Skycorp Solar Group Ltd. (PN) AI Stock Analysis

• Market Cap: $11.61M
• Dividend Yield: N/A
• Average Volume (3M): 125.38K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.25
• Revenue Growth: 0.30%
• EPS Growth: -98.85%
• Country: US
• Employees: 113
• Sector: Technology
• Sector Strength: 88
• Industry: Solar
• EPS (TTM): N/A
• Shares Outstanding: 27,000,000
• 10 Day Avg. Volume: 99,429
• 30 Day Avg. Volume: 125,380
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.80
• Enterprise Value/Revenue: 0.77
• Enterprise Value/Gross Profit: 5.03
• Enterprise Value/Ebitda: 27.38
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: $0.43 ▼(-44.36% Downside)
• Action: Reiterated Date: 02/20/26
• Date: Action: Reiterated 02/20/26

The score is weighed down primarily by weakening financial performance (margin collapse and a return to losses despite rapid revenue growth) and a clearly bearish technical trend (price below all major moving averages with negative MACD). Valuation provides limited support due to the negative P/E and lack of dividend data.

Positive Factors

Rapid Revenue Scaling

A ~424% revenue surge demonstrates the company’s ability to win business and expand market presence. Durable top-line growth supports investment in scale, distribution and R&D, and provides a base to restore operating leverage if margins and cost control improve over the next several quarters.

Positive Free Cash Flow

Consecutive positive operating and free cash flows indicate the business can generate cash despite accounting losses. Sustainable cash generation underpins capital allocation flexibility, debt servicing and potential reinvestment, reducing reliance on external financing over the medium term.

Manageable Leverage, Equity Cushion

Relatively low debt-to-equity (~0.29) and growing equity provide a financial cushion and flexibility for capex, acquisitions or buybacks. Modest leverage reduces solvency risk and preserves options for strategic investments or buffering working-capital swings over the next 2–6 months.

Negative Factors

Margin Compression

A sharp decline in gross margin to ~10% and a swing to net losses signal persistent cost pressure or adverse pricing. If structural, margin compression undermines profitability leverage from revenue growth and makes sustainable earnings recovery more challenging without cost or pricing fixes.

Weak Cash Efficiency

Low operating cash flow yield (~12–13% of revenue) and uneven FCF history suggest limited cash conversion and working-capital volatility. Over months, this can constrain reinvestment, pressure margins if additional financing is needed, and amplify execution risk during growth phases.

Nasdaq Listing Risk

A Nasdaq noncompliance notice creates structural listing risk and potential distraction for management. Prolonged noncompliance could lead to delisting, reduced investor access and higher financing costs, harming liquidity and long-term strategic optionality if not remediated.

Skycorp Solar Group Ltd. Business Overview & Revenue Model

Company Description

Skycorp Solar Group Limited operates as a holding company. The Company, through its subsidiaries, manufactures and markets solar cables, connectors, energy storage systems, inverters, batteries, and AC modules.

How the Company Makes Money

Skycorp Solar Group Ltd. generates revenue primarily through the sale and installation of solar panel systems, which includes both residential and commercial projects. The company charges customers for the initial installation as well as ongoing maintenance services. Additional revenue streams include financing options for customers looking to invest in solar energy, which may involve partnerships with financial institutions. Moreover, Skycorp may benefit from government incentives and rebates for renewable energy installations, further enhancing its profitability. Strategic partnerships with technology providers and other stakeholders in the renewable energy sector also contribute to its earnings by expanding its market reach and enhancing service offerings.

Skycorp Solar Group Ltd. Financial Statement Overview

Summary

Revenue surged in 2025, but profitability deteriorated materially with gross margin falling to ~10% and net margin turning negative (~-4.3%). The balance sheet is reasonably stable with modest leverage (~0.29 debt-to-equity), and cash flow is currently positive (FCF ~$2.36M in 2025) but has been inconsistent across years and cash efficiency remains limited.

Income Statement

Revenue scaled sharply in 2025 (annual revenue growth of ~424%), but profitability deteriorated materially: gross margin fell to ~10% (from ~13% in 2024 and ~17–19% in 2021–2023) and the company swung to losses (net margin ~-4.3% in 2025 vs. ~+0.9% in 2024). The multi-year trend shows shrinking margins and a move from healthy profitability in 2021–2023 to a loss in the most recent year, suggesting rising cost pressure and weaker operating leverage despite top-line expansion.

Balance Sheet

Leverage remains manageable with debt-to-equity at ~0.29 in 2025 (still modest, though higher than 2024’s ~0.18 and far above 2021’s very low base). Equity has grown over time, providing a cushion, but returns weakened significantly as the company posted a negative return on equity in 2025 (about -13.6%) after positive returns in prior years. Overall, the balance sheet looks reasonably stable, but profitability-driven capital efficiency has turned into a key risk.

Cash Flow

Cash generation improved versus 2023: operating cash flow and free cash flow were positive in 2024 and 2025, and free cash flow in 2025 (~$2.36M) partially offset the net loss (free cash flow to net income ~0.82, indicating better cash conversion than earnings). However, cash flow quality is uneven across the period—2023 showed negative free cash flow—and the company’s operating cash flow relative to revenue remains low (about 13% in 2025 and 12% in 2024), pointing to limited cash efficiency and potential working-capital volatility.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	12.09M	63.31M	49.86M	50.82M	59.06M	40.32M
Gross Profit	1.85M	6.30M	6.53M	8.62M	9.00M	7.76M
EBITDA	340.25K	-1.20M	1.95M	3.07M	3.44M	3.17M
Net Income	-32.88K	-2.70M	470.99K	1.10M	1.62M	2.09M
Balance Sheet
Total Assets	43.99M	45.49M	31.95M	29.60M	32.85M	25.96M
Cash, Cash Equivalents and Short-Term Investments	9.74M	9.34M	5.17M	5.64M	3.45M	1.65M
Total Debt	6.01M	5.82M	2.88M	3.63M	2.51M	543.49K
Total Liabilities	18.76M	23.02M	13.19M	12.57M	17.15M	10.84M
Stockholders Equity	22.78M	19.88M	16.42M	15.29M	14.60M	14.44M
Cash Flow
Free Cash Flow	-906.74K	2.36M	1.19M	-1.72M	10.82M	195.90K
Operating Cash Flow	-796.23K	2.87M	1.60M	549.26K	10.98M	314.27K
Investing Cash Flow	-1.56M	-4.80M	-4.43M	-2.27M	-168.06K	-115.54K
Financing Cash Flow	4.73M	8.20M	1.87M	3.52M	-7.77M	272.50K

Skycorp Solar Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPRU	62 Neutral	$78.31M	-3.08	-18.23%	―	37.59%	72.94%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
FTCI	57 Neutral	$128.79M	-2.07	-664.69%	―	39.53%	-7.16%
TURB	54 Neutral	$7.38M	-3.67	-99.17%	―	-5.74%	54.80%
SMXT	47 Neutral	$39.77M	-3.65	―	―	76.60%	70.94%
PN	45 Neutral	$11.61M	-32.01	0.14%	―	0.30%	-98.85%
MAXN	42 Neutral	$41.90M	-0.01	―	―	-54.68%	63.56%