The increasing number of solar panels due to new laws mandating rooftop solar panels for new homes has recently had a positive impact on the solar industry. A dramatic decrease in the cost of solar energy also contributes to the increase in sales. Solar energy is expected to be the most cost-effective source of mass electricity in the years to come.
According to a forecast by the US Energy Information Administration (EIA), 15 GW of solar photovoltaics (PV) will be added to the power sector in 2021. with an additional forecast of 12 GW for 2022.
Given government subsidies now making solar panel installation much more affordable, and President Biden's $ 2 trillion plans in his $ 2 trillion infrastructure package to bring carbon emissions to zero, investors are interested in this sector gone up. While several companies are well positioned to realize their potential, many remain unprofitable. We therefore believe it is best to contact Sunnova Energy International Inc. (NOVA), ReneSola Ltd. ((SOL) and SolarWindow Technologies, Inc. (WNDW) because they currently have weak finances.
Sunnova Energy International Inc. (NOVA)
NOVA was founded in 2012 and is one of the leading US providers of solar and storage services for private households. It offers maintenance, monitoring, repairs and replacements, device upgrades, on-site energy optimization and diagnostic services. The company operates a fleet of solar systems for private households with an output of approx. 790 megawatts, which serve approx. 107,000 customers.
In April, NOVA completed the acquisition of SunStreet Energy Group, LLC, Lennar Corporation's residential solar platform, and became the exclusive provider of solar and storage services for households. In addition, as part of the transaction, Lennar undertook to provide tax investments to support Sunnova's customer pipeline for home builders. The agreement is designed to help NOVA drive customer growth while scaling the business.
Although NOVA's revenue increased 38.4% year over year to $ 41.28 million for the first quarter ended March 31, 2021, the company recorded a net loss of $ 24.06 million. In addition, there was an operating loss of $ 23.31 million, an increase of 63% over the previous year. EBITDA for the same period was minus USD 3.62 million.
NOVA has not been able to exceed the EPS consensus estimates in any of the last four quarters. The stock is down 24.5% over the past three months.
NOVA POWR ratings agree with this gloomy outlook. The stock has an overall F rating, which is reflected in our proprietary rating system as Strong Sell. The POWR ratings rate stocks based on 118 different factors, each with its own weighting.
NOVA is also rated F for value and quality. Within the F-rating Solar Industry is ranked 20th out of 20 stocks.
To see additional POWR ratings for growth, momentum, stability, and sentiment for NOVA, Click here.
ReneSola Ltd. (SOL)
SOL is a leading international manufacturer and supplier of solar energy products. The company operates in three segments: development of solar power projects, EPC services and power generation revenues. As of December 31, 2020, the company was operating around 100 solar power projects with a total output of 173 megawatts.
In April, SOL completed the sale of an approximately 10 MW portfolio of solar development projects to the Greenbacker Renewable Energy Company in Utah. Shifting the capital-efficient strategy from cash on delivery (post build) to more NTP (pre build) should allow him to focus on growing his quality project pipeline while maintaining healthy profit margins.
For the fourth quarter of the fiscal year ended December 31, 2020, SOL saw non-GAAP net revenue declined 39% year over year to $ 16.97 million, while the segment's operating income decreased 86.4 year over year % decreased to $ 716,000 year over year in the same interval. The company's non-GAAP gross margin declined 69% year over year to $ 2.62 million.
Analysts had expected SOL's EPS to decline 33.3% this year. Revenue is projected to decrease 11.4% to $ 23.2 million in the next quarter ending June 2021. SOL's shares are down 63.4% over the past three months.
The poor outlook for SOL is also reflected in the POWR ratings. The stock has an overall D rating, which corresponds to the sale in our company's own rating system.
The stock also has an F rating for stability and a D rating for value and quality. Click here to view the additional POWR ratings for SOL (Growth, Sentiment, and Momentum).
SOL is number 14 in the same industry.
SolarWindow Technologies, Inc. (WNDW)
WNDW, formerly known as New Energy Technologies, Inc., is a developer of proprietary, transparent coatings for power generation called “LiquidElectricity”. LiquidElectricity coatings' applications span a variety of industries including architecture, automotive, agrivoltaics, aerospace, commercial transportation, and shipping.
In March, WNDW set a record by more than doubling its previously certified performance and achieving the highest independently certified energy conversion efficiency of previous organic photovoltaic devices under a Research and Development Collaboration Agreement (CRADA) at the U.S. National Renewable Energy Laboratory. Department of Energy. . This should help the company lead the market and set a new standard for achieving efficient energy conversion.
WNDW's operating loss after twelve months was $ 9.92 million. It made a net loss of $ 9.83 million after 12 months. The EBITDA after twelve months was minus USD 9.65 million. Over the past three months, WNDW stock is down 41.8%.
The WNDW's weak fundamentals are reflected in the POWR ratings. The stock has an overall D rating, which corresponds to the sale in our POWR rating system. WNDW has an F grade for value and a D grade for growth. It ranks 11th among the 20 stocks in the same industry.
We also rated WNDW on impulse, stability, feeling and quality. Click here To see you.
NOVA shares were trading at $ 31.97 per share Tuesday afternoon, down $ 2.83, (-8.13%). Since the beginning of the year, NOVA has fallen by -29.16%, while the reference index S&P 500 has increased by 10.92% over the same period.
About the author: Samiksha Agarwal
Samiksha Agarwalhas always been very interested in the financial markets. This has led her to a career as a financial journalist. Its goal is to help investors through their extensive knowledge of fundamental analysis to identify unused investment opportunities on the stock market. More…