Wallbox Stock: EV Stock Down 70% in 2022 but Has 230% Upside

WBX Stock

Why WBX Stock Could Soar in Value

Shares of Wallbox NV (NYSE:WBX) haven’t exactly performed well in 2022. In fact, Wallbox stock is down by 70% year-to-date and trading at record lows. On the plus side, WBX stock provides a fabulous entry point to investors who are interested in electric vehicle (EV) stocks.

Normally, it wouldn’t be worth looking at a stock that’s been getting hammered all year, but Wallbox stock is an exception.

Wallbox NV, which makes and sells EV charging units, reported record revenues for the third quarter. The company expects its full-year revenue to more than double to about $167.0 million. For 2023, the company expects its revenue to soar to nearly $400.0 million.

In addition to reporting record revenues and providing strong guidance, Wallbox NV:

  • Has been launching new products
  • Recently began production at its first U.S. factory
  • Acquired COIL, Inc., an EV charging installation services company
  • Announced a global partnership with Fisker Inc (NYSE:FSR) to provide charger and installation services for Fisker’s upcoming EV models
  • expanded its partnership with Uber Technologies Inc (NYSE:UBER)

As you can see, many wonderful things are going on at Wallbox NV; they just aren’t reflected in WBX stock’s current price. Most of that can be blamed on rising interest rates, temporary macroeconomic headwinds, and fears about a recession in 2023.

The fact is, the outlook for the EV industry (which is barely in its infancy) is spectacular. The global EV industry is experiencing massive growth, with more than 600 million EVs expected to be on the roads by 2040.

Mass adoption of EVs requires a significant expansion of EV charging infrastructure. The EV charging industry is forecast to have a total addressable market of $102.0 billion in 2030. Of the 100 million charging points for passenger EVs that are projected to be in place globally by 2030, a whopping 97% of them have yet to be installed.

Despite all the great things going on at Wallbox NV—and its excellent long-term financial outlook—Wallbox stock is down by 70% year-to-date and 61% year-over-year.

Grim numbers, but analysts have provided a 12-month share-price forecast for WBX stock of $13.40 to $16.00. This points to potential gains in the range of 175% to 230%.

Wallbox NV Overview

While some EV charging companies are mostly concerned with commercial EV chargers (at locations such as gas stations and parking lots), Wallbox focuses on home and office EV charging units, since that’s where 70% of all EV charging occurs. The company also sells public EV charging stations. (Source: “Corporate Presentation: Q3 2022,” Wallbox NV, last accessed December 13, 2022.)

Some of Wallbox’s EV charging units can be used during power outages or to power homes.

To date, the company has sold more than 370,000 units in more than 110 countries. It currently has four manufacturing facilities, with a total production capacity in excess of one million units.

Wallbox NV’s EV charging platforms include “Pulsar Plus,” an AC smart charger for houses and multifamily residences; “Quasar 2,” a bidirectional DC charger that allows users to charge their car and power their home; and “Supernova,” a direct-current fast charger (DCFC) designed specifically for North America.

Supernova chargers can be found in hospitality and retail parking lots, highway charging stations, and on city streets. A Supernova charger adds up to 120 miles of driving range to an EV in less than 15 minutes.

The company also sells a variety of accessories.

Wallbox NV’s growing global list of clients includes Amazon.com, Inc. (NASDAQ:AMZN), Ford Motor Company (NYSE:F), PepsiCo, Inc. (NASDAQ:PEP), and Walmart Inc (NYSE:WMT).

In August, Wallbox acquired COIL, a leading EV charging installation service company in the U.S. (Source: “Wallbox Acquires EV Charging Installation Services Company, COIL,” Wallbox NV, August 10, 2022.)

The acquisition will allow Wallbox to become a one-stop shop for EV installation and maintenance services for key partners, including auto original equipment manufacturers (OEMs), utilities, and dealerships in North America.

In early November, the company announced that it had extended its relationship with Uber. Drivers on the platform in seven European countries can now purchase discounted home EV chargers. (Source: “Wallbox and Uber Extend Partnership to Boost Access to Home Chargers Across Europe,” Wallbox NV, November 2, 2022.)

This partnership will operate in the UK, Germany, The Netherlands, Spain, France, Portugal, and Belgium. It builds on the two companies’ partnership that they launched in the U.S. and Canada in 2021.

Helping its drivers switch to EVs is key to Uber’s ambition of becoming a zero-emission platform in Europe by 2030.

Management Announces Record Q3 Results & Full-Year Outlook

For the third quarter ended September 30, Wallbox announced that its revenue jumped by 140% year-over-year to a record €44.1 million (about $46.4 million). In North America, its revenue soared by 535%. (Source: “Wallbox Announces Third Quarter 2022 Financial Results,” Wallbox NV, November 9, 2022.)

The company reported a third-quarter gross margin of 41.4% and an operating loss of $31.4 million. Wallbox ended the quarter with cash and equivalents of $91.5 million and long-term debt of roughly $38.0 million.

Enric Asuncion, Wallbox NV’s CEO, noted, “Our team executed well again this quarter, meeting expectations in a market that has proven to be somewhat mixed.” (Source: Ibid.)

He added. “We’re navigating the challenges well, and are focused on what we can control, as seen by massive growth and meaningful market share gains in multiple geographies.”

For the fourth quarter, Wallbox NV’s management expects the company’s revenue to climb by 60% to 100% and its full-year revenue to grow by 115% to 130%.

Analyst Take

Aside from the terrible performance of its share price, there’s a lot to love about Wallbox NV.

The company has been reporting record revenues and high unit sales, expanding its international business footprint, and announcing new partnerships and an acquisition.

The economic outlook for many industries is uncertain, but Wallbox continues to improve its competitive position and expects to double in size every year for the foreseeable future.

All that bodes well for Wallbox stock.