Expanding Off-Grid EV Charging Will Transform International Renewable Markets

Key Takeaways

• Diversification across products, customers, and regions reduces revenue volatility and positions Beam Global to benefit from electrification and resilience trends.
  
• Synergies from acquisitions and grid-independent technology improve efficiency, supply chain strength, and competitive pricing power, supporting sustained earnings and margin growth.
  
• Heavy reliance on government contracts, unprofitability, supply chain issues, and intense competition threaten Beam Global’s growth prospects, cash reserves, and long-term sustainability.

Catalysts

A clean-technology innovation company, engages in the design, development, engineering, manufacture, and sale of renewably energized infrastructure products and battery solutions in the United States and Romania.

• Diversification away from dependence on U.S. federal government orders—with rapid growth in commercial, state/local government, and international sales—positions Beam Global to capture accelerating demand for off-grid EV and clean infrastructure driven by global electrification and decarbonization initiatives; this is likely to drive sustained future revenue growth and reduce revenue volatility.
  
• Expansion into high-growth international markets (Europe, Middle East, Africa), with existing manufacturing capacity and strong local partnerships, allows Beam Global to capitalize on increasing investments in distributed renewable energy and smart cities, potentially expanding total addressable market and boosting long-term sales and margins.
  
• Broadening of Beam’s product portfolio—including new mobile charging, battery, and resiliency-focused solutions—leverages long-term trends toward disaster-resilient, decentralized infrastructure and supports higher-margin revenue from both existing and new customer verticals; this enhances earnings growth and gross margin potential as volumes scale.
  
• Realized synergies from recent acquisitions in batteries and power electronics are expected to improve manufacturing efficiency, strengthen supply chain resilience, and drive fixed overhead absorption as sales volume grows, supporting improvements in gross margin and EBITDA margins in future quarters.
  
• Unique focus on grid-independent, disaster-resilient charging and infrastructure directly addresses rising demand from climate-related events and EV fleet electrification, differentiating Beam from competitors and enabling premium pricing, which can support net margin expansion and more defensible long-term earnings.

Beam Global Future Earnings and Revenue Growth

Assumptions

• Analysts are assuming Beam Global's revenue will grow by 5.4% annually over the next 3 years.
• Analysts are not forecasting that Beam Global will become profitable in next 3 years. To represent the Analyst Price Target as a Future PE Valuation we will estimate Beam Global's profit margin will increase from -57.8% to the average US Electrical industry of 10.2% in 3 years.
• If Beam Global's profit margin were to converge on the industry average, you could expect earnings to reach $4.9 million (and earnings per share of $0.31) by about May 2028, up from $-23.8 million today.
• In order for the above numbers to justify the analysts price target, the company would need to trade at a PE ratio of 18.9x on those 2028 earnings, up from -1.0x today. This future PE is lower than the current PE for the US Electrical industry at 22.1x.
• Analysts expect the number of shares outstanding to grow by 2.89% per year for the next 3 years.
• To value all of this in today's terms, we will use a discount rate of 7.77%, as per the Simply Wall St company report.

Beam Global Future Earnings Per Share Growth

Risks

• Beam Global’s revenues decreased significantly year-over-year in Q1 2025, largely due to uncertainty and suspension of U.S. federal government orders for electric vehicle charging infrastructure—continued reliance on unpredictable government policy or inability to replace lost government contracts could drive sustained revenue volatility or contraction.
  
• Despite international and commercial expansion, Beam Global remains unprofitable, with a Q1 2025 net loss (excluding noncash items) of $2.8 million and cash reserves dropping from $4.6 million to $2.5 million over the quarter; ongoing net losses may strain cash runway, force dilutive financing, and threaten long-term earnings and business sustainability if growth does not materialize quickly.
  
• Persistent supply chain challenges—particularly for key components sourced from Asia and necessary for European manufacturing expansion—could constrain Beam’s ability to scale rapidly and deliver on large orders, potentially causing missed revenue opportunities and impacting gross margins.
  
• Intensifying competition in EV charging and renewable infrastructure from much larger, well-capitalized firms, especially if the sector consolidates standard offerings or new technologies (e.g., ultra-fast or wireless charging) gain favor, risks eroding Beam’s market share, limiting pricing power, and pressuring long-term revenue growth.
  
• The company’s recent $10.8 million goodwill impairment from prior acquisitions—triggered by a declining share price and market cap now below asset value—reflects negative market sentiment and heightens the risk that investor confidence may remain depressed, which could limit access to capital, further depress valuation, and hinder future earnings growth.

Valuation

• The analysts have a consensus price target of $4.625 for Beam Global based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $7.0, and the most bearish reporting a price target of just $2.5.
  
• In order for you to agree with the analyst's consensus, you'd need to believe that by 2028, revenues will be $48.1 million, earnings will come to $4.9 million, and it would be trading on a PE ratio of 18.9x, assuming you use a discount rate of 7.8%.
  
• Given the current share price of $1.6, the analyst price target of $4.62 is 65.4% higher.
  
• We always encourage you to reach your own conclusions though. So sense check these analyst numbers against your own assumptions and expectations based on your understanding of the business and what you believe is probable.