CPSE:SOLAR BTrade Distributors
Solar (CPSE:SOLAR B) Stock Faces Margin Strain After Wider Q2 Loss
Solar came into this earnings print with the stock up around 8% over the past month and trading on a rich 53.2x P/E. That is a lot of optimism for a distributor that just reported Q2 revenue of DKK 3.44b and another quarterly loss, with basic earnings per share of DKK 3.4.
The sentiment reckoning is simple. Investors have been paying a premium for Solar based on thin trailing margins of 0.3% and a balance sheet carrying interest that earnings do not comfortably cover. Today’s numbers pressure...