Beyond the lofty valuations, the broader EV industry continues to grow at a rapid pace, and this is likely to be exacerbated by energy and oil prices. Regardless, the stock currently trades at a forward P/S of 10, which may make investors think twice about the stock. ![]() Chargepoint continues to see mostly a buy rating from analysts, with the average analyst's price target of $19.9, which would indicate around a 20% upside from current levels. Should investors consider investing in Chargepoint?Ĭhargepoint's stock is currently down over 57%, and the stock may be bottoming out. Although the company continues to post losses, on a positive note, Chargepoint is expected to become cash-flow positive in the fourth quarter, which should help stabilize the stock. ![]() The company's balance sheet remains strong with a current ratio of 3.5 and a debt to equity of 0.05. Although Chargepoint is well capitalized with total cash on hand at $540 million, investors will be worried that the company may need to find ways to raise cash in the near future. This would indicate that the company lacks pricing power, and is likely to rely on volume in the long term.įurthermore, operating losses continued to be high, coming in at $89 million for the quarter. Chargepoint's gross margins came in at 20% during the quarter, with network charging primarily affecting the low margins. Meanwhile, total revenue is expected to come in at $500 million during FY23. A quick overview of Chargepoint's financials:Ĭhargepoint's revenue increased by over 102% year-on-year for the quarter. This provides plenty of opportunities for EV charging companies, and subsequently Chargepoint. ![]() Furthermore, the overall EV industry is expected to grow by around 25-30% over the next 8 years. Consumers are increasingly considering EVs as newer models offer both a reasonable range and competitive pricing, helping push the market away from gasoline powdered vehicles toward EVs. But now more and more competitors are offering alternatives to Tesla. Historically, Tesla has been the main producer of electric vehicles. In fact, some analysts have predicted that oil may be headed to $140-150 per barrel in the near term.Ĭar companies continue to roll out EV models. Additionally, global macro factors continue to push up oil prices, with Europe recently cutting its Russian oil imports, and oil producers unwilling to increase supply, analysts increasingly expect oil prices to remain higher for longer, as supply continues to be tight relative to demand. Gasoline prices are expected to remain high and the increasing cost of a gallon or liter in both North America and Europe has meant consumers are seeking out alternatives. Macroeconomic headwinds are weighing on gasoline-powered cars.ĮV sales are expected to grow at 75%-80% in 2022, with the first quarter of 2022 witnessing 75% growth year-on-year. Tailwinds that support electric vehicles: As macro headwinds mainly energy prices continue to rise the company is likely to benefit as higher energy prices push people towards electric vehicles. It also offers subscription services along with charging stations. ![]() Chargepoint provides a range of EV solutions, from public charging points to home solutions. Analysts estimate that EVs could be anywhere from 3 to 6 times cheaper than gasoline-powered cars. Energy prices are on the rise again, and EV (electric vehicles) companies continue to benefit from the trend as people seek alternatives to gasoline. It operates the largest network of independently owned charging networks and has a presence in 14 countries. All Rights Reserved.Chargepoint (NYSE: CHPT) is an American electric infrastructure company based out of Campbell, California. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2019 and/or its affiliates. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. Factset: FactSet Research Systems Inc.2019. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes.
0 Comments
Leave a Reply. |