Blink Charging Co. (BLNK) is a Hollywood, Fla.-based provider of electric vehicle (EV) charging equipment and networked EV charging services in the United States. The company’s EV charging network is a proprietary cloud-based software that operates, maintains, and tracks all of Blink’s EV charging stations and associated charging data.
The accelerating adoption of electric vehicles represents an enormous opportunity for EV infrastructure providers as drivers increasingly seek fast, convenient, and reliable charging options. Furthermore, as governments around the world are increasingly adopting green policies, demand for electric vehicles and, by extension, the demand for charging infrastructure will likely be bolstered.
BLNK’s momentum continued during the third quarter of 2020 despite pandemic disruptions. The stock gained 2198.4% last year. This impressive performance combined with several other factors has helped BLNK earn a “Buy” rating in our proprietary rating system.
Here is how our proprietary POWR Ratings system evaluates BLNK:
Trade Grade: A
BLNK is currently trading above its 50-day and 200-day moving averages of $30.19 and $13.17, respectively, indicating that the stock is in an uptrend. In fact, the stock’s 284.8% gains over the past three months reflect solid short-term bullishness.
BLNK’s total revenues increased 18.4% year-over-year to $0.91 million in the third quarter ended September 30. Its product sales grew 74% year-over-year to $0.60 million over the same period. The company’s owned chargers deployed increased 87% year-over-year.
On December 10, BLNK introduced an innovative pole mounting kit for its IQ 200 EV charging stations. This further widens the company’s portfolio of products and should enable it to substantially increase the number of locations that can deploy EV chargers.
BLNK entered into an exclusive seven-year agreement with Lehigh Valley Health Network (LVHN) in December to own and operate charging stations across the health network’s extensive portfolio of locations. This will allow BLNK to attract a large volume of customers by deploying EV chargers across hundreds of health care facilities, including hospitals, health centers, physician practices and other outpatient care locations.
In late December, BLNK entered into a reseller agreement with Lion Electric Company, a manufacturer of all-electric buses and trucks. Lion Electric will offer BLNK’s full line of charging stations to the school systems and bus fleets that utilize the company’s all-electric school buses. This will allow BLNK to target Lion’s customer base.
Buy & Hold Grade: C
In terms of proximity to its 52-week high, which is a key factor that our Buy & Hold Grade considers. BLNK’s positioning is not favorable. The stock is currently trading 23.8% below its 52-week high of $56.12.
The company’s net revenue has grown at a CAGR of 19.8% over the past three years due to its strategic relationships and long-term agreements with hundreds of property partners. However, its return on equity has been relatively low over the years due to intense market competition.
Peer Grade: B
BLNK is currently ranked #10 of 37 stocks in the Specialty Retailers Industry. Other popular stocks in this industry are Five Below, Inc. (FIVE), Office Depot, Inc. (ODP) and Collectors Universe, Inc. (CLCT).
FIVE, ODP and CLCT gained 36.9%, 6.9% and 227.1%, respectively, over the past year. This compares to BLNK’s 2,198.4% returns over this period.
Industry Rank: D
The Specialty Retailers Industry is ranked #110 of the 123 StockNews.com industries. The companies in this industry are focused on providing a variety of goods including office supplies, video games, books, health supplements, beauty supplies, and more.
The coronavirus pandemic-induced lockdown brought economic activities to a stand-still severely impacting several industry participants. While the prospects look bright for EV infrastructure providers and companies offering video games, other segments of the industry might continue to struggle with remote lifestyles gaining more prominence.
Overall POWR Rating: B (Buy)
BLNK is rated “Buy” due to its impressive past performance and short-term bullishness, as determined by the four components of our overall POWR Rating.
Despite soaring close to 2,200% last year, BLNK has the potential to grow further based on its continued business growth, favorable earnings and revenue outlook and price momentum.
Analyst sentiment, which gives a good sense of a stock’s future price movement, is good for BLNK. The average broker rating of 1.75 indicates favorable analyst sentiment. Analysts expect BLNK’s revenues to rise 113.7% year-over-year to $1.50 million in the fourth quarter ended December 30, 2020. The consensus EPS estimate for the next year (ending December 31, 2021) represents a 15.2% rise from the year-ago value. This outlook should keep BLNK’s price momentum alive in the near term.
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BLNK shares were trading at $37.50 per share on Monday afternoon, down $5.25 (-12.28%). Year-to-date, BLNK has declined -12.28%, versus a -1.36% rise in the benchmark S&P 500 index during the same period.
About the Author: Rishab Dugar
Rishab is a financial journalist and investment analyst. His investment approach is to focus on quality stocks, trading at low prices, with business models that he readily understands. More...
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