Last Updated: 19 Sep 2024
Executive Summary
Sunrun Inc. (RUN) is a leading provider of residential solar energy systems in the United States. Despite strong revenue growth, the company faces challenges with profitability, leading to a negative EPS and EBITDA. Analysts remain optimistic about Sunrun's long-term prospects, with a consensus target price of $22.07 and a majority of analysts recommending a buy or strong buy rating.
Company Overview
Sunrun designs, installs, sells, and maintains residential solar energy systems. Headquartered in San Francisco, California, the company has a market capitalization of $4.54 billion. Sunrun's fiscal year ends in December, and its latest quarterly financial results cover the period ending June 30, 2024.
Fundamental Analysis
Financial Performance:
Revenue: $2.06 billion TTM, a -0.112% decline YoY
Gross Profit: $298.7 million TTM, a -19.3% decline YoY
Operating Margin: -0.244% TTM
Net Income: -$1.13 billion TTM
EPS: -$6.32 TTM
Key Metrics:
Price-to-Sales Ratio: 2.202
Price-to-Book Ratio: 0.846
EV-to-Revenue: 7.73
EV-to-EBITDA: -8.58
Beta: 2.585
Technical Analysis
Current Price: $20.3
52-Week High: $22.26
52-Week Low: $8.43
50-Day Moving Average: $18.18
200-Day Moving Average: $14.63
The stock has been trading within a range between its 50-day and 200-day moving averages. The recent price action suggests a potential breakout to the upside.
Short Term Outlook
Sunrun's short-term outlook is mixed. The company faces headwinds from rising interest rates and supply chain disruptions. However, strong demand for solar energy systems and potential government incentives could provide support.
Long Term Outlook
Analysts remain bullish on Sunrun's long-term prospects. The company is well-positioned to benefit from the growing adoption of renewable energy. Sunrun's strong brand recognition and customer base are also seen as positive factors.
Analyst Recommendations
Strong Buy: 4
Buy: 15
Hold: 9
Sell: 1
Strong Sell: 0
The consensus analyst target price is $22.07, representing a potential upside of 9.3% from the current price.
