Sunworks Story

SUNW -- USA Stock

USD 19.74 2.57 11.52%

Macroaxis Story

The stock still experiences an active upward rally. As many of us are excited about technology space, it is fair to focus on Sunworks as a unique alternative. Here we also measure the ability of Sunworks to meet its long-term debt obligations, such as interest payments on debt, the final principal payment on the debt, and any other fixed obligations like lease payments.

Published over two weeks ago

View all stories for Sunworks | View All Stories

Will Sunworks (NASDAQ:SUNW) debt increase in February

The company currently holds 5.99 M in liabilities with Debt to Equity (D/E) ratio of 1.14, which is about average as compared to similar companies. Sunworks has a current ratio of 1.11, suggesting that it may have difficulties to pay its financial obligations when due.

Sunworks financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Sunworks, including all of Sunworks's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Sunworks assets, the company is considered highly leveraged. Understanding the composition and structure of overall Sunworks debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. 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

The entity 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.

Can Sunworks build up on the latest climb?

Total risk alpha is down to 0.24. It may cause a possible volatility fall. 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.

Our 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

Raphi Shpitalnik is a Junior Member of Macroaxs Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time base at the beginning of the pandemic and eventually acquired a real test for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI. View Profile

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

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com

Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions

Feedback Blog

Made with optimal in San Francisco

2021 Macroaxis LLC