ChargePoint Holdings (NYSE: CHPT), a key player in the specialty retail industry for electric vehicle charging infrastructure, presents a mixed bag for potential investors from Shenzhen Genvict. With a current valuation of
$808.89 million and a market capitalization of
$839 million, ChargePoint's financials reflect both opportunities and challenges. The company's net assets stand strong at
$1.08 billion, suggesting a solid foundation, yet it grapples with a substantial net income loss from continuing operations at
$344.5 million. Despite this, ChargePoint's quarterly revenue growth of 0.39 indicates a positive trajectory in sales, which could be enticing for investors looking for growth potential in the burgeoning EV market. However, the significant selling and marketing expenses of
$142.4 million underscore the aggressive investment in market expansion, which could either spell future gains or further strain on profitability, a critical consideration for Shenzhen Genvict's private investors.
Key Takeaways
By examining the fundamental indicators of ChargePoint Holdings and Shenzhen, we can compare the impact of market volatility on the stock prices of both companies and determine whether they can mitigate market risk when combined in a single portfolio. Additionally, investors can employ pair trading strategies by taking a long position in Shenzhen and a short position in ChargePoint Holdings. For further details, please refer to our [pair correlation module](/invest/pair-correlation/CHPT/002869.SHE/ChargePoint-vs-Shenzhen).
Let's delve into the analysis of the assets. The asset utilization indicator measures the revenue generated for every dollar of assets reported by a company. ChargePoint Holdings has an asset utilization ratio of 43.34 percent, indicating that the company earns $0.43 for every dollar of assets. An increase in asset utilization suggests that ChargePoint Holdings is becoming more efficient in using its assets for day-to-day operations.
Investment perspective, in general, refers to a viewpoint or opinion regarding investment opportunity in ChargePoint Holdings. It encompasses the assessment of an investment's potential risks and rewards, and expectations for its
performance over time. Several factors influence the investment perspective on ChargePoint Holdings, including investment goals, risk tolerance, time horizon, market conditions, and research and analysis. Investors have varying goals, such as capital preservation, income generation, or long-term growth. Risk tolerance plays a significant role in shaping an investor's perspective, with some being more risk-averse and others willing to take on higher risks for potential returns.
Watch out for price decline
Please consider monitoring ChargePoint Holdings on a daily basis if you are holding a position in it. ChargePoint Holdings is trading at a penny-stock level, and the possibility of delisting is much higher compared to other stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion.
Most exchanges require public instruments, such as ChargePoint Holdings stock to be traded above the $1 level to remain listed. If ChargePoint Holdings stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
How important is ChargePoint Holdings's Liquidity
ChargePoint Holdings
financial leverage refers to using borrowed capital as a funding source to finance ChargePoint Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. ChargePoint Holdings financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to ChargePoint Holdings' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of ChargePoint Holdings' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between ChargePoint Holdings's total debt and its cash.
ChargePoint Holdings Gross Profit
ChargePoint Holdings Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing ChargePoint Holdings previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show ChargePoint Holdings Gross Profit growth over the last 10 years. Please check ChargePoint Holdings'
gross profit and other
fundamental indicators for more details.
Going after ChargePoint Financials
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Let me now analyze ChargePoint Holdings revenue. Based on the latest financial disclosure, ChargePoint Holdings reported 468.09
M of revenue. This is 93.43% lower than that of the Electrical Equipment sector and 96.69% lower than that of the
Industrials industry.
The revenue for all United States stocks is 95.04% higher than that of the firm. As for Shenzhen Genvict we see revenue of 491.21
M, which is 96.53% lower than that of the Industrials
| CHPT | 468.09 Million | 5.79 |
| Sector | 7.13 Billion | 88.14 |
| 002869.SHE | 491.21 Million | 6.07 |
"Investing in the future often means plugging into today's innovative companies," and ChargePoint Holdings (NYSE: CHPT), a leader in the electrical equipment for the specialty retail industry, certainly fits the bill. With a market capitalization of **$838.98 million**, ChargePoint has been on the radar of investors looking for exposure to the growing electric vehicle (EV) infrastructure market. Despite a recent quarterly revenue growth of 39%, the company has faced challenges, reflected in an operating income loss of **$341.8 million** and a net income applicable to common shares loss of $344.5 million. However, with a robust current ratio of 2.85X and a working capital of $419.98 million, ChargePoint shows a healthy liquidity position that may reassure investors about its ability to meet short-term obligations. As Shenzhen Genvict's private investors scout for opportunities, ChargePoint's substantial institutional ownership at 54.63% suggests a level of professional confidence in its prospects. With a target price of $5.81 and shares currently trading around its 50-day moving average of $3.2044, potential investors may find an attractive entry point, provided they are comfortable with the high probability of bankruptcy at 73.27% and are willing to bet on the EV market's expansion. .
Our take on ChargePoint Holdings to reverse
ChargePoint Holdings, a frontrunner in the electric vehicle (EV) charging network sector, has recently demonstrated a standard deviation of 7.06. This figure suggests a heightened degree of volatility in its stock price. While such volatility might deter risk-averse investors, it could also present an opportunity for a price reversal, particularly for those skilled in market timing. Given ChargePoint's strategic position in a burgeoning industry and its extensive charging infrastructure, the company appears well-placed for growth as the adoption of electric vehicles gains momentum. Investors would be wise to keep a close eye on ChargePoint's performance indicators and overarching industry trends. These elements have the potential to prompt a shift in
investor sentiment and could lead to an upward price adjustment for ChargePoint Holdings stock. ChargePoint Holdings has shown higher-than-average volatility over the observed period. Investors considering this stock should conduct a thorough independent analysis to ensure that their
market timing strategies are in sync with their expectations regarding ChargePoint Holdings' volatility. Understanding varying trends in
market volatility can often assist investors in timing their market entry and exit.
Utilizing volatility indicators effectively allows traders to gauge the risk associated with ChargePoint Holdings' stock relative to overall market volatility, during both bullish and bearish market conditions. The increased volatility typically associated with bear markets can have a direct impact on
ChargePoint Holdings' stock price, while also adding to investor stress as they observe a decline in the value of their investments. This scenario often compels investors to rebalance their portfolios by acquiring different stocks as prices drop. In conclusion, ChargePoint Holdings appears to be navigating through a challenging phase, with its equilibrium in the market being tested. Despite a consensus of 'Hold' from **15** analysts and a modest estimated target price averaging around **$7.033**, the company's stock is not without its bullish backers, as evidenced by **6** strong buy recommendations. However, the wide range in target prices, from as low as **$2** to as high as **$17**, suggests significant uncertainty and potential volatility ahead. With the fiscal year ending in December, investors should weigh the company's market valuation of **$1.99 billion** against its 'hype' value of **$2.17 billion** and real value of **$3.3 billion**. The current landscape for ChargePoint Holdings demands a cautious approach, with a keen eye on both the company's strategic moves and broader market trends. .
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
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