Boston, MA 03/03/2014 (wallstreetpr) – The demand in electric cars has been a source of good news for several companies like Maxwell Technologies Inc. (NASDAQ:MXWL). The demand for electric cars is expected to provide for a secondary demand boost for the company’s products like the ultracapacitors.
The Electric Car Demand:
Maxwell Technologies Inc. (NASDAQ:MXWL) develops and manufactures power delivery products and energy storage used in various segments. Some of its products are also used in spacecrafts and satellites. However, the current buzz is about its ultracapacitors. Electric cars suffer from one big disadvantage. They have a limited range and need to be charged often. The charging time is also very long unlike the gasoline powered cars. Ultracapacitors are very handy in charging the batteries in a fraction of time.
Electric vehicles have seen an upsurge in demand. Countries are tightening pollution standards for gasoline powered vehicles and the prices of gasoline also vary. The recent crisis in Ukraine will ensure that they remain high till the situation becomes normal. Prices of electric cars have decreased on account of better economies of scale. The global production is expected to cross 400,000 units, up from 242,000 achieved in 2013. Even Tesla Motors Inc (NASDAQ:TSLA) has seen a substantial jump in demand and is now planning to launch in China.
The Secondary Demand:
Tesla is in fact planning on a mega factory for manufacturing batteries. Though the production is expected only by 2017, the news has send stocks of several companies sky rocketing. The stocks of Maxwell Technologies Inc. (NASDAQ:MXWL) have also risen on rumors that Tesla is also considering the use of ultracapacitors. Apart from this, the company is also doing well financially. Maxwell has gross profit margins of more than 46% and net profit margin of around 12%. These figures compare favorably with the industry average. Revenues have also growth consistently. Revenues increased by almost 20% in the last quarter on y-on-y basis. The company has a very debt-to-equity ratio of 0.06 as well as a quick ratio of 1.41.
These factors indicate that Maxwell Technologies Inc. (NASDAQ:MXWL) will give good returns over the long term.
