Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Investment Thesis
ChargePoint is a leader in EV charging infrastructure, with a large and growing network and recurring SaaS revenue. Despite its scale and strategic positioning, the stock has dropped ~50% over the past year and trades with low valuation multiples (EV/Sales ~1.1×). With EV adoption expected to continue globally—even amid short-term EV sales slowdowns—the combination of scale, cash runway, and future infrastructure investment positions CHPT as a potential long-term turnaround candidate.
Business Snapshot
- North America and Europe network operator: >342K charging locations across 14 countries (investors.chargepoint.com)
- Broad product suite: home, commercial, and fast DC chargers plus cloud software and analytics
- Market leadership: ~70% share in North American Level 2 networked charging (investors.chargepoint.com)
Key Metrics (Q1 FY 2026 / Trailing 12-months)
| Metric | Value |
|---|---|
| Revenue (TTM) | $407.7M |
| Gross Margin | ~25.8% |
| Operating Loss | –$229.9M |
| Net Loss | –$262.4M |
| Cash Balance | ~$200M (end Q1) |
| Expected Cash Burn | <$50M over next three quarters |
| EV/Sales | ~1.11× |
| P/S Ratio | ~0.76× |
| Debt/Equity | ~2.8× |
| Institutional Ownership | ~36% |
| Beta (5‑yr) | ~2.24 |
| Short Interest | ~19.8% |
| Forward P/E & PEG | N/A (no expected profitability) |
Valuation & Outlook
Low revenue base (~$408M) limits multiples; EV/Sales at ~1.1× indicates the market may be pricing in conservative expectations.
Negative earnings, so no P/E or PEG usable; losses are structural as the firm invests in expansion.
Cash runway: ~$200M on hand with <$50M expected burn over next year — capital-efficient but will likely need new funding by late 2026 if no path to breakeven.
Macro & Growth Drivers
- EV infrastructure: Estimated $60B US and Europe cumulative charging investment by 2030, $192B by 2040 (zacks.com, investors.chargepoint.com)
- EV sales slowdown (7% YoY growth in 2024) unsettles sentiment (barrons.com)
- Partnerships: Expanded via Eaton and GM collaborations — logos of integrated hardware+power management
Risks
- Growth drag: Recent revenue decline (Q1 at $98M vs. prior year $107M) (investors.chargepoint.com)
- Macro slowdown: Slowing EV adoption and fading subsidies (e.g., US tax credits rollback) hitting momentum (barrons.com)
- Capital needs: Continued EBIT losses may require funding dilutive capital raises or debt.
Risk/Reward Matrix
| Risk | Reward |
|---|---|
| Ongoing losses; potential dilution | Scale, network effects, and industry leadership |
| Funding risk if cash burns through | Recovery with EV adoption and margin improvement |
| EV sales/incentive drag | Large addressable market; macro tailwinds persist |
| High short interest (~20%) | Potential for squeeze or sentiment swing |
Catalysts
- EV adoption rebound: New vehicle sales growth supporting charging demand
- Network monetization: Gains in SaaS ARR or higher-margin services
- Partnerships scaling: Further integration with fleets, utilities, OEMs
- Profitability inflection: Even marginal progress on EBIT could re-rate valuation
Positioning Thoughts
High-risk, high-reward asymmetric trade — not a traditional value play.
May be considered suitable for a speculative turnaround bucket, entry under $1/share.
A staggered allocation approach could be considered, adding as EV/Sales expands >2× or partnerships materialize.
Exit consideration may be warranted if cash burn accelerates or core partnerships dissolve.
Summary
ChargePoint is a leading EV charging network operator with large-scale reach and recurring revenue potential. While current financials reflect investment mode with no profitability, the network position, partnerships, and industry growth could enable a meaningful inflection in coming years. It represents a speculative turnaround opportunity with potential upside if EV infrastructure rebounds — but may require conviction in the EV thesis and careful capital risk management.
Sources
- Q1 FY2026 revenue ($98M), gross margins (~30%) (tradingview.com, stockanalysis.com, investors.chargepoint.com)
- Market cap, revenue, losses, balance sheet — WSJ, Yahoo, MarketWatch, StockAnalysis
- EV/Sales, P/S valuation, debt metrics
- Cash and burn details from Barron’s (gurufocus.com)
- Industry investment forecast ($60B/$192B) (investors.chargepoint.com)
- EV sales slowdown fact from Barron’s
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. The author is not a registered investment advisor. All opinions are the author’s own. Readers are encouraged to do their own research and consult with a licensed financial professional before making investment decisions.
