Sunworks Story

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SUNW -- USA Stock  

USD 2.81  0.26  8.47%

Given the investment horizon of 60 days, Sunworks is expected to generate 33.87 times more return on investment than the market. However, the company is 33.87 times more volatile than its market benchmark. It trades about 0.17 of its potential returns per unit of risk. The DOW is currently generating roughly 0.15 per unit of risk. Although many risk-takers are getting more into technology space, some of us are not very happy with Sunworks' current volatility. We will go over odds for Sunworks to generate above-average margins in few days.
Published over a week ago
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Sunworks (NASDAQ:SUNW) high volatility trend continues
The company conducts business under Technology sector and is part of Solar industry. Sunworks holds a performance score of 12 on a scale of zero to a hundred. The entity has a beta of 8.0463, which indicates a somewhat significant risk relative to the market. Let's try to break down what Sunworks's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Sunworks will likely underperform. Although it is essential to pay attention to Sunworks current price movements, it is also good to be reasonable about what you can do with equity historical returns. Our philosophy towards measuring future potential of any stock is to look not only at its past charts but also at the business as a whole, including all available fundamental and technical indicators. To evaluate if Sunworks expected return of 6.07 will be sustainable into the future, we have found twenty-eight different technical indicators, which can help you to check if the expected returns are sustainable. Use Sunworks potential upside, as well as the relationship between the accumulation distribution and price action indicator to analyze future returns on Sunworks.
Volatility is a rate at which the price of Sunworks or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Sunworks may increase or decrease. In other words, similar to Sunworks's beta indicator, it measures the risk of Sunworks and helps estimate the fluctuations that may happen in a short period of time. So if prices of Sunworks fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.

How important is Sunworks's Liquidity

Sunworks financial leverage refers to using borrowed capital as a funding source to finance Sunworks ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Sunworks 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 Sunworks's total debt and its cash.

How Sunworks utilizes its cash?

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

A Deeper look at Sunworks

Sunworks reported the previous year's revenue of 53.94 M. Net Loss for the year was (12.78 M) with profit before overhead, payroll, taxes, and interest of 6.66 M.

Our perspective of the latest Sunworks climb

Treynor ratio is down to 0.51. It may cause a possible volatility fall. Sunworks is showing large volatility of returns over the selected time horizon. We encourage all investors to investigate this asset further to make sure related market timing strategies are aligned with all the expectations about Sunworks implied risk.

Our Final Take On Sunworks

While many of the other players within the solar industry are still a little expensive, even after the recent corrections, Sunworks may offer a potential longer-term growth to sophisticated investors. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor sell any shares of Sunworks at this time. The Sunworks risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Sunworks.

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 Achuva Shats do not own shares of Sunworks. Please refer to our Terms of Use for any information regarding our disclosure principles.

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