Should you buy ChargePoint stock?
- 7 months ago
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ChargePoint stock analysis. CHPT stock.
As the world transitions to electric vehicles, electric charging company ChargePoint is showing rapid growth. Revenue increased 97% in 2022 and is now almost 10 times higher than in 2018.
The business is currently valued at 3 billion dollars. With 283 million of cash and 295 million of debt the enterprise value is roughly the same.
But the company is not yet profitable. ChargePoint has made a loss of 337 million over the last 12 months and has reported negative free cash flow to the tune of 322 million. Furthermore, Stock based compensation at 102 million is roughly 20% of revenue.
ChargePoint makes money in 3 main ways. Hardware sales make up 73% of revenue, cloud services contributes 19% and maintenance services adds up to 8%.
The company is expanding in Europe and gross margins, which dipped to 18% last year have recovered to over 20%. With more than 240,000 ports, ChargePoint is the leading electric vehicle charging network.
But ChargePoint is operating in a competitive and difficult industry. Its main competitors include Blink charging, EVGo, Electrify America and Tesla.
Although Tesla has fewer charging stations, it’s DC chargers are considerably faster and more reliable than ChargePoint’s AC chargers. And partly in response to government funding, Tesla recently made its supercharger network available to vehicles from Ford, General Motors, Volvo and Rivian and more partnerships are highly likely.
That said, ChargePoint’s AC chargers are cheaper and they’re perfectly suitable for charging vehicles at parking lots and other longer term stays.
A bigger problem for ChargePoint is it’s hardware-based business model which is notoriously low margin and subject to commoditization. Even high growth markets can see a race to the bottom in hardware that can lead to razor thin profit margins.
#chptstock #stocks #investing #evstocks
ChargePoint stock analysis. CHPT stock.
As the world transitions to electric vehicles, electric charging company ChargePoint is showing rapid growth. Revenue increased 97% in 2022 and is now almost 10 times higher than in 2018.
The business is currently valued at 3 billion dollars. With 283 million of cash and 295 million of debt the enterprise value is roughly the same.
But the company is not yet profitable. ChargePoint has made a loss of 337 million over the last 12 months and has reported negative free cash flow to the tune of 322 million. Furthermore, Stock based compensation at 102 million is roughly 20% of revenue.
ChargePoint makes money in 3 main ways. Hardware sales make up 73% of revenue, cloud services contributes 19% and maintenance services adds up to 8%.
The company is expanding in Europe and gross margins, which dipped to 18% last year have recovered to over 20%. With more than 240,000 ports, ChargePoint is the leading electric vehicle charging network.
But ChargePoint is operating in a competitive and difficult industry. Its main competitors include Blink charging, EVGo, Electrify America and Tesla.
Although Tesla has fewer charging stations, it’s DC chargers are considerably faster and more reliable than ChargePoint’s AC chargers. And partly in response to government funding, Tesla recently made its supercharger network available to vehicles from Ford, General Motors, Volvo and Rivian and more partnerships are highly likely.
That said, ChargePoint’s AC chargers are cheaper and they’re perfectly suitable for charging vehicles at parking lots and other longer term stays.
A bigger problem for ChargePoint is it’s hardware-based business model which is notoriously low margin and subject to commoditization. Even high growth markets can see a race to the bottom in hardware that can lead to razor thin profit margins.
#chptstock #stocks #investing #evstocks