Skycorp Solar Group Ltd (NASDAQ: PN)

Sector: Technology Industry: Solar CIK: 0002001288
Market Cap 11.59 Mn
P/B 0.58
P/E -4.30
P/S 0.18
ROIC (Qtr) 0.00
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 5.82 Mn
Debt/Equity (Qtr) 0.29
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About

Investment thesis

Bull case

  • Strong operating cash flow of 2.87M provides robust 0.49x coverage of total debt 5.82M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 11.47M provide 2.54x coverage of short-term debt 4.52M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 43.98M provides 7.56x coverage of total debt 5.82M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 2.87M provides exceptional 13.82x coverage of interest expenses 207848, showing strong debt service capability.
  • Robust free cash flow of 2.41M exceeds capital expenditure of 465357 by 5.17x, indicating strong organic growth funding capability.

Bear case

  • Operating cash flow of 2.87M barely covers its investment activities of (4.80M), with a coverage ratio of -0.60, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (4.80M) provide weak support for R&D spending of 1.68M, which is -2.86x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 2.87M provides insufficient coverage of deferred revenue obligations of 7.50M, which is 0.38x, raising concerns about future service delivery capabilities.
  • High receivables of 13.22M relative to inventory of 4.28M (3.09 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating earnings of (2.45M) show weak coverage of depreciation charges of 772092, with a -3.18 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Solar
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 FSLR First Solar, Inc. 24.22 Bn 17.30 4.80 0.55 Bn
2 NXT Nextpower Inc. 18.09 Bn 30.50 5.02 0.00 Bn
3 ENPH Enphase Energy, Inc. 6.00 Bn 34.84 4.07 1.20 Bn
4 RUN Sunrun Inc. 4.28 Bn -1.73 1.85 14.69 Bn
5 SEDG Solaredge Technologies, Inc. 2.16 Bn -3.68 2.12 0.40 Bn
6 SHLS Shoals Technologies Group, Inc. 1.87 Bn 56.32 4.32 0.17 Bn
7 ARRY Array Technologies, Inc. 1.73 Bn -18.82 1.30 0.68 Bn
8 JKS JinkoSolar Holding Co., Ltd. 1.37 Bn -2.86 0.14 6.93 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.17 1.41
EV to Cash from Ops. EV/CFO 2.73 3.45
EV to Debt EV to Debt 1.35 6.34
EV to EBIT EV/EBIT -3.20 22.16
EV to EBITDA EV/EBITDA -4.42 5.58
EV to Free Cash Flow [EV/FCF] EV/FCF 3.26 9.74
EV to Market Cap EV to Market Cap 0.68 2.40
EV to Revenue EV/Rev 0.12 312.86
Price to Book Value [P/B] P/B 0.58 0.12
Price to Earnings [P/E] P/E -4.30 -3.59
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -9.53
Dividend Payout Ratio % Dividend Payout Ratio % 0.00 0.00
Dividend per Basic Share Div per Share (Qtr) 0.00 0.00
FCF Dividend Payout Ratio % FCF Dividend Payout Ratio % 0.00 0.00
Interest Coverage Interest Coverage -11.80 -54.67
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % -94.04 -54.29
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 122.07 50.84
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.00
EBIAT Growth (1y) % EBIAT Growth (1y) % -491.16 3.75
EBITDA Growth (1y) % EBITDA Growth (1y) % -211.23 -309.44
EBIT Growth (1y) % EBIT Growth (1y) % -412.97 -42.85
EBT Growth (1y) % EBT Growth (1y) % -557.98 -48.74
EPS Growth (1y) % EPS Growth (1y) % -600.00 -74.61
FCF Growth (1y) % FCF Growth (1y) % 77.38 4.39
Gross Profit Growth (1y) % Gross Profit Growth (1y) % -3.58 701.13
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Utilization Ratio 1.39 0.65
Cash Payout Ratio Cash Payout Ratio 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 0.53 0.39
Current Ratio Curr Ratio (Qtr) 1.59 1.43
Debt to Equity Ratio Debt/Equity (Qtr) 0.29 0.31
Interest Cover Ratio Interest Cover Ratio -11.80 -54.67
Times Interest Earned Times Interest Earned -11.80 -54.67
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % -2.70 -907.38
EBIT Margin % EBIT Margin % -3.87 -994.26
EBT Margin % EBT Margin % -4.20 -1,508.47
Gross Margin % Gross Margin % 10.00 10.82
Net Profit Margin % Net Profit Margin % -4.30 -1,462.08