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KULR Technology Assets And Contract Pipeline Expose An Actionable Valuation Disconnect ($KULR)

KULR Technology Assets And Contract Pipeline Expose An Actionable Valuation Disconnect ($KULR)

KULR Technology Group Inc. (NYSE: KULR) stock is undervalued. Or, better said, it's disconnected from its fair value when appraising the value from its significant asset portfolio, well-protected IP, and contract visibility with some of the largest global conglomerates. And the KULR story isn't just a forward-looking one. Recent operational performance has helped KULR score record-setting revenues, strengthen its balance sheet, and expand its market reach into several potentially lucrative lithium-Ion battery-safety markets. 

In other words, with greater business depth than at any time in its history and revenue-generating deals accruing from deals made and expected from maritime safety, aerospace applications, consumer products, and energy storage markets, the pricing between KULR the company and its share price has never looked more disconnected. 

But it's not all bad news. Weak markets have helped expose the opportunity. Better yet, KULR justifies its bullish proposition by providing a demand-filled market with ideal total battery safety solutions enabling more efficient battery systems, increased sustainability, and end-of-life battery management. Leveraging that vital technology, KULR becomes an even more compelling value proposition by making itself an integral part of the migration to a global circular economy. 

That puts KULR and its technology in the right markets at the right time. 



Video Link: https://www.youtube.com/embed/oE5JyViwStM

A $554 Billion Energy Storage Market

Essential to that consideration is also the dollars targeted from providing thermal management and lithium-Ion battery safety solutions to an energy storage market expected to reach $554 billion by 2035. It's essential because KULR can capture a sizable share of that opportunity through its Thermal Runaway Shield (TRS) technology, which can prevent battery explosions. It's so good that it's been used by the International Space Station and NASA, which utilized KULR's proprietary carbon fiber technology to handle the massive heat those agencies' assets need to absorb. 

That's not all. KULR has expanded its battery safety contract with NASA to test its lithium-ion cells for battery packs designed for the Artemis Program. They also benefit from NASA utilizing its innovative carbon fiber thermal management solutions, which are included on the Mars Perseverance Rover and are a part of NASA's NICER mission to keep components from freezing on that endeavor. In addition, KULR collaborated on a project to safely ship and store laptop batteries aboard the International Space Station using its Thermal Runaway Shield (TRS) technology and was included to help protect Microsoft's (NASDAQ: MSFT) Surface tablets from the conditions outside of this atmosphere. But, it's not only the space-focused companies and agencies attracted to KULR. The private sector likes what they are selling, too. 

Lockheed Martin (NYSE: LMT) just provided KULR a follow-on order for its PCM heat sink technology, leading many to think that once LMT is through its evaluations, it could lead to a potentially massive long-term contract. If so, it would add to the three-year multi-million deployment order for its Passive Propagation Resistant ("PPR") solution suite from Volta Energy Products, a subsidiary of Viridi Parente Inc., which announced raising $95 million to help develop 'fail-safe' lithium-ion battery technology. There's more. 

KULR recently announced expanding its strategic relationship with E-One Moli Energy Corporation for Molicel's battery cell supply in its mission to serve high-value clients in an estimated $350 million market. All the deals mentioned are accretive and can be substantial near and long-term revenue drivers.

Global Companies Like KULR Technology

That results from KULR's integrated design approach offering comprehensive solutions in thermal interface materials, lightweight heat exchangers, and protection against lithium-ion battery thermal runaway propagation. The best news about that combination of technology is that it can be designed to fit demanding configurations and applications. 

That advantage led to deals with some of the largest car companies in the EV sector, including a partnership with Andretti Technologies (ATEC) to provide thermal management and battery safety solutions to its electric SUV extreme racing team Andretti United Extreme E. By the way, a product of the joint research in that deal could lead to KULR and Andretti co-marketing proprietary battery products and solutions. If so, traction could come quickly through the trust and brand recognition inherent to the name. Still, while it's a significant opportunity, it's far from the only one. 

KULR is also working with Leidos (NYSE: LDOS), capitalizing on market opportunities presented by KULR's best-in-class battery safety technology. KULR's recycling partner, Heritage Battery Recycling, also adds to the value proposition by providing immediate and open access to commercial partners and customers, especially after securing United Parcel Service (NYSE: UPS) shipping certification. That certification is valuable. 

Foremost, it allows the shipment of batteries utilizing the KULR Safe Case products through UPS' vast shipping network. Perhaps more valuable is that it enables its U.S. Department of Transportation compliant "Safe Case" to be used as a safe and reusable shipping container for Li-Ion battery transportation up to 2.1KWh. That allowance provides KULR's major recycling partner a safe shipping container able to handle batteries above 300Wh. And with billions of lithium-Ion batteries, large and small, needing compliant disposal, opportunities are enormous.

A Disconnect Too Wide To Ignore

Therefore, with KULR driving growth on all cylinders, investors have an excellent reason to ask why KULR stock isn't reaching past 52-week highs that are 200% higher than current levels. One reason, perhaps even the primary one, is that KULR's inclusion in the Russell Microcap index disguises a company in hypergrowth. Investors following the markets understand that broad-based weakness takes a toll on even the best of companies. But savvy ones know that unbridled weakness also creates opportunities. And with over thirty contracts, including with NASA, the Department of Transportation, U.S. Air Force, global business conglomerates, and companies critical to the national security interests, connecting the business dots does justify investment consideration.

Analysts are bullish on KULR's prospects, with price targets from at least one model suggesting KULR shares can reach $7.00 in the coming quarters. They support that forecast, believing that KULR can capitalize on significant market opportunities by leveraging the technological firepower inherent to its NEXT-Gen cooling solutions. Revenue-generating opportunities from that technology include those from the aerospace, electronics, energy storage, 5G infrastructure, and electric vehicle manufacturers sectors. KULR technology makes their products cooler, lighter, and safer for consumers.

A recent deal with Volta Energy Products could accelerate share price growth to meet that bullish prediction. KULR announced that Volta plans to bring between 750 to 1,000 battery storage units (using KULR's technology) to market in 2022. That number is expected to increase to upwards of 50,000 units in 2023. If that happens as expected, expect revenues to appreciate considerably, with estimates suggesting at least $80 million can be accrued during 2023 if prices per unit remain constant and the maximum number of units were shipped. Even if pricing power weakened and less than the maximum number of units were shipped, revenues could still eclipse $40 Million for KULR in 2023 on that deal alone.

And that deal, and the others mentioned, still don't value the entirety of KULR's sum of its parts. Industry and regulatory initiatives are also enhancing targeted opportunities, including those from battery recycling and clean energy solutions, which expands an already sizable global addressable market. Also, remember that KULR is targeting big markets that are getting bigger, evidenced by market research indicating that KULR's innovative technologies can capitalize on opportunities in a thermal management systems market expected to reach $24.8 billion by 2025. Lux Research, a global research and advisory firm, is more bullish about the potential.

They expect the energy storage market's annual revenue to become a $554 billion opportunity by 2035. Global green-energy initiatives, including zero-emissions goals, contribute to that exponential increase in expectations. 

Weak Markets Expose Opportunities, KULR Is One

Thus, the combination of its parts, not a particular deal, makes KULR an attractive value proposition. Remember, not everything is forward-looking; they are monetizing at least four major commercial accounts for its Safe Case products. If those deployment trials go as expected, it could lead to several multi-million-dollar recurring commitments being inked by the end of 2022. 

Additionally, KULR is advancing what could be a significant value driver through its biosensing solution for its Fortune 50 Metaverse customer. While the name isn't divulged yet, it's fair to assume that a revised engineering design for that product, which improves pliability, increases conductivity, and enhances softness to the skin, is being developed for a multi-billion dollar player. And that deal is expected to contribute more to the investment consideration in Q4. And that's still not all.

Factor in KULR's position to exploit massive drone markets and those in play from the maritime safety markets, and the revenue-generating opportunities are worthy of a considerable multiple. And those markets still scratch only the surface of opportunities in the crosshairs. Other focused-on markets include the enterprise energy storage, data center, and crypto-mining applications, where KULR technology can more than penetrate; it can dominate. 

That makes KULR more than an attractive proposition; it's timely. And while the window of opportunity is wide open today, expect it to close sooner than later; most ground-floor opportunities do.

 

Disclaimers: Shore Thing Media, LLC. (STM, Llc.) is responsible for the production and distribution of this content. STM, Llc. is not operated by a licensed broker, a dealer, or a registered investment adviser. It should be expressly understood that under no circumstances does any information published herein represent a recommendation to buy or sell a security. Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The information made available by STM, Llc. is not intended to be, nor does it constitute, investment advice or recommendations. The contributors may buy and sell securities before and after any particular article, report and publication. In no event shall STM, Llc. be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or made available by STM, Llc., including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information in this video, article, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. STM, Llc. strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D. For some content, STM, Llc., its authors, contributors, or its agents, may be compensated for preparing research, video graphics, and editorial content. STM, LLC has been compensated up to twenty-thousand-dollars cash via wire transfer by a third party to produce and syndicate content for KULR Technology Group, Inc.. for a period of one month. As part of that content, readers, subscribers, and website viewers, are expected to read the full disclaimers and financial disclosures statement that can be found on our website. The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quote; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled. 

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