Last Updated: 20 Sep 2024
Executive Summary
Sunnova Energy International Inc. (NOVA) is a leading provider of residential solar energy and energy storage services in the United States. The company has a strong track record of growth, with revenue increasing by 32% year-over-year in the latest quarter. However, the company is currently unprofitable, and its stock price has declined significantly in recent months.
Company Overview
Sunnova was founded in 2012 and is headquartered in Houston, Texas. The company offers a range of solar energy and energy storage solutions, including solar panels, batteries, and monitoring systems. Sunnova has a network of over 1,000 authorized dealers and installers, and it has installed over 200,000 solar systems in the United States.
Fundamental Analysis
Sunnova's financial performance has been mixed in recent years. The company has reported losses in each of the past three years, and its profitability margins have been negative. However, the company's revenue has grown steadily, and it has a strong backlog of orders.
NOVA's key financial metrics are as follows:
Revenue: $773.1 million (TTM)
Gross profit: $299.3 million (TTM)
Operating income: -$208.9 million (TTM)
Net income: -$361.4 million (TTM)
EPS: -$2.91 (TTM)
Book value: $13.97 per share
Market capitalization: $1.52 billion
Technical Analysis
NOVA's stock price has been in a downtrend since early 2023. The stock is currently trading below its 50-day and 200-day moving averages, and it has recently broken below a key support level at $12.50. The technical indicators suggest that the stock could continue to decline in the short term.
Short Term Outlook
The short-term outlook for NOVA is negative. The stock is currently trading below its key support levels, and the technical indicators suggest that it could continue to decline. Investors should be cautious about buying NOVA stock in the short term.
Long Term Outlook
The long-term outlook for NOVA is more positive. The company has a strong track record of growth, and it is well-positioned to benefit from the growing demand for solar energy. However, the company's profitability is a concern, and investors should be aware that the stock could be volatile in the long term.
Analyst Recommendations
The majority of analysts have a "hold" rating on NOVA stock. The average analyst target price is $12.50, which is slightly above the current stock price.
