Breaking Down Beam Global (BEEM) Financial Health: Key Insights for Investors

Are you keeping a close watch on the financial health of companies in the booming electric vehicle (EV) infrastructure sector? Specifically, have you taken a deep dive into Beam Global (BEEM)? With the increasing demand for sustainable energy solutions, understanding the financial stability and growth potential of companies like Beam Global is crucial for making informed investment decisions. Did you know that Beam Global's revenue reached $49.3 million in 2024, marking a 124% increase from 2022, and its gross margins improved to 15%? But how sustainable is this growth, and what are the key factors driving its financial performance? Let's explore the key insights that can help you assess Beam Global's financial health and its prospects for the future.

Beam Global (BEEM) Revenue Analysis

Understanding Beam Global's (BEEM) revenue streams involves examining the sources, growth, and segment contributions that drive the company's financial performance. For the fiscal year 2024, Beam Global reported revenues of $49.3 million. This figure represents a 124% increase compared to the $22.0 million in revenue recorded in 2022. However, it is a decrease from the $67.4 million reported in 2023. Despite the year-over-year decrease, 2024 still marks the second-highest revenue in the company's history, excluding 2023.

Here's a breakdown of Beam Global's revenue streams:

• Non-Government Commercial Entities: Revenues from these entities increased by 229% from 2023 to 2024, constituting 38% of total revenues in 2024.
• European Operations: Approximately 25% of the company's 2024 revenues came from its European operations.
• Corporate Sales: Contributed 64% of total sales in the fourth quarter of 2024.

The company's revenue growth can be attributed to several factors:

• Strategic Product Expansion: Introduction of new sustainable transportation and energy security products like BeamBike, BeamPatrol, and BeamWell.
• Geographic Expansion: Expansion into Europe and the Middle East, which helped offset impacts from the U.S. government's zero-emission vehicle strategy.
• Increased Sales to Non-Government Entities: A shift in sales focus resulted in increased sales to non-government entities.

The year-over-year revenue growth rate showcases the following trends:

Despite a decrease in overall revenue compared to 2023, Beam Global has shown a strong five-year revenue Compound Annual Growth Rate (CAGR) of 68%. The company believes the decrease in revenue is a result of order timing and uncertainty in the U.S. government's zero-emission vehicle strategy related to the presidential election. This primarily affected larger federal customers and is not seen as a fundamental reduction in global demand for their products. For more insights, explore the Mission Statement, Vision, & Core Values of Beam Global (BEEM).

Beam Global (BEEM) Profitability Metrics

Analyzing Beam Global's (BEEM) profitability involves examining several key financial metrics. These include gross profit, operating profit, and net profit margins, as well as trends in these metrics over time. Additionally, comparing these ratios with industry averages and analyzing operational efficiency provides a comprehensive view of the company's financial health.

Gross Profit Margin

In 2024, Beam Global reported a positive gross profit of $7.3 million, which translates to a 15% gross margin. This is a significant improvement compared to 2023, when the gross profit was $1.2 million, or a 2% gross margin. The 13 percentage point increase in gross margin is attributed to cost improvements implemented in late 2023, resulting from design changes to the EV ARC™, operational improvements, and positive margins from European acquisitions.

Adjusted non-GAAP gross margins, which exclude non-cash costs such as depreciation and amortization, were even higher at 21% for 2024. This indicates that the company's core operations are generating healthier profits before accounting for non-cash expenses.

For the third quarter of 2024, the gross margin was 10.7% of sales, the highest Q3 margin ever, representing a 9 percentage point increase over Q3 2023. The year-to-date gross margin up to September 30, 2024, was 12.4%, an 11 percentage point increase over the same period in 2023.

Operating Profit Margin

Beam Global's loss from operations was $11.7 million for the year ended December 31, 2024, compared to $16.3 million for the year ended December 31, 2023. The non-GAAP loss from operations decreased by 24% year-over-year due to the increased gross profit and management of operating expenses.

Total operating expenses for 2024 were $19.0 million, compared to $17.5 million in the prior year. The increase is mainly attributable to salaries and benefits related to new hires, outside services, and marketing expenses.

Net Profit Margin

Beam Global's net loss for 2024 was $11.3 million, an improvement from the net loss of $16.1 million in 2023. This includes non-cash expense items related to depreciation, intellectual property amortization, and other factors. Excluding these non-cash items, the net loss was lower.

For the third quarter of 2024, net income was $1.3 million, compared to a net loss of $3.6 million for the same period in 2023. However, the third quarter's net income was primarily due to the reversal of $6.1 million for the fair value of non-cash contingent consideration.

Trends in Profitability Over Time

The trend in Beam Global's profitability shows a positive trajectory, particularly in gross margins. The increase in gross margins from 2% in 2023 to 15% in 2024 indicates improved operational efficiency and cost management. While the company still reported a net loss, the decrease in the loss from operations and the improved gross margins suggest that Beam Global is moving towards profitability.

Operational Efficiency

Beam Global has taken several steps to improve its operational efficiency:

• Cost Management: Implementing cost improvements through design changes to the EV ARC™ has reduced the bill of materials costs.
• Acquisitions: The acquisition of Telcom in Serbia has provided in-house production capabilities for power electronics, driving additional margin improvements.
• Product Development: Launching new products like BeamSpot™, BeamBike™, BeamPatrol™, and BeamWell™ diversifies revenue streams and reduces reliance on single large orders.

Revenue Analysis

Beam Global's revenues for 2024 were $49.3 million, compared to $67.4 million in 2023. While there was a decrease year-over-year, this was a 124% increase over 2022 revenue of $22.0 million. The company believes the decrease in revenue is a result of order timing and uncertainty in the U.S. government's zero-emission vehicle strategy related to the presidential election.

However, revenues from non-government commercial entities increased by 229% from 2023 to 2024, and corporate sales contributed 64% of the total in the fourth quarter. This diversification is a positive sign for future revenue stability.

Additional Financial Data

Other relevant financial data includes:

• Cash Position: On December 31, 2024, Beam Global had cash of $4.6 million, compared to $10.4 million at December 31, 2023. The cash decrease included cash payments for acquisitions.
• Debt: The company remains debt-free with a $100 million line of credit available and unused.
• Operating Cash Flow: Net cash used in operations for 2024 was $2.2 million, compared to $13.3 million in 2023, indicating improved cash management.
• Backlog: The backlog as of December 31, 2024, was $5.6 million.

For further insights into Beam Global's investor profile, you might find this resource helpful: Exploring Beam Global (BEEM) Investor Profile: Who’s Buying and Why?

Beam Global (BEEM) Debt vs. Equity Structure

Understanding Beam Global's (BEEM) financial health requires a close look at how the company manages its debt and equity. This balance is crucial for funding growth and maintaining stability.

As of the year ending December 31, 2023, BEEM reported total current liabilities of $18.44 million and total assets of $67.35 million. The company's financial statements provide detailed insights into its debt obligations and equity structure, which are essential for investors to assess its financial risk and growth potential.

Here’s a breakdown of key elements:

• Overview of Debt Levels: BEEM has both short-term and long-term debt.
• Debt-to-Equity Ratio: This ratio is vital for assessing the proportion of debt and equity used to finance the company’s assets.
• Recent Financing Activities: Monitoring new debt issuances, credit ratings, and refinancing efforts helps understand BEEM's strategic financial decisions.
• Balance Between Debt and Equity: How BEEM effectively uses debt and equity to support its operations and expansion.

To better illustrate BEEM's financial positioning, consider this overview of its assets and liabilities based on the latest available data:

The balance between debt and equity is a critical factor in evaluating BEEM's financial strategy. The company must strategically manage its debt to ensure sustainable growth without excessive risk. Investors should monitor these metrics to gain a comprehensive understanding of BEEM's financial health and long-term viability. Understanding a company's mission, vision, and core values is also crucial; learn more at Mission Statement, Vision, & Core Values of Beam Global (BEEM).

Beam Global (BEEM) Liquidity and Solvency

Assessing Beam Global's (BEEM) financial health requires a close look at its liquidity and solvency positions. These metrics provide insights into the company's ability to meet its short-term obligations and long-term financial stability.

Here’s an overview of Beam Global's (BEEM) liquidity, based on the available 2024 data:

• Current Ratio: 2.35, as reported in Q4 2024. This indicates solid short-term liquidity, showing that the company's current assets are more than sufficient to cover its current liabilities.
• Quick Ratio: 1.224. This ratio suggests the company has adequate liquid assets to cover its immediate liabilities.

Analysis of working capital trends reveals the following:

• Working Capital: Approximately $14 million.
• Working Capital per Revenue: Sequentially grew to 0.33 during Q4 2024.
• Working Capital Change Y/Y: A decrease of 42.09%.

The company's working capital decreased from $23.8 million on December 31, 2023, to $17.8 million by March 31, 2024. By Q2 2024, working capital stood at $16.0 million, a decrease of $7.8 million from Q4 2023. This fluctuation was mainly due to accrual of non-cash contingent consideration for the Amiga acquisition.

Here's a summary of Beam Global's (BEEM) cash flow trends:

• Net Cash Used for Operating Activities: $2.2 million for the twelve months ended December 31, 2024, compared to $13.3 million for the same period in 2023.
• Cash Balance: $4.6 million at the end of 2024, down from $10.4 million at the end of 2023.

The following table summarizes the cash flow data for Beam Global (BEEM):

Despite a decrease in the cash balance, Beam Global (BEEM) is targeting positive cash flow in 2025.

Potential liquidity concerns and strengths include:

• Strengths:
  • Relatively strong current ratio of 2.35, indicating solid short-term liquidity.
  • Access to an unused $100 million line of credit, providing financial flexibility.
  • Reduced net cash used in operations to $2.2 million in 2024 from $13.3 million in 2023.
• Concerns:
  • Decreased cash balance from $10.4 million in 2023 to $4.6 million in 2024.

Explore more about Beam Global (BEEM) and its investors: Exploring Beam Global (BEEM) Investor Profile: Who’s Buying and Why?

Beam Global (BEEM) Valuation Analysis

Determining whether a company is overvalued or undervalued requires a multifaceted approach, incorporating various financial ratios, market trends, and analyst insights. Here's an evaluation of Beam Global (BEEM) based on key financial indicators:

• Exploring Beam Global (BEEM) Investor Profile: Who’s Buying and Why?

Price-to-Earnings (P/E) Ratio:

As of April 2025, Beam Global's Price-to-Earnings (P/E) ratio is -1.24. A negative P/E ratio suggests that the company is currently generating losses. Typically, companies with negative P/E ratios are considered 'growth stocks,' as investors anticipate future profitability.

Price-to-Book (P/B) Ratio:

The Price-to-Book (P/B) ratio for Beam Global in March 2025 was 0.6428. More recent data indicates a P/B ratio of 0.54 as of April 2025. A P/B ratio of less than 1 may indicate that the stock is undervalued, relative to the company's book value.

Enterprise Value-to-EBITDA (EV/EBITDA):

As of April 18, 2025, Beam Global's Enterprise Value-to-EBITDA (EV/EBITDA) ratio is -2.02. A negative EV/EBITDA ratio can occur when a company has negative EBITDA, which means the company has negative earnings before interest, taxes, depreciation, and amortization. This is often a sign of financial distress or that the company is not profitable.

Stock Price Trends:

Beam Global’s stock has experienced significant volatility. Over the past year, the stock has decreased by approximately 74.56%. The 52-week range is $1.33 to $7.68. As of April 17, 2025, the stock price was $1.45, reflecting a 7.41% increase in the past 24 hours.

Dividend Yield and Payout Ratios:

As of March 11, 2025, Beam Global does not offer a dividend. Therefore, the dividend yield is 0.00%.

Analyst Consensus:

The consensus rating for Beam Global's stock is 'Moderate Buy.' The average 12-month price target from analysts is $9.00. However, it's important to note that analyst ratings can vary. For example, one analyst has a price target of $5.00 with a 'Buy' rating. Recent trends show a decrease in the average price target, with one report noting a 14.71% reduction to $7.40 per share.

Here's a summary of analysts' recommendations:

• Consensus Rating: Moderate Buy
• Average Price Target: $9.00 (based on 4 analysts)
• High Price Target: $10.00
• Low Price Target: $8.00

Based on the data, Beam Global's valuation presents a mixed picture. The negative P/E and EV/EBITDA ratios suggest current unprofitability, while a low P/B ratio could indicate undervaluation. Analyst ratings lean towards a 'Moderate Buy,' but the stock's volatility and lack of dividends should be considered. Investors should conduct thorough due diligence, considering both the potential upside and inherent risks.

Beam Global (BEEM) Risk Factors

Beam Global faces a variety of internal and external risks that could significantly impact its financial health. These risks span industry competition, regulatory changes, market conditions, and specific operational and strategic challenges highlighted in the company's filings.

Here's a breakdown of key risk areas:

• Industry Competition: The electric vehicle (EV) charging solutions market is intensely competitive. New and established companies are continuously innovating, which could put pressure on Beam Global to maintain its market position.
• Regulatory Changes: Government incentives and regulations play a crucial role in the adoption of EV technology. Changes in these policies, such as the reduction or elimination of tax credits or subsidies, could adversely affect demand for Beam Global’s products.
• Market Conditions: Economic downturns or fluctuations in energy prices can impact consumer and business investment in EV infrastructure. A decrease in overall EV adoption rates would directly affect Beam Global’s revenue.

Specific risks identified in recent filings may include:

• Operational Risks: Manufacturing delays, supply chain disruptions, or quality control issues could impact Beam Global’s ability to deliver products on time and within budget.
• Financial Risks: The need to secure additional funding to support growth and expansion could dilute existing shareholders' equity or increase debt burden. Fluctuations in interest rates could also impact the cost of capital.
• Strategic Risks: The success of Beam Global depends on its ability to innovate and adapt to changing market demands. Failure to anticipate technological advancements or shifts in consumer preferences could render its products obsolete.

Mitigation strategies or plans that Beam Global might employ include:

• Diversification: Expanding product offerings and targeting new markets to reduce reliance on specific segments of the EV charging market.
• Strategic Partnerships: Collaborating with other companies in the EV ecosystem to enhance product development and market reach.
• Cost Management: Implementing measures to improve operational efficiency and reduce costs to maintain profitability in a competitive environment.
• Compliance: Ensuring adherence to all regulatory requirements and adapting business practices to comply with changing laws and standards.

For more insights into Beam Global's financial health, check out: Breaking Down Beam Global (BEEM) Financial Health: Key Insights for Investors

Beam Global (BEEM) Growth Opportunities

Beam Global (BEEM) faces a promising future, driven by several factors that suggest substantial growth potential. These include innovative product development, strategic market expansion, key acquisitions, and advantageous partnerships. These elements collectively enhance the company's competitive positioning, setting the stage for continued success.

Key Growth Drivers:

• Product Innovations: Beam Global's focus on developing innovative and sustainable charging solutions is a significant growth driver.
• Market Expansions: Expanding into new geographic markets and sectors can significantly increase Beam Global's revenue base.
• Acquisitions: Strategic acquisitions can provide Beam Global with new technologies, market access, and talent.

For more insights into Beam Global's investor profile, see: Exploring Beam Global (BEEM) Investor Profile: Who’s Buying and Why?

Analyzing Beam Global’s competitive advantages, strategic initiatives, and financial forecasts provides a clearer picture of its growth trajectory. The subsequent sections will delve into these areas, offering a detailed assessment of the company’s potential.

Future Revenue Growth Projections and Earnings Estimates:

Predicting future revenue and earnings for Beam Global requires careful consideration of market trends, technological advancements, and the company's strategic initiatives. While exact figures are subject to change, understanding the key drivers can help in formulating reasonable expectations.

As of the fiscal year 2024, precise revenue growth projections and earnings estimates vary based on different analytical forecasts. Investors should consult multiple sources to form a well-rounded view.

Strategic Initiatives and Partnerships:

Strategic initiatives and partnerships play a crucial role in Beam Global's growth strategy. These collaborations can enhance the company's capabilities, expand its market reach, and accelerate the adoption of its products.

Competitive Advantages:

Beam Global's competitive advantages are critical to its long-term success. These advantages include:

• Innovative Technology: Proprietary technology and unique product offerings differentiate Beam Global from its competitors.
• Strategic Partnerships: Collaborations with key players in the industry provide access to new markets and resources.
• First-Mover Advantage: Being an early entrant in the rapidly growing EV charging market gives Beam Global a significant edge.

By leveraging these advantages, Beam Global is well-positioned to capitalize on the increasing demand for sustainable charging solutions and drive future growth.