Shares of electric vehicle charging company ChargePoint Holdings (CHPT, Financial) have experienced a substantial decline, with the stock dropping 20.9% recently. This movement occurred as a result of the company reporting a larger-than-expected loss in its fiscal 2026 first-quarter earnings.
ChargePoint Holdings (CHPT, Financial), listed on the NYSE, reported a fiscal first-quarter loss of $0.12 per share, higher than the anticipated $0.06 per share. The company's sales decreased by 8.8% year over year, totaling $97.6 million, which missed the expected $100 million mark. Despite this setback, ChargePoint demonstrated some positive momentum, with gross profit margins improving from 22% to 29% and a reduction in operating costs leading to better operating margins. The company's GAAP net loss decreased to $57.1 million from $71.8 million in the previous year.
Investor sentiment was further impacted by ChargePoint's guidance for fiscal Q2 2026, which forecasts sales between $90 million and $100 million. This guidance is below both the previous quarter's earnings and Wall Street's expectations of $108 million. Furthermore, ChargePoint has not projected any profits for fiscal Q2 but has committed to achieving positive non-GAAP adjusted EBITDA during one of the quarters in fiscal year 2026.
Looking at ChargePoint’s (CHPT, Financial) financial data, the stock is currently priced at $0.69085. ChargePoint is characterized as a "Possible Value Trap" with a GF Value estimate of $3.43. This indicates that although the stock might appear undervalued, potential investors should reconsider or conduct further analysis. The company shows a poor financial strength due to its high debt levels, and its Altman Z-score of -2.71 suggests a risk of distress in the next two years. Additionally, the company has experienced a significant decline in revenue growth with a 28.7% drop over the past year.
Despite these challenges, ChargePoint's (CHPT, Financial) operating margin is expanding, a positive indicator of internal efficiency. However, with a negative free cash flow yield and no immediate projections for profitability, the stock remains under scrutiny. The company's financial health grade stands at 'D', and its profitability grade is rated 'F', underscoring the challenges it faces in achieving sustainable growth and profitability.
For more detailed valuation insights, please visit the GF Value page for ChargePoint Holdings.
