It shows how effective a company is at turning capital invested by shareholders and other debtholders into profits. Return on invested capital (ROIC) is net income after dividends divided by the sum of debt and equity. Indicates a company's profitability in relation to its total assets. The rate at which the company's net income has increased to the same quarter one year ago. It indicates the company's profitability. Net income divided by revenue of the last 4 quarters. Net Income is the profit after all expenses have been deducted from the total revenue. It indicates the efficiency of using their resources to produce goods or services.Įarnings before tax and interest payments. Gross profit is the profit after subtracting the costs of making and selling its products or the costs of providing its services. Revenue is the sum of all cash flow into the company. However, the ratio is difficult to compare between industries where common amounts of debt vary. Price to Book Ratio is the Market cap divided by the Book value of the companyĪ higher ratio indicates a higher risk. Market cap divided by the revenue in the most recent year. A lower PEG could mean that a stock is undervalued.Įarnings divided by outstanding shares. The ratio between the P/E ratio and the growth rate of the company's earnings per share in the last twelve months. A high ratio could indicate that the stock is overvalued or investors are expecting high growth. A low ratio could indicate that the stock is undervalued or investors aren't expecting high growth. ChargePoint will need to combat the rising insurgence of Blink ( BLNK), Nuvve ( NVVE), and three other EV charging players looking to go public via the following SPACS: Tortiose Acquisition II ( SNPR), Climate Change Crisis Real Impact I ( CLII), TPG Pace Beneficial Finance ( TPGY).Ratio between share price and earnings per share. Indeed, competition is heating up, and heating up quickly, in this space. Still, selling charging stations to commercial clients as its primary line of business doesn’t scream “profitable long-term growth strategy.” At least, not to those with a long enough investing time horizon to consider how this company will realistically make money once EV charging stations are installed everywhere. That’s how companies like Couche-Tard have produced their impressive margins and long-term growth profile. Indeed, gasoline really isn’t any different than electricity – the price is set at the market (or regulatory) rate, and those selling this product are price-takers.Īccordingly, companies like ChargePoint may become the convenience store purveyors of the future. The explanation for this is simple: extremely high levels of competition in a sector selling a ubiquitous commodity. However, these businesses have historically low margins on fuel. A favorite stock of many investors right now is Alimentation Couche-Tard ( ANCUF). Or, more accurately, the gas stations of the future.Īs most investors know, the gas station business can be a good one in which to invest. In reality, there’s reason to think of EV charging plays more like gas stations. When many investors think of EV charging plays, they’re often looked to (and valued) more like growth/tech stocks. Let’s dive into why investors may want to press pause on getting too bullish on this stock.Ĭompetition and Long-Term Margin Concerns Not Priced In Yet Average price target from 23 ratings: 15.52 Average score: Sell Under Hold Over Buy Full Ratings Open 7.89 Previous Close- YTD Change -20.25 12 Month Change -51.13 Day Range7.58 - 7.94 52 Wk. It’s a pure-play on long-term growth in a sector that has legs. For those who believe charging stations will be largely a separate industry altogether from EV companies (though Tesla ( TSLA) is playing in this space in a big way), ChargePoint looks like the way to play this space. ChargePoint’s current market share of roughly 70% of the networked level 2 charging market in North America makes this the pre-eminent play for those bullish on the growing need for EV infrastructure globally.įurthermore, one key selling point behind ChargePoint is related to the company’s IP and the fact that it manufactures and uses its own proprietary technology. The company’s 132,000 charging locations in these key competitive continents speaks to ChargePoint’s dominance in this growth sector. Indeed, ChargePoint is the industry leader in level 2 charging in North America and Europe.
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