Skycorp Solar Group Ltd. (PN) AI Stock Analysis

• Market Cap: $14.15M
• Dividend Yield: N/A
• Average Volume (3M): 125.38K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.14
• 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: 21,775,000
• 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: 1.12
• Enterprise Value/Revenue: 1.32
• Enterprise Value/Gross Profit: 8.59
• Enterprise Value/Ebitda: 46.77
• 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: 57 Neutral
• Price Target: $0.67 ▼(-13.59% Downside)
• Action: Reiterated Date: 03/19/26
• Date: Action: Reiterated 03/19/26

The score is primarily held back by weakening financial performance (margin compression and a return to net losses) despite strong revenue growth. Technical indicators provide moderate support with positive trend and momentum. Valuation contributes limited support due to missing dividend yield and an unusable P/E value.

Positive Factors

Revenue Growth

A very large top-line expansion in 2025 demonstrates strong market demand and the company’s ability to scale sales rapidly. Durable revenue growth supports longer-term investments in capacity, customer relationships, and distribution, improving prospects for sustained market share gains if margins recover.

Manageable Leverage

Modest leverage and growing equity provide financial flexibility to fund expansion or cushion shocks. A lower debt burden reduces refinancing risk and interest pressure, enabling management to prioritize reinvestment or strategic initiatives without being constrained by aggressive debt servicing needs.

Positive Free Cash Flow

Sustained positive free cash flow in the last two years shows the business can generate internal funds despite accounting losses. Reliable cash generation supports working capital, selective capex, and debt service, reducing dependence on external financing and improving the company’s ability to fund growth initiatives over the medium term.

Negative Factors

Margin Compression

A sharp decline in gross margin and a return to net losses indicate rising cost pressure or weakening pricing power. Persistent margin compression will erode operating leverage and internal returns, constrain reinvestment, and make it harder to convert revenue growth into sustainable profitability over the coming quarters.

Cash Efficiency Volatility

Uneven cash conversion and low operating-cash-to-revenue ratios signal limited cash efficiency and potential working-capital volatility. Intermittent negative free cash flow history raises the risk that growth will strain liquidity or require external funding, reducing resilience to cyclical or operational shocks.

Weak Returns on Equity

A reversal to negative ROE shows the company is destroying shareholder capital at current scale and profitability. Persistently negative returns undermine the case for reinvestment, make it harder to attract equity capital, and increase pressure on management to restore efficiency and margin performance.

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

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Skycorp Solar Group Ltd. Financial Statement Overview

Summary

Revenue surged sharply in 2025, but profitability deteriorated: gross margin compressed to ~10% and the company swung to a net loss (net margin ~-4.3%). Balance sheet leverage is modest (debt-to-equity ~0.29), and cash flow is currently positive with positive free cash flow in 2024–2025, but cash efficiency is limited and prior-year free cash flow was negative, keeping the financial score constrained.

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	$66.32M	-12.82	-19.23%	―	37.59%	72.94%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
PN	57 Neutral	$14.15M	―	0.14%	―	0.30%	-98.85%
TURB	54 Neutral	$29.31M	-0.84	-99.17%	―	-5.74%	54.80%
SMXT	47 Neutral	$41.76M	-5.33	64.70%	―	76.60%	70.94%
FTCI	45 Neutral	$68.28M	-1.99	1044.27%	―	39.53%	-7.16%
MAXN	42 Neutral	$39.03M	-0.39	194.99%	―	-54.68%	63.56%

Skycorp Solar Group Ltd. Corporate Events

Skycorp Solar Revamps Board with New Independent Director After March Resignation

Skycorp Solar Group Limited reported changes to its board of directors in early March 2026, marking a shift in its governance structure. On March 3, 2026, director Shibo Feng resigned from the board for personal reasons, with the company stating his departure did not arise from any disagreement over its business, financial reporting, or other corporate matters.

Effective March 4, 2026, the company appointed Kwok Hung Bell Wong as an independent director and chair of the audit committee, as well as a member of the compensation and nominating committees. Following these changes, the board now consists of five directors, three of whom are independent, potentially strengthening Skycorp Solar’s oversight, audit rigor, and alignment with corporate governance expectations for U.S.-listed foreign issuers.

The most recent analyst rating on (PN) stock is a Hold with a $0.43 price target. To see the full list of analyst forecasts on Skycorp Solar Group Ltd. stock, see the PN Stock Forecast page.