Beam Global - A Very Underpriced Stock? The first trade alert of the year is Beam. I'm adding Beam to my investment portfolio, allocating between 0.5% and 1% of my portfolio to it.
Beam focuses on solar energy for electric vehicles. Here are their main products:
EV ARC: All-in-one solar-powered EV charger with built-in battery; completely self-contained and portable.
Solar Tree DCFC: A single-pole solar station provides fast charging (50kW) for multiple vehicles and works off-grid.
EV-Standard: Clever streetlight conversion that adds EV charging using a mix of solar, wind, and grid power.
UAV ARC: Off-grid charging system specifically designed for drone fleets.
THE FINANCIALS:
The company has a very small market capitalization: $47 million. This means high-risk, high reward!
Here's why I think the company is underpriced:
Stock price has declined by 95% since 2021
While the revenue 7x since 2021
Income is improving and it was positive in Q3 2024
The company has very low debt, and it's investing in lots of production resources
P/S (Price-to-Sales) Ratio: Market Cap / Revenue = $47.13M / $60.88M = 0.77x: quite low, as P/S ratios below 1 generally indicate potential undervaluation.
TEV / Revenue = $44.42M / $60.88M = 0.73x: Also very low.
Market Cap vs TEV: The fact that TEV ($44.42M) is lower than Market Cap ($47.13M) indicates the company likely has net cash on its balance sheet, which is positive.
WHY I'M BULLISH ON BEAM
Profit margins are increasing
Record Pipeline of over $200 million. That's more than twice their annual revenue.
In late 2024 they have improved in-house production capabilities, they are expanding new products and European sales are going well, launched the Beam Reseller Program and they are hiring more sales people.
Watch the CEO here. The company has great management.
The Trump administration will support US manufacturing and American job creation and is likely to support energy resilience.
Lower interest rates will help clients to buy more Beam equipment.
Profitability seems close.
THE TA
Beam price is down 96% since its all time high in 2021. Still, the revenue, earnings, and balance sheet are now better than ever. According to the technical analysis, I don't see much resistance for the price to past the $10 and perhaps get close to the $15 to $20 range.
RISKS
The company is still fairly small and could be crushed by big competitors.
Early stage growth and small capitalisation = volatility
The Trump administration might ramp up nuclear power, making solar a less feasible source of energy.
Quick note: I'm just sharing my journey - not financial advice! 😊
