Company Overview
Beam Global operates as a clean-technology innovation company focused on the design, development, engineering, manufacture, and sale of renewably energized infrastructure products and battery solutions across the United States and Romania. The company functions within the Technology sector, specifically within the Solar industry, positioning itself as a provider of renewable energy infrastructure and storage systems. Currently, the organization employs 245 individuals and maintains a total market capitalization of $26.07M, supported by an annual revenue of $27.67M. These financial figures indicate that Beam Global holds a relatively small market position, characterized by a market cap that is less than one-third of its trailing twelve-month revenue, which often suggests a company in a specific developmental stage or one facing significant headwinds relative to its sales output.
Financial Health
The company reported a revenue of $27.67M for the trailing twelve months, yet this revenue generated a net income of $-29,297,000, revealing a cost structure where expenses significantly outweighed top-line earnings. This disparity is further highlighted by an EBITDA of $-15,871,000, indicating that even before interest and taxes, the core operations generated negative cash earnings. Despite these negative earnings, the company maintains a free cash flow of $1.39M, which suggests a degree of financial flexibility derived from operational efficiencies or working capital management that allows for some liquidity generation despite accounting losses. The gross margin stands at 15.0%, indicating that the company retains a moderate portion of revenue after direct production costs, though this is insufficient to cover overhead. The operating margin is -84.2%, demonstrating that administrative and selling expenses are extremely high relative to revenue, while the profit margin of -105.9% confirms that total expenses exceed total revenue by a substantial margin. In terms of leverage, the company holds $3.35M in cash against $1.56M in debt, resulting in a debt-to-equity ratio of 5.87, which signals a highly leveraged balance sheet where debt obligations are significant relative to shareholder equity. However, the current ratio of 1.98 indicates that current assets are nearly twice the size of current liabilities, suggesting adequate short-term liquidity to meet immediate obligations. Finally, the return on equity is -80.3% and the return on assets is -21.7%, metrics that reveal that management has not yet achieved positive returns on the capital invested in the business or the assets utilized to generate revenue.
Valuation Assessment
The valuation of Beam Global presents a complex picture given its negative earnings, with a P/E Ratio (TTM) listed as N/A and a Forward P/E of -7.21. The negative forward P/E implies that analysts or the market expects earnings to remain negative in the near term, rendering traditional trailing P/E metrics inapplicable for assessing historical profitability. The price-to-book ratio is 0.96, indicating that the market values the company at a slight discount to its book value, suggesting that the stock is trading below the net asset value recorded on the balance sheet. Alternative valuation metrics such as the price-to-sales ratio of 0.94 and an EV/EBITDA of -1.53 provide context for investors, showing that the market is pricing the company based on its sales volume rather than its earnings power. Regarding price volatility, the 52-week high is $4.04 and the 52-week low is $1.33, meaning the stock is trading within a range that has seen significant fluctuation over the past year. The beta value of 1.27 indicates that the stock's price volatility is approximately 27% higher than the broader market, exposing investors to greater swings in share price relative to the overall market index.
Growth & Income
Beam Global experienced a revenue growth (YoY) of -49.6% and an earnings growth (YoY) listed as N/A due to the lack of positive earnings to measure against. The absence of positive earnings growth prevents a comparison of earnings trajectory versus revenue, but the negative revenue growth indicates a contraction in the company's top line. As a non-dividend payer, the company offers a dividend yield of N/A and a payout ratio of 0.0%, meaning it does not distribute any portion of its earnings to shareholders. Instead of paying dividends, the company retains its cash flow, which includes the $1.39M in free cash flow, potentially directing those funds toward operational needs or debt reduction rather than shareholder returns. The overall growth and income profile is characterized by significant revenue contraction and a complete absence of dividend income, reflecting a company currently focused on survival and restructuring rather than capital appreciation through dividends or consistent earnings expansion.