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ChargePoint Holdings, Inc.
ChargePoint Holdings, Inc. (NYSE: CHPT) provides a comprehensive portfolio of charging solutions which helps businesses and drivers to charge their EV vehicles across North America and Europe.
Key Updates:
Source: Company Presentation
Source: Company Presentation
Q4FY21 Financial Highlights:
Q4FY21 Income Statement Highlights (Source: Company Report)
Risks: The EV charging segment is still in the nascent stage, and the company is witnessing a higher accumulated deficit on account of constant losses. Continuation of the above trend would dampen the financial flexibility of the company.
One-Year Price Chart (as on May 04, 2021). Source: Refinitiv (Thomson Reuters)
Stock Recommendation:
The company operates in the Electric Vehicle segment and provide charging assistance to electric driven cars and other vehicles. The segment has enough potential depending upon the consumer’s shifts towards the clean energy segment from fossil fuels. However, the transition is time-consuming, and the exact tenure is unknown. Meanwhile, due to the rising costs, the company is witnessing losses on a constant basis, which remains a key concern for the company. The stock of CHPT corrected ~22% and ~39% in the last one month and three months, respectively. On the valuation front, the stock is trading at a forward EV to Sales multiple of ~30.6x, which is significantly higher than the industry median of 5.1x. Considering the aforesaid facts, we recommend an ‘Avoid’ rating on the stock at the last closing price of USD 23.12 on May 04, 2021.
Hyliion Holdings Corp
Hyliion Holdings Corp (NYSE: HYLN) produces electrified powertrain systems for commercial vehicles. The company focuses on reducing the carbon intensity and greenhouse gas emissions of the transportation sector by providing electrified powertrain solutions for Class 8 commercial vehicles at the lowest total cost of ownership. It is currently developing two powertrain systems: Hybrid system and Hypertruck ERX system.
Key highlights
Financial overview of Q4 2020
Source: Company
Risks associated with investment
In the short term, the Company’s financial performance is exposed to the COVID-19 pandemic, causing an unprecedented level of disruption. The adverse US federal income tax regimes and fluctuating exchange rates could also affect financial performance.
One-year Price Chart (as on May 04, 2021). Source: Refinitiv (Thomson Reuters)
Stock recommendation
The Company has entered 2021 with strong financial and operational resources. Moreover, the Company is optimistic about its prospects after the strategic combination with Tortoise. It is focused to position itself for long-term growth by capturing the market for the electrification of class 8 vehicles. Overall, the Board stays confident in HYLN's ability to emerge from such an unprecedented period. Furthermore, the Company would be introducing new products in 2021, which would likely to drive the top and bottom line. Based on the decent growth prospects, we have given a "Buy" recommendation on the stocks at the closing price of USD 9.27 on May 4, 2021.
Triterras, Inc.
Triterras, Inc. (NASDAQ: TRIT) is a leading fintech company focused on trade and trade finance which operates through Kratos™—one of the world’s largest commodity trading and trade finance platforms that connects and enables commodity traders to trade and source capital from lenders directly online.
Key Updates:
Source: Company Reports
Risks: The company’s operations are in a nascent stage, and the continuity of the business depends on the consumer preference to choose the particular platform for commodity trading and other trades.
One-Year Price Chart (as on May 04, 2021). Source: Refinitiv (Thomson Reuters)
Stock Recommendation:
The stock of TRIT corrected ~7% and ~31% in the last one month and six months, respectively. The company operates through the online trading platform, Kratos™, and has given estimates of upcoming financials. Meanwhile, the company is yet to provide any financial statements for the periods. Hence, we prefer to remain on the sideline due to the lack of financials. On the valuation front, the stock is trading at a forward EV to Sales multiple of 5.4x compared to the industry (Financials) median of 3.4x. Hence, considering the above facts, we recommend an ‘Avoid’ rating on the stock of TRIT at the last closing price of USD 6.94 on May 04, 2021.