ChargePoint may be overvalued with poor growth indicators, but the 21 analysts following the company give it an average rating of buy. The analysts have set target prices ranging from $10.0 to $26.0 per share, for an average of $17.88. At today's price of $8.55, ChargePoint is trading -52.18% away from its average target price, suggesting there is an analyst consensus of strong upside potential.
ChargePoint Holdings, Inc., together with its subsidiaries, provides electric vehicle (EV) charging networks and charging solutions in the United States and internationally. The mid-cap Consumer Cyclical company is based in Campbell, CA. ChargePoint has not offered a dividend during the last year.
ChargePoint does not have a meaningful trailing P/E ratio since its earnings per share are negative. Its forward EPS guidance is negative too, at -0.18. The average P/E ratio for the Consumer Cyclical sector is 22.33. Furthermore, ChargePoint is likely overvalued compared to its book value, since its P/B ratio of 8.4 is higher than the sector average of 3.12.
The question is, why does ChargePoint have a good rating if it is so overvalued in terms of traditional metrics? One reason could be the company's excellent rate of margin growth, which in the analysts' opinion, will continue in coming years.
| 2020-01-31 | 2021-01-31 | 2022-01-31 | 2023-01-31 | |
|---|---|---|---|---|
| Revenue (k) | $144,515 | $146,490 | $242,340 | $468,094 |
| Revenue Growth | n/a | 1.37% | 65.43% | 93.16% |
| Gross Margins | 12.5% | 22.5% | 22.1% | 18.4% |
| Gross Margins Growth | n/a | 80.0% | -1.78% | -16.74% |
| Operating Margins | -91.6% | -82.6% | -109.9% | -73.0% |
| Operating Margins Growth | n/a | 9.83% | -33.05% | 33.58% |
| Net Margins | -92.95% | -134.5% | -54.7% | -73.59% |
| Net Margins Growth | n/a | -44.7% | 59.33% | -34.53% |
| Earnings Per Share | -$0.48 | -$0.99 | -$1.49 | -$0.96 |
| EPS Growth | n/a | -106.25% | -50.51% | 35.57% |
| Diluted Shares (MM) | 278 | 278 | 302 | 350 |
| Free Cash Flow (k) | -$102,821 | -$103,330 | -$173,588 | -$285,612 |
| FCF Growth | n/a | -0.5% | -67.99% | -64.53% |
| Capital Expenditures (k) | -$14,885 | -$11,484 | -$16,410 | -$18,563 |
| LT Debt to Equity | nan | -0.04 | nan | 0.83 |
