Company Reports

No-moat ChargePoint reported second-quarter results in line with our expectations but issued weak third-quarter revenue and pushed out its timeline for reaching positive adjusted EBITDA.

ChargePoint is a leading provider of networked electric vehicle charging hardware and software. The EV charging industry consists of three broad categories of companies: hardware providers, integrators (software providers), and asset owners. ChargePoint focuses on providing integrated hardware and software product offerings and rarely owns assets. It pursues a closed-loop approach—only selling its hardware with its network software attached—which we view as unique among its peers.

We've lowered our fair value estimate for no-moat ChargePoint to $2 per share from $2.50 following the company’s fiscal 2025 first-quarter results. The driver of our lower valuation is a reduced long-term revenue forecast, as we expect the company’s constrained balance sheet to necessitate prioritizing profitability over growth. We view the shares as fairly valued.

ChargePoint is a leading provider of networked electric vehicle charging hardware and software. The EV charging industry consists of three broad categories of companies: hardware providers, integrators (software providers), and asset owners. ChargePoint focuses on providing integrated hardware and software product offerings and rarely owns assets. It pursues a closed-loop approach—only selling its hardware with its network software attached—which we view as unique among its peers.

We maintain our $2.50 fair value estimate for no-moat ChargePoint following its fourth-quarter results. We view shares as fairly valued in light of our Extreme Uncertainty Rating.

On Jan. 10 ChargePoint announced a strategic reorganization resulting in an approximate 12% reduction in the company’s global workforce. We maintain our $2.50 fair value estimate and view shares as fairly valued. Our no moat rating and Extreme Morningstar Uncertainty Rating are unchanged.

Clean energy stocks have had a roller-coaster 18 months. Optimism following the passage of the Inflation Reduction Act in August 2022 gave way to rising interest rates in 2023. We highlight three key themes for investors to focus on in 2024: interest rates, U.S. policy, and profitability.

We maintain our $2.50 fair value estimate for no-moat ChargePoint following the company's fiscal 2024 third-quarter results. We make minor updates to our financial model, with lower revenue assumptions largely offset by steep operating cost reductions. We view the shares as fairly valued in light of our Extreme Morningstar Uncertainty Rating.

We've lowered our fair value estimate for no-moat ChargePoint to $2.50 per share from $5 following the company's announcement of weaker-than-expected preliminary third-quarter results. Our lower valuation is driven largely by reducing our long-term revenue and margin expectations. We've also moved our Morningstar Uncertainty Rating to Extreme from Very High as we see a widening array of outcomes for the company. We view the shares as fairly valued.

ChargePoint is a leading provider of networked electric vehicle charging hardware and software. The EV charging industry consists of three broad categories of companies: hardware providers, integrators (software providers), and asset owners. ChargePoint focuses on providing integrated hardware and software product offerings and rarely owns assets. It pursues a closed-loop approach—only selling its hardware with its network software attached—which we view as unique among its peers.

We lower our fair value estimate for no-moat ChargePoint to $5 from $8 following the company's recent equity capital raise. Our lower valuation is driven largely by the share dilution and a slight increase in our discount rate. We view the shares as slightly undervalued in light of our Very High Morningstar Uncertainty Rating.

ChargePoint is a leading provider of networked electric vehicle charging hardware and software. The EV charging industry consists of three broad categories of companies: hardware providers, integrators (software providers), and asset owners. ChargePoint focuses on providing integrated hardware and software product offerings, while rarely owning assets. ChargePoint pursues a closed loop approach—opting only to sell its hardware with its network software attached—which we view as unique among its peers.

In 2022, battery electric vehicles represented nearly 10% of global auto sales, up from a little less than 6% in 2021. Much of the growth occurred in China, which has been a leader in EV sales over the past decade. However, with national EV subsidies in China expiring in 2022 and far lower sales in the U.S. and Europe, the market questions if EV sales can continue to grow without subsides.

We lower our fair value estimate for no-moat ChargePoint to $8 from $11 following the company's fiscal 2024 second-quarter results. Our lower valuation is driven by a lower revenue outlook, which also results in reduced operating leverage. We view the shares as slightly undervalued in light of our Very High Morningstar Uncertainty Rating.

ChargePoint is a leading provider of networked electric vehicle charging hardware and software. The EV charging industry consists of three broad categories of companies: hardware providers, integrators (software providers), and asset owners. ChargePoint focuses on providing integrated hardware and software product offerings, while rarely owning assets. ChargePoint pursues a closed loop approach—opting only to sell its hardware with its network software attached—which we view as unique among its peers.

On June 8, General Motors announced a collaboration with Tesla related to electric vehicle charging. As part of the agreement, GM will integrate the North American Charging Standard pioneered by Tesla into its new EVs beginning in 2025. Also, GM customers will gain access to 12,000 Tesla Superchargers beginning in early 2024 (this will initially require the use of an adapter). This partnership follows a similar announcement from Ford last month.

We maintain our $11 fair value estimate for no-moat ChargePoint following the company's fiscal 2024 first-quarter results. We view the shares as fairly valued in light of our Very High Morningstar Uncertainty Rating.

We are lowering no-moat ChargePoint's fair value estimate to $11 per share from $12.50 following the company's fourth-quarter results. The driver of our fair value decrease is a reduction to our near-term revenue forecast and slightly lower long-term gross margins. We view ChargePoint shares as fairly valued.

ChargePoint is a leading provider of networked electric vehicle charging hardware and software. The EV charging industry consists of three broad categories of companies: hardware providers, integrators (software providers), and asset owners. ChargePoint focuses on providing integrated hardware and software product offerings, while rarely owning assets. ChargePoint pursues a closed loop approach—opting only to sell its hardware with its network software attached—which we view as unique among its peers.

On Jan. 31, ChargePoint and Stem announced a commercial partnership for electric vehicle charging customers seeking to leverage each company's expertise. We maintain our fair value estimates and no-moat ratings for both companies. We view ChargePoint and Stem shares as fairly valued.