Tigo Energy, Inc. (NASDAQ: TYGO)

Sector: Technology Industry: Solar CIK: 0001855447
Market Cap 207.59 Mn
P/B 17.22
P/E -5.14
P/S 2.29
ROIC (Qtr) -57.95
Div Yield % 0.00
Rev 1y % (Qtr) 115.02
Total Debt (Qtr) 50.04 Mn
Debt/Equity (Qtr) 4.15
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About

Tigo Energy, Inc. (TYGO) operates in the solar energy industry, developing and delivering products and solutions that enhance safety, increase energy yield, and lower operating costs of residential, commercial, and utility-scale solar systems. The company's mission is to deliver smart system solutions that combine hardware and software to improve the performance of solar energy systems. Tigo Energy's main business activities revolve around the development and sale of Module Level Power Electronics (MLPE) products, GO Energy Storage Systems (ESS),...

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Investment thesis

Bull case

  • Tangible assets of 93.91M provide exceptional 49.51x coverage of deferred revenue 1.90M, showing strong service capability backing.
  • Robust free cash flow of 9M exceeds capital expenditure of 726000 by 12.40x, indicating strong organic growth funding capability.
  • Robust tangible asset base of 93.91M provides 32.54x coverage of working capital 2.89M, indicating strong operational backing.
  • Operating cash flow of 9.73M provides strong 5.13x coverage of deferred revenue 1.90M, indicating service delivery capability.
  • Short-term investments of 15.82M provide solid 1.87x coverage of other current liabilities 8.48M, indicating strong liquidity.

Bear case

  • Operating cash flow of 9.73M barely covers its investment activities of (5.98M), with a coverage ratio of -1.63, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (5.98M) provide weak support for R&D spending of 9.18M, which is -0.65x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of 9.73M shows concerning coverage of stock compensation expenses of 7.51M, with a 1.30 ratio indicating potential earnings quality issues.
  • Operating earnings of (28.16M) show weak coverage of depreciation charges of 2.25M, with a -12.49 ratio indicating high capital intensity and potential reinvestment needs.
  • Retained earnings of (152.12M) provide limited buffer against comprehensive income items of 5000, which is -30424.60x, indicating elevated exposure to market risks.

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 2.27 1.41
EV to Cash from Ops. EV/CFO 25.21 3.45
EV to Debt EV to Debt 4.90 6.34
EV to EBIT EV/EBIT -8.71 22.16
EV to EBITDA EV/EBITDA -9.20 5.58
EV to Free Cash Flow [EV/FCF] EV/FCF 27.25 9.74
EV to Market Cap EV to Market Cap 1.18 2.40
EV to Revenue EV/Rev 2.70 312.86
Price to Book Value [P/B] P/B 17.22 0.12
Price to Earnings [P/E] P/E -5.14 -3.59
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 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) -2.45 -54.67
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 28.54 -54.29
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 158.62 50.84
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.00
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 26.90 3.75
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 31.87 -309.44
EBIT Growth (1y) % EBIT 1y % (Qtr) 28.11 -42.85
EBT Growth (1y) % EBT 1y % (Qtr) 21.67 -48.74
EPS Growth (1y) % EPS 1y % (Qtr) 25.29 -74.61
FCF Growth (1y) % FCF 1y % (Qtr) 140.42 4.39
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 63.38 701.13
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.84 0.65
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 0.29 0.39
Current Ratio Curr Ratio (Qtr) 1.03 1.43
Debt to Equity Ratio Debt/Equity (Qtr) 4.15 0.31
Interest Cover Ratio Int Coverage (Qtr) -2.45 -54.67
Times Interest Earned Times Interest Earned (Qtr) -2.45 -54.67
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -28.50 -907.38
EBIT Margin % EBIT Margin % (Qtr) -31.02 -994.26
EBT Margin % EBT Margin % (Qtr) -43.65 -1,508.47
Gross Margin % Gross Margin % (Qtr) 20.30 10.82
Net Profit Margin % Net Margin % (Qtr) -44.50 -1,462.08