Erayak Power Solution Group Inc. (RAYA) AI Stock Analysis
RAYA AI stock analysis summary
AI ResearchErayak Power Solution Group Inc. (RAYA) manufactures and distributes power solutions including inverters, generators, and chargers. The company generated $26.3M in trailing twelve-month revenue but posted a net margin of -6.2%. With its stock down 97.4% over the past year, the company holds a market capitalization of $1.5M.
- Market cap
- $1.5M
- Revenue (TTM)
- $26.3M
- P/E
- — fwd 2.5x
- 1Y return
- -97.4% S&P 500 16.8%
- Avg. target
- —
Bull case
- Quarterly revenue demonstrated positive momentum, rising 39.2% year-over-year in the quarter ended March 31, 2026.
- The company maintains solid short-term liquidity, evidenced by a current ratio of 2.09 as of March 31, 2026.
- Shares trade at a low forward P/E of 2.5x compared to the US-listed Industrials peer median of 17.2x.
Bear case
- The stock has dropped 97.4% over the past year, trading at $1.39 compared to its 52-week high of $61.50.
- The business generated negative free cash flow of -$11.0M in FY2025 and -$16.4M in FY2024.
- Profitability remains negative, reflected in a trailing twelve-month net profit margin of -6.2% and ROE of -4.7%.
What Erayak Power Solution does
Erayak Power Solution Group Inc., along with its subsidiaries, specializes in the research, development, manufacturing, wholesale, and retail distribution of diverse power solution products. Its portfolio includes sine wave inverters, off-grid inverters, gasoline generators, battery chargers, smart chargers, and custom-designed power solutions. These products serve agricultural and industrial vehicles, recreational vehicles, household electrical appliances, and outdoor living products. Founded in 2009 and headquartered in Wenzhou, China, the company operates across international markets including the People's Republic of China, France, Poland, Mexico, and the United Kingdom, functioning under the umbrella of Erayak International Limited.
Growth and profitability
Erayak experienced uneven top-line performance over five fiscal years, posting a 5-year revenue CAGR of 10.1% from FY2020 to FY2025. Annual revenue grew 49.1% to $30.3M in FY2024 before dropping 24.6% to $22.9M in FY2025. Operating margins contracted from 18.7% in FY2021 to -6.4% in FY2025, while net income shifted from $3.4M to -$1.4M over the same period. For the trailing twelve months ended March 31, 2026, revenue stood at $26.3M with an operating margin of -8.0% and an EPS of -$252.02. In the latest quarter, revenue grew 39.2% year-over-year, while earnings declined 55.2%.
Balance sheet and cash flow
As of March 31, 2026, Erayak held $4.7M in cash and short-term investments alongside $12.5M in total debt, resulting in net debt of $7.8M. Shareholders' equity was $35.3M against total assets of $59.4M, yielding a debt-to-equity ratio of 0.35 and a current ratio of 2.09. Cash flow has remained constrained, with operating cash flow at -$3.2M and free cash flow at -$11.0M in FY2025. Capital expenditures for FY2025 were $7.8M, while R&D expenses totaled $1.6M.
Valuation and performance
Erayak trades at a price-to-sales multiple of 0.1x and a forward P/E of 2.5x, well below the median of its US-listed Industrials peers of 1.5x and 17.2x, respectively. Its enterprise value of $9.8M reflects an EV/EBITDA of 40.0x, above the peer median of 13.9x. The stock closed at $1.39 on October 16, 2026, down 97.4% over the prior year and 79.4% below its 200-day average. In contrast, the S&P 500 (SPY) gained 16.8% over the same 1-year period.
What analysts expect
Wall Street analyst tracking for Erayak Power Solution Group Inc. remains minimal. The company recorded 1 EPS beat over the last 4 quarters. No consensus ratings or price targets are currently published.
Key risks and what to watch
- Net debt stood at $7.8M as of March 31, 2026, presenting refinancing risk given persistent operating cash flow deficits.
- Gross margins compressed from 30.4% in FY2021 to 21.3% in FY2025, pressuring overall operational profitability.
- Total revenue fell 24.6% in FY2025 to $22.9M, highlighting volatile annual customer demand across global markets.
- Institutional ownership sits at just 1.0%, indicating low institutional market participation.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this RAYA AI stock analysis
This page is an AI-written research summary of Erayak Power Solution Group Inc. (RAYA). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: RAYA income statement, RAYA balance sheet, RAYA key metrics, RAYA chart. See the RAYA stock overview for the latest quote and news.
RAYA AI stock analysis FAQ
What products does Erayak Power Solution Group Inc. manufacture?
The company develops and manufactures sine wave inverters, off-grid inverters, gasoline generators, battery chargers, smart chargers, and custom power solutions for industrial, agricultural, and recreational uses.
Does Erayak pay a dividend?
No, Erayak Power Solution Group Inc. does not currently pay a dividend.
What is Erayak's debt situation?
As of March 31, 2026, Erayak reported $12.5M in total debt and $4.7M in cash and short-term investments, resulting in net debt of $7.8M and a debt-to-equity ratio of 0.35.
How has RAYA stock performed relative to the broad market?
Over the past year, RAYA shares declined 97.4%, while the S&P 500 (SPY) advanced 16.8%.