ChargePoint Holdings (CHPT) AI Stock Analysis

• Market Cap: $329.76M
• Dividend Yield: N/A
• Average Volume (3M): 15.20M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.05
• Revenue Growth: -15.71%
• EPS Growth: 47.94%
• Country: US
• Employees: 1,395
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Specialty Retail
• EPS (TTM): -0.12
• Shares Outstanding: 461,649,700
• 10 Day Avg. Volume: 25,306,057
• 30 Day Avg. Volume: 15,202,786
• PEG Ratio: 0.22
• Price to Book (P/B): -735.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.86
• Enterprise Value/Market Cap: 11.61
• Enterprise Value/Revenue: 2.26
• Enterprise Value/Gross Profit: 36.45
• Enterprise Value/Ebitda: -3.78
• 1Y Price Target: $0.99
• Price Target Upside: 37.50% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 52 Neutral
• Price Target: $0.50 ▼(-30.56%Downside)

ChargePoint Holdings is experiencing financial difficulties with declining revenue and negative profit margins. The technical analysis offers a mixed outlook, with short-term improvements but long-term challenges. Valuation metrics are weak due to ongoing losses. However, strategic partnerships and innovation highlighted in the earnings call show potential for future growth and margin improvements.

Positive Factors

Cash Management

ChargePoint has prudently managed cash and is not expected to need additional capital during the modeling period.

Margins

Margins remain on track to step up with the ramp up of Asia manufacturing, which should improve profitability.

Partnership

CHPT is set to leverage their recently announced partnership with Eaton, an industrial power management company, as a growth tailwind.

Negative Factors

Market Sentiment

Muted investor sentiment and unlikely market recovery suggest further downside potential for ChargePoint.

Regulatory Challenges

The trajectory of a return to growth is uncertain with regulatory headwinds likely flattening EV adoption in the US.

Revenue Stagnation

CHPT revenues have been flattish for three consecutive quarters, indicating potential stagnation.

ChargePoint Holdings Business Overview & Revenue Model

Company Description

ChargePoint Holdings, Inc. provides electric vehicle (EV) charging networks and charging solutions in the United States and internationally. It offers a portfolio of hardware, software, and services for commercial, fleet, and residential customers. The company was founded in 2007 and is headquartered in Campbell, California.

How the Company Makes Money

ChargePoint makes money primarily through the sale of its EV charging hardware and networked software solutions. The company's revenue streams include the sale of charging stations to businesses and property owners, who then provide charging services to EV drivers. Additionally, ChargePoint generates recurring revenue from network subscriptions, which allow customers to access its cloud-based software and services for station management, driver support, and data analytics. The company also benefits from partnerships with automotive manufacturers, real estate developers, and local governments, which help to expand its charging network and increase utilization. Revenue is further supported by grants and incentives aimed at promoting clean energy and EV adoption.

ChargePoint Holdings Financial Statement Overview

Summary

ChargePoint Holdings faces ongoing financial challenges with declining revenues, negative profit margins, and high leverage. While there are improvements in cash flow efficiency and gross profit, the company must address operational losses and strengthen its balance sheet for improved financial health.

Income Statement

ChargePoint Holdings has shown a decrease in revenue over the TTM (Trailing-Twelve-Months), with a decline from $417.08M to $407.68M, indicating a revenue growth rate of -2.25%. The gross profit margin is relatively low at 25.77% for TTM, suggesting challenges in cost management or competitive pricing. The net profit margin remains negative at -64.36%, reflecting ongoing operational losses. Despite these challenges, the company shows improvement in gross profit compared to previous years.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.72, indicating significant leverage which could pose financial risk. The return on equity (ROE) is negative at -221.24%, highlighting inefficiencies in generating returns on shareholders' equity. The equity ratio stands at 13.21%, illustrating a low proportion of equity financing relative to total assets, which may affect financial stability.

Cash Flow

Cash flow analysis shows a negative free cash flow, with a slight improvement in free cash flow growth rate from -$159.02M to -$127.04M, representing a 20.10% improvement. The operating cash flow to net income ratio is positive at 0.45, suggesting some efficiency in converting net income into cash flow. However, the negative free cash flow to net income ratio indicates challenges in generating sufficient free cash flow relative to net income.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Dec 2020
Income Statement		Total Revenue
407.68M	417.08M	506.64M	468.09M	242.34M	146.49M
	Gross Profit
105.06M	100.68M	30.12M	85.93M	53.53M	32.95M
	EBIT
-239.70M	-253.00M	-449.95M	-341.78M	-266.38M	-120.99M
	EBITDA
-204.65M	-218.85M	-412.87M	-312.79M	-117.21M	-183.49M
	Net Income Common Stockholders
-262.39M	-277.07M	-457.61M	-344.46M	-132.57M	-197.02M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
195.95M	224.57M	327.41M	369.13M	315.24M	145.49M
	Total Assets
897.61M	898.17M	1.10B	1.08B	861.83M	290.12M
	Total Debt
322.20M	312.36M	301.05M	316.78M	25.37M	59.75M
	Net Debt
126.25M	87.79M	-26.36M	52.62M	-289.87M	-85.75M
	Total Liabilities
779.02M	760.70M	775.69M	724.32M	315.14M	290.94M
	Stockholders Equity
118.59M	137.47M	327.68M	355.64M	546.68M	-824.00K
Cash Flow		Free Cash Flow
-127.04M	-159.02M	-348.37M	-285.61M	-173.59M	-103.33M
	Operating Cash Flow
-117.37M	-146.95M	-328.94M	-267.05M	-157.18M	-91.85M
	Investing Cash Flow
-9.66M	-12.07M	85.58M	-126.15M	-221.74M	35.53M
	Financing Cash Flow
29.93M	28.54M	306.52M	372.86M	549.69M	128.91M

ChargePoint Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.72
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHPT, the sentiment is Negative. The current price of 0.72 is below the 20-day moving average (MA) of 0.74, above the 50-day MA of 0.67, and below the 200-day MA of 0.98, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 46.01 is Neutral, neither overbought nor oversold. The STOCH value of 18.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CHPT.

ChargePoint Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$6.86B	11.07	2.77%	4.27%	2.66%	-24.95%
CHPT	52 Neutral	$329.76M	―	-135.29%	―	-15.71%	47.94%
EVGO	52 Neutral	$1.41B	―	19.14%	―	45.15%	-2.91%
NVVE	47 Neutral	$14.34M	―	-1026.66%	―	-24.26%	93.83%
NAAS	44 Neutral	$3.39M	―		―	3.04%	17.46%

ChargePoint Holdings Corporate Events

ChargePoint Holdings Faces NYSE Compliance Challenge

On February 19, 2025, ChargePoint Holdings, Inc. received a notification from the New York Stock Exchange (NYSE) that it is not in compliance with the requirement for maintaining a minimum average closing price of $1.00 over a 30 trading-day period. The company announced its intention to resolve this deficiency by March 5, 2025, potentially considering measures such as a reverse stock split to maintain its listing. The NYSE notice will not immediately affect the trading of ChargePoint’s stock, nor will it impact the company’s ongoing operations or reporting obligations.