Very long on this company. They are a leader in a space (Utility Scale Storage) that is poised to grow exponentially. Have had some profitable quarters but are set to be fully profitable by 2025.
Profitability Ratios:
- Gross Margin: Improved from -0.9% in 2022 to 5.6% in 2023.
- Profit Margin: Improved from -23.8% in 2021 to -3.1% in 2023.
- Return on Equity: Improved from -24.0% in 2022 to -17.3% in 2023.
- Return on Assets: Improved from -6.0% in 2022 to -5.1% in 2023.
Earnings Per Share:
- EPS (TTM): Improved from -$1.07 in 2022 to -$0.60 in 2023
.Revenue and Profit Growth:
- Revenue: Increased from $1.199B in 2022 to $2.218B in 2023.
- Net Income: Increased from -$162M in 2021 to -$70M in 2023.
Assets and Liabilities:
- Current Assets: Increased from $662M in 2021 to $1.195B in 2023.
- Current Liabilities: Decreased from $771M in 2021 to $746M in 2023.
- Long-Term Debt: Increased from $1M in 2021 to $29M in 2023.
Cash Flow:
- Operating Cash Flow: Improved significantly from -$265.3M in 2021 to -$111.9M in 2023.
Summary:
- Strengths: Strong EPS growth, significant revenue increase, improved gross margin, and strong order intake and backlog.
- Weaknesses: High debt levels, negative profit margins, and poor returns on equity and assets.
Growth and Opportunity:
- Backlog: Increased by 52% from Q3 FY'23 to $4.5B, providing strong visibility into future revenues.
- Revenue Guidance: Updated FY'24 revenue guidance to $2.7–2.8 billion and reaffirmed a 35-40% growth expectation for FY'25.
- Strategic Initiatives: Well-positioned to capitalize on the strong growth outlook for the global energy storage market. The global energy storage market is expected to grow at a CAGR of 25.46% from 2024 to 2032
Risks:
- High Debt Levels: Total debt to equity ratio of 13.8.
Position: 250 Shares at 17.76 🇺🇸
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