Beam Global

BEEM Details

Beam Global (NASDAQ: BEEM) is a cleantech innovation firm based in San Diego, California, that designs, manufactures, and distributes high-quality, renewable-energy infrastructure solutions for electric vehicle (EV) charging infrastructure, outdoor media advertising, energy security, and disaster preparation. EV ARC Electric Vehicle Autonomous Renewable Charger, Solar Tree DCFC, EV ARCTM DCFC – DC Fast Charging system for charging EVs, EV-Standard, and UAV ARC are the five product lines that BEEM sells. As of October 28, 2021, the company's market capitalization stood at USD 287.24 million.

Latest News:

• Expansion of EV Infrastructure: BEEM announced on October 28, 2021, that it was approved for inclusion in the California Electric Vehicle Infrastructure Project (CALeVIP) EV charging scheme. CALeVIP offers incentives for EV charger infrastructure and collaborates with local partners to create and implement projects that address current and future EV demands in the country.
• Growth in Government Contracts: According to BEEM, the California State Department of Motor Vehicles (DMV) ordered fifteen of BEEM's EV ARCTM solar-powered EV charging devices for public use on October 19, 2021. The DMV obtained the systems under the California Department of General Services (DGS) contract, aiming to streamline government procurement and make selected solutions available statewide at the cheapest possible price.

H1FY21 Results:

• Improvement in Revenues: BEEM's revenue climbed 26.02% to USD 3.49 million during H1FY21 (ended June 30, 2021) from USD 2.77 million during H1FY20, owing to increasing government clients and general consumer demand.
• Expansion in Net Losses: BEEM's net losses grew to USD 2.89 million during H1FY21, up from USD 1.78 million during H1FY20, owing to higher operating expenditures.
• Strong Balance Sheet: As of June 30, 2021, the company had a cash balance of USD 25.31 million with no outstanding debt.

Key Risks:

• Customer Concentration: BEEM's sales come from a limited number of clients, with Electrify America, LLC and the State of California accounting for 30% of its total revenue in FY20. As a result, if the company loses or reduces income from crucial clients, its operational performance may suffer.
• Dependence on Adoption of EVs: The company's revenue growth relies on the adoption of electric vehicles, which is still relatively new and may take some time to become widely recognized.

Valuation Methodology: EV/Sales Multiple Based Relative Valuation

(Analysis by Kalkine Group)

* % Premium/(Discount) is based on our assessment of the company's NTM trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.

BEEM Daily Technical Chart (Source: REFINITIV)

Stock Recommendation:

BEEM's stock price has surged 97.30% in the past twelve months and is currently leaning towards the lower end of its 52-week range of USD 14.86 to USD 75.90. We have valued the stock using the EV/Sales multiple-based relative valuation methodology and arrived at a target price of USD 29.88.

Considering the significant uptick in the stock price and other technical indicators, we believe the decent business fundamentals are adequately reflected at the current trading levels. Hence, we recommend a "Sell" rating on the stock at the closing price of USD 32.16, up 16.14% as of October 28, 2021.

* The reference data in this report has been partly sourced from REFINITIV.

* All forecasted figures and industry information have been taken from REFINITIV.