An underrated player in the EV charging space appears to be on track for growth due to the unfortunate tropical storm Hilary that hit southern California. Beam Global (NASDAQ: BEEM) may well be on its way to dominating the California EV charging market due to its off-grid and waterproof EV charging stations. While almost all charging stations are waterproof, BEEM has a major advantage as its stations are flood proof capable of withstanding 9.5 feet of water. In light of tropical Storm Hilary, the company’s products may see a sizable surge in demand which may boost its stock price. With the stock currently near all-time lows, BEEM stock could be a bargain at current levels.
BEEM Stock News
Since not all EV chargers are floodproof, tropical Storm Hillary could cause substantial damage to southern California’s EV charging station infrastructure. This is especially true since EV stations that are connected to an electrical grid are liable to sustain flooding damage. Taking that into consideration, demand for floodproof EV chargers is likely to increase because of the ensuing floods brought about by the tropical storm, and BEEM stands to benefit the most from this unfortunate outcome due to its charging stations’ uniqueness.
In Q2 2023, California’s EV market experienced a 59% YoY increase in sales. This drastic increase in sales indicates that demand for EV charging stations may soon follow suit which comes at a perfect time for BEEM since tropical storm Hilary will likely demonstrate the importance of floodproof EV charging stations. The impact of the storm is likely to show its impact on the company in the coming quarters in the form of improved sales. In this way, the BEEM stock price may soar – especially since it has a low float of 12.6 million that could allow it to run quicker on any positive results.
In addition to the company’s potential to capitalize on tropical storm Hilary, BEEM stock may be fundamentally undervalued in the EV charging space. As is, other well-established players in this sector like Blink Charging Co. (NASDAQ: BLNK), and ChargePoint Holdings, Inc. (NYSE: CHPT) have a price-to-sales ratio of 19.1 and 9.44 respectively, while the company’s price-to-sales ratio is 6.43 only. This indicates that the company is undervalued compared to the industry leaders which means that the stock should increase in value from a fundamental standpoint.
BEEM Stock Financials
According to BEEM’s Q2 2023 report, its assets almost doubled from $37 million in Q4 2022 to $66 million in Q2 2023. This increase was mostly due to a sizable $22 million increase in the company’s cash balance brought about by a public offering as well as a $6 million increase in its accounts receivables. Liabilities during that time decreased slightly from $14.5 million to $13.3 million.
When it comes to revenue, BEEM experienced a 379% YoY increase from $3.7 million to $17.8 million which is mainly due to product sales increasing from $3.1 million to 17.1 million. That said, the company’s cost of revenue also experienced a substantial surge increasing from $4 Million to $17.3 million as a result of the increase of EV ARC deliveries from 74 in the first six months of 2022 to 354 in the first six months of 2023. This resulted in the company obtaining gross profits this quarter accounting for $501 thousand, and a gross margin of 2.8%, which is a sizable increase from last year’s gross margin which was only .03%.
On the other side of the income statement, expenses increased from $2.4 million to $4 million mostly due to a charge of 500 thousand attributed to contingent considerations. As a result of the company’s increasing cost of revenue and expenses, BEEM’s Net loss increased from $2.8 million to $3.5 million.
Media Sentiment
@pennycheck believes BEEM stock may be a way to profit from tropical storm Hilary.
@pmony5 believes BEEM stock may be undervalued at current levels.
Technical Analysis
BEEM stock is in a bearish trend as it is trading in a downward channel. Looking at the indicators, the stock is below the 200 and 50 MAs which is a bearish sign, and is above the 21 MA which is a bullish sign. Meanwhile, the RSI is neutral at 46 and the MACD is starting to curl bearishly.
As for the fundamentals, BEEM stock may be poised to run soon from current levels since it recently broke the 21 MA after holding the $8.16 support. With this in mind, long-term investors could wait for the test of the 21 MA to enter long positions given that the company may be fundamentally undervalued compared to EV charging industry leaders.
BEEM Stock Forecast
As things stand, BEEM stock is trading near its 52-week low, however, it may soon be catalyzed by tropical storm Hillary. The company’s EV ARC is floodproof which gives it an edge over many other EV chargers on the market especially those that are on an electrical grid. In addition to the edge it holds in the EV charging space, BEEM stock could be considered undervalued fundamentally when comparing its price-to-sales ratio with other big players in this space like BLNK and CHPT. In light of this, the stock could be a bargain at current levels for long-term investors.
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