Stock Analysis & Valuation EVgo, Inc. (EVGOW)

• Previous Close: $0.06
• Sector Valuation Confidence Level: Moderate

Valuation method	Value, $	Upside, %
Artificial intelligence (AI)	27.91	46417
Intrinsic value (DCF)	54.31	90417
Graham-Dodd Method		n/a
Graham Formula		n/a

Strategic Investment Analysis

Company Overview

EVgo, Inc. (NASDAQ: EVGOW) is a leading provider of electric vehicle (EV) charging solutions in the U.S., operating one of the largest public fast-charging networks. Headquartered in Los Angeles, California, EVgo offers a comprehensive suite of charging services, including public fast charging, home charging solutions, and workplace charging programs. The company serves a growing market of EV owners, fleet operators, and commercial partners, positioning itself at the forefront of the clean energy transition. EVgo’s network is strategically located in high-traffic urban and suburban areas, ensuring accessibility for consumers and businesses alike. As part of the Specialty Retail sector within the Consumer Cyclical industry, EVgo benefits from increasing EV adoption and supportive government policies. With a focus on sustainability and innovation, EVgo is well-positioned to capitalize on the expanding EV infrastructure market.

Investment Summary

EVgo presents a high-risk, high-reward investment opportunity in the rapidly growing EV charging sector. The company operates in a capital-intensive industry with significant upfront infrastructure costs, reflected in its negative net income (-$131.3M) and operating cash flow (-$7.3M). However, with a market cap of ~$1.24B and strong revenue growth potential, EVgo could benefit from increasing EV adoption and federal infrastructure funding. Key risks include intense competition, reliance on government incentives, and the capital-intensive nature of expanding charging networks. Investors should weigh EVgo’s first-mover advantage in fast-charging infrastructure against its current unprofitability and high beta (2.276), indicating volatility.

Competitive Analysis

EVgo’s competitive advantage lies in its extensive public fast-charging network, one of the largest in the U.S., with a focus on high-traffic urban locations. The company differentiates itself through partnerships with automakers, fleet operators, and retail hosts, enhancing network utilization. EVgo’s proprietary software and data analytics optimize charging station performance and user experience. However, the company faces stiff competition from ChargePoint (CHPT) and Tesla’s Supercharger network, which dominate in terms of scale and brand recognition. EVgo’s asset-light business model, where it partners with site hosts rather than owning all real estate, provides flexibility but may limit control over prime locations. The company’s reliance on third-party hardware suppliers could also pose supply chain risks. While EVgo benefits from policy tailwinds like the Inflation Reduction Act, its ability to achieve profitability hinges on scaling utilization rates and managing operational costs in a fragmented market.

Major Competitors

• ChargePoint Holdings, Inc. (CHPT): ChargePoint operates the largest networked EV charging platform globally, with a strong presence in North America and Europe. Its business model focuses on selling hardware and software to commercial and fleet customers, differing from EVgo’s direct network ownership. ChargePoint’s weakness lies in its reliance on lower-margin Level 2 chargers, while EVgo specializes in faster DC charging. However, ChargePoint’s extensive partnerships and first-mover advantage give it broader market penetration.
• Tesla, Inc. (TSLA): Tesla’s Supercharger network is the most extensive and reliable fast-charging network in the U.S., exclusively serving Tesla vehicles (though recently opening to other EVs). Tesla’s vertically integrated approach and proprietary technology give it a cost advantage over EVgo. However, EVgo’s neutrality (serving all EV brands) and partnerships with automakers like GM and Nissan provide a counterbalance in the non-Tesla segment.
• Blink Charging Co. (BLNK): Blink is a smaller but growing competitor with a mix of owned and operated chargers, similar to EVgo. Blink’s strength lies in its international presence and diversified product lineup, but it lacks EVgo’s focus on high-speed charging infrastructure. Blink’s smaller scale and higher cash burn rate make it a less formidable competitor in the fast-charging segment.
• Volta Inc. (VLTA): Volta differentiates itself with ad-supported free charging stations, targeting high-visibility retail locations. While innovative, Volta’s reliance on advertising revenue makes it vulnerable to economic downturns. EVgo’s pay-per-use model and focus on fast charging provide more stable revenue streams, though Volta’s unique approach captures a different customer segment.