Blink Charging Co: Will This $7 EV Stock Double Again?

An EV Stock You Likely Haven’t Considered

Most people have never heard of Blink Charging Co (NASDAQ:BLNK), but the few who were informed enough to load up on this electric vehicle (EV) stock early on are now laughing all the way to the bank.

I know, the EV industry is never short of exciting tickers. And not every EV stock will be a winner in the long term. But if you believe in the future of electric cars, you should take a serious look at BLNK stock.

Let me explain.

It’s no secret that many companies—from traditional automakers, to existing EV manufacturers, to startups—are announcing new EV models all the time. Consumers who want to buy a new EV in the U.S. now have 30 different models to choose from. (Source: “Here’s Every New Electric Vehicle Model for Sale in the U.S.,” Car and Driver, May 22, 2020.)

Competition is going to be intense, to say the least.

When there are more electric cars on the road, they will need charging solutions. And that’s where Blink Charging Co has found its opportunity. It has deployed “Blink EV” charging stations in numerous transit and destination locations, such as airports, car dealerships, condos, healthcare facilities,  hotels, parking lots, parks, restaurants, schools, stores, and supermarkets.

Started back in 2009, Blink now has more than 15,000 EV charging stations throughout the United States. (Source: “EV Charging Services,” Blink Charging Co, last accessed July 22, 2020.)

The company’s proprietary cloud-based software—known as the “Blink Network”—operates, maintains, and tracks all the Blink EV charging stations and  associated charging data, the EV charging equipment, and EV-related services.

The neat thing about Blink is that it caters to the entire EV industry. It doesn’t matter which EV you have—may it be a Nissan “Leaf,” a Tesla “Model 3,” or the latest Porsche “Taycan Turbo S” (yeah, a car that has no internal combustion engine actually has “turbo” in its name)—you can charge it at Blink’s charging stations.

You don’t need to be a member to use Blink’s services; anyone can charge at a public EV charger on the Blink Network. And yet, the company has amassed more than 180,000 registered Blink members.

Offering charging solutions may not sound as exciting as building the next hot electric car, but Blink’s business is solid and backed by multiple revenue streams.

To give you an idea, the company generates revenue through the sale of electricity to EV drivers at its owned stations, the direct sale of hardware to its host locations, monthly network connectivity fees for each charging station, and monthly processing fees for transactions, among other sources.

Today, the main reason why investors love EV stocks is the growth potential of these companies. While Blink Charging stock is a relatively small ticker, it has been churning out some big growth numbers.

In the first quarter of 2020, Blink generated $1.3 million of revenue, which not only represented a whopping 125% increase year-over-year, but also marked a new record for the company.  (Source: “Blink Charging Announces Record Quarterly Revenue with First Quarter 2020 Financial Results,” Blink Charging Co, May 13, 2020.)

The strong top-line growth was driven by revenue from product sales.

At the same time, the company achieved a gross margin of 23.8% in the first quarter of 2020, marking a substantial expansion from 9.3% in the year-ago period.

Blink has been growing its international presence, too. In the first quarter, the company had 28 new deployments in Israel and completed the fulfillment of 96 Level 2 and five DCFC chargers in the Dominican Republic, as well as four DCFC chargers in Greece.

And this could be just a start. From 2015 to 2019, global passenger EV sales grew from 450,000 to 2.1 million, and that number is expected to reach 8.5 million by 2025. As a leading owner, operator, and provider of EV charging equipment and networked EV charging services, Blink stands to capitalize on the surging EV purchases.

Blink Charging Co (NASDAQ:BLNK) Stock Chart

Chart courtesy of StockCharts.com

Analyst Take

As someone passionate about the future of electric cars, I’ve been following Blink Charging Co for quite some time. Last September, I told readers of Profit Confidential why BLNK stock was a low-priced stock that could outperform.

I hope you took advantage of that piece. Since the article was published, Blink Charging stock has soared 137%.

Given the growth potential of this company’s business, I wouldn’t be surprised to see more returns on the way for BLNK stock investors.