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Sunnova Energy International (NOVAQ)
OTHER OTC:NOVAQ
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Sunnova Energy International
(OTC:NOVAQ)
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Rating:40Underperform
Price Target:
$0.00
▼(-100.00% Downside)
Sunnova Energy's overall stock score reflects severe financial challenges, including high leverage, negative cash flows, and recent bankruptcy filing. The lack of profitability and negative market sentiment further depress the score, making the stock a high-risk investment.
Positive Factors
Revenue Growth
Consistent revenue growth reflects strong market demand and effective business strategies, supporting long-term expansion in the renewable energy sector.
Market Position
As a leading provider in residential solar, Sunnova's established market position enhances its competitive edge and potential for sustained growth.
Asset Sale
The asset sale to Lennar Homes may streamline operations and refocus resources, potentially improving operational efficiency and market strategy.
Negative Factors
High Leverage
High leverage can strain financial flexibility and increase risk, potentially impacting long-term stability and investment capacity.
Bankruptcy Filing
The bankruptcy filing indicates severe financial distress, posing significant risks to operations, stakeholder confidence, and future viability.
Negative Cash Flows
Persistent negative cash flows indicate potential liquidity issues, limiting the company's ability to invest in growth and sustain operations.
Sunnova Energy International (NOVAQ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$25.14K
Dividend YieldN/A
Average Volume (3M)7.76M
Price to Earnings (P/E)―
Beta (1Y)2.82
Revenue Growth16.55%
EPS Growth15.72%
CountryUS
Employees1,796
SectorTechnology
Sector Strength88
IndustrySolar
Share Statistics
EPS (TTM)N/A
Shares Outstanding125,685,005
10 Day Avg. Volume9,881,213
30 Day Avg. Volume7,762,675
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
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 TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Sell
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Sunnova Energy International Business Overview & Revenue Model
Company DescriptionSunnova Energy International Inc. provides residential energy services in the United States. The company offers electricity, as well as offers operations and maintenance, monitoring, repairs and replacements, equipment upgrades, on-site power optimization, and diagnostics services. As of December 31, 2021, it operated a fleet of residential solar energy systems with a generation capacity of approximately 1,140 megawatts serving over 195,000 customers. Sunnova Energy International Inc. was incorporated in 2012 and is headquartered in Houston, Texas.
How the Company Makes MoneySunnova generates revenue through several key streams. Primarily, it earns money by providing residential solar energy systems and battery storage solutions, which homeowners can purchase or lease. The company offers Power Purchase Agreements (PPAs) and solar leases, allowing customers to pay for the electricity produced by solar panels rather than purchasing the systems outright. Sunnova also benefits from federal and state incentives, including tax credits and rebates, which can enhance profitability. Additionally, the company may engage in partnerships with other entities, such as real estate developers and financial institutions, to expand its market reach and customer base. The recurring revenue from long-term contracts and the sale of energy credits further contribute to its financial performance.
Sunnova Energy International Earnings Call Summary
Earnings Call Date:Oct 22, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:Feb 25, 2026
Earnings Call Sentiment Neutral
The earnings call reflected a mix of operational successes and financial challenges. While Sunnova achieved significant improvements in operational efficiency and revenue growth, it faced substantial hurdles with cash generation, market conditions, and debt maturities. The removal of future guidance and the going concern notice highlight ongoing uncertainties.Q4-2024 Updates
Positive Updates
Operational Efficiency Improvements
Reduction in net service expense by 24% per customer, reduction in work orders opened by 12%, and reduction in average age of work orders by 83%.
Customer and Revenue Growth
17% increase in revenue to $840 million, 29% increase in interest income, and 21% growth in principal proceeds from solar loans.
Record Asset-Level Financing
Securitized $1.8 billion worth of solar assets, raised $1.3 billion of tax equity, generating over $1 billion more in asset-level financing compared to the prior year.
Increased Battery Adoption
Battery attachment rate reached 33% in Q4 2024, up from 24% in Q4 2023.
Stockholders' Equity Growth
Sunnova's stockholders' equity per share increased by 17% to $14.65.
Negative Updates
Below Expectation Cash Generation
Cash generation for 2024 fell below expectations due to high interest rates, regulatory uncertainties, and peer distress.
Reduced Guidance and Workforce
Removed 2025 and 2026 cash generation guidance and reduced headcount by over 15%, with a total decline of 30% since the end of 2023.
Challenges with Market Conditions
Faced headwinds such as tax equity slowdowns and delays in project finance markets due to political events.
Impact of Non-Core Assets Sale
Net contracted customer value per share decreased by 4% due to selling nearly all non-core solar loans at a loss.
Going Concern Notice
Issued a going concern notice due to uncertainty in addressing 2026 corporate debt maturities.
Company Guidance
During the earnings call, Sunnova provided guidance with several key metrics that highlighted their strategic adjustments and financial performance for 2024. They reported a 17% increase in revenue to $840 million and a 29% rise in interest income to $150 million. Principal proceeds from solar loans grew by 21% to $191 million. Sunnova's cumulative customer base expanded by 5%, driven by a 70% growth in solar customers, despite a reduction of 57,000 non-solar customers. They achieved a 24% reduction in net service expense per customer and a 12% reduction in work orders while decreasing the average age of a work order by 83%. The company also significantly increased their asset-level financing by securitizing $1.8 billion worth of solar assets and raising $1.3 billion in tax equity. Although their net contracted customer value per share decreased by 4% to $24.22, Sunnova's stockholders' equity per share rose by 17% to $14.65. They executed seven securitizations totaling an additional $613 million in 2024 and increased their tax equity usage by 37%. Sunnova implemented cost-saving measures, including a 30% reduction in total headcount since the end of 2023, contributing to an estimated annual cash savings of approximately $70 million. Despite challenges, such as political uncertainty and capital market pressures, Sunnova remains focused on margin over growth, asset-level funding, and addressing their 2026 corporate debt maturities by mid-2025.Sunnova Energy International Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
50
Neutral
Cash Flow
40
Negative
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Sunnova Energy International Risk Analysis
Sunnova Energy International disclosed 91 risk factors in its most recent earnings report. Sunnova Energy International 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
Sunnova Energy International Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $28.64B | 20.50 | 16.86% | ― | 31.16% | 11.97% | |
62 Neutral | $3.86B | 20.42 | 20.31% | ― | 20.97% | 226.98% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | $4.79B | ― | -61.90% | ― | 3.27% | -81.63% | |
54 Neutral | $1.28B | ― | ― | 10.79% | -30.26% | -156.69% | |
40 Underperform | $1.95B | ― | -131.02% | ― | -36.07% | -233.14% | |
40 Underperform | $25.14K | >-0.01 | ― | ― | 16.55% | 15.72% |
* Technology Sector Average
NOVAQ
Sunnova Energy International
0.02
-7.04
-99.72%
ENPH
Enphase Energy
29.51
-60.43
-67.19%
FSLR
First Solar
265.70
49.81
23.07%
JKS
JinkoSolar
25.58
-0.91
-3.44%
SEDG
SolarEdge Technologies
32.87
14.00
74.19%
RUN
Sunrun
19.97
3.06
18.10%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.