The adoption of electric vehicles (EVs) is increasing rapidly. Moreover, governments are ramping up investments in this sector as part of their emission control initiatives. Last fall, the Infrastructure Investment, and Jobs Act made $5 billion available to states for charging stations. However, charging infrastructure still faces unsolved problems.
A J.D. Power study showed that customer satisfaction in charging stations is declining. Brent Gruber, executive director of global automotive at J.D. Power, said, “Not only is the availability of public charging still an obstacle, but EV owners continue to be faced with charging station equipment that is inoperable.”
Moreover, even after the global pandemic has subsided, supply chains are still under strain. Supply chain woes are not expected to mitigate before next year.
EVgo, Inc. (EVGO)
EVGO owns and operates a direct current fast charging network in the United States. The company offers electricity directly to drivers, original equipment manufacturer charging and related services, fleet and rideshare public charging services, and fleet dedicated charging services.
EVGO announced on August 11 that it has entered into a new supply agreement with Delta Electronics, where Delta is expected to supply EVGO with 1,000 fast chargers with up to 350kW power output. The gains from this agreement might be stretched over a long period.
In the second fiscal quarter ended June 30, EVGO’s total operating expenses increased 128.6% year-over-year to $36.31 million. Operating loss came in at $37.05 million, indicating a rise of 111% from its year-ago value. The cost of sales increased 52.1% from its prior-year period to $9.82 million.
Analysts expect EVGO’s EPS estimate to be negative $0.10 for the third fiscal quarter ending September, indicating a 32.6% year-over-year decrease. Its consensus revenue estimate is expected to be $13.64 million for the same period.
The stock has gained 13.3% over the past five days to close its last trading session at $12.02.
This bleak outlook is reflected in EVGO’s POWR Ratings. The stock has an overall F rating, which equates to a Strong Sell in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
EVGO is graded an F in Value and Stability and a D in Growth, Sentiment, and Quality. It is ranked #84 out of the 90 stocks in the Industrial – Equipment industry.
In addition to the POWR Rating grades we’ve stated above, one can see EVGO’s ratings for Momentum here.
ChargePoint Holdings, Inc. (CHPT)
CHPT provides EV charging networks and charging solutions internationally. The company offers a portfolio of hardware, software, and services for commercial, fleet, and residential customers.
In June, CHPT announced a new partnership with the National Electrical Contractors Association (NECA) to accelerate the deployment of EV charging. The company believes the partnership should impact the electrical construction industry in order to expand EV charging infrastructure.
For the first fiscal quarter ended April 30, CHPT’s total operating expenses increased 82.6% year-over-year to $101.94 million, and its non-GAAP net loss increased 77.2% from the prior-year quarter to $69.84 million. Its loss from operations increased 92.8% from the prior-year quarter to $89.83 million.
Analysts expect EPS to decrease 58% year-over-year to a negative $0.20 for the second quarter (ended July 2022). The consensus revenue is expected to be $102.78 million.
The stock has declined 19.7% over the past year and 5% year-to-date to close its last trading session at $18.10.
The POWR Ratings reflect CHPT’s bleak prospects. The stock has an overall F rating, equating to a Strong Sell in our POWR Ratings system.
CHPT has a Value and Stability grade of F and a Sentiment and Quality grade of D. It is ranked #82 of 90 stocks in the same industry. Click here to see additional POWR Ratings for CHPT (Growth and Momentum).
Blink Charging Co. (BLNK)
BLNK owns, operates, and provides EV charging equipment and networked EV charging services globally. The company offers residential and commercial EV charging equipment that enables EV drivers to recharge at various locations.
On August 15, BLNK announced an agreement with AES El Salvador to deploy 50 IQ 200 fast Level 2 chargers in various regions of El Salvador over the next few years. The agreement is expected to accelerate El Salvador’s transition towards cleaner and more sustainable transportation. However, there might still be some time before the company realizes substantial gains from this venture.
BLNK’s net loss increased 68.1% year-over-year to $22.62 million in the second quarter ended June 30. Its total operating expenses increased by 84.1% from its year-ago value to $23.92 million. The company’s loss from operations grew 77.9% from the prior-year period to $21.96 million, and its adjusted loss per share was $0.41, up 32.3% from the prior-year period.
Street expects BLNK’s EPS to amount to $0.49 for the third quarter (ending September 2022), indicating a decrease of 11.2% from the prior-year period. Its consensus revenue is expected to be $325.55 million.
BLNK’s shares have declined 18% over the past year to close its last trading session at $26.02.
The company has an overall F rating, equating to a Strong Sell in our proprietary rating system. BLNK also has an F grade for Value, Stability, Sentiment, and Quality and a D in Growth. It is ranked last in the same industry. To see additional POWR Ratings for Momentum for BLNK, click here.
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EVGO shares were trading at $11.06 per share on Wednesday afternoon, down $0.96 (-7.99%). Year-to-date, EVGO has gained 11.27%, versus a -9.63% rise in the benchmark S&P 500 index during the same period.
About the Author: Kritika Sarmah
Her interest in risky instruments and passion for writing made Kritika an analyst and financial journalist. She earned her bachelor's degree in commerce and is currently pursuing the CFA program. With her fundamental approach, she aims to help investors identify untapped investment opportunities. More...
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