- Beam Global's primary product, the EV ARC, is a solar-powered EV charging carport whose main customers have been gov't entities.
- These entities have significantly reduced their Beam spend - in addition to falling budgets at key customers, we believe that the EV ARC is simply not competitive.
- We believe these dynamics have led to falling revenues and backlog - in fact, management eliminated backlog disclosure in 3Q20.
- Despite falling revenues and limited uptake, management has been highly compensated, with the CEO taking home compensation equivalent to almost 20% of Beam's revenue since FY10.
- In light of these issues, we believe that Beam is undeserving of its premium valuation - we assign a ~$12 price target to its stock.
For further details see:
Falling Off The Beam - Beam Global Presents Significant Downside Risk