Blink Charging Co. (BLNK) Investment Report
Overview
Blink Charging operates within the Industrials sector, focusing on Engineering & Construction. It's marked by high volatility, with a risk rating of 9 and a beta of 2.78, indicating its stock price is more volatile than the market.
Valuation
- Market Cap: $241.4 million
- Forward P/E Ratio: -7.47 (Negative, indicating unprofitability)
- Price-to-Book Ratio: 0.77 (Trading below book value)
Profitability
- Profit Margins: -144.88% (Negative)
- Trailing EPS: -$3.21
- Forward EPS: -$0.32
- EBITDA: -$93.1 million (Negative)
- Operating Margins: -39.74% (Negative)
Cash Flow
- Free Cash Flow: -$68.0 million (Negative)
- Operating Cash Flow: -$97.6 million (Negative)
- Total Cash: $121.7 million
- Total Debt: $17.9 million
- Quick Ratio: 2.40
- Current Ratio: 3.18
Revenue and Growth
- Total Revenue (Latest Quarter): $42.5 million
- Year-over-Year Growth: Positive, but overshadowed by lack of profitability
Debt
- Debt-to-Equity Ratio: 6.20 (High)
Trends (Last 5 Quarters)
- Revenue Growth: Increasing, from $22.6 million to $42.5 million
- Net Income: Consistently negative, latest at -$19.7 million
- Operating Cash Flow: Negative but improving, latest at -$20.4 million
- Free Cash Flow: Negative but improving, latest at -$21.2 million
TL;DR Summary
Blink Charging is experiencing revenue growth but remains unprofitable with negative profit margins, earnings, and cash flows. The high debt-to-equity ratio is concerning, though the company has adequate liquidity for the short term. The stock's high volatility and current financial health present a high-risk investment.
Pros
- Increasing revenue quarter over quarter
- Adequate liquidity to cover short-term obligations
- Trading below book value, potentially undervalued
Cons
- Negative profit margins and earnings
- Negative free and operating cash flows
- High debt-to-equity ratio, indicating potential financial instability
- High volatility and overall risk
Recommendation: Don't Invest
Given the current financial health and trends, BLNK presents a high-risk investment opportunity. While there is revenue growth, the company's persistent unprofitability, negative cash flows, and high debt levels raise concerns about its long-term sustainability. Investors should monitor the company's progress towards profitability closely but remain cautious given the high risk profile.
Investors are advised to consider lower-risk investments or wait for more positive signs of profitability and financial stability from Blink Charging before investing.