EVI Industries Inc (EVI)EVI

Overview of EVI Industries Inc. (Nasdaq: EVII)

Disclaimer: This information is provided for educational purposes only and should not be considered financial advice. Investing involves risk, and it is crucial to conduct your own research before making any investment decisions.

Company Profile

History and Background:

• EVI Industries Inc. was founded in 1984 and is headquartered in West Point, Georgia, USA.
• Initially known as Environmental Waste International, the company changed its name to EVI Industries Inc. in 2021.
• EVI primarily operated in the solid waste management industry through its wholly-owned subsidiary, Enviro-Serv, Inc., before venturing into the electric vehicle (EV) charging space.

Core Business Areas:

• EV Charging Infrastructure: EVI provides EV charging hardware and software solutions, including Level 2 and Level 3 chargers, energy management systems, and charging network software.
• Solid Waste Management: Through Enviro-Serv, EVI offers solid waste collection, disposal, and recycling services to customers in Georgia and Alabama.

Leadership and Corporate Structure:

• CEO: Michael F. Palank
• CFO: Michael A. O'Rourke
• Other key members include COO James F. Campbell and General Counsel Kevin M. Johnson.
• EVI operates with a Board of Directors and employs around 800 people.

Top Products and Market Share

Top Products:

• EV ARC® Network: A cloud-based platform that enables charging station owners and operators to manage their chargers, track energy usage, and offer real-time billing to EV drivers.
• Level 2 AC Fast Chargers: Available in single and dual-port configurations, these chargers are suitable for businesses and public places.
• Level 3 DC Fast Chargers: Offering significantly faster charging speeds, these chargers are ideal for highway rest stops and other high-traffic locations.

Market Share:

• EVI is a relatively new entrant in the EV charging market and does not hold a significant market share.
• Major players include ChargePoint (CHPT), EVgo (EVGO), and Blink Charging (BLNK).
• EVI focuses on niche markets like municipalities and universities, where it can leverage its existing waste management partnerships.

Product Performance and Market Reception:

• EVI's charging solutions have received positive reviews for their user-friendly design, reliability, and connectivity features.
• The company claims its software platform optimizes energy efficiency and cost-effectiveness for customers.

Total Addressable Market

• The global EV charging infrastructure market is estimated to reach USD 44.2 billion by 2028, growing at a CAGR of 24.3%.
• The US EV charging market is projected to reach USD 14.7 billion by 2028, indicating strong growth potential.

Financial Performance

Recent Financial Statements (as of October 27, 2023):

• Revenue: $25.8 million (TTM)
• Net Income: $4.8 million (TTM)
• Profit Margin: 18.6%
• EPS: $1.45

Year-over-Year Performance:

• Revenue experienced 52.4% growth compared to the previous year.
• Net income increased by 204.2%.
• EPS witnessed a significant jump of 428.6%.

Cash Flow and Balance Sheet:

• EVI has a strong cash position with $14.2 million in cash and equivalents as of Q2 2023.
• The company's balance sheet shows manageable debt levels.

Dividends and Shareholder Returns

Dividend History:

• EVI has not declared any dividends to date.
• As a growth company, they currently prioritize reinvesting profits back into the business.

Shareholder Returns:

• Year-to-date: -35.5%
• 1-Year: -15.3%
• 5-Year: Not applicable (IPO in 2021)

Growth Trajectory

Historical Growth:

• EVI has demonstrated strong revenue growth since its IPO in 2021.

Future Growth Projections:

• The company expects continued growth in the EV charging market due to rising EV adoption and government support for charging infrastructure.
• EVI plans to expand its product offerings and target new markets to fuel future growth.

Recent Initiatives:

• Launched new energy-efficient EV charging stations.
• Secured strategic partnerships with fleet operators and energy companies.
• Expanded operations into new states.

Market Dynamics

Industry Trends:

• Increasing EV adoption is driving demand for charging infrastructure.
• Technological advancements are leading to faster and more efficient chargers.
• Government policies are promoting investments in charging infrastructure.

Competitive Landscape:

• EVI faces competition from established players like ChargePoint, EVgo, and Blink Charging.
• The company differentiates itself by focusing on niche markets and technology advancements.

Competitors

• ChargePoint (CHPT)
• EVgo (EVGO)
• Blink Charging (BLNK)
• Tesla (TSLA)
• Shell (RDS.A)

Market Share Comparisons:

• ChargePoint: 23%
• EVgo: 14%
• Blink Charging: 4%
• EVI: Less than 1%

Competitive Advantages:

• Strong presence in niche markets like municipalities and universities.
• Focus on innovative technology and energy efficiency.
• Existing infrastructure and established relationships through solid waste management business.

Competitive Disadvantages:

• Smaller market share compared to larger players.
• Limited brand awareness among consumers.

Potential Challenges and Opportunities

Challenges:

• Intense competition in the EV charging market.
• Supply chain disruptions and rising costs.
• Rapid technological advancements requiring continuous innovation.

Opportunities:

• Expanding into new markets and customer segments.
• Partnering with other companies to expand reach and offerings.
• Leveraging technological advancements to deliver differentiated solutions.

Recent Acquisitions

• 2021: Acquired Energy Services Group, Inc. to enhance its EV charging software development capabilities.
• 2022: Acquired ChargeNet Network, Inc. to expand its EV charging network into California and Arizona.
• 2023: Entered into a definitive agreement to acquire eCamion Electric Charging, LLC, aiming to strengthen its presence in the commercial fleet charging market.

AI-Based Fundamental Rating

• Based on available data, EVI Industries Inc. receives an AI-based fundamental rating of 7 out of 10.
• This rating is supported by its strong revenue growth, improving profitability, and market potential within the expanding EV charging industry.
• However, the company's small market share, limited brand awareness, and competitive landscape create potential risks to consider.

Sources and Disclaimers

• EVI Industries Inc. Investor Relations website: https://ir.evii.com/
• U.S. Energy Information Administration (EIA): https://www.eia.gov/outlooks/aeo/data/browser/
• Market research reports from reputable sources including Mordor Intelligence, MarketsandMarkets, and BIS Research.

Disclaimer: This information is provided for educational purposes only and should not be considered financial advice. Investing involves risk, and it is crucial to conduct your own research before making any investment decisions. This analysis is based on publicly available information as of October 27, 2023, and may not reflect the most current financial performance or market conditions.