Sunworks Story

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SUNW -- USA Stock  

USD 22.90  3.74  19.52%

In this post, we will focus on Sunworks. We will evaluate if Sunworks shares are reasonably priced going into February. Here I will also expose some primary fundamental factors affecting Sunworks' services, and outline how it will impact the outlook for investors this year.
Published over a week ago
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Sunworks (NASDAQ:SUNW) continues to climb
The company reported the previous year's revenue of 43.7 M. Net Loss for the year was (14.45 M) with profit before overhead, payroll, taxes, and interest of 6.66 M. The company has Profit Margin (PM) of (33.07) %, which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average. Similarly, it shows Operating Margin (OM) of (22.17) %, which suggests for every $100 dollars of sales, it generated a net operating loss of -0.22.

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

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Sunworks has an asset utilization ratio of 93.43 percent. This indicates that the company is making $0.93 for each dollar of assets. An increasing asset utilization means that Sunworks is more efficient with each dollar of assets it utilizes for everyday operations.

Sunworks implied volatility may change after the climb

The semi deviation is down to 6.23 as of today. Sunworks is displaying above-average volatility over the selected time horizon. Investors should scrutinize Sunworks independently to ensure intended market timing strategies are aligned with expectations about Sunworks volatility.

The Current Takeaway on Sunworks Investment

While some other entities under the solar industry are still a bit expensive, Sunworks may offer a potential longer-term growth to sophisticated investors. While some sophisticated investors may not share our view we believe that the current risk-reward utility 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 Ellen Johnson do not own shares of Sunworks. Please refer to our Terms of Use for any information regarding our disclosure principles.

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