However, there are a few potentially positive points to consider. Continued losses over the next few years may wreak havoc on the company's valuation. Second, the issue may be due to a long and expensive production ramp-up process, which may continue indefinitely. While on paper the Beam products seem advanced, innovative, and desirable, issues due to the cost and alternative options may be a major reason for the lack of growth. The company's supposed competitive advantage is at risk if sales are not growing at a rapid clip.
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Whether this is for full production of EV ARCs - estimated at 260 per year - or not, I find current growth expectations for the company to be quite high. The current backlog also does little to support a positive 2022, as it is only $4.1 million, with $3.9 of that due this year. This poor growth is a major concern as it may indicate numerous problems. This is a new high for the company, as 2018, 19, and 20 saw revenues of $6.2, $5.1, and $6.2 million respectively. We can also compare to one major EV charger brand ChargePoint ( CHPT), and I will discuss this comparison later.įor fiscal year 2021, Beam earned $9 million in revenues, while orders and deliveries improved by 134% and 47% respectively. On the renewables side, Infrastructure and Energy Alternatives ( IEA) offers insights into how profitability and valuations are quite low. Names like Clean Energy Fuels ( CLNE) and Green Plains ( GPRE) offer looks into how growth may occur, but losses remain. Many companies have had to return to losses in just a few years after production. The first couple million in sales and backlog are the easy part, the hard part is to continue innovating and producing products while maintaining profitability. Cities gain popularity from these types of investments, while most other organizations are looking for value. As is already distinct, the company mostly can only gain contracts with municipalities such as cities and states, and the reduced private enterprise investments may be a signal towards poor cost efficiencies. I will just expect a slower growth rate into the future as the niche becomes smaller. Not everyone needs a solar and battery-powered unit, but I am sure Beam will have their niche. No need for a clumsy, potentially unsightly, solar port.Ĭonsidering that the price has been estimated to be around $65,000 USD, there is a significant gap in customer wealth to consider. Therefore, customers looking for a cheap option will choose a normal $1,000 to $2,000 per unit bollard-style charge station. Multiple factors including cost, time to establish, and scalability all are superior for non-solar stations. While I have no information on the demand for solar vs normal EV ports, I assume that the majority of applications are not solar. Beam is not developing the next miracle drug, and so it is important to not value it like that.Ī few months ago, my apartment complex converted 6 parking spots to EV charging spots in less than a week, although they are not covered with solar. Regardless of whether the Beam product works or has a minor time advantage, there will always be cost, supply & demand, and experience issues that prevent meaningful growth. Even if Beam is listed on the website, they may just be passed up as potential customers scroll by. In fact, it is quite easy to see how strong the competition is, as PG&E has a list of almost 30 partner contractors who are able to work with clients in building a charging port of any size. However, I find this untrue, and unfair to the dozens of EVSE developers and contractors out there. The major problem that I find with Beam is that many believe their product to be groundbreaking, the peak of innovation.
Beam ( NASDAQ: BEEM ) is one such company who has ramped up production and is set to grow revenues by over 100% in 2022 thanks to their EV solar charging port. Now, it is up to investors to find who will make the most of that money. This stimulus allowed many companies to gain 3-5 years' worth of cash in one go. Thankfully, many companies took advantage of the high valuations and IPO'd or brought shares to market to raise significant levels of cash. While 2020 was a freak event where valuations exploded across the industry, 20 have made investors realize what is at stake. While I am often a devout supporter of sustainable technologies, sometimes it is important to consider that there is always a difficult path forward for innovation. Chesky_W/iStock via Getty Images Introduction to Beam
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