Rivian RIVN
What does Rivian do?
Rivian develops, manufactures and sells electric vehicles. The core business consists of the R1T pickup truck and the R1S SUV, which target private customers and are positioned in the higher price segment. In addition, there are electric delivery vans for commercial fleet customers, especially large logistics and retail companies. The company sells its vehicles mainly directly, without traditional dealerships.
Besides the automotive segment, Rivian operates a software and services segment. This includes vehicle software, subscriptions, maintenance and repair, accessories, financing and insurance, as well as the development of electrical architectures and software. Rivian is also building its own fast-charging stations. In competition, the company faces established automakers with electric models as well as pure electric vehicle makers. Its strengths lie in brand building in the recreation and adventure segment and in a high degree of manufacturing and software integration. As a young manufacturer, however, it has smaller economies of scale than larger competitors.
Score profile
Rank vs. Auto Manufacturers (10 companies). 10 = top of the group, 5 = middle. Calculated from the metrics below, without AI.
Metrics compared with the industry
On profitability and quality, Rivian ranks in the bottom fifth in the group Auto Manufacturers (1.5/10). On growth, the company ranks above average in the group Auto Manufacturers (6.3/10). On valuation (higher = cheaper), the stock ranks in the bottom fifth in the group Auto Manufacturers (0.6/10). On financial strength, Rivian ranks in the middle in the group Auto Manufacturers (5.9/10).
| Metric | Stock | Group median | Ranking |
|---|---|---|---|
| Forward P/E | -7.8x | 6.7x | better than 0 % |
| EV/EBITDA | -8.0x | 9.6x | better than 0 % |
| Price/sales | 3.1x | 0.3x | better than 17 % |
| Price/book | 3.5x | 1.3x | better than 35 % |
| Revenue growth | 38.3% | -0.1% | better than 75 % |
| Earnings growth | 0.0% | 0.0% | better than 50 % |
| Gross margin | 9.2% | 11.8% | better than 35 % |
| Operating margin | -40.9% | 3.1% | better than 6 % |
| Net margin | -45.9% | 0.3% | better than 15 % |
| Return on equity | -54.9% | 0.3% | better than 5 % |
| Debt/equity | 95.0% | 131.9% | better than 75 % |
| Current ratio | 2.2x | 1.2x | better than 85 % |
| Free cash flow yield | -11.0% | 0.0% | better than 17 % |
| Dividend yield | 0.0% | 6.8% | – |
| Payout ratio | 0.0% | 61.4% | – |
| Beta | 1.64 | 0.96 | – |
Valuation: what is Rivian worth?
For Rivian the data currently does not allow a reliable model range (e.g. negative free cash flow or missing comparables). In this case the Pro analysis assesses the valuation qualitatively.
25 analysts, average rating “Buy”, average price target 18.08 USD (+32.0%).
The full DCF matrix, the reverse DCF (what growth the price implies) and scenarios are part of the Pro analysis.
What the business depends on
- Revenue depends on production and delivery of the R1T and R1S models as well as the commercial delivery vans.
- Earnings are determined by economies of scale, material costs and manufacturing efficiency.
- Recurring revenue from software, services and maintenance can structurally reduce dependence on vehicle sales.
Risks
- High investment and ongoing capital needs can strain financing and mean dilution for shareholders.
- Demand for electric vehicles is sensitive to interest rates, the economy, government incentives and regulatory changes.
- Intense price competition as well as production disruptions or supply chain problems can affect margin and deliveries.
What to look for with Rivian
Gross margin is particularly informative because it shows whether Rivian is actually achieving economies of scale and cost control per vehicle and in the services business.