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Worksport Ltd (WKSP) Stock Fundamental Analysis & AI Rating 2026

WKSP Nasdaq Motor Vehicle Parts & Accessories NV CIK: 0001096275
Recently Updated • Analysis: Apr 19, 2026 • SEC Data: 2025-12-31
STRONG SELL
92% Conf
Pending
Analysis scheduled

📊 WKSP Key Takeaways

Revenue: $16.1M
Net Margin: -120.2%
Free Cash Flow: $-18.1M
Current Ratio: 2.50x
Debt/Equity: 0.12x
EPS: $-3.16
AI Rating: STRONG SELL with 92% confidence
Worksport Ltd (WKSP) receives a STRONG SELL rating with 92% confidence from our AI fundamental analysis based on SEC 10-K filings. With revenue of $16.1M, net profit margin of -120.2%, and return on equity (ROE) of -84.6%, Worksport Ltd demonstrates mixed fundamentals in the Automotive sector. Below is our complete WKSP stock analysis for 2026.

Is Worksport Ltd (WKSP) a Good Investment?

Claude

Worksport faces severe operational distress with flat revenue growth (-0.0% YoY) combined with catastrophic operating losses (-$18.8M) and unsustainable negative free cash flow (-$18.1M annually). With only $5.9M in cash against $18.1M annual burn, the company has approximately 4 months of runway and faces going-concern risk without immediate capital injection or dramatic operational restructuring.

Why Buy Worksport Ltd Stock? WKSP Key Strengths

Claude
  • + Gross margins of 27.8% demonstrate viable product-level economics and pricing power
  • + Low leverage (0.12x debt/equity) provides flexibility for potential restructuring or capital raise
  • + Positive stockholders equity of $22.9M indicates company is not technically insolvent

WKSP Stock Risks: Worksport Ltd Investment Risks

Claude
  • ! Critical cash burn of -$18.1M annually exhausts $5.9M cash balance in <4 months without capital infusion
  • ! Flat revenue growth combined with mounting losses indicates fundamental product-market or execution problems
  • ! Operating margin of -116.8% reveals broken cost structure with operating expenses exceeding revenue by 118%
  • ! Negative returns (ROE -84.6%, ROA -63.0%) signal ongoing shareholder value destruction
  • ! Imminent going-concern risk if operational turnaround or financing does not materialize within 2-3 quarters

Key Metrics to Watch

Claude
  • * Monthly cash burn rate and remaining cash runway to insolvency
  • * Quarterly revenue growth and customer retention metrics
  • * Operating expense reduction progress and path to positive operating cash flow

Worksport Ltd (WKSP) Financial Metrics & Key Ratios

Revenue
$16.1M
Net Income
$-19.4M
EPS (Diluted)
$-3.16
Free Cash Flow
$-18.1M
Total Assets
$30.7M
Cash Position
$5.9M

💡 AI Analyst Insight

Strong liquidity with a 2.50x current ratio provides a solid financial cushion.

WKSP Profit Margin, ROE & Profitability Analysis

Gross Margin 27.8%
Operating Margin -116.8%
Net Margin -120.2%
ROE -84.6%
ROA -63.0%
FCF Margin -112.4%

WKSP vs Automotive Sector: How Worksport Ltd Compares

How Worksport Ltd compares to Automotive sector averages

Net Margin
WKSP -120.2%
vs
Sector Avg 6.0%
WKSP Sector
ROE
WKSP -84.6%
vs
Sector Avg 12.0%
WKSP Sector
Current Ratio
WKSP 2.5x
vs
Sector Avg 1.2x
WKSP Sector
Debt/Equity
WKSP 0.1x
vs
Sector Avg 1.0x
WKSP Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Worksport Ltd Stock Overvalued? WKSP Valuation Analysis 2026

Based on fundamental analysis, Worksport Ltd has mixed fundamental signals relative to the Automotive sector in 2026.

Return on Equity
-84.6%
Sector avg: 12%
Net Profit Margin
-120.2%
Sector avg: 6%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.12x
Sector avg: 1x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Worksport Ltd Balance Sheet: WKSP Debt, Cash & Liquidity

Current Ratio
2.50x
Quick Ratio
1.08x
Debt/Equity
0.12x
Debt/Assets
25.5%
Interest Coverage
-152.21x
Long-term Debt
$2.7M

WKSP Revenue & Earnings Growth: 5-Year Financial Trend

WKSP 5-year financial data: Year 2021: Revenue $346.1K, Net Income -$1.2M, EPS N/A. Year 2022: Revenue $303.8K, Net Income -$7.9M, EPS $-0.69. Year 2023: Revenue $1.5M, Net Income -$12.5M, EPS $-0.73. Year 2024: Revenue $8.5M, Net Income -$14.9M, EPS $-8.44. Year 2025: Revenue $16.1M, Net Income N/A, EPS $-5.84.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Worksport Ltd's revenue has grown significantly by 4,552% over the 5-year period, indicating strong business expansion. The most recent EPS of $-5.84 indicates the company is currently unprofitable.

WKSP Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-112.4%
Free cash flow / Revenue

WKSP Quarterly Earnings & Performance

Quarterly financial performance data for Worksport Ltd including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $3.1M -$4.1M $-0.75
Q2 2025 $1.9M -$3.7M $-0.71
Q1 2025 $512.6K -$3.7M $-1.05
Q3 2024 $458.5K -$3.9M $-0.14
Q2 2024 $199.9K -$3.8M $-0.15
Q1 2024 $31.9K -$3.5M $-0.18
Q3 2023 $18.4K -$2.9M $-0.17
Q2 2023 $11.3K -$3.4M $-0.20

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Worksport Ltd Dividends, Buybacks & Capital Allocation

Operating Cash Flow
-$17.3M
Cash generated from operations
Capital Expenditures
$789.5K
Investment in assets
Dividends
None
No dividend program

WKSP SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Worksport Ltd (CIK: 0001096275)

📋 Recent SEC Filings

Date Form Document Action
Apr 14, 2026 4 xslF345X06/ownership.xml View →
Apr 14, 2026 8-K form8-k.htm View →
Mar 26, 2026 8-K form8-k.htm View →
Mar 26, 2026 10-K form10-k.htm View →
Mar 19, 2026 8-K form8-k.htm View →

Frequently Asked Questions about WKSP

What is the AI rating for WKSP?

Worksport Ltd (WKSP) has an AI rating of STRONG SELL with 92% confidence, based on fundamental analysis of SEC EDGAR filings.

What are WKSP's key strengths?

Claude: Gross margins of 27.8% demonstrate viable product-level economics and pricing power. Low leverage (0.12x debt/equity) provides flexibility for potential restructuring or capital raise.

What are the risks of investing in WKSP?

Claude: Critical cash burn of -$18.1M annually exhausts $5.9M cash balance in <4 months without capital infusion. Flat revenue growth combined with mounting losses indicates fundamental product-market or execution problems.

What is WKSP's revenue and growth?

Worksport Ltd reported revenue of $16.1M.

Does WKSP pay dividends?

Worksport Ltd does not currently pay dividends.

Where can I find WKSP SEC filings?

Official SEC filings for Worksport Ltd (CIK: 0001096275) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is WKSP's EPS?

Worksport Ltd has a diluted EPS of $-3.16.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.

Is WKSP a good stock to buy right now?

Based on our AI fundamental analysis in April 2026, Worksport Ltd has a STRONG SELL rating with 92% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.

Is WKSP stock overvalued or undervalued?

Valuation metrics for WKSP: ROE of -84.6% (sector avg: 12%), net margin of -120.2% (sector avg: 6%). Compare these metrics with sector averages to assess valuation.

Should I buy WKSP stock in 2026?

Our dual AI analysis gives Worksport Ltd a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is WKSP's free cash flow?

Worksport Ltd's operating cash flow is $-17.3M, with capital expenditures of $789.5K. FCF margin is -112.4%.

How does WKSP compare to other Automotive stocks?

Vs Automotive sector averages: Net margin -120.2% (avg: 6%), ROE -84.6% (avg: 12%), current ratio 2.50 (avg: 1.2).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Apr 19, 2026 | Data as of: 2025-12-31 | Powered by Claude AI