By analyzing existing basic indicators between Sunworks and Renesola, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Renesola with a short position in Sunworks. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets. 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.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Sunworks or Sunrun is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
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. Financial leverage can amplify the potential profits to Sunworks' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Sunworks' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Sunworks's total debt and its cash.
Correlation Between Sunworks and Sunrun Inc
In general, Delisted Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Sunworks together with similar or unrelated positions with a negative correlation. For example, you can also add Sunrun to your portfolio. If Sunrun is not perfectly correlated to Sunworks it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Sunworks, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Sunworks and Sunrun in your portfolio? Please note if you are using this as a pair-trade strategy between Sunworks and Sunrun, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between SUNW and RUN for more information.
Breaking it down a bit more
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Let me now analyze Sunworks revenue. Based on the latest financial disclosure, Sunworks reported 43.7
M of revenue. This is 98.93% lower than that of the Technology sector and 96.57% lower than that of the
Solar industry. The revenue for all United States stocks is 99.54% higher than that of the company. As for Renesola we see revenue of 83.63
M, which is 93.44% lower than that of the Solar
| SUNW | 43.7 Million | 3.12 |
| Sector | 1.27 Billion | 90.92 |
| SOL | 83.63 Million | 5.97 |
Another 3 percent climb for Sunworks
Expected Short fall just dropped to -13.83, may cause upcoming price decrease. As of the 23rd of January, Sunworks has the Coefficient Of Variation of 365.15,
risk adjusted performance of 0.275, and Semi Deviation of 6.06. In relation to
fundamental indicators, the
technical analysis model makes it possible for you to check existing technical drivers of Sunworks, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We were able to break down and interpolate data for nineteen
technical drivers for Sunworks, which can be compared to its competition. Please validate
Sunworks variance and
potential upside to decide if Sunworks is priced more or less accurately, providing market reflects its prevalent price of 22.9 per share. Given that Sunworks has
jensen alpha of 3.3, we advise you to double-check Sunworks's current market performance to make sure the company can sustain itself at a future point.
Our Final Take On Sunworks
While some companies 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 acquire nor short 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.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
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 Vlad Skutelnik do not own shares of Sunworks. Please refer to our
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