40%	9.5%	5%	—
LYTSLSI Industries Inc.	$573M	25%	4.3%	8%	5%
AIOTPowerFleet Inc.	$444M	50%	-7.1%	-8%	-2%
MVSTMicrovast Holdings Inc.	$428M	10%	-34.8%	-30%	-9%
HLITHarmonic Inc.	$361M	50%	3.5%	3%	2%
NRGVEnergy Vault Holdings Inc.	$204M	18%	-39.9%	-66%	-22%
Group median	—	33%	-0.8%	-3%	-2%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Microvast Holdings Inc. has delivered.

Today’s price $

Base Normalize · through-cycle (($77M)) Net of stock comp (−$3M)

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth, delivered—

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Owner earnings $26M on 333M shares outstanding, per the 10-Q cover, as of 2026-05-04; net cash $269M. The if-converted diluted count is 385M, 16% above the shares outstanding: the dilution overhang (convertibles, options) a buyer inherits. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh MVST against another business →

Cite: Owner Scorecard, "Microvast Holdings Inc. (MVST), the owner's record," https://ownerscorecard.com/c/MVST, data as of 2026-07-09.

Manual order: ← MVBF its page in the Manual MWA →

Industry order: ← MKDW the Electrical Equipment chapter NOVT →