FTC Solar (FTCI) AI Stock Analysis

• Market Cap: $35.39M
• Dividend Yield: N/A
• Average Volume (3M): 103.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.36
• Revenue Growth: -62.71%
• EPS Growth: 11.58%
• Country: US
• Employees: 202
• Sector: Technology
• Sector Strength: 44
• Industry: Solar
• EPS (TTM): -3.83
• Shares Outstanding: 12,867,671
• 10 Day Avg. Volume: 80,035
• 30 Day Avg. Volume: 103,884
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.63
• Price to Cash Flow (P/CF): -3.80
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $4.13
• Price Target Upside: 50.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

FTC Solar faces significant challenges with poor financial performance characterized by persistent losses and negative cash flows. Although the company presented a positive outlook in its earnings call, the technical analysis indicates bearish trends, and its valuation remains unattractive due to negative profitability metrics. Addressing operational inefficiencies is critical for FTC Solar's future stability and growth.

Positive Factors

Financial Performance

Management believes the company's revenues bottomed, supported by sequential revenue improvement and guidance for upcoming revenues.

Market Positioning

Agreements such as the 1GW tracker supply with Dunlieh Energy and the multi-year agreement with Strata Clean Energy demonstrate the company's newfound competitive position and potential for growth.

Product Strategy

FTC Solar focuses more on its 1P product offering, driven by market demand and positioning the company to capture a larger share of the solar market.

Negative Factors

Financial Stability

The decrease in cash reserves raises concerns about sustainability in the absence of a turnaround in profitability.

Margin Pressure

Margins remain under pressure due to lack of scale.

Revenue Challenges

Significant drop in revenue and negative gross margins indicate ongoing challenges in the market and the company's operations.

FTC Solar Business Overview & Revenue Model

Company Description

FTC Solar, Inc. provides solar tracker systems, technology, software, and engineering services in the United States, Vietnam, and internationally. It offers two-panel in-portrait single-axis tracker solutions under the Voyager brand name. The company also provides SunPath, a software solution to enhance energy production; Atlas, a web-based enterprise-level database that allows users to manage their project portfolio; and SunDAT, a software solution enables automated design and optimization of solar panel systems across residential, commercial, and utility-scale sites. Its customers include project developers; solar asset owners; and engineering, procurement, and construction contractors that design and build solar energy projects. FTC Solar, Inc. was incorporated in 2017 and is headquartered in Austin, Texas.

How the Company Makes Money

FTC Solar generates revenue primarily through the sale of its solar tracking systems, including the Voyager tracker, which is designed to increase the energy output of solar panels by enabling them to follow the sun's path across the sky. The company earns money by contracting with solar project developers and operators, providing them with tailored solar tracker systems and related services. Key revenue streams include equipment sales, installation services, and ongoing maintenance and support. Additionally, FTC Solar may engage in partnerships or collaborations with other firms in the renewable energy sector, contributing to its revenue through co-developed projects or shared technology solutions.

FTC Solar Financial Statement Overview

Summary

FTC Solar is facing significant financial challenges. The income statement reveals weak performance with declining revenues and negative margins. The balance sheet indicates low leverage but also declining equity, while cash flow remains negative, highlighting liquidity issues.

Income Statement

FTC Solar shows weak income statement performance with negative margins, including a gross profit margin of -14.06% and a net profit margin of -82.89% for the TTM. Revenue has significantly declined from $127 million in 2023 to $57 million in the TTM, indicating a revenue growth rate of -54.85%. The company struggles with profitability, reflected in negative EBIT (-89.12%) and EBITDA (-79.46%) margins.

Balance Sheet

The balance sheet presents both strengths and challenges. The debt-to-equity ratio is relatively low at 0.06, indicating low leverage, but stockholders' equity has decreased from $62 million to $30 million. The equity ratio is 33.17%, showing a moderate level of equity financing. The company holds $8.26 million in cash, suggesting some liquidity despite reduced equity.

Cash Flow

Cash flow analysis reveals a challenging landscape. Operating cash flow is negative at -$24.28 million, with a significant free cash flow decline from -$53.47 million to -$25.99 million, reflecting a 51.38% improvement but still negative. The operating cash flow to net income ratio is 0.51, indicating cash flow challenges relative to net losses.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
57.35M	127.00M	123.07M	270.52M	187.35M	53.12M
	Gross Profit
-8.06M	8.31M	-27.23M	-32.55M	3.64M	-1.95M
	EBIT
-51.14M	-50.78M	-99.57M	-126.80M	-16.93M	-12.37M
	EBITDA
-45.58M	-49.00M	-97.30M	-105.37M	-16.88M	-11.96M
	Net Income Common Stockholders
-47.55M	-50.29M	-99.61M	-106.59M	-17.32M	-13.49M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.22M	25.23M	44.38M	102.19M	32.36M	7.22M
	Total Assets
0.00	123.07M	134.40M	243.02M	71.39M	33.83M
	Total Debt
0.00	1.86M	1.20M	1.79M	1.78M	7.83M
	Net Debt
7.22M	-23.37M	-43.18M	-100.39M	-30.57M	612.00K
	Total Liabilities
0.00	60.60M	67.95M	100.15M	63.94M	42.27M
	Stockholders Equity
-8.45M	62.47M	66.45M	142.87M	7.45M	-8.45M
Cash Flow		Free Cash Flow
-25.99M	-53.47M	-55.49M	-133.88M	-767.00K	-272.00K
	Operating Cash Flow
-24.28M	-52.66M	-54.51M	-132.85M	-511.00K	-254.00K
	Investing Cash Flow
995.00K	-397.00K	-4.25M	21.31M	1.87M	-18.00K
	Financing Cash Flow
-180.00K	33.95M	903.00K	180.37M	23.78M	7.00M

FTC Solar Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FTCI, the sentiment is Neutral. The current price of 2.75 is above the 20-day moving average (MA) of 2.66, below the 50-day MA of 2.87, and below the 200-day MA of 3.82, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 50.40 is Neutral, neither overbought nor oversold. The STOCH value of 72.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FTCI.

FTC Solar Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	58 Neutral	$9.99B	10.12	-6.46%	3.10%	7.47%	-11.60%
TURB	54 Neutral	$24.69M	―	-147.73%	―	-52.61%	-987.53%
BEEM	47 Neutral	$26.00M	―	-24.84%	―	-26.75%	40.98%
NOVA	42 Neutral	$28.48M	―	-21.91%	―	16.55%	15.72%
SPRU	40 Underperform	$37.06M	―	-39.70%	―	2.37%	-10.00%
FTCI	36 Underperform	$35.39M	―	-119.27%	―	-62.71%	11.58%
MAXN	33 Underperform	$41.74M	―	307.38%	―	-43.42%	-53.77%

FTC Solar Corporate Events

FTC Solar Announces Reverse Stock Split for Compliance

FTC Solar, Inc. is set to execute a 1-for-10 reverse stock split on November 29, 2024, to comply with Nasdaq’s minimum bid price requirement. This move will reduce the number of outstanding shares from approximately 127.8 million to 12.8 million, impacting all shareholders uniformly. Despite the split, FTC Solar will maintain its Nasdaq listing under the symbol “FTCI,” with trading resuming on a split-adjusted basis from December 2, 2024.