Core Insights - Microvast Holdings (MVST) shares have surged 2655.9% over the past year, significantly outperforming its industry growth of 26.1% and the Zacks S&P 500 Composite's 15.9% increase [1][4] - Recent performance indicates a correction phase, with MVST shares declining 4.9% in the past month, while competitors Miami International Holdings, Inc. and Coherent Corp. gained 13.5% and 44.8%, respectively [4][5] Company Performance - The company's 5-layer all-solid-state battery (ASSB) technology has demonstrated over 404 charge or discharge cycles at 1C, showcasing high coulombic efficiency and stable capacity retention [6] - The Huzhou Phase 3.2 expansion is expected to add 2 GWh of annual production capacity by Q1 2026, bridging the gap between high-performing prototypes and mass-market products [9][10] - Microvast's revenues for Q3 2025 showed a year-over-year growth of 21.6%, with gross margins improving by 440 basis points, supporting management's revenue growth target of 18-25% for 2025 [10] Valuation Metrics - MVST is currently priced at 18 times forward 12-month EPS, below the industry average of 25.7 times, and has a trailing 12-month EV-to-EBITDA ratio of 7.6, significantly lower than the industry average of 16.1 [11] - The Zacks Consensus Estimate for 2025 revenues is $462.3 million, indicating a 21.7% year-over-year growth, with EPS estimates suggesting a 170.4% increase [14] Profitability and Returns - Microvast reported a return on equity (ROE) of 12.2%, below the industry average of 16%, and a return on invested capital (ROIC) of 6.6%, lower than the industry's 8% [15][17] - The lack of dividends and lower capital returns may deter certain investors, particularly those seeking income from dividends [19][21]