SunPower Corporation
SunPower Corporation (NASDAQ: SPWR) is a provider of energy storage and distributed generation services. The firm provides a solar + storage solution. Residential, Light Commercial (RLC), and Commercial and Industrial (C&I) Solutions are among the company's segments. It provides customers in the United States and Canada with integrated solar, storage, and home energy solutions via various hardware, software, and financing options.
Key Highlights
- The company reported YoY growth of 17.66% in total revenue to USD 1.32 billion in FY21(ended January 02, 2022) compared to USD 1.12 billion in FY20(ended January 03, 2021).
- SPWR reported net losses of USD 38.04 million in FY21 vs. net profit of USD 474.03 million in FY20.
- As of January 02, 2022, the company had cash and cash equivalents (including short-term investments) of USD 493.01 million and total debt of USD 536.73 million.
- On March 01, 2022, SPWR and Landsea Homes Corporation, a publicly-traded residential homebuilder, announced a multi-year exclusive agreement. SunPower will be Landsea Homes' sole solar technology provider across the country. With this new partnership, all Landsea Homes in California will be equipped with a SunPower Equinox home solar system that will help offset the home's energy consumption.
- Its ROE was -80.0% in FY21, whereas the industry median stood at -27.0%.
- Stock is currently trading between its crucial short-term (50-day) and long-term (200-day) SMA support levels.
- The stock is leaning towards the lower end of its 52-week range of USD 14.00 to USD 35.00.
Conclusion: Considering the company’s growth in topline, decline in profitability, technical indicators, and associated risks, we recommend a "Watch" rating on the stock at the closing price of USD 20.95, down 0.43%, as of March 23, 2022.
Technical Price Chart (March 23, 2022). Source: REFINITIV, Analysis by Kalkine Group
Technical Analysis Summary:
*Closing price as of March 23, 2022.
Investors can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.
Technical Indicators Defined: -
Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.
Resistance: A level where-in the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Note 1: The reference data in this report has been partly sourced from REFINITIV.
Note 2: Investment decision should be made depending on the investors' appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the valuation has been achieved and subject to the factors discussed above.
Disclaimer - This report has been issued by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and prepared by Kalkine and its related bodies corporate authorised to provide general financial product advice. Kalkine.com.au and associated pages are published by Kalkine.
Any advice provided in this report is general advice only and does not take into account your objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your objectives, financial situation and needs before acting upon it.
There may be a Product Disclosure Statement, Information Statement or other offer document for the securities or other financial products referred to in Kalkine reports. You should obtain a copy of the relevant Product Disclosure Statement, Information Statement or offer document and consider the statement or document before making any decision about whether to acquire the security or product.
You should also seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice in this report or on the Kalkine website. Not all investments are appropriate for all people.
The information in this report and on the Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of information contained in its reports, newsletters and websites. All information represents our views at the date of publication and may change without notice.
Kalkine does not guarantee the performance of, or returns on, any investment. To the extent permitted by law, Kalkine excludes all liability for any loss or damage arising from the use of this report, the Kalkine website and any information published on the Kalkine website (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine hereby limits its liability, to the extent permitted by law, to the resupply of services.
Please also read our Terms & Conditions and Financial Services Guide for further information.
On the date of publishing this report (referred to on the Kalkine website), employees and/or associates of Kalkine and its related entities do not hold interests in any of the securities or other financial products covered on the Kalkine website unless those persons comply with certain safeguards, procedures, and disclosures.
Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.