NasdaqCM:SUNW

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Sunworks, Inc., through its subsidiaries, provides photovoltaic based power systems for the agricultural, commercial, industrial, public works, and residential markets in California, Massachusetts, Nevada, Oregon, New Jersey, and Washington.


Snowflake Analysis

Adequate balance sheet and overvalued.

Share Price & News

How has Sunworks's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

9.3%

SUNW

-0.8%

US Electrical

-0.7%

US Market


1 Year Return

-78.6%

SUNW

3.7%

US Electrical

5.3%

US Market

Return vs Industry: SUNW underperformed the US Electrical industry which returned 2.8% over the past year.

Return vs Market: SUNW underperformed the US Market which returned 6.7% over the past year.


Shareholder returns

SUNWIndustryMarket
7 Day9.3%-0.8%-0.7%
30 Day57.1%3.5%4.6%
90 Day74.0%20.1%14.0%
1 Year-78.6%-78.6%5.9%3.7%7.6%5.3%
3 Year-93.8%-93.8%17.5%10.7%34.9%26.1%
5 Year-96.2%-96.2%11.5%2.7%62.3%44.7%

Price Volatility Vs. Market

How volatile is Sunworks's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sunworks undervalued compared to its fair value and its price relative to the market?

1.41x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate SUNW's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate SUNW's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: SUNW is unprofitable, so we can't compare its PE Ratio to the US Electrical industry average.

PE vs Market: SUNW is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SUNW's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SUNW is good value based on its PB Ratio (1.4x) compared to the US Electrical industry average (2.4x).


Next Steps

Future Growth

How is Sunworks forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

69.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SUNW is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: SUNW is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: SUNW is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: SUNW's revenue is expected to decline over the next 3 years (-5.5% per year).

High Growth Revenue: SUNW's revenue is forecast to decline over the next 3 years (-5.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SUNW's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Sunworks performed over the past 5 years?

4.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SUNW is currently unprofitable.

Growing Profit Margin: SUNW is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SUNW is unprofitable, but has reduced losses over the past 5 years at a rate of 4.3% per year.

Accelerating Growth: Unable to compare SUNW's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SUNW is unprofitable, making it difficult to compare its past year earnings growth to the Electrical industry (-20.9%).


Return on Equity

High ROE: SUNW has a negative Return on Equity (-119.62%), as it is currently unprofitable.


Next Steps

Financial Health

How is Sunworks's financial position?


Financial Position Analysis

Short Term Liabilities: SUNW's short term assets ($20.5M) exceed its short term liabilities ($17.4M).

Long Term Liabilities: SUNW's short term assets ($20.5M) exceed its long term liabilities ($952.0K).


Debt to Equity History and Analysis

Debt Level: SUNW's debt to equity ratio (22.9%) is considered satisfactory.

Reducing Debt: SUNW's debt to equity ratio has increased from 6.5% to 22.9% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: SUNW has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: SUNW has sufficient cash runway for 1.5 years if free cash flow continues to reduce at historical rates of 36.7% each year.


Next Steps

Dividend

What is Sunworks's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SUNW's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SUNW's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SUNW's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SUNW's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SUNW's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Chuck Cargile (55yo)

3.25yrs

Tenure

US$577,700

Compensation

Mr. Charles F. Cargile, also known as Chuck, has been the Chief Executive Officer of Sunworks, Inc. since April 2, 2017 and has been its Chairman since January 29, 2020. Mr. Cargile has been an Executive A ...


CEO Compensation Analysis

Compensation vs Market: Chuck's total compensation ($USD577.70K) is about average for companies of similar size in the US market ($USD612.38K).

Compensation vs Earnings: Chuck's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Charles Cargile
Chairman & CEO3.25yrsUS$577.70k0.51% $68.1k
Paul McDonnel
Interim Chief Financial Officer1.42yrsUS$191.60k0.013% $1.8k
Gerald Nadler
Chief Scientist18.5yrsUS$60.00kno data
Christopher Outwater
Director of Business Development13.42yrsno datano data
Nadir Dagli
Chief Scientific Advisorno datano datano data
Charles Cunningham
Managing Director3.75yrsno datano data
Amanda Sanchez
Controllerno datano datano data
Kirk Short
President of Commercial Solarno datano datano data

3.8yrs

Average Tenure

64yo

Average Age

Experienced Management: SUNW's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Charles Cargile
Chairman & CEO3.25yrsUS$577.70k0.51% $68.1k
Stanley Speer
Independent Director2.17yrsUS$39.57kno data
Daniel Gross
Independent Director2.25yrsUS$39.57kno data
Judith Hall
Independent Director0.75yrUS$16.14kno data
Rhone Resch
Independent Director3.67yrsUS$39.57kno data

2.2yrs

Average Tenure

55yo

Average Age

Experienced Board: SUNW's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 319.5%.


Top Shareholders

Company Information

Sunworks, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sunworks, Inc.
  • Ticker: SUNW
  • Exchange: NasdaqCM
  • Founded: 2002
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: US$13.453m
  • Shares outstanding: 16.63m
  • Website: https://sunworksusa.com

Number of Employees


Location

  • Sunworks, Inc.
  • 1030 Winding Creek Road
  • Suite 100
  • Roseville
  • California
  • 95678
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SUNWNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDFeb 2006
7SL2DB (Deutsche Boerse AG)YesCommon StockDEEURFeb 2006

Biography

Sunworks, Inc., through its subsidiaries, provides photovoltaic based power systems for the agricultural, commercial, industrial, public works, and residential markets in California, Massachusetts, Nevada, Oregon, New Jersey, and Washington. The company also designs, finances, integrates, installs, and manages systems ranging in size from 2 kilowatt for residential loads to multi megawatt systems for larger projects. In addition, it offers a range of installation services, including design, system engineering, procurement, permitting, construction, grid connection, warranty, system monitoring, and maintenance services to its solar energy customers. The company was formerly known as Solar3D, Inc. and changed its name to Sunworks, Inc. in March 2016. Sunworks, Inc. was founded in 2002 and is headquartered in Roseville, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/14 00:14
End of Day Share Price2020/07/13 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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 here.