Beam Global Stock Down 82% From High: Time to Consider It?

Beam Global Helps Build the EV Charging Network

Electric vehicle (EV) stocks have been declining in 2022 following big upward moves in 2021. But despite the current price weakness, the tailwinds for EV stocks remain strong.

See Beam Global (NASDAQ:BEEM), a micro-cap developer and manufacturer of power solutions for EV charging and power storage, outdoor media, and energy security.

Unfortunately, the stock market has sent BEEM stock down by 65% from its 52-week high of $39.39, which was reached in November 2021. Beam Global stock traded as high as $75.90 in December 2020.

The Joe Biden administration is behind a major shift toward EVs in the U.S. Legacy automakers and pure-play EV companies have been aggressively expanding their EV production.

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This means there are bullish tailwinds for not only EV makers, but also for companies that build critical EV charging infrastructure. Without an expansive, countrywide network of chargers, the EV industry will stall. Europe and China have been building extensive EV charging networks while the U.S. plays catch up.

Grand View Research predicts that the global EV charging infrastructure market will grow at a compound annual growth rate (CAGR) of 30.6% from 2022 to 2030. (“Electric Vehicle Charging Infrastructure Market Worth $217.06 Billion by 2030,” Grand View Research, Inc., last accessed September 15, 2022.)

Based on a market size of $19.3 billion in 2021, the estimate implies growth to about $210.0 billion by 2030. That’s a significant opportunity for EV charger companies like Beam Global.

The company has an extensive footprint, with installations in 96 cities, 13 states, and 121 countries. (Source: “About,” Beam Global, last accessed September 15, 2022.)

Chart courtesy of StockCharts.com

Currently trading around $14.00 per share, with a market valuation that has gone down to $140.0 million, I like the contrarian opportunity with BEEM stock.

Beam Global Expected to Deliver High Financial Growth

Beam Global is in its early stages of growth. Its revenues surged in 2021, but they’re still at a level that’s reflective of a startup.

Fiscal YearRevenues (Millions)Growth
2017$1.4N/A
2018$6.2336.4%
2019$5.1-17.1%
2020$6.221.5%
2021$9.045.0%

(Source: “Beam Global,” MarketWatch, last accessed September 15, 2022.)

Now the company needs to aggressively expand its EV charging business and build up its revenue base.

Analysts estimate that its revenues will jump by 80.5% to $16.3 million this year and by 102.5% to $32.9 million in 2023. (Source: “Beam Global (BEEM),” Yahoo! Finance, last accessed September 15, 2022.)

There are plenty of assumptions in those estimates, but if they pan out, Beam Global would trade at a reasonable 4.2 times its consensus 2023 revenue estimate.

Over time, the company will need to narrow its losses and move toward positive earnings before interest, taxes, depreciation, and amortization (EBITDA). This will likely take years.

Analyst Take

Beam Global stock is extremely speculative, but some top institutional investors have stakes, including Blackrock Inc (NYSE:BLK), Invesco Ltd. (NYSE:IVZ), and Morgan Stanley (NYSE: MS). (Source: Yahoo! Finance, op. cit.)

Short sellers have also been active with BEEM stock. There are roughly 1.7 million shorted shares, or 16.8% of the outstanding shares. If Beam Global stock holds and rallies, it would drive short covering.

Beam Global might be ideal for aggressive traders who are willing to withstand volatility and look forward to the bright future of EVs.