Stock Analysis

Blink Charging Co. (NASDAQ:BLNK): When Will It Breakeven?

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NasdaqCM:BLNK
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With the business potentially at an important milestone, we thought we'd take a closer look at Blink Charging Co.'s (NASDAQ:BLNK) future prospects. Blink Charging Co., through its subsidiaries, owns, operates, and provides electric vehicle (EV) charging equipment and networked EV charging services in the United States. The company’s loss has recently broadened since it announced a US$9.6m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$13m, moving it further away from breakeven. The most pressing concern for investors is Blink Charging's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Check out our latest analysis for Blink Charging

Consensus from 2 of the American Specialty Retail analysts is that Blink Charging is on the verge of breakeven. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$7.4m in 2023. Therefore, the company is expected to breakeven roughly 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 59%, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

earnings-per-share-growth
NasdaqCM:BLNK Earnings Per Share Growth March 4th 2021

We're not going to go through company-specific developments for Blink Charging given that this is a high-level summary, though, bear in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 5.3% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Blink Charging which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Blink Charging, take a look at Blink Charging's company page on Simply Wall St. We've also compiled a list of important factors you should further research:

  1. Valuation: What is Blink Charging worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Blink Charging is currently mispriced by the market.
  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Blink Charging’s board and the CEO’s background.
  3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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Valuation is complex, but we're helping make it simple.

Find out whether Blink Charging is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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