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FTC Solar (FTCI)
NASDAQ:FTCI
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FTC Solar
(NASDAQ:FTCI)
35Underperform
Positive Factors
Market Position
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.
Revenue Growth
FTC Solar delivered solid sequential revenue growth and a rising contracted backlog.
Negative Factors
Financial Sustainability
The decrease in cash reserves raises concerns about sustainability in the absence of a turnaround in profitability.
Revenue Challenges
Significant drop in revenue and negative gross margins indicate ongoing challenges in the market and the company's operations.
FTC Solar (FTCI) vs. S&P 500 (SPY)
Market Cap
$36.89M
Dividend YieldN/A
Average Volume (3M)84.16K
Price to Earnings (P/E)―
Beta (1Y)3.16
Revenue Growth-62.71%
EPS Growth11.58%
CountryUS
Employees213
SectorTechnology
Sector Strength43
IndustrySolar
Share Statistics
EPS (TTM)-3.83
Shares Outstanding12,867,671
10 Day Avg. Volume109,367
30 Day Avg. Volume84,164
Financial Highlights & Ratios
PEG RatioN/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 Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3.83Price Target Upside39.27% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
FTC Solar Business Overview & Revenue Model
Company DescriptionFTC 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 MoneyFTC 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.35
Negative
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.50
Neutral
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.40
Negative
| 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
Neutral
2.75
Price Trends
3.22
Negative
3.67
Negative
3.92
Negative
Market Momentum
-0.14
Negative
46.26
Neutral
32.17
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 2.73, below the 50-day MA of 3.22, and below the 200-day MA of 3.92, indicating a neutral trend. The MACD of -0.14 indicates Negative momentum. The RSI at 46.26 is Neutral, neither overbought nor oversold. The STOCH value of 32.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FTCI.
FTC Solar Risk Analysis
FTC Solar disclosed 47 risk factors in its most recent earnings report. FTC Solar reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
FTC Solar Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $8.22B | 84.52 | 11.30% | ― | -41.92% | -76.24% | |
57 Neutral | $20.89B | 10.40 | -13.99% | 2.52% | 4.47% | -23.34% | |
53 Neutral | $572.41M | 16.13 | 1.34% | ― | -21.68% | -99.75% | |
51 Neutral | $951.10M | ― | -116.01% | ― | -68.86% | -4917.87% | |
49 Neutral | $740.31M | ― | -53.46% | ― | -41.91% | -459.51% | |
46 Neutral | $1.33B | ― | -73.12% | ― | -9.83% | -71.44% | |
35 Underperform | $36.89M | ― | -119.27% | ― | -62.71% | 11.58% |
* Technology Sector Average
Performance Comparison
FTCI
FTC Solar
2.75
-2.31
-45.65%
CSIQ
Canadian Solar
8.73
-10.70
-55.07%
ENPH
Enphase Energy
62.52
-56.08
-47.28%
SEDG
SolarEdge Technologies
16.68
-51.71
-75.61%
RUN
Sunrun
6.49
-5.92
-47.70%
ARRY
Array Technologies
4.86
-9.54
-66.25%
FTC Solar Earnings Call Summary
Earnings Call Date: Mar 31, 2025 | % Change Since: 10.00% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
FTC Solar's earnings call indicates a company making significant progress in expanding its backlog and signing new agreements, with a strong outlook for future revenue growth. However, challenges remain, including a substantial year-over-year revenue decline, ongoing net losses, and negative gross margins. The company is focused on operational efficiencies and expects improved performance in 2025.Highlights
Significant Backlog and New Agreements
FTC Solar added many multiples of its current annual revenue run rate to its backlog and signed long-term customer agreements. Notable agreements include a five-year, five-gigawatt supply arrangement with Recurrent Energy, and new project awards from GPG and Rosendin totaling 613 megawatts.
Revenue Growth and Positive Outlook
Revenue for Q4 2024 was $13.2 million, a 30.2% increase from the prior quarter. The company expects revenue to grow to between $18 million and $20 million in Q1 2025, marking a 44% increase at the midpoint from Q4 2024.
Operational Efficiency Improvements
Non-GAAP operating expenses were reduced to $7.4 million, marking the lowest level since early 2021. This represents a decrease from $8.1 million in the prior quarter and $10.8 million in the same quarter last year.
Strong Bookings Momentum
The company's bidding run rate has nearly doubled compared to the second quarter of the previous year, with a focus on increasing domestic content capabilities and international traction in regions like Australia and Europe.
Lowlights
Decreased Year-Over-Year Revenue
Revenue decreased by 43.1% compared to the year-ago quarter due to lower product volumes.
Continued Net Loss
The company reported a GAAP net loss of $12.2 million for Q4 2024, which, although better than the prior quarter, is still a significant loss.
Negative Gross Margins
FTC Solar reported a GAAP gross loss of $3.8 million, or 29.1% of revenue, and a non-GAAP gross loss of $3.4 million, or 25.6% of revenue.
Company Guidance
During the FTC Solar Fourth Quarter 2024 Earnings Conference Call, significant guidance was provided by CEO Yann Brandt and CFO Cathy Behnen. The guidance highlighted the expectation of continued revenue growth throughout 2025, with a specific target of achieving adjusted EBITDA breakeven on a quarterly basis. The company reported fourth-quarter revenue of $13.2 million, reflecting a 30.2% increase from the previous quarter, and set a target for first-quarter 2025 revenue between $18 million and $20 million. In terms of backlog, FTC Solar secured $67 million in new purchase order additions, bringing the contracted portion to $502 million. The company also announced several new supply agreements, including a five-year, five-gigawatt arrangement with Recurrent Energy, which is expected to contribute to revenue starting in the second half of 2025. Additionally, FTC Solar aims to enhance its domestic content capabilities and has planned to introduce a 100% domestic content offering by the third quarter of 2025. These strategic initiatives are designed to support FTC Solar's objective of sustainable growth and profitability.FTC Solar Corporate Events
Delistings and Listing ChangesStock SplitRegulatory Filings and Compliance
FTC Solar Announces Reverse Stock Split for Compliance
Neutral
Nov 27, 2024
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.