![]() ![]() ![]() In a December 2020 presentation, ChargePoint provided investors with a long-term revenue guidance. The company has also been widening its product pipeline, which will support growth. Concluding Views on CHPT StockĬhargePoint is well positioned for sustained growth in the next few years. With operating leverage, the company is positioned for healthy cash flows. In the conference call, management indicated that the company will achieve cash flow break-even in 2024. With zero debt, the company has ample financial flexibility. With robust research and development, ChargePoint has several products lined up for release in 2022.įurthermore, as of January 2022, ChargePoint reported cash and equivalents of $315 million. The operating margin is likely to improve gradually in the next few years. This has translated into accelerated top-line growth. ![]() The company’s expenditure related to research, sales and marketing have surged. However, on a year-over-year basis, revenue growth from the region was 135%.įirst, ChargePoint is still at an early growth stage. For fourth quarter 2022, the company reported just 12% revenue from Europe. Presence in two high-growth geographies will ensure that momentum sustains for the company. However, the company has been ramping-up infrastructure in Europe. ChargePoint has a strong presence in the U.S. The first reason to believe that revenue growth will accelerate is the company’s geographic diversification. I also believe that healthy growth is likely to sustain in the next few years. At mid-range of the guidance, the company is positioned for revenue growth of 96%.Ĭlearly, with growth accelerating, CHPT stock looks interesting. It is also worth noting that for the current financial year, the company has guided for revenue of $450 to $500 million. On a year-over-year basis, the company’s revenue increased by 65%. Robust Growth Is Likely to Sustainįor 2021, ChargePoint reported revenue of $242.3 million. ChargePoint is well positioned to benefit with multi-year tailwinds. Without a proper infrastructure, large scale adoption of EVs is unlikely. Further, as oil trends higher, there is likely to be an accelerated shift toward electric vehicles (EVs). To a large extent, the region depends on Russia for its energy. The escalation in geopolitical tensions in Europe has translated into a surge in crude oil prices. InvestorPlace - Stock Market News, Stock Advice & Trading Tipsįrom a macro perspective, these are interesting times. In all likelihood, CHPT stock has bottomed out. This would imply about 14% upside from current levels. In January 2022, J.P Morgan (NYSE: JPM) upgraded CHPT stock to “overweight” with a price target of $20. However, after the deep correction, the valuations look reasonable. The stock was therefore trading at 80 times sales. Considering the all-time high stock price, the market capitalization was $11.6 billion. In March 2021, ChargePoint reported annual revenue of $146 million. The correction does not come as a surprise. ![]()
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