Undervalued Relative to Peers It’s a well-known concern that there isn’t enough public charging infrastructure in Canada on both the long barren highways and dense cities. With the government making 20% of all new cars to be sold by 2026 and 100% by 2035, the development and maintenance of this infrastructure is providing a huge market opportunity for early entrants.
https://globalnews.ca/news/9422712/canada-electric-vehicle-mandate-2026/#:~:text=After%202026%2C%20the%20government%20is,sales%20being%20electric%20by%202035.
As an early player in the industry and the only public Canadian charging company, $HC.N has an advantage over competitors because of their capital raising abilities and early establishment/reputation among previous clients, with 1,400 chargers across various provinces already being implemented. Beyond their charging growth, they’ve also been developing the overall business and brand.
- Signed a roaming agreement with Electric Circuit allowing users to utilize both companies’ charging infrastructure with a revenue-sharing structure, helping expand the network of available chargers for users.
- Listed on the OTCQB, which will help visibility for the stock among US investors.
- Q3 revenue gives the company a near 7x sales-to-valuation ratio, without accounting for future growth. Relative to industry peers like PLUG with a 10x ratio (without the ability to scale as fast as $HC.N).
With the company having so many recent developments, the growth prospects here look good, especially at the current $28M market cap. Keep an eye out for any continued deals for charging implementation.