In line with his long-term development plans for sustainable energy usage, President Biden has pledged to build 500,000 new electric plug-in-and-charge stations over the next decade to cut automobile greenhouse gas emissions.
Under his $2 trillion package devised for infrastructure and economic recovery, the EV market is projected to receive approximately $174 billion, which will doubtless attract many startups to build quick and efficient charging stations. The global electric vehicle charging station market, which was valued at $5.03 billion in 2020, is expected to grow at CAGR of 44.4% over the next five years to hit $36.87 billion by 2026.
Chargepoint Holdings Inc. (CHPT)
Founded in 2007, CHPT develops and markets networked electric vehicle (EV) charging system infrastructure and cloud-based services. It provides an open platform that integrates with system hardware from companies and other manufacturers, connecting systems over an intelligent network that provides real-time information about EV charging sessions. CHPT’s ChargePoint-as-a-Service (CPaaS) program combines customers’ use of its owned and operated systems with cloud services.
Yesterday, CHPT and NATSO announced significant progress in the first year of the National Highway Charging Collaborative. In its first year, the public-private collaborative successfully funded more than 150 DC fast charging spots with additional access to more than 1,500 publicly available DC fast charging spots for consumers on CHPT’s existing network.
The company also partnered with Polestar Cars on March 9 to streamline mutual efforts to enable a seamless ownership experience for drivers of EVs. It also debuted an embedded charging app for the Polestar 2 electric fastback. Also on March 9, CHPT and AB Volvo (VLVLY) also extended their partnership by launching an in-car ChargePoint charging app for Recharge Models.
CHPT’s revenue from the subscriptions segment has increased 39.4% year-over-year to $10.97 million for the fiscal 2021 fourth quarter ended January 31, 2021. The company’s non-GAAP gross profit has increased 3.3% year-over-year to $9.14 million. Its cash and cash equivalents were $145.49 million, up nearly 100% year-over-year, and its total assets have increased 23.9% year-over-year to $290.12 million.
Analysts expect the company’s revenue and EPS to increase 39.9% and 95%, respectively. in fiscal 2022. Also, CHPT has gained nearly 44% over the past six months and closed yesterday’s trading session at $22.46.
Wall Street analysts expect the stock to hit $39.00 in the near term, which indicates a potential upside of 73.6%. Of four Wall Street analysts that have rated the stock, three rated it a Buy.
Blink Charging Co. (BLNK)
BLNK is an owner, operator and provider of EV charging equipment and networked EV charging services. It offers residential and commercial EV charging equipment. The company’s main line of products and services include Blink EV charging network, EV charging equipment and EV related services. BLNK offers its services through field sales force and reseller partners; it also sells home unit chargers through various internet channels.
This month BLNK was named as a grant awardee from the Ohio Environmental Protection Agency’s Diesel Mitigation Trust Fund to place 144 of its 1Q 200 fast charging stations at 32 sites across the state. In February, BLNK received a follow-on order from the InterEnergy Group for 150 fast-charging stations, including 100 Blink IQ 200 units and 50 DCFC units, which are to be deployed across the Dominican Republic.
It also announced a collaboration with the State of Vermont in February. It will deploy 11 new DC fast chargers across the state over the next two years. Furthermore, BLNK entered a U.S. reseller agreement with Ingram Micro Inc. this year to sell its HQ 100 Residential EV charging station to Ingram Micro.
For the fourth quarter ended December 31, BLNK’s total revenues increased 249.7% year-over-year to $2.45 million. While its revenue from product sales increased 1101.7% year-over-year, its revenue from network fees increased 66.5% year-over-year. Moreover, its gross profit was $427,073 for the fourth quarter compared to a gross loss of $97,338 in the fourth quarter of 2019.
Analysts expect BLNK’s revenue to be $1.67 million for the current quarter, ending March 31, representing a 40.3% rise year-over-year. Its EPS is expected to grow 47.6% in fiscal 2022.
BLNK has gained more than 2001% over the past year and closed yesterday’s trading session at $36.98. Wall Street analysts expect the stock to hit $48.00 in the near term, which indicates a potential upside of 29.8%. Two of three Wall Street analysts that have rated the stock, rated it a Buy.
Beam Global (BEEM)
Headquartered in San Diego, Calif., BEEM invents, designs and manufactures solar products and technology solutions. It is focused on various verticals, including EV charging infrastructure, out of home advertising infrastructure, and energy security and disaster preparedness. The company’s product lines include the Electric Vehicle Autonomous Renewable Charger product (EV ARC) and Solar Tree product.
This month, BEEM announced that the City of Olathe, Kansas had deployed six of its EV ARC solar-powered EV charging systems. The EV ARCs are expected to be placed at popular public locations in Olathe to provide free EV charging to residents, travelers and city fleet vehicles.
BEEM also announced this month that Auburn University in Alabama has deployed Alabama’s first EV ARC solar-powered EV charging system, which it has made available to staff and students for free on-campus EV charging. Also, the company expanded its federal government customer base receiving the first order for EV ARC from a USDA Forest Service Site on March 11, 2021. It has completed the delivery of 30 EV ARC solar-powered EV charging systems and improved the performance of the EV ARC 2020 charging system by 12%, which can now deliver up to 265 e-miles in a day.
BEEM’s revenue for the fourth quarter, ended December 31, was $2.20 million representing an increase of 343.8% year-over-year. Analysts expect BEEM’s EPS to increase 38.9% for the current quarter ending March 31 and 37.5% for the next quarter ending June 30. A consensus revenue estimate of $3.20 million for the next quarter, ending June 30, represents an increase of 119.9% year-over-year.
BEEM has gained 371.4% over the past year and 206.3% over the past six months. It closed yesterday’s trading session at $37.24. Wall Street analysts expect the stock to hit $69.33 in the near term, which indicates a potential upside of 86.2%. Also, of the four Wall Street analysts that have rated the stock, two rated it a Buy.
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CHPT shares were trading at $27.13 per share on Wednesday afternoon, up $4.67 (+20.79%). Year-to-date, CHPT has declined -32.31%, versus a 6.66% rise in the benchmark S&P 500 index during the same period.
About the Author: Sweta Vijayan
Sweta is an investment analyst and journalist with a special interest in finding market inefficiencies. She’s passionate about educating investors, so that they may find success in the stock market. More...
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