Blink Charging Co: 1,100% Return Already; More to Come for This EV Play?

Electric Vehicle Stock Delivering Enormous Returns

“As the electric car market grows, this $2.67 stock could outperform.”

That’s what I told Profit Confidential readers about Blink Charging Co (NASDAQ:BLNK) back in September 2019. In that piece, I explained why the company could be an opportunity for investors who want to capitalize on the booming electric vehicle (EV) industry.

Today, Blink Charging Co is no longer a $2.67 stock. As of this writing, BLNK stock trades at $32.15 apiece, marking a return of over 1,100%

It’s always nice to see a 10-bagger, but I should point out that massive rallies like these aren’t always sunshine and rainbows. In fact, the 1,100% figure is the result of a skyrocketing share price followed by a sizable pullback. At its peak on January 27, Blink Charging stock traded at $64.35 apiece, meaning at one point it was up by 2,300%.

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That also means BLNK stock has pulled back by more than 50% from its all-time high. But that’s exactly why I’m writing about the stock now and not in January. As a risk-averse investor, I’m not a fan of chasing parabolic runs.

The best part is, while there have been ups and downs in Blink Charging stock’s price, the company’s business has been going in just one direction: up.

Blink Charging Co (NASDAQ:BLNK) Stock Chart

Chart courtesy of StockCharts.com

Blink Charging Co focuses on the charging side of the EV industry. The company doesn’t make any electric cars, but it has built a solid position in the EV charging equipment and services business.

In particular, the company runs the “Blink Network,” a proprietary cloud-based software that operates, maintains, and tracks the EV charging stations connected to the network and the associated charging data.

Founded in 2009, Blink Charging Co has deployed more than 30,000 charging ports across 13 countries.

The company has a growing registered member base of over 190,000, and it has also established key strategic partnerships for rolling out adoption across numerous location types, such as parking facilities, multifamily residences, condos, workplaces, medical facilities, schools, and airports.

Providing charging solutions seems straightforward, but Blink Charging Co actually has multiple streams of revenue:

  • The company’s owned charging stations generate revenues through the sale of electricity to EV drivers
  • The company earns revenue by selling hardware to its host locations
  • It collects network management fees every month
  • The company generates income through advertising sales at its charging stations and in its mobile app

Due to the nature of Blink’s business, one might think that 2020 was a challenging year for the company. Since people traveled a lot less during the COVID-19 pandemic, the demand for EV charging was less than before.

Yet Blink managed to deliver very impressive growth for the year. In 2020, the company’s revenue grew by 121% year-over-year to $6.2 million. (Source: “Blink Charging Announces Fourth Quarter and Full Year 2020 Results,” Blink Charging Co, March 25, 2021.)

As expected, in 2020, Blink’s revenue from charging stations dropped considerably, from $1.4 million in 2019 to just $800,000.

However, the rise in its other revenue streams more than made up for that segment. The company’s product sales in 2020 increased nearly fivefold to $4.4 million. Meanwhile, its revenue from network fees, warranty fees, grants, rebates, and other revenues rose by 100% in 2020 to $1.0 million.

And business continued to expand in 2021. In the first six months of this year, Blink generated $6.6 million of total revenue, marking a 129% increase year-over-year. (Source: “Blink Charging Announces Second Quarter 2021 Results,” Blink Charging Co, August 11, 2021.)

Growth was across the board as product sales, charging services, and network fees all delivered strong year-over-year increases.

Notably, during the second quarter of 2021, 3,264 commercial and residential Blink EV charging stations were contracted, sold, or deployed. That represented a whopping 758% increase compared to 380 in the same period of last year.

Analyst Take

Keep in mind that the EV industry is just getting started. The global EV market is projected to grow at a compound annual growth rate (CAGR) of 31% from 2020 to 2030. By 2030, EVs are expected to account for nearly 30% of all vehicles sold around the world.

The best part is, no matter which car manufacturer wins the EV race, more EVs on the road will undoubtedly lead to surging demand for EV charging solutions. By providing that solution, Blink Charging Co (and, therefore, BLNK stock) deserves the attention of EV stock investors.