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Sunworks, Inc.NasdaqCM:SUNW Stock Report

Market Cap US$11.9m
Share Price
n/a
1Y-90.5%
7D-10.6%
1D-5.0%
Portfolio Value
​
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Sunworks, Inc.

NasdaqCM:SUNW Stock Report

Market Cap: US$11.9m

This company listing is no longer active

This company may still be operating, however this listing is no longer active. Find out why through their latest events.

Sunworks (SUNW) Stock Overview

Sunworks, Inc., through its subsidiaries, engages in the provision of photovoltaic and battery based power and storage systems for the commercial, agricultural, industrial, public works, and residential markets in the United States. More details

SUNW fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance0/6
Financial Health4/6
Dividends0/6

Rewards

Trading at good value compared to peers and industry

Risk Analysis

Shareholders have been substantially diluted in the past year

Has less than 1 year of cash runway

Highly volatile share price over the past 3 months

Does not have a meaningful market cap ($12M)

+ 1 more risk

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Sunworks, Inc. Competitors

Price History & Performance

Summary of share price highs, lows and changes for Sunworks
Historical stock prices
Current Share PriceUS$0.21
52 Week HighUS$2.24
52 Week LowUS$0.18
Beta1.57
1 Month Change5.56%
3 Month Change-40.23%
1 Year Change-90.46%
3 Year Change-98.96%
5 Year Change-93.58%
Change since IPO-99.98%

Recent News & Updates

Recent updates

Analysis Article • Aug 16

Investors Give Sunworks, Inc. (NASDAQ:SUNW) Shares A 26% Hiding

The Sunworks, Inc. ( NASDAQ:SUNW ) share price has softened a substantial 26% over the previous 30 days, handing back...
Analysis Article • Mar 04

We Think Sunworks (NASDAQ:SUNW) Needs To Drive Business Growth Carefully

Just because a business does not make any money, does not mean that the stock will go down. For example, biotech and...
Seeking Alpha • Oct 05

Sunworks: Strategy Initiatives Are A Step In Right Direction

Summary Sunworks is benefiting from strong demand for residential rooftop solar installations. The recently passed Inflation Reduction Act with incentives toward clean energy is a boom for the industry. The company's outlook is positive although weak earnings and negative cash flows will likely limit the upside in SUNW stock. Sunworks, Inc. (SUNW) is a provider of solar power systems and energy storage solutions. Rising utility costs have supported the growing adoption of rooftop solar applications with the number of residential installations accelerating this year as a strong point in the company's operating profile. The attraction here is the positive market outlook, particularly amid the "Inflation Reduction Act" that includes billions in incentives towards clean energy solutions. On the other hand, the challenge for Sunworks is to translate that momentum into positive earnings with the latest quarterly result highlighted by a widening loss. We view management plans to improve margins going forward which we view as a step in the right direction. We like the stock which benefits from several bullish tailwinds although the recurring negative earnings and a cash flow bleed are likely to limit the upside in the near term. SUNW Key Metrics The company last reported its Q2 earnings back in early August with a GAAP EPS loss of -$0.23 which missed the consensus by $0.02. Revenue of $36.4 million climbed by 13% year-over-year, coming in above estimates. The context here considers stronger growth from its core Residential Solar segment with revenue of $32.5 million, which climbed by 42% y/y, balancing a 19% decrease in the smaller Commercial Solar Energy or CSE group to $3.9 million. The gross profit at $16.9 million increased by 11% even as the margin declined by 90 basis points reflecting higher materials and labor costs. Negative adjusted EBITDA at -$5.7 million grew compared to -$1.7 million in the period last year. source: company IR Management explains that the poor performance from the CSE segment was based on lower orders from previous quarters while activity picked up in Q2. The firmwide backlog reached $96.8 million, up by $33 million sequentially from Q1 and 55% y/y. By this measure, the outlook is for a stronger second half of the year with both segments contributing positively to the top line. During the earnings conference call, a big theme from Sunworks was the strong residential market demand that has been hard to keep up with. To address the issues and improve financials, the strategic update is focusing on 4 key points. The plan is to increase the speed and number of installations to help make the company more efficient. The company is also pushing more towards a direct sales model in addition to its third-party distribution channels. The early success has been positive with the Q2 direct sales team responsible for 15% of installation revenue compared to just 5% in Q2 2021. Finally, the main goal here is to drive margin expansion. Clearing the backlog while making its procurement process more efficient is expected to support higher earnings over the long run. source: company IR While the company does not provide forward earnings guidance, the expectation is for further sales growth through the second half of the year. As it relates to the balance sheet, Sunworks ended the quarter with $12 million in cash against zero long-term financial debt. Still, keep in mind that company cash flow from operation was a negative $9 million in Q2 with liquidity being funded by regular equity issuances. Data by YCharts SUNW Stock Price Forecast Amid a challenging macro environment considering persistent inflation, and climbing interest rates, solar has been one of the hottest sectors this year. As mentioned, record high oil and gas prices have added demand for renewable energy alternatives. According to the Solar Energy Industries Association (SEIA), Q2 was a record quarter for residential installations in the United States with 1.4GW capacity installed, up 37% from Q2 2021. Sunworks' 42% revenue growth in the residential segment implies the company grew above the industry rate. SEIA is also very bullish on the impact of the Inflation Reduction Act as a major growth catalyst over the next few years. The forecast is for total solar deployment to increase by 40% from the current installed capacity by 2027. The opportunity is for Sunworks to capture an increasing portion of that underlying demand as part of the bullish case for the stock. Favorably, shares of SUNQ are trading above $3.00 per share which is up more than 100% from its Q1 low of $1.23 back in March. The initial Inflation Reduction Act enthusiasm sent shares to a high near $5.00 in August which now represents an important level of resistance following the recent correction. As a nano-cap stock with a market value still under $100 million, the wide trading range and ongoing volatility are to be expected. To the upside, the stock would need to make a move above $4.00 to get the bulls firmly back in control. Seeking Alpha Again, the trend of recurring negative cash flows and a recurring loss is likely the most bearish headwind limiting the upside in the share price of SUNW. In our opinion, this dynamic is likely to continue for the foreseeable future. The company will need to significantly accelerate the top line momentum for operating income or even adjusted EBITDA to begin approaching breakeven. The other issue is that the solar industry is highly competitive and even crowded among several larger and more capitalized players that benefit from scale. Notably, shares of SUNW trade at a discounted sales multiple with the EV to forward revenue metric at just 0.5x compared to peers like SunPower Corp (SPWR) at 2.5x, SolarEdge Technologies Inc. (SEDG) at 4.2x, and First Solar Inc. (FSLR) at 4.9x. In these cases, the valuation spread reflects stronger earnings with a clearer path to profitability in contrast to SUNW which has some deficiencies.
Analysis Article • Aug 13

Earnings Beat: Sunworks, Inc. (NASDAQ:SUNW) Just Beat Analyst Forecasts, And Analysts Have Been Lifting Their Forecasts

Shareholders will be ecstatic, with their stake up 68% over the past week following Sunworks, Inc. 's ( NASDAQ:SUNW...
Seeking Alpha • Aug 08

Sunworks Q2 2022 Earnings Preview

Sunworks (NASDAQ:SUNW) is scheduled to announce Q2 earnings results on Tuesday, August 9th, before market open. The consensus EPS Estimate is -$0.20 (-185.7% Y/Y) and the consensus Revenue Estimate is $33.45M (+4.2% Y/Y). Over the last 3 months, EPS estimates have seen 0 upward revisions and 2 downward. Revenue estimates have seen 0 upward revisions and 2 downward.

Shareholder Returns

SUNWUS ElectricalUS Market
7D-10.6%-3.5%0.1%
1Y-90.5%59.0%20.3%

Return vs Industry: SUNW underperformed the US Electrical industry which returned 6.7% over the past year.

Return vs Market: SUNW underperformed the US Market which returned 16.8% over the past year.

Price Volatility

Is SUNW's price volatile compared to industry and market?
SUNW volatility
SUNW Average Weekly Movement22.6%
Electrical Industry Average Movement12.6%
Market Average Movement7.3%
10% most volatile stocks in US Market16.7%
10% least volatile stocks in US Market3.2%

Stable Share Price: SUNW's share price has been volatile over the past 3 months.

Volatility Over Time: SUNW's weekly volatility has increased from 17% to 23% over the past year.

About the Company

FoundedEmployeesCEOWebsite
2002624Mark Troutsunworksusa.com

Sunworks, Inc., through its subsidiaries, engages in the provision of photovoltaic and battery based power and storage systems for the commercial, agricultural, industrial, public works, and residential markets in the United States. It is also involved in the design, arrange financing, integrate, install, and manage systems ranging for residential homeowners, and commercial and public works projects. The company was formerly known as Solar3D, Inc. and changed its name to Sunworks, Inc. in March 2016.

Sunworks, Inc. Fundamentals Summary

How do Sunworks's earnings and revenue compare to its market cap?
SUNW fundamental statistics
Market capUS$11.87m
Earnings (TTM)-US$62.50m
Revenue (TTM)US$154.86m
0.1x
P/S Ratio
-0.2x
P/E Ratio

Is SUNW overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
SUNW income statement (TTM)
RevenueUS$154.86m
Cost of RevenueUS$101.29m
Gross ProfitUS$53.58m
Other ExpensesUS$116.07m
Earnings-US$62.50m

Last Reported Earnings

Sep 30, 2023

Next Earnings Date

n/a

Earnings per share (EPS)-1.10
Gross Margin34.60%
Net Profit Margin-40.36%
Debt/Equity Ratio0%

How did SUNW perform over the long term?

See historical performance and comparison

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/02/06 05:50
End of Day Share Price 2024/02/05 00:00
Earnings2023/09/30
Annual Earnings2022/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Sunworks, Inc. is covered by 7 analysts. 1 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Ashok KumarAegis Capital Corporation
James McIlreeChardan Capital Markets, LLC
Donovan SchaferColliers Securities