Average analyst estimate: GreenPower to make .58/share next fiscal year
- Sales growth > 120% yoy
- Analysts estimate .58/share in earnings next fiscal year
- Shares currently trading at a forward price-to-sales multiple below 6
- Compared to other EV stocks, this is a clear mispricing of shares, and proof that the market is not always efficient over the short term
If you’re reading this and aren’t familiar with GreenPower Motor, please review:
- GreenPower Motor Company a High Growth Standout in EV Stocks
- Competitive Advantages of GreenPower for more background.
GreenPower Motor Company (NASDAQ: GP) manufactures a range of all-electric commercial vehicles for public transit, schools, charter buses, delivery, vanpooling, and shuttles. Their assembly plant is in Porterville, CA and corporate headquarters in Vancouver, Canada.
Let’s look at the numbers now
For FY 2000 which ended in April, GreenPower delivered 122% sales growth with a 30% gross profit.
Since that report, the Company has announced sales agreements for over 300 additional EVs, to begin delivery in the current FY (2021) specifically:
Three orders from California’s Green Commuter, (North America’s largest zero emissions vanpool), totaling 203 EV Stars, 10 all-electric B.E.A.S.T. school buses, and an order for 100 vehicles from ABC Bus Inc. in New York.
So clearly, last fiscal year’s 122% growth was not a one time event.
GreenPower hasn’t announced forward guidance yet. However, the post IPO quiet period ended last week and I expect the company will provide guidance soon.
Analysts though, have weighed in and expect to see:
Sales growth increasing to 143% yoy
Adjusted EPS of CAD .76 = USD .58 next fiscal year (2022)
At a current share price of $12.60, the forward PE is just under 22
I can’t find a single pure play EV stock growing sales over 120% yoy, with a forward PE this low. And if you know of one, please let me know in the comments section below!
As I said in the intro above, this is an anomaly among EV stocks. I don’t know how long shares will be this cheap, but I believe investors at current levels will be handsomely rewarded.
And by the way, GreenPower is on track to launch “the first fully autonomous transit bus in the United States entering test operations“.
I own shares of GreenPower Motor and have a 6-12 month price target of $25. I have not been paid by GreenPower Motor Company or any third party for this article.
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