(ECDA) ECD Automotive Design - Ratings and Ratios

ECD Automotive Design, Inc. specializes in the production and sale of customized Land Rover vehicles, primarily focusing on classic models such as the Land Rover Defender, Series IIA and III, Range Rover Classic, and Jaguar E-Types. The company offers restoration, repair, and upgrade services, as well as extended warranties. Established in 2013, ECD Automotive Design operates from its headquarters in Kissimmee, Florida, and has built a reputation for delivering high-quality, bespoke vehicles to enthusiasts and collectors. The companys expertise lies in blending classic designs with modern engineering and customization options, catering to a niche market of automotive enthusiasts.

From a financial perspective, ECD Automotive Design Inc. (NASDAQ: ECDA) is classified under the Automobile Manufacturers sub-industry. The stock currently trades at $0.69, with a market capitalization of $30.52 million. The companys price-to-sales (P/S) ratio stands at 1.19, indicating moderate valuation relative to its revenue. The return on equity (RoE) is 31.34%, suggesting strong profitability from shareholders equity. However, the trailing P/E ratio is 0.00, likely due to net losses, while the forward P/E ratio of 90.09 reflects high expectations for future earnings growth.

Technically, ECDAs stock exhibits a declining trend, with its 20-day SMA at $0.84, 50-day SMA at $0.89, and 200-day SMA at $1.03, all above the current price of $0.69. This indicates bearish momentum. The Average True Range (ATR) of $0.09 signals low volatility, suggesting limited price fluctuations in the near term. The average 20-day trading volume is 26,355 shares, indicating moderate liquidity.

3-Month Forecast: Based on the technical and fundamental data, ECDAs stock is expected to remain under pressure in the near term due to the bearish SMA crossover and declining trend. The low ATR suggests volatility will remain muted, with potential sideways trading between $0.60 and $0.80. Fundamentally, the high forward P/E ratio of 90.09 implies significant growth expectations, but the company must demonstrate improved profitability and revenue growth to justify this valuation. If the company can execute on its growth strategy and enhance its financial performance, the stock may rebound toward the 50-day SMA of $0.89. However, failure to meet these expectations could lead to further downside, testing the $0.60 support level.