Renesola Story

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SOL -- USA Stock  

USD 3.94  0.05  1.29%

This story will summarize Renesola. We will check if it is still possible for Renesola to minimize net losses this year. Here I will also expose some primary fundamental factors affecting Renesola's services, and outline how it will impact the outlook for investors this year.
Published over a week ago
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Renesola (NYSE:SOL) continues to hike
The company reported the last year's revenue of 139.84 M. Reported Net Loss for the year was (9.89 M) with profit before taxes, overhead, and interest of 34.23 M.

How important is Renesola's Liquidity

Renesola financial leverage refers to using borrowed capital as a funding source to finance Renesola Ltd American ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Renesola financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Renesola's total debt and its cash.

How Renesola utilizes its cash?

To perform a cash flow analysis of Renesola, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Renesola is receiving and how much cash it distributes out in a given period. The Renesola cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Another Deeper Perspective

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Renesola has an asset utilization ratio of 10.39 percent. This denotes that the company is making $0.1 for each dollar of assets. An increasing asset utilization means that Renesola Ltd American is more efficient with each dollar of assets it utilizes for everyday operations.

Our perspective of the new Renesola hike

Total risk alpha is down to 0.51. It may denote a possible volatility pull down. Renesola Ltd American is displaying above-average volatility over the selected time horizon. Investors should scrutinize Renesola Ltd American independently to ensure intended market timing strategies are aligned with expectations about Renesola volatility.

Our Final Take On Renesola

While some other companies within the solar industry are still a little expensive, even after the recent corrections, Renesola may offer a potential longer-term growth to stakeholders. To conclude, as of the 11th of October 2020, our current 30 days advice on the company is Strong Sell. We believe Renesola is overvalued with below average probability of distress for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Renesola Ltd American. Please refer to our Terms of Use for any information regarding our disclosure principles.

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