CHPT A Publicly Traded EV Charging Company
Chargepoint Holdings Inc. is an electric vehicle infrastructure company based in California. CHPT operates the largest online network of independently owned EV charging stations and manufactures the technology used in it.
CHPT has several products in its portfolio ranging from home charger to Charge Point express which offers fast charging. As the EV market gaining lots of momentum the focus has also turned to the charging stations and hence Chargepoint Holdings has witnessed lots of inbound interest from the investors.
Chargepoint Inc is the pioneer in its category and became the first publicly traded electric vehicle charging company in US. Since 2007 Chargepoint Inc has been committed to make it easy for the drivers to charge their vehicles as people move to EV from Gasoline engines.
CHPT moved from a low of 10 USD in Sept 2020 to a high of 46 USD in Dec 2020. The stock has witnessed decline from that point to reach levels of 22 USD in April 2021. The stock witnessed stellar returns during the pandemic as people have started to invest more in the tech companies. The stock has moved in tandem with the Tesla stock primarily which is the stock that defines the EV segment in the US. As the EV market gains more popularity and has seen mainstream adoption the EV charging stations are gaining popularity as well.
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Looking at Fundamentals
Chargepoint Inc has a market cap of $6.57B which makes it one of the most valued charging infrastructure companies in the EV space. CHPT’s competitor Blink Charging has a market cap of $1.53B. The financials of the company as of today is not encouraging as the company is in a growth phase. Both the profit margin and operating margin are in negative which indicates short term investments weighing high compared to the revenue from operations. CHPT has cash of $145M in its balance sheet and has total debt of $59.75M USD.
The success of CHPT and similar electric vehicle charging companies depend on the success of the EV manufacturers and depends on the adoption of the EV as a mainstream vehicle. As more and more businesses encourage their employees to go for EV and establish charging stations in their office space, Chargepoint is going to be the beneficiary of this change.
The smart App form Chargepoint opens the network of world’s largest and most open EV charging stations to all the EV owners. It is the only network which has an integrated portfolio of hardware, cloud services and support that delivers the smoothest possible experience for all businesses and drivers. Chargepoint has delivered more than 91.3 million charges in the last decade and has been going strength to strength after the surge of EVs in the marketplace.
As the support from the Biden administration continues for the EV manufacturers and the EV charging infrastructure, Chargepoint is going to be a beneficiary of this in the medium to long term. For investors with long term view and high risk appetite can hold on to this stock for long term which may provide stellar returns in the future.