Company Overview
EVgo, Inc. owns and operates a direct current fast charging network for electric vehicles in the United States, offering electricity directly to drivers alongside original equipment manufacturer charging and related services. The company also provides commercial charging and ancillary services, positioning itself within the Consumer Cyclical sector under the Specialty Retail industry classification. This operational scope and industry placement define the firm's role in the infrastructure required for widespread electric vehicle adoption across the country. The company's current market capitalization stands at $585.47M, supported by annual revenue of $384.09M and a workforce of 376 employees. These financial metrics indicate that while the company has achieved significant scale in revenue generation, the market capitalization reflects a specific valuation multiple relative to its sales and earnings profile, suggesting a capital structure that prioritizes growth investment over immediate profitability retention.
Financial Health
The company reported revenue of $384.09M for the trailing twelve months, accompanied by a net income of $-41,351,000 and an EBITDA of $-29,850,000. The substantial gap between the positive revenue figure of $384.09M and the negative net income of $-41,351,000 reveals a cost structure where operating expenses, likely including high capital expenditures for charging stations and research, significantly exceed gross profits. Free cash flow stands at $-117,072,624, which indicates that the company is consuming cash to fund its expansion and network deployment rather than generating surplus liquidity for shareholder returns or debt reduction. Gross margin is reported at 40.8%, suggesting that the company retains a significant portion of revenue after the direct costs of providing electricity and maintaining stations. However, the operating margin is negative at -6.5%, and the profit margin is -10.8%, indicating that overhead costs and administrative expenses are eroding profitability at a rate that prevents the company from reaching break-even on an operational basis. Total cash on hand is $151.00M, while total debt amounts to $311.21M, resulting in a debt-to-equity ratio of 80.64. This balance sheet composition suggests a leveraged position where debt obligations exceed available cash reserves, relying on future cash flows or financing to service the debt. The current ratio is 2.19, which indicates that the company holds sufficient current assets to cover its short-term liabilities, providing a buffer for immediate liquidity needs despite the overall negative cash flow from operations. Return on Equity is -23.0%, and Return on Assets is -7.0%, metrics that reveal that management is currently destroying shareholder value and utilizing assets inefficiently in terms of generating positive returns.
Valuation Assessment
The trailing P/E ratio is listed as N/A due to negative earnings, while the forward P/E is -5.42. The existence of a negative forward P/E implies that the market is pricing in a path toward profitability or is valuing the company based on non-traditional earnings metrics, as the difference between a non-existent trailing multiple and a negative forward multiple suggests high uncertainty regarding the earnings trajectory. The price-to-book ratio is -2.17, which indicates that the market is pricing the company at a significant discount to its book value, a common characteristic for growth-stage infrastructure firms with negative earnings. The price-to-sales ratio is 1.52, and the EV/EBITDA is -31.00; these alternative valuation metrics suggest that investors are valuing the enterprise based on revenue potential and strategic asset value rather than current profitability, as the negative EV/EBITDA reinforces the lack of current earnings power. The 52-week high is $5.18 and the 52-week low is $1.84. Without a specific current price provided in the facts to calculate a precise percentage, the trading range demonstrates significant volatility, with the stock having the potential to trade anywhere between 1.84 and 5.18 based on market sentiment. The beta value is 2.69, which explains that the stock's price volatility is more than double that of the broader market, making it a high-risk investment that reacts sharply to market movements.
Growth & Income
Revenue growth year-over-year is 75.5%, while earnings growth is N/A due to the company's current losses. This disparity implies that the company is prioritizing rapid top-line expansion and network build-out over immediate profit generation, as earnings are not yet growing because the business is not yet profitable. The dividend yield is N/A and the payout ratio is 0.0%, indicating that the company does not distribute dividends to shareholders. Since the company is a non-dividend payer, it is understood that the firm reinvests all available earnings and cash flow into expanding its charging network and funding operations rather than paying out distributions. The overall growth and income profile characterizes EVgo as a high-volatility, non-dividend growth stock that relies on revenue acceleration and future profitability rather than current income generation or shareholder payouts.