WSB always complains that DD’s about great companies are written after the stock has already gone parabolic. Well, check out Wallbox, a potential “sleeper” in a rapidly growing industry.
I am too lazy to write a detailed analysis and WSB is not famous for its long attention span, so I would keep this DD quite short (but maybe not for the WSB standard). If the company gets your attention, do your own research.
We all know that EV’s being the future of transportation is almost a sure thing and we all have heard the cliche ” the people that made the most money during the gold rush, were the ones that were selling shovels”. Investing in a company that makes charging stations, looks like a good bet for the investors that have higher risk tolerance. I would like to introduce you to a company, that I think has very good potential, but is still staying under the radar, probably due to the fact that it is based in Europe. That company is Wallbox (WBX) .
Wallbox is a company that is specialised in offering smart charging stations for home use. That might be “smart”, cuz the public space is way more crowded and their potential competitors there are very well-funded and bigger. You will still get exposure to this subsector by buying WBX, but I will talk about this later. Wallbox products have a lot of features. They allow you to control your charger remotely so you can schedule charging sessions to benefit from off-peak energy rates, monitor your charger status, and more through the Wallbox app. Also, their as they call it “proprietary bidirectional technology” allows you to charge and discharge your EV, converting it into an energy storage unit that can replace or add capacity to a home battery. Their best selling product Quasar, is the the world’s lightest and smallest DC charger and supports facial recognition and gesture control. Last, but not least, their products are very aesthetically pleasing and that might be more important than you think. For a rather small company, they have a very dedicated fan base. One of the main things that distinguishes great companies from the others is that the future industry leaders are able to create a very big brand loyalty and even if they are at the early stage of its development, you can see that people love their work and it is only about time till they expand further. It is no wonder that Quasar was one of the best selling AMZN products last year.
Wallbox are also selling products for business use and their idea is for the companies to be able to use their electric fleet as a power grid for their storage spaces or office buildings. Furthermore, they just announced their public space charging station – Supernova, that offers 50 percent cost reduction and very fast charging (15 min. for a charge). Its revolutionary design allows for a no cost power boost and also comes with advanced software and touchscreen. Wallbox are definitely entering this segment a bit late, but as an investor it is nice to have exposure all of the subsectors in the EV charging business.
Now, let’s take a look at their financials. Wallbox has a very manageable debt that is a bit more than its less than its quarterly revenue, lower P/S than all of its major competitors and the biggest operating margins in the industry. Their revenue growth for the year is over 250%. They also have the backing of the spanish energy giant Iberdrola. The company is well-diversified and sells in more than 100 countries.
Positions: 160 shares, might add more in the future.
PS: Of course this is not a financial advice. I just think that the risk reward/ratio of this play is lower than the typical ratio for WSB favourites, but this does not say much.
Submitted March 17, 2022 at 12:05AM by prettyboyv
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