Sunworks Stock Story

SUNW
 Stock
  

USD 4.43  0.20  4.73%   

While many traders are getting carried away by overanalyzing competition within technology space, it is quite reasonable to focus on both, Sunworks and RENEWABLE ENERGY as potential near-short-term investments. We are going to recap some of the competitive aspects of both Sunworks and RENEWABLE.
Published over three months ago
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Our viewpoint on Sunworks (NASDAQ:SUNW) and RENEWABLE ENERGY (NASDAQ:EBODF)?

By analyzing existing basic indicators between Sunworks and RENEWABLE, 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 RENEWABLE 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 216.26 percent. This indicates that the company is making $2.16 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.

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 does Sunworks utilize 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

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 take a closer look at Sunworks revenue. Based on the latest financial disclosure, Sunworks reported 101.15 M of revenue. This is 97.52% lower than that of the Technology sector and 92.06% lower than that of the Solar industry. The revenue for all United States stocks is 98.93% higher than that of Sunworks. As for RENEWABLE ENERGY we see revenue of 67.61 M, which is 94.69% lower than that of the Solar

Sector
1.3 B
SUNW101.15 Million7.01
Sector1.27 Billion88.31
EBODF67.61 Million4.69

Will Sunworks growth be rational after the climb?

The maximum drawdown is down to 58.05 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. 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.

Sunworks Implied Volatility

Sunworks' implied volatility exposes the market's sentiment of Sunworks stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Sunworks' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Sunworks stock will not fluctuate a lot when Sunworks' options are near their expiration.

Our Final Takeaway

While some firms in the solar industry are either recovering or due for a correction, Sunworks may not be performing as strong as the other in terms of long-term growth potentials. 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.

Editorial Staff

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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