CuriosityStream Inc.

CURI Details

CuriosityStream Inc. (NASDAQ: CURI) is a media and entertainment company that produces high-quality factual video content in the fields of science, history, culture, nature, lifestyle, and technology. It earns money through six different lines of businesses via subscription and license fees, namely 1) Direct to Consumer, 2) Partner Direct Business, 3) Bundled Distribution, 4) Program Sales, 5) Corporate & Association Partnerships, and 6) Sponsorships are all options.

Latest News:

• Investment in Nebula: CURI announced an expanded strategic collaboration with and investment in Nebula, the world's largest creator-owned streaming and technology platform, on September 02, 2021. The company will get a significant minority stake in Nebula and board participation as a result of this transaction, which is worth more than USD 50 million to Nebula.
• Launch on FuboTV: On August 23, 2021, CURI stated that it had signed a multi-year distribution partnership with fuboTV Inc., a sports-first live TV streaming platform. Under this agreement, Curiosity Channel, the company's linear channel, will be made available on fuboTV in the US and the rollout of Curiosity Stream VOD service in the US and Canada in the coming weeks.

H2FY21 Results:

• Increase in Revenue: The firm reported a rise of 29.53% in revenues to USD 25.28 million during H1FY21 (ended June 30, 2021) compared to USD 19.52 million during H1FY20, due to an increase in subscription and license fee revenues.
• Negative Bottomline: It has witnessed an increase in net losses to USD 27.06 million during H1FY21 vs. USD 16.11 million reported in H1FY20.
• Increase in Total Paying Subscribers: Total paid subscribers are estimated to be around 20 million, representing a 40% increase YoY.
• Healthy Balance Sheet: As of June 30, 2020, the company's cash and cash equivalents (including short-term investments) stood at USD 99.56 million with no outstanding debt.

Topline Growth (Source: Investor Presentation, Q2FY21)

Key Risks:

• Customer Concentration: During FY20 and FY19, the top three clients provided 41% and 35% of total revenues, respectively. Such over-reliance on specific clients for business may be harmful to the company's financial health in the long term.

Outlook:

• Revenue Estimate: As of August 10, 2021, the company estimates FY21 sales to be about USD 71 million, indicating an increase of 80% YoY.
• Capex: In addition, CURI's capital spending is expected to increase in FY21, as it plans to acquire more content assets and purchase buildings and equipment.

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.

CURI Daily Technical Chart (Source: REFINITIV)

Stock Recommendation:

CURI's share price has declined 40.56% in the past nine months and is currently trading in the lower-band of the 52-week range of USD 7.44 to USD 24.00. The stock is currently trading below its 50 and 200 DMA levels, and its RSI Index is at 47.30. We have valued the stock using the EV/Sales-based relative valuation methodology and arrived at a target price of USD 13.24.

Considering the company's growth prospects, various initiatives to monetize digital content, decent fundamentals, current valuation, and associated risks, we recommend a "Speculative Buy" rating on the stock at the closing price of USD 10.70, traded flat, as of October 15, 2021.

*All forecasted figures and Industry Information have been taken from REFINITIV.

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

*Depending upon the risk tolerance, investors may consider unwinding their positions in a respective stock once the estimated target price is reached.

Beam Global

BEEM Details

Beam Global (NASDAQ: BEEM) provides innovative, sustainable technologies for EV charging, outdoor media, and energy security, all without the grid-tied solutions' construction, interruption, risks, and costs. It develops, patents, designs, engineers, and manufactures advanced and modern renewably energized products. The proprietary EV ARC and Solar Tree brands, BeamTrak solar tracking and ARC Technology energy storage, are BEEM's key product brands. As of October 15, 2021, the company's market capitalization stood at USD 256.78 million.

BEEM Product Base (Investor Presentation, May 2021)

Latest News:

• Growth in Backlog and Sales Pipeline: On October 12, 2021, BEEM announced that it currently has over USD 7 million in purchase order backlog for EV ARC and other proprietary products, with a sales pipeline of over USD 75 million (compared to USD 50 million at Q2FY21 end). These values, which are greater than historical averages for the company, represent higher prospects of revenue generation in the near future.
• Installation of EV ARC for the US Marine Corps: On October 07, 2021, the company announced the receipt of the first order placed by the US Marine Corps for 21 solar-powered EV ARC charging systems, which will be deployed to 14 Marine Corps bases in the continental US and Hawaii to help tackle the climate crisis.
• Deployment of EV ARC in California: On September 29, 2021, BEEM stated that it had deployed the EV ARC charging system to the City of Torrance, California, to charge its transit fleet EVs. This follows the September 14, 2021 news announcing the order of EV ARC placed by Goleta, California, which will be installed for public use at the Goleta City Hall.

Q2FY21 Results:

• Improvement in Revenues: BEEM's revenues increased by 45.76% to USD 2.12 million in Q2FY21 (ended June 30, 2021) compared to USD 1.46 million in Q2FY20, resulting in increased federal and general consumer demand.
• Increase in Net Loss: The Q2FY21 net loss increased to USD 1.64 million from USD 0.83 million in Q2FY20, owing to increased operating expenses.
• Strong Balance Sheet: As of June 30, 2021, the company had a cash balance of USD 25.31 million and no debt.

Key Risks:

• Customer Concentration: BEEM generates revenues from a small group of customers, with Electrify America, LLC and the State of California each representing 30% of its revenues in FY20. If contracts/orders from key clients are terminated or reduced substantially, the company's results of operations would be adversely affected.
• Dependence on Adoption of EVs: Further, the company's revenue growth is highly dependent on the adoption of EVs, which is relatively new, and may take time to be globally and universally accepted.

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 decreased 52.64% in the past twelve months and is currently leaning towards the lower end of its 52-week range of USD 14.16 to USD 75.90. The stock is currently trading between its 50 and 200 DMA levels, and its RSI Index is at 51.26. We have valued the stock using the EV/Sales multiple-based relative valuation methodology and arrived at a target price of USD 33.53.

Considering the significant correction in the stock price, strong balance sheet, increased backlog and sales pipeline, current valuation, and associated risks, we recommend a "Speculative Buy" rating on the stock at the closing price of USD 28.75, down 6.93% as of October 15, 2021.

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

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

* Depending upon the risk tolerance, investors may consider unwinding their positions in a respective stock once the estimated target price is reached.