Beam Global - A Very Underpriced Stock?

The first trade alert of the year is Beam. I'm adding Beam to my investment portfolio, allocating between 0.5% and 1% of my portfolio to it.

Beam focuses on solar energy for electric vehicles. Here are their main products:
EV ARC: All-in-one solar-powered EV charger with built-in battery; completely self-contained and portable.
Solar Tree DCFC: A single-pole solar station provides fast charging (50kW) for multiple vehicles and works off-grid.
EV-Standard: Clever streetlight conversion that adds EV charging using a mix of solar, wind, and grid power.
UAV ARC: Off-grid charging system specifically designed for drone fleets.

THE FINANCIALS:

• The company has a very small market capitalization: $47 million. This means high-risk, high reward!
  
• Here's why I think the company is underpriced:
  
• Stock price has declined by 95% since 2021
  
• While the revenue 7x since 2021
  
• Income is improving and it was positive in Q3 2024
  
• The company has very low debt, and it's investing in lots of production resources
  
• P/S (Price-to-Sales) Ratio: Market Cap / Revenue = $47.13M / $60.88M = 0.77x: quite low, as P/S ratios below 1 generally indicate potential undervaluation.
  
• TEV / Revenue = $44.42M / $60.88M = 0.73x: Also very low.
  
• Market Cap vs TEV: The fact that TEV ($44.42M) is lower than Market Cap ($47.13M) indicates the company likely has net cash on its balance sheet, which is positive.
  

WHY I'M BULLISH ON BEAM

• Profit margins are increasing
  
• Record Pipeline of over $200 million. That's more than twice their annual revenue.
  
• In late 2024 they have improved in-house production capabilities, they are expanding new products and European sales are going well, launched the Beam Reseller Program and they are hiring more sales people.
  
• Watch the CEO here. The company has great management.
  
• The Trump administration will support US manufacturing and American job creation and is likely to support energy resilience.
  
• Lower interest rates will help clients to buy more Beam equipment.
  
• Profitability seems close.
  

THE TA
Beam price is down 96% since its all time high in 2021. Still, the revenue, earnings, and balance sheet are now better than ever. According to the technical analysis, I don't see much resistance for the price to past the $10 and perhaps get close to the $15 to $20 range.

RISKS

• The company is still fairly small and could be crushed by big competitors.
  
• Early stage growth and small capitalisation = volatility
  
• The Trump administration might ramp up nuclear power, making solar a less feasible source of energy.
  

Quick note: I'm just sharing my journey - not financial advice! 😊