EHang Holdings (NASDAQ:EH) rallies 14% this week, taking three-year gains to 157%

Yahoo

07-05-2025

It might seem bad, but the worst that can happen when you buy a stock (without leverage) is that its share price goes to zero. But when you pick a company that is really flourishing, you can make more than 100%. For instance the EHang Holdings Limited (NASDAQ:EH) share price is 157% higher than it was three years ago. That sort of return is as solid as granite. We note the stock price is up 14% in the last seven days.
After a strong gain in the past week, it's worth seeing if longer term returns have been driven by improving fundamentals.
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Given that EHang Holdings didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. When a company doesn't make profits, we'd generally hope to see good revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
In the last 3 years EHang Holdings saw its revenue grow at 87% per year. That's well above most pre-profit companies. Along the way, the share price gained 37% per year, a solid pop by our standards. But it does seem like the market is paying attention to strong revenue growth. That's not to say we think the share price is too high. In fact, it might be worth keeping an eye on this one.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
NasdaqGM:EH Earnings and Revenue Growth May 7th 2025
EHang Holdings is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. You can see what analysts are predicting for EHang Holdings in this interactive graph of future profit estimates.
A Different Perspective
EHang Holdings shareholders are up 3.9% for the year. Unfortunately this falls short of the market return. It's probably a good sign that the company has an even better long term track record, having provided shareholders with an annual TSR of 10% over five years. It may well be that this is a business worth popping on the watching, given the continuing positive reception, over time, from the market. It's always interesting to track share price performance over the longer term. But to understand EHang Holdings better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for EHang Holdings you should be aware of.