Copyright Forbes
Rivian Automotive (RIVN) shares have increased by 23% over the last day and are currently priced at $15.42. The gains come after Rivian’s better than expected Q3 2025 results. Revenue grew 78% from last year to $1.56 billion, while gross profit turned positive, coming in at $24 million, ending two consecutive quarters of gross losses. The company also confirmed that it would launch its cheaper R2 SUV during the first half of 2026, a move which could further drive revenue growth. Overall, we think there are just a few concerns regarding RIVN stock considering its overall Moderate operational performance and financial state. This aligns with the stock’s Moderate valuation, which leads us to believe it is Fairly Priced. Below is our evaluation: Equities are just one aspect of our approach. Is a portfolio composed of 10% commodities, 10% gold, and 2% cryptocurrency alongside equities and bonds likely to provide better returns and enhanced protection? We have analyzed the data. Let’s delve into the details of each of the assessed factors, but first, for a quick background: With a $19 Bil market capitalization, Rivian Automotive specializes in electric pickup trucks, SUVs, and commercial delivery vans, focusing on vehicle design, development, manufacturing, and sales, highlighted by significant collaborations on delivery vans. MORE FOR YOU [1] Valuation Appears Moderate This table illustrates how RIVN is valued compared to the broader market. For more details see: RIVN Valuation Ratios [2] Growth Is Extremely Strong Rivian Automotive’s revenue has grown at an average rate of 103.0% over the last 3 years Its revenues have increased by 28% from $4.6 Bil to $5.8 Bil in the past 12 months Additionally, its quarterly revenues grew by 78.3% to $1.6 Bil in the most recent quarter from $874 Mil a year prior. [3] Profitability Seems Very Weak RIVN’s operating income for the last 12 months was $-3.4 Bil, reflecting an operating margin of -58.5% With a cash flow margin of 18.6%, it generated approximately $1.1 Bil in operating cash flow during this time For the same duration, RIVN’s net income was nearly $-3.6 Bil, indicating a net margin of around -61.3% [4] Financial Stability Seems Very Strong RIVN’s debt stood at $6.5 Bil at the end of the latest quarter, while its current market cap is $19 Bil. This results in a debt-to-equity ratio of 34.9% RIVN’s cash (including cash equivalents) constitutes $7.1 Bil of $15 Bil in total assets. This gives a cash-to-assets ratio of 46.6% [5] Downturn Resilience Is Extremely Weak RIVN has had significantly poorer performance than the S&P 500 index during various economic recessions. We evaluate this by examining both (a) the extent of the stock’s decline and (b) the speed of its recovery. 2022 Inflation Shock RIVN stock plummeted 93.0% from a peak of $172.01 on 16 November 2021 to $12.00 on 25 April 2023, compared to a drop of 25.4% for the S&P 500. The stock still has not returned to its pre-crisis peak The highest price the stock has reached since is $27.64 on 31 July 2023, and it is currently valued at $15.42 However, the risk is not exclusive to significant market crashes. Stocks can decline even when markets are performing well - consider situations such as earnings reports, business updates, and shifts in outlook. Read RIVN Dip Buyer Analyses to understand how the stock has bounced back from abrupt declines in the past.
