GP Stock Down 70% in 2022 but Has 377% Upside
GreenPower Motor Company Inc (NASDAQ:GP) has emerged as one of the most unjustly beaten-down stocks in the electric vehicle (EV) industry. The B.C., Canada-based company manufactures electric transit, school, and charter buses.
GreenPower Motor Company Inc is still in its early growth stages, but there’s a lot for investors to get excited about. The company recently opened a new manufacturing facility in the U.S.; it has a large line of EVs; it rolled out a school bus project in September; and it recently announced record financial results.
Moreover, government initiatives in the U.S. and Canada are giving a boost to the EV industry.
Despite all of the wonderful things going on at GreenPower Motor Company Inc, GreenPower Motor stock is deeply entrenched in penny-stock territory, trading down by 70% year-to-date to $2.72.
It may not be that low for long, though. Analysts have provided a 12-month share-price target for GP stock in the range of $8.67 to $13.00, which points to potential gains in the range of 218% to 377%.
Chart courtesy of StockCharts.com
GreenPower Motor Company Inc Overview
GreenPower is a leading EV manufacturer and distributor that serves the cargo, delivery, and bus markets—basically the overlooked workhorse market. (Source: “Transportation Evolved: June 2022,” GreenPower Motor Company Inc, last accessed November 25, 2022.)
The company’s flagship line, “EV Star,” is the first in its class to be Altoona tested and certified and Buy American Act-compliant (which provides access to highly lucrative federal incentives).
A few of GreenPower Motor Company Inc’s vehicles are the “EV Star Cargo,” the “EV Star Cargo Plus,” the “BEAST” (a full-size school bus), and the “Nano BEAST” (a short school bus). (Source: “Product Line,” GreenPower Motor Company Inc, last accessed November 25, 2022.)
In the second quarter, School Transportation News awarded the Nano BEAST the “Innovation Award for Best Green Bus Technology.” (Source: “Greenpower Reports Record Revenue of $7.7 Million and 57 Vehicle Deliveries for Fiscal Second Quarter 2023,” GreenPower Motor Company Inc, November 15, 2022.)
The “EV250” is a 30-foot transit bus with a driving range of more than 200 miles on a single battery charge. The “EV350” is a 40-foot transit bus that has the same range. The “EV550” is a 45-foot, low-floor double-decker bus.
Some of GreenPower Motor Company Inc’s customers are Jacksonville Transportation Authority, Oakland Seaport, Sacramento Regional Transit, San Diego Airport Parking Co, UCLA, and University of California San Francisco. The State of West Virginia recently committed to purchasing $15.0 million worth of the company’s vehicles.
Record Revenues & 57 Vehicle Deliveries in Second Quarter
On November 15, GreenPower reported its financial results for the second quarter ended September 30.
The company announced that its revenues increased in the second quarter by 67% year-over-year to a record $7.7 million. That was more than double its first-quarter revenues of $3.8 million. GreenPower Motor Company Inc’s cost of revenues during the second quarter of 2022 was $6.0 million. (Source: Ibid.)
The company generated gross profits of $1.8 million, or 22.7% of its revenues, in the second quarter of 2022. That’s compared to gross profits that were 20.6% of the company’s revenues in the second quarter of 2021.
During the second quarter of this year, the company delivered 57 EVs, including EV Star cab and chassis vehicles to Workhorse, three BEAT school buses to a pilot project in West Virginia, and 21 EV Star Cargo trucks to a group of customers in New Jersey.
Also during the second quarter, GreenPower Motor Company Inc closed on its acquisition of Lion Truck Body, recognizing almost $600,000 of revenue during the quarter.
Moreover, GreenPower took possession of its 80,000-square-foot, 9.5-acre school bus manufacturing plant in South Charleston, WV during the second quarter.
GreenPower Motor Company Inc is a great, under-the-radar U.S. EV company that’s just getting started.
Its product line includes a broad-based fleet of EVs, it has been generating high revenues, it has significant pipeline growth, it recently cut the ribbon at a new factory, and its EV Star is the first EV line in its class to be Buy American Act-compliant. GreenPower Motor Company Inc is essentially on the cusp of significantly ramping up its revenues.
All this is why Wall Street analysts are so bullish on GreenPower Motor stock.