Beam Global Stock: EV Stock Has Upside of 100% or More

Beam Global Stock: EV Stock Has Upside of 100% or More

BEEM Stock Could Be Set to Soar

Solar stocks have been getting a bit of a boost after banking giant Goldman Sachs Group Inc (NYSE:GS) named SolarEdge Technologies Inc (NASDAQ:SEDG) and First Solar, Inc. (NASDAQ:FSLR) as its top stock pics for 2023.

But there’s an even better solar stock to keep your eye on in 2023. Beam Global (NASDAQ:BEEM) is a clean-technology company that creates renewable energy products for electric vehicles (EVs), outdoor advertising, energy security, and disaster preparedness. (Source: “Corporate Presentation: March 2022,” Beam Global, last accessed December 29, 2022.)

Three reasons the future looks bright for Beam Global are:

  • The world will need tens of millions of EV chargers over the next couple of decades
  • Outdoor media is the third-fastest-growing advertising sector
  • Electricity supply vulnerability is one of the greatest threats to our daily lives

Beam Global sells its products to municipalities, state agencies, the federal government, the military, fleet operators, and businesses. Its products include “EV ARC,” “Solar Tree,” “EV Standard,” and “UAV ARC.”

Advertisement

EV ARC is the world’s only transportable (yet permanent) solar-powered EV charging system. It generates and stores all of its own power.

Solar Tree is a charger for medium-duty and heavy-duty EVs. Like EV ARC, it generates and stores its own power.

EV Standard is a streetlight replacement that uses existing grid connections, solar power, and light-wind power. It doesn’t require heavy construction or electrical work.

UAV ARC is a drone recharger. It generates and stores its own power, is easy to deploy, and creates a network for charging and Internet-of-Things (IoT) fleet monitoring.

In 2022, Beam Global announced a blockbuster acquisition, a slew of new contracts, and tremendous financial results and guidance. Moreover, Beam Global stock is trading well below its late-2020 peak, so it still has room to grow.

Acquisition of AllCell

In March, Beam announced that it had closed on its strategic acquisition of AllCell Technologies, LLC, a leader in energy storage solutions. (Source: “Beam Global Closes Strategic Acquisition of AllCell Technologies, a Leader in Energy Storage Solutions,” Beam Global, March 4, 2022.)

Beam was AllCell’s largest shareholder, and the two companies had already been working together for 10 years. (Source: “Interview With Beam Global CEO Desmond Wheatley on the Acquisition of AllCell Technologies,” Beam Global, February 23, 2022.)

Drones, submersibles, recreational products, aircraft, and a host of micro-mobility and EV products have been benefiting from AllCell’s products.

Beam Global says that acquiring its own battery company and investing in factories will allow it to produce more than 30 times its previous best year’s volume and position it to take advantage of market conditions.

Beam Global Announces Raft of New Orders

During the third quarter, Beam Global announced a large number of new orders, including one from Volvo AB (STO:VOLCAR-B, OTCMKTS:VLVOF) to provide off-grid EV charging systems, one from UgoWork for a multi-million-dollar battery module, and another one for batteries to power autonomous delivery drones.

It’s been even busier since then. In the fourth quarter, Beam Global gained:

  • A $29.4-million order from the U.S. Army
  • An $11.6-million order from the U.S. Department of Veterans Affairs
  • A $5.3-million re-order from the City of New York
  • A $2.9-million order from the U.S. Department of Homeland Security
  • $6.3 million in miscellaneous orders from other government and enterprise customers
  • An additional order from the City of San Diego for multiple EV ARC systems

In November, Beam Global shipped and deployed a record number of EV ARC systems.

“Sales of our products are at all-time record highs and our ramp-up in production and operational capacity is well under way,” said Desmond Wheatley, Beam Global’s CEO. (Source: “Beam Global Shipped and Deployed Record Number of EV ARC Sustainable EV Charging Systems in November 2022,” Beam Global, December 7, 2022.)

Wheatley continued, “The accelerating urgency for EV charging infrastructure combined with the need for robust, off-grid solutions is driving significant growth in demand for our products…”

Beam Global Reports Another Record Quarter

For the third quarter ended September 30, Beam Global announced that its revenue increased by 227% year-over-year to a record $6.6 million. (Source: “Beam Global Reports Fiscal Q3 2022 Financial Results Record Revenue, Record Orders and Record Backlog,” Beam Global, November 10, 2022.)

Also for the third quarter of 2022, the company reported a net loss of $6.7 million, or $0.67 per share. That’s compared to a net loss of $1.6 million, or $0.19 per share, in the third quarter of 2021.

In the first nine months of 2022, the company’s revenue climbed by 156% to $14.1 million. Also for the first nine months, Beam Global reported a loss of $11.8 million, or $1.27 per share. In the first nine months of 2021, Beam had a net loss of $4.5 million, or $0.52 per share.

Beam Global also achieved the following in the third quarter:

  • Sold more EV ARC systems than in the previous 10 years combined
  • Had an order backlog of $6.7 million for its energy storage business
  • Had a total contracted order backlog of $62.2 million
  • Reached its highest nine months of revenue in its history: $14.1 million, a 156% increase compared to the same period of 2021
  • Despite inflation, improved its gross profitability year-to-date by five percent of revenue
  • Also despite inflation, improved its net profitability year-to-date by 25% (excluding a $3.7-million expense for the change in fair value of non-cash contingent consideration)

Share-Price Performance & Outlook

All of the above helps explain why Wall Street is so bullish on BEEM stock. As of this writing, Beam Global stock is up by:

  • 30% over the last three months
  • 24% over the last six months
  • 2.2% year-to-date

It hasn’t been all flowery, though. BEEM stock is down by 13% year-over-year and 75% since hitting its record high of $75.90 on December 31, 2020.

The outlook for Beam Global stock is exceptional, with analysts providing a 12-month share-price target in the range of $27.50 to $40.00. This points to potential gains in the range of 46% to 112.6%.

Analyst Take

There’s a lot to like about BEEM stock.

Beam Global provides the most rapidly deployed EV charging stations on the planet. The company has acquired its own battery company, announced new multi-million-dollar contracts, added new customer segments, and accelerated product development cycles. Plus, it has announced record revenues, orders, and backlog. Best of all, it has no direct competitors.

All that bodes well for Beam Global stock.