Persistent negative free cash flow, including a $9.2 million burn in 2024Q1, underscores a structural inability to convert revenue into cash, further exacerbated by an OCF/NI ratio that reached as low as 0.02 in 2024Q3.
| Cash from Operations | -10.46M | -12.62M | -21.36M | -58.46M | -69.4M | -21.48M | -7.87M | -4.67M | -8.04M | -3.86M | -5.5M | -6.78M | -3.7M |
| Operating CF Margin % | - | -69.8% | -68.26% | -560.7% | -776.14% | -250.39% | -144.23% | -130.61% | -10.46% | -134.95% | -298.65% | -487.92% | -664.44% |
| Operating CF Growth % | -494.7% | 40.93% | 63.46% | 15.77% | -223.16% | -172.71% | -68.61% | 41.95% | -108.45% | 29.85% | 18.85% | -83.11% | - |
| Net Income | -71.24M | -73.02M | -44.91M | -54.36M | -112.15M | -16.42M | -5.2M | -19.51M | -33.83M | -5.79M | -10.8M | -19.06M | -21.08M |
| Depreciation & Amortization | 2.54M | 4.12M | 6.65M | 6.17M | 2.57M | 1.27M | 2.04M | 2.49M | 1.64M | 0 | 13.21K | 17.42K | 29.86K |
| Stock-Based Compensation | 719.94K | 2.83M | 3.37M | 5.23M | 4.03M | 1.13M | 3.36M | 4.92M | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | -49.95K | -47.85K | -15.93K | -898.63K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 8.09M | 47.9M | 9.98M | 6.91M | 67.2M | 1.12M | -5.5M | 5.08M | -9.12M | 3.1M | 5.75M | 12.75M | 17.59M |
| Working Capital Changes | -1.5M | 5.6M | 3.6M | -22.38M | -30.15M | -8.58M | -2.58M | 2.35M | 17.22M | -458.34K | -45.68K | -149.82K | -133.04K |
| Change in Receivables | 0 | 57.46K | 1.26M | -5.87M | 233.57K | -2M | -342.69K | 2.42M | 14.05M | -956.3K | 132.15K | -55.15K | 17.61K |
| Change in Inventory | -1.2M | 118.31K | 7.93M | -12.18M | -20.48M | -5.09M | 1.94M | 84.14K | 9.18M | 750.42K | -1.29M | -949.22K | 241.82K |
| Change in Payables | 0 | 259.36K | 1.03K | 3.1M | -2.14M | -128.51K | -3.73M | -3.37M | -3.91M | -506.57K | 767.97K | 705.49K | -312.5K |
| Cash from Investing | -253.59K | -866.67K | 4.07M | -16.39M | -56.88M | 7.23M | 26.47M | 1.53M | -1.28M | -306.2K | -7.78K | -38.43K | -48.98K |
| Capital Expenditures | -239.48K | 0 | -846.12K | -7.64M | -3.29M | -756.27K | -77.01K | -56.27K | -1.88M | 0 | -7.78K | -38.43K | -48.98K |
| CapEx % of Revenue | 1.4% | 4.18% | 2.7% | 73.24% | 36.74% | 8.82% | 1.41% | 1.57% | 2.45% | - | 0.42% | 2.77% | 8.79% |
| Acquisitions | 131.41K | 0 | -355.4K | -2.8M | -7.1M | 155.9K | 0 | 86.86K | 598.05K | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -145.52K | -866.67K | 1.71M | -1.71M | -16.5M | 8.74M | 26.54M | 1.5M | 0 | -306.2K | 0 | 0 | 0 |
| Cash from Financing | 5.4M | 4.9M | 1.23M | -48.14M | 19.45M | 271.15M | -15.51M | 1.17M | 3.05M | 4.7M | 1.61M | 9.66M | 5.63M |
| Debt Issued (Net) | 4.84M | 4.9M | 1.23M | -48.14M | 34.27M | 24.65M | -15.51M | 998.76K | -12.71M | -253K | -347.94K | 527.71K | 0 |
| Equity Issued (Net) | 0 | 0 | 0 | 0 | -13.93M | 0 | 0 | 0 | 15.98M | 5.31M | 1.96M | 9.13M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | -13.93M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 561.6K | 0 | 0 | 0 | -890.46K | 246.5M | 0 | 170K | -221.35K | -352.78K | 0 | 0 | 5.63M |
| Net Change in Cash | -4.96M | -8.27M | -16.61M | -124.52M | -107.57M | 257.12M | 3.32M | -1.99M | -54.03K | 535.86K | -3.9M | 2.84M | 1.88M |
| Free Cash Flow | -10.7M | -13.38M | -22.21M | -67.21M | -89.14M | -22.23M | -7.95M | -4.85M | -9.93M | -3.86M | -5.51M | -6.82M | -3.75M |
| FCF Margin % | -62.42% | -73.98% | -70.96% | -644.64% | -996.92% | -259.21% | -145.64% | -135.5% | -12.9% | -134.95% | -299.07% | -490.68% | -673.23% |
| FCF Growth % | 42.11% | 39.77% | 66.96% | 24.61% | -300.97% | -179.58% | -64.12% | 51.19% | -157.2% | 29.94% | 19.19% | -81.74% | - |
| FCF per Share | -7.31 | -15.98 | -43.21 | -132.54 | -203.12 | -51.06 | -18.26 | -285010.12 | -999999.00 | - | - | - | - |
| FCF Conversion (FCF/Net Income) | 0.15x | 0.17x | 0.48x | 1.08x | 0.63x | 1.31x | 1.52x | 0.24x | 0.24x | 0.67x | 0.51x | 0.36x | 0.18x |
| Interest Paid | 790 | 0 | 577.44K | 1.47M | 369.41K | 830.84K | 829.17K | 814.78K | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 4.8K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Imminent liquidity and solvency crisis
According to the provided cash flow statements, the company exhibits a persistent inability to convert net income into operating cash, with the OCF/NI ratio fluctuating wildly and reaching as low as 0.02 in 2024Q3, indicating that accounting losses are consistently compounded by actual cash outflows.
The wide variance between net income and operating cash flow suggests that non-cash items and working capital adjustments are not masking a healthy underlying business, but rather reflecting a lack of operational efficiency. Investors should monitor this divergence as it implies that the company's reported losses are likely understated relative to the actual cash required to sustain its current manufacturing footprint.
As reported in financial statements, Cenntro's free cash flow trajectory remains consistently negative, with quarterly outflows frequently exceeding several million dollars, such as the $9.2 million burn observed in 2024Q1, which underscores the company's reliance on external financing to maintain its ongoing operations.
The persistent negative FCF margins suggest that the company has yet to reach a scale where unit economics can cover even basic operating expenses. This trend warrants further investigation into how long the company can continue to fund these deficits before exhausting its remaining cash reserves.
Based on the historical data, working capital changes have periodically drained cash, including a $2.8 million outflow in 2024Q3, suggesting that the company's inventory and receivables management is not providing the necessary cash cushion to offset its significant operating losses.
The erratic nature of these working capital swings may indicate lumpy order fulfillment or potential difficulties in collecting payments from fleet customers. Such volatility in the cash conversion cycle appears to exacerbate the company's already precarious liquidity position.
Analysis of the cash flow statement reveals that stock-based compensation, reaching $870.1K in 2024Q3, serves as a non-cash expense that artificially improves the appearance of operating cash flow while diluting existing shareholders to cover the company's persistent inability to generate organic cash.
By relying on equity-based incentives rather than cash-based compensation, the company may be attempting to preserve its limited cash balance at the expense of long-term shareholder value. This practice warrants further investigation into the sustainability of such compensation structures given the company's current distressed financial state.
Quick answers to the most common questions about buying CENN stock.
Cenntro Electric Group Limited (CENN) generated $-12.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Cenntro Electric Group Limited (CENN) reported negative free cash flow of $13.4M in 2025, indicating capital requirements exceeded cash from operations.
Cenntro Electric Group Limited (CENN) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.