ChargePoint Overhauls Management Team as It Looks to Rebound From Weak Near-Term Results

Equity Analyst

Brett Castelli

Revenue segments as reported by the company.

Networked charging systems

Subscriptions

Other

Revenue Segments

Gross Profit, Operating Income, and Net Income as a percentage of Revenue

Gross Margin

Operating Margin

Profit Margin

Margins

An operating expense is an expense a business incurs through its normal business operations. Often abbreviated as OPEX.

Research and development

Sales and marketing

General and administrative

Operating Expenses

Year over year growth in Revenue and Operating Expenses.

Revenue Y/Y

OpEx Y/Y

Growth

Shares outstanding refer to a company's stock currently held by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company's officers and insiders.

Outstanding Shares

Market Cap

Also known as Price/Sales Ratio. Calculated using Average market cap for the quarter / Annualized quarterly revenue.

Revenue Multiple

ChargePoint is a leading provider of networked electric vehicle charging hardware and software. The EV charging industry consists of three broad categories of companies: hardware providers, integrators (software providers), and asset owners. ChargePoint focuses on providing integrated hardware and software product offerings and rarely owns assets. It pursues a closed-loop approach—only selling its hardware with its network software attached—which we view as unique among its peers.

ChargePoint’s founding vision was to be the leading provider of networked alternating current charging ports. The company has proved very successful in this pursuit, with approximately 50% AC market share. We view ChargePoint’s first-mover advantage—it was founded in 2007—and integrated hardware-software approach as contributing to its success in the AC market. Now ChargePoint seeks to aggressively expand beyond AC charging in North America.

Direct current charging—which allows for much faster refueling times compared with AC—is expected to grow at a faster rate than AC over the medium and long term. ChargePoint entered the DC charging market in recent years and expects an increasing contribution from sales of its DC products. We expect DC charging to represent a larger addressable market over the long term compared with AC, given much higher price points for hardware (greater than 10 times the price of AC), but we don’t foresee ChargePoint reaching similar levels of market share as it enjoys in AC.

In addition to public charging, ChargePoint competes in the private charging market, namely workplace and fleet. ChargePoint is the unquestioned market leader in workplace, given the prevalence of AC charging, while fleet is a newer market with many competitors seeking to gain a foothold.

Historically North America-focused, ChargePoint aggressively expanded its European presence via two acquisitions in 2021. The European charging market tends to be much more fragmented than the U.S.

Business Strategy & Outlook

We do not believe ChargePoint possesses an economic moat. We assess its moat across three verticals—residential, level 2 (AC), and fast-charging (DC)—and find varying degrees of moatiness across each vertical.

It is important to understand ChargePoint’s unique strategy to assess its moat. ChargePoint provides EV charging hardware and software to businesses and residential customers. In contrast to other hardware providers, ChargePoint only sells its hardware with its software, forming a closed-loop ecosystem. In addition, the company rarely owns assets, employing a capital-light model. Across the EV charging space, we see three broad categories of companies: hardware providers, integrators (software providers), and asset owners. We believe ChargePoint is the only provider at scale of an integrated hardware and software offering.

ChargePoint’s history is as a provider of networked AC hardware. We believe a combination of its first-mover advantage and business model—where it provides a bundled hardware plus software package—has created a moat around this segment based on switching costs. Given slower charging speeds compared with fast charging, AC charging is typically a cost center for the asset owner. Workplaces or retail stores may install AC charging as a benefit to employees or shoppers given the modest up-front cost—less than $5,000 per hardware port. Once installed, we view ChargePoint’s ongoing software revenue as very sticky, given that the asset owner would need to replace the hardware to replace the software. ChargePoint’s moat in the level 2 AC charging market is evidenced by its over 50% market share of all public AC ports, per the Alternative Fuels Data Center.

The DC charging landscape can be characterized by higher price points (approximately 10 times the cost of AC), more hardware-only providers, and less host ownership of assets. We think these characteristics, combined with less of a first-mover advantage for ChargePoint, lead to a more competitive landscape relative to the AC market. ChargePoint’s lower market share in DC supports our view that this segment lacks a moat. Per AFDC data, the company has approximately 10% market share of DC charging (20% excluding Tesla).

We do not believe ChargePoint’s residential EV charging product offering possesses a moat. In contrast to its business-to-business operations, ChargePoint does sell stand-alone hardware into the residential market, lowering switching costs. In addition, some auto original equipment manufacturers provide a compatible home charger, such as Tesla. We view the non-Tesla market share to be relatively fragmented with limited brand loyalty.

None

Economic Moat

ChargePoint Holdings

ChargePoint Holdings, Inc. operates as an electric vehicle charging network provider. It designs, develops and markets networked electric vehicle charging system infrastructure and its Cloud Services enable consumers the ability to locate, reserve, authenticate and transact electric vehicle charging sessions. The firm provides an open platform providing real-time information about charging sessions and control, support and management of the networked charging systems. This network provides multiple web-based portals for charging system owners, fleet managers, drivers and utilities. The company was founded in 2007 and is headquartered in Campbell, CA.

Earnings data Q4 2023

Revenue

Cost of revenue

Gross profit

Operating expenses

SG&A

Operating income

EBITDA

Net income

Earnings per share

Total assets

Current assets

Cash & equivalents

Receivables

Inventory

Non-current assets

Net PPE

Intangibles

Total liabilities

Current liabilities

Short term debt

Income tax payable

Non-current liabilities

Long-term debt

Total equity

Stockholders equity

Minority interest

Total liabilities & equity

Total debt

Net debt

Book value per share

Cash from operations

Funds from operations

Change in working capital

Cash from investing

Capital expenditure

Purchase/sale of investments

Purchase/sale of business

Other sources

Cash from financing

Change in stock

Change in debt

Cash dividends paid

Cash from other sources

Net change in cash

Free cash flow

Panasonic Holdings Corp

Investing in electric vehicles (EVs) is no longer a niche play for green enthusiasts; it's now a mainstream financial strategy. As the global focus shifts toward sustainable transportation, the best EV stocks are capturing the imaginations and wallets of investors worldwide.

The 3 Best EV Stocks to Buy Now: September 2023

FuelCell Energy

Plug Power

Clean energy is a trend that is continuing to gain steam. The global decarbonization movement has spurred the migration to electric vehicles (EVs) and the adoption of renewable and clean energy sources.

3 Clean Energy Stocks Priced Dirt Cheap

Lithium Americas Corp

Li Auto Inc.

Livent Corp

QUALCOMM

Tesla

The recent choppiness in the electric vehicle (EV) sector may give a fleeting sense of pause, but weakness often paves the path to opportunity. As global leaders push for a greener future, the vision of millions of EVs plying our streets isn't a distant dream anymore.

Don't Sleep on These 7 EV Stocks That Will Mint Millionaires

General Motors

As always, the market has recently been abuzz with electric vehicle (EV) talk. Despite economic concerns, the EV market displays remarkable momentum, surpassing 10 million sales in 2022 and another 35% jump projected by the end of 2023.

The 3 Most Promising EV Stocks to Own Now

EVgo

Rivian Automotive

Last quarter. nearly 300,000 all-electric vehicles were sold in the U.S., setting a new all-time record.

3 EV Stocks Due for a Massive Short Squeeze

ChargePoint (NYSE: CHPT ) stock is in the news Wednesday after JPMorgan offered up new coverage of the electric vehicle (EV) charging company's shares. According to a note from JPMorgan analyst Bill Peterson, ChargePoint is likely to miss revenue estimates when it releases its Q2 earnings report next month.

ChargePoint (CHPT) Stock Just Got a Nod From JPMorgan

Enovix Corporation

Trading heavily shorted stocks can be a profitable strategy. That's because to short a stock, a trader has to borrow it first and then sell it on the market, hoping to profit as the stock price goes down.

Short squeeze alert for August 24th: Two stocks poised for lift off

Chegg

Keysight

L3Harris

Microchip Technology

Paycom Software

PayPal

Some of the technology sector's biggest names captured much of the renewed investor enthusiasm, leaving small- and mid-cap companies in the dust. However, if you dig deep enough you'll still find severely oversold tech stocks.

7 Very Oversold Tech Stocks to Buy Right Now

Albemarle

Most stock charts continue to look impaired due to inflation and recession concerns and certain EV stocks show similar patterns. Investors are tasked with deciding how much of their portfolio they want to bet on more speculative high-growth areas of the market.

These Could Be the 3 Most Important Stocks in the EV Race

Global X Autonomous & Electric Vehicles ETF

Microvast Holdings

The electric vehicle market is accelerating.  In fact, since 2020, the market for battery-powered electric vehicles (BEVs) has grown from just over 1% to around 6% by the end of 2022.

7 EV Stocks You'll Regret Not Buying Soon

With oil prices and gas pump costs increasing, electric vehicle (EV) ownership looks increasingly attractive to individuals and governments. As governments globally push for EVs, the sector is in early growth stages, boosted by incentives and infrastructure development.

These Are the ONLY 3 EV Stocks to Consider in August 2023

Blink Charging

If the world wants more EVs, the charging network needs to grow exponentially.

Best Stocks to Buy: EVgo vs. ChargePoint vs.

Beam Global

With electric vehicle demand only set to accelerate, the U.S. needs far more EV charging stations — great news for EV charging stocks. For one, the Biden Administration wants half of all new vehicle sales to be electric by 2030.

The 3 Most Undervalued EV Charging Stocks to Buy Now: August 2023

Lucid Group

Riot Blockchain

Short squeeze stocks rally as a quick money-making mechanism came into the limelight during the meme stock euphoria of 2021. Investors targeted stocks that had high short interest as a percentage of free-float.

3 Stocks Poised for a 100% Short Squeeze Rally

Wallbox NV

Monday evening, EV charging company Beam Global reported far better-than-expected sales for the second quarter. Shares dropped anyway.

Beam Crushes Earnings and the Stock Falls. Investors Don't Like EV Charging Now.

CAMPBELL, Calif.--(BUSINESS WIRE)--ChargePoint (NYSE: CHPT), a leading provider of networked hardware and software solutions for charging electric vehicles (EVs), today announced the appointment of Sherice Torres as Chief Marketing Officer. Torres joins ChargePoint's executive team to lead global marketing as the EV ecosystem enters a period of exponential growth. “Over the last 15 years ChargePoint has firmly established itself as a leader in the charging market,” said Pasquale Romano, CEO of.

ChargePoint Appoints Sherice Torres as Chief Marketing Officer

CAMPBELL, Calif.--(BUSINESS WIRE)--ChargePoint (NYSE:CHPT), a leading provider of networked hardware and software solutions for charging electric vehicles (EVs), today announced it will release its financial results for the second quarter of fiscal year 2024 on September 6, 2023. ChargePoint will host a conference call to review the financial results at 1:30 p.m. PST (4:30 p.m. EST) on the same day. A live webcast of the conference call will be accessible from the “Events and Presentations” sec.

ChargePoint to Announce Financial Results for the Second Quarter of FY2024 on September 6, 2023

Innoviz Technologies

Piedmont Lithium

Infineon Technologies AG

indie Semiconductor

SolarEdge Technologies

This is the first of two Deep Dives screening EV-related stocks. This screen is based on analysts' ratings and consensus price targets.

20 EV stocks that are expected to soar at least 38%, even after this year's rebound

Transocean

Tilray Brands

Market conditions are not always the same. During bear markets, the objective of investors should be to preserve capital and ensure returns that beat inflation.

3 Stocks to Buy Under $10 for Multibagger Returns

The ongoing electric vehicle revolution provides plenty of opportunities for investors. Whether it's electric car producers, battery manufacturers, software providers, EV charging stocks, or lithium mining companies, there are myriad ways to play growth in this space.

3 EV Charging Stocks to Buy and Hold For the Next 3 Years

CAMPBELL, Calif.--(BUSINESS WIRE)--ChargePoint (NYSE: CHPT), a leading provider of solutions for charging electric vehicles (EVs), today announced a significant investment in the application of technology from the networking and information security worlds, which aims to deliver charging station reliability of nearly 100%, once fully implemented. This technology will be combined with natural language processing, enhanced driver communications and a class-leading training certification to ensure.

ChargePoint Reinforces Commitment to the Driver Experience with Initiatives to Approach 100% EV Charger Uptime

EV charging stocks are among the best bets right now due to the surging electric vehicle sales and substantial future potential for growth.

The 3 Best EV Charging Stocks to Buy in August

Despite ongoing economic challenges, recent reports from various electric vehicle (EV) manufacturers have revealed resilient EV sales. Enhanced by government incentives and manufacturer price reductions, EV sales in the U.S. surged by 50% to 557,330 units during H1 2023, constituting 7.2% of total vehicle sales.

3 EV Stocks to Buy to Rev Up Your Growth in H2 2023

The electric vehicle industry is creating a huge shift in the automobile sector. Countries across the world are transitioning from gas-powered transportation to EVs, which will make an impact on our future environment.

3 ‘Strong Buy' EV Charging Stocks You Should Be Loading Up On Now

Luminar Technologies

There are many ways to play the long-term growth EV sector stocks provide. Of course, top-tier EV producers are often the first choice among many investors, and they haven't been wrong.

News for ChargePoint Holdings Stock (CHPT)