Sunworks Story

SUNW -- USA Stock

USD 10.68 0.93 8.01%

Macroaxis Story

In spite of fairly fragile basic indicators, Sunworks showed solid returns over the last few months and may actually be approaching a breakup point. Will sophisticated investors continue to hold, or should we expect a sell-off?

Published over a week ago

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Does Sunworks (NASDAQ:SUNW) have stable basic indicators based on the latest climb?

Sunworks is OVERVALUED at 10.27 per share with modest projections ahead.

Sunworks is risky given 1 month investment horizon. Sunworks owns Efficiency Ratio (i.e. Sharpe Ratio) of 0.22, which indicates the firm had 0.22% of return per unit of risk over the last month. Our standpoint towards measuring the volatility of a stock is to use Sunworks market data together with company specific technical indicators. We were able to interpolate twenty-seven different technical indicators, which can help you to evaluate if expected returns of 2.88% are justified by taking the suggested risk. Use Sunworks Semi Deviation of 7.31, risk adjusted performance of 0.1646, and Coefficient Of Variation of 539.72 to evaluate company specific risk that cannot be diversified away.

Does Sunworks (NASDAQ:SUNW) have stable basic indicators based on the latest climb?

Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Sunworks income statement, its balance sheet, and the statement of cash flows. Potential Sunworks investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Sunworks investors may use each financial statement separately, they are all related. The changes in Sunworks's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Sunworks's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.

The goal of Sunworks fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Sunworks performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Sunworks shares is the value that is considered the true value of the share. If the intrinsic value Sunworks is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Sunworks.

Please read more on our fundamental 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.

Breaking it down a bit more

Sunworks reported the previous year's revenue of 37.91 M. Net Loss for the year was (16 M) with profit before overhead, payroll, taxes, and interest of 5.27 M.

Our take on today Sunworks climb

Latest information ratio is at 0.17. 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. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Sunworks' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Sunworks' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

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. Taking everything into account, as of the 1st of April 2021, our final 30 days buy-hold-sell recommendation on the venture is Hold. We believe Sunworks is overvalued with very small odds of financial turmoil for the next two years.

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.

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