Where Will ChargePoint Stock Be in 1 Year?

Core Viewpoint - ChargePoint, a leader in electric vehicle (EV) charging stations, appears undervalued relative to its growth potential despite recent mixed earnings results [1]. Financial Performance - For Q1 fiscal 2026, ChargePoint reported a revenue decline of 9% year over year to $97.6 million, missing analysts' expectations by$2.9 million [2]. - The company narrowed its net loss from $71.8 million to$57.1 million, equating to a loss of $0.12 per share, which was slightly better than consensus forecasts [2]. - Revenue figures over the past fiscal years show significant fluctuations: FY 2022 at$242 million, FY 2023 at $468 million, FY 2024 at$507 million, FY 2025 at $417 million, and Q1 2026 at$98 million [10]. Market Position and Strategy - ChargePoint ended Q1 with over 352,000 charging ports, including more than 35,000 DC fast chargers, and has partnerships providing access to over 1.25 million charging ports globally [5]. - The company differentiates itself by selling connected charging stations to residential and commercial properties, offering network access, billing, and customer support, unlike Tesla's Superchargers [6]. Growth Trends - ChargePoint experienced rapid growth in FY 2022 and FY 2023, but growth stalled in FY 2024 and FY 2025 due to rising interest rates affecting the EV market [7]. - Despite revenue declines, adjusted gross, operating, and adjusted EBITDA margins improved in FY 2025 and continued to expand in Q1 2026 [8]. Future Outlook - ChargePoint anticipates Q2 fiscal 2026 revenue between $90 million and$100 million, representing an 8% to 17% decline from the previous year [11]. - Analysts expect nearly flat revenue for the full year, with a potential improvement in the second half as the macroenvironment stabilizes [12]. - For fiscal 2027, analysts project a revenue increase of 29% to $537 million, with a negative adjusted EBITDA of$16 million, and for fiscal 2028, a revenue growth of 33% to $713 million with a positive adjusted EBITDA of$67 million [14]. Investment Potential - ChargePoint's current enterprise value of $465 million suggests it is undervalued at just over 1 times this year's sales [15]. - If the company meets analysts' expectations and trades at 2 times its forward sales by the beginning of fiscal 2027, its stock price could potentially increase by over 130% in the next 12 months [15].