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As part of our ongoing series at The Acquirer’s Multiple, each week we spotlight a stock from our Stock Screeners that might be a deeply undervalued gem hiding in plain sight. This week’s spotlight is Greenland Technologies Holding Corp (GTEC).

Greenland Technologies designs, develops, and manufactures drivetrain systems and electric industrial vehicles. Headquartered in Maryland, the company operates primarily through its Electric Industrial Vehicle and Transmission System segments. While small-cap manufacturing businesses are often overlooked by institutional investors, GTEC’s transition toward clean energy equipment and EV-based heavy machinery positions it within a niche but growing segment of the industrial economy.

What is IV/P (Intrinsic Value to Price)?

IV/P tells you whether a stock offers more intrinsic value than the price you are paying for it. The calculation blends earnings power, reinvestment efficiency, and capital return policy to estimate intrinsic value — a conservative measure of what the business is worth.

The interpretation is straightforward:

• IV/P above 1 suggests undervaluation.
• IV/P below 1 suggests overvaluation.
• The further above 1, the more value you may be getting per dollar invested.

GTEC’s IV/P is 5.30, meaning its intrinsic value is estimated to be more than five times higher than its current market price — an extraordinary signal of potential mispricing and deep undervaluation.

Supporting Metrics

• Market Cap: ~$21M
• Enterprise Value (EV): ~$15M
• Free Cash Flow (TTM): ~$10M
• Free Cash Flow Yield: ~47%
• Acquirer’s Multiple: 1.67

With an EV/FCF ratio around 1.5x, GTEC trades at levels that imply the market is pricing in virtually no long-term growth. This is exceptionally cheap for a business generating positive cash flow and operating profit.

Revenue & Profitability

• Revenue (TTM): ~$81.6M
• Operating Income (TTM): ~$10.0M
• Operating Margin: ~12.3%
• Net Income (TTM): ~$7.7M
• Net Margin: ~9.4%
• Diluted EPS (TTM): ~$0.55

Profitability has rebounded from prior-year losses, supported by stronger EV drivetrain sales and improved gross margins. For a company trading near book value, these margins demonstrate operational leverage and underlying earnings power.

Balance Sheet Strength

• Total Assets (2024): ~$115.6M
• Cash & Equivalents: ~$25.2M
• Total Debt: ~$21.4M
• Shareholder Equity: ~$53.3M
• Net Debt: ~$13.0M
• Working Capital: ~$35.2M

GTEC maintains a solid balance sheet for its size, with positive net working capital and modest leverage. Liquidity remains strong, providing flexibility to fund future growth initiatives in electric construction and logistics vehicles.

Capital Returns

• Buyback Yield (TTM): 0%
• Dividend Yield (TTM): ~29% (based on $6.1M dividends on ~$21M market cap)
• Capital Expenditure (TTM): ~$2.3M

GTEC distributed approximately $6.1 million in dividends over the past year — an unusually high payout for a company of its size. Despite this, it continues to generate positive free cash flow, reflecting strong underlying cash generation even as it rewards shareholders.

Why Might GTEC Be Undervalued?

Micro-cap industrial stocks are often ignored due to limited analyst coverage and low liquidity. Yet, GTEC’s profitability, positive free cash flow, and expansion into electric drivetrain technologies offer the type of asymmetric setup value investors seek. Its IV/P ratio of 5.30 and Acquirer’s Multiple of 1.67 suggest that the stock is trading far below its intrinsic value, providing substantial potential upside if sentiment improves.

Conclusion

With an IV/P of 5.30, an Acquirer’s Multiple of 1.67, and a free cash flow yield approaching 50%, Greenland Technologies (GTEC) stands out as a rare deep value opportunity in the micro-cap industrial space. The company’s pivot toward electric industrial vehicles provides long-term growth optionality, while its solid balance sheet, recent dividend distributions, and improving margins create a compelling risk-reward setup for patient value investors.

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