SunPower Inc. (NASDAQ: SPWR)

Sector: Technology Industry: Solar CIK: 0001838987
Market Cap 55.98 Mn
P/B -0.50
P/E 3.55
P/S 0.18
ROIC (Qtr) -37.64
Div Yield % 0.00
Rev 1y % (Qtr) 1,164.54
Total Debt (Qtr) 206.11 Mn
Debt/Equity (Qtr) -1.84
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About

Complete Solaria, Inc., or CSLR, operates in the renewable energy sector, specifically focusing on delivering energy-efficient solutions to residential and small to medium-sized commercial customers. The company's mission is to provide a top-tier customer experience through a robust technology platform, financing solutions, and high-performance solar modules. In essence, Complete Solaria's primary business activities revolve around the design, sale, and installation of solar energy systems. These activities are carried out in the United States,...

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Investment thesis

Bull case

  • Tangible assets of 126.47M provide exceptional 13.02x coverage of deferred revenue 9.71M, showing strong service capability backing.
  • Robust tangible asset base of 126.47M provides 602.25x coverage of working capital 210000, indicating strong operational backing.
  • Retained earnings of (442.58M) represent substantial 3.94x of equity (112.32M), indicating strong internal capital generation.
  • Cash position of 8.91M represents healthy 42.44x of working capital 210000, demonstrating strong operational liquidity.
  • Cash reserves of 8.91M exceed inventory value of 8.69M by 1.03x, indicating strong liquidity and inventory management.

Bear case

  • Operating cash flow of (38.96M) barely covers its investment activities of (74.30M), with a coverage ratio of 0.52, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 8.91M provide limited coverage of acquisition spending of (74.19M), which is -0.12x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of (38.96M) provides insufficient coverage of deferred revenue obligations of 9.71M, which is -4.01x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (38.96M) shows concerning coverage of stock compensation expenses of 7.19M, with a -5.42 ratio indicating potential earnings quality issues.
  • Free cash flow of (39.07M) provides weak coverage of capital expenditures of 113000, with a -345.75 ratio suggesting additional external financing needs for growth initiatives.

Subsegments Breakdown of Revenue (2024)

Subsegments Breakdown of Revenue (2024)

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 0.94 1.41
EV to Cash from Ops. EV/CFO -5.03 3.45
EV to Debt EV to Debt 0.95 6.34
EV to EBIT EV/EBIT 4.16 22.16
EV to EBITDA EV/EBITDA -10.08 5.58
EV to Free Cash Flow [EV/FCF] EV/FCF -5.01 9.74
EV to Market Cap EV to Market Cap 3.50 2.40
EV to Revenue EV/Rev 0.63 312.86
Price to Book Value [P/B] P/B -0.50 0.12
Price to Earnings [P/E] P/E 3.55 -3.59
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -9.53
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 0.00
Dividend per Basic Share Div per Share (Qtr) 0.00 0.00
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 0.00
Interest Coverage Int. cover (Qtr) 1.50 -54.67
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 92.39 -54.29
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -89.31 50.84
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.00
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 139.99 3.75
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 68.18 -309.44
EBIT Growth (1y) % EBIT 1y % (Qtr) 139.96 -42.85
EBT Growth (1y) % EBT 1y % (Qtr) 112.04 -48.74
EPS Growth (1y) % EPS 1y % (Qtr) -94.37 -74.61
FCF Growth (1y) % FCF 1y % (Qtr) 7.52 4.39
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 15,307.37 701.13
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.48 0.65
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 0.08 0.39
Current Ratio Curr Ratio (Qtr) 1.00 1.43
Debt to Equity Ratio Debt/Equity (Qtr) -1.84 0.31
Interest Cover Ratio Int Coverage (Qtr) 1.50 -54.67
Times Interest Earned Times Interest Earned (Qtr) 1.50 -54.67
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 17.60 -907.38
EBIT Margin % EBIT Margin % (Qtr) 15.22 -994.26
EBT Margin % EBT Margin % (Qtr) 5.11 -1,508.47
Gross Margin % Gross Margin % (Qtr) 46.00 10.82
Net Profit Margin % Net Margin % (Qtr) 5.10 -1,462.08