![]() ![]() Indian Oil Corporation Ltd is the largest oil marketer in India. While most investors are familiar with Tesla’s growing EV revenue, you may …EV Stocks in India #4 – Indian Oil Corporation Ltd. ![]() Tesla (TSLA) Tesla is the best large-cap EV charging station stock (aka world’s most valuable EV car maker) but the truth is Tesla is a diversified clean energy company. Some of these companies have a strong focus on EV charging, while others may also provide other types of charging services. – (NASDAQ: EVGO), and CHARGE Point Holding (NYSE: CHPT). There are several good EV charging station stocks to invest in, including Blink Charging (BLNK), Wall Box (WMX), EVgo Inc.Their operating costs are growing, and profitability remains elusive. Ev charging station stocks under dollar5 The stock prices of ChargePoint Holdings, EVgo, and Volta are all down by more than 50% over the past two years. Mark Hake writes about personal finance on and runs the Total Yield Value Guide which you can review here. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines. Hake did not hold any positions (either directly or indirectly) in the securities mentioned in this article. Using a forward-looking formula, my best estimate is that CHPT is worth some 39% more at $29 per share. That is the basis of this one’s present-day valuation. As long as revenue keeps rising at 50% to 60% rates on a YOY basis, the market will anticipate sales up to five years in the future. and Europe continues to grow.Īs a result, I think many growth-oriented investors should be able to see that CHPT stock is still cheap, despite its lack of profits. And that could very well be the case, given that ChargePoint’s number of connected EV ports throughout the U.S. This could easily happen if Q3 sales and earnings continue to show progress. With a higher multiple, the stock could be worth even more.ĭue to the excellent sales growth this quarter and the company’s elevated 2021 sales guidance, I suspect the market will begin to push CHPT stock higher soon. This is based on a 10% present value factor on its future sales 4.25 years in the future after applying a 12 times P/S multiple. 28 price of $20.83, setting its target value at $29 per share. Therefore, CHPT stock is worth an implied 39.3% over the Sept. This represents a potential gain of 39.3%. So, using the $9.36 billion valuation estimate, this implies that ChargePoint has significant upside over its recent market value of $6.72 billion. Why do I use a 12 times P/S multiple? This is a one-third discount to the P/S multiple of 18 times sales, as seen from analysts on Seeking Alpha. Next, we can apply a 12 times price-to-sales (P/S) factor to the present value revenue to derive its market value of $9.36 billion. That means that the $1.17 billion in revenue is worth $780 million in present value today. Discounting that revenue to the present at a 10% rate involves a factor of 66.69%. The best way to value CHPT stock is to use analysts’ projections in the future, given that EV charging ports are bound to keep growing.įor example, Seeking Alpha forecasts that by January 2026, sales are forecast to reach $1.17 billion. This company’s consistently growing charging port revenue and related subscriptions can be projected out several years. However, as ChargePoint has over $618 million in cash on its balance sheet, it won’t be running out of cash anytime soon. This implies that the run-rate annual cash burn, unless the company keeps growing sales and earnings, could be as high as $60 million. ![]() This can be seen on of the company’s fiscal Q2 slide presentation. ![]() After capex spending of $7.8 million, its total FCF cash burn was $30.4 million for the first two quarters of 2021. 31, operating cash flow losses were $61.2 million. Moreover, the company is still losing money on a free cash flow (FCF) basis.įor example, for the six months ending Jul. However, ChargePoint’s non-GAAP net income loss was higher YOY as well, at $40.4 million versus $22.6 million (). Before Q2, the guidance was for $195 million to $205 million for the fiscal year ending Jan. This led the company to raise its full-year revenue guidance by 15% to between $225 million and $235 million. 31 were up about 61% year-over-year (YOY) to 56.1 million. If we’re going to value CHPT stock, let’s start with its recent Q2 results. ![]()
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