Sunrun (RUN) AI Stock Analysis

• Market Cap: $4.33B
• Dividend Yield: N/A
• Average Volume (3M): 8.58M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.57
• Revenue Growth: 13.79%
• EPS Growth: -527.48%
• Country: US
• Employees: 11,058
• Sector: Technology
• Sector Strength: 88
• Industry: Solar
• EPS (TTM): 0.06
• Shares Outstanding: 232,041,820
• 10 Day Avg. Volume: 10,797,999
• 30 Day Avg. Volume: 8,584,187
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 1.01
• P/FCF Ratio: -0.59
• Enterprise Value/Market Cap: 4.59
• Enterprise Value/Revenue: 8.57
• Enterprise Value/Gross Profit: 37.16
• Enterprise Value/Ebitda: -7.27
• 1Y Price Target: $23.29
• Price Target Upside: 24.88% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 18
• EPS Forecast (FY): 1.28
• Revenue Forecast (FY): $2.37B

• Rating: 55 Neutral
• Price Target: $20.00 ▲(7.24% Upside)

Sunrun's overall stock score is primarily impacted by its weak financial performance, characterized by significant losses and high leverage. However, the positive sentiment from the earnings call and technical indicators provide some optimism. The valuation remains a concern due to negative earnings, but strategic initiatives and operational achievements offer potential for future improvement.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Cash Generation

Sustained positive cash flow enhances financial stability and provides resources for reinvestment and debt servicing.

Market Position

A large and growing customer base solidifies Sunrun's leadership in the residential solar market, driving future growth.

Negative Factors

High Leverage

High leverage increases financial risk and may limit flexibility in funding future growth or weathering economic downturns.

Negative Profitability

Persistent losses and declining margins indicate challenges in cost management and profitability, impacting long-term viability.

Cost Increases

Rising costs can pressure margins and reduce competitiveness, affecting the company's ability to maintain pricing strategies.

Sunrun Business Overview & Revenue Model

Company Description

Sunrun Inc. engages in the design, development, installation, sale, ownership, and maintenance of residential solar energy systems in the United States. It also sells solar energy systems and products, such as panels and racking; and solar leads generated to customers. In addition, the company offers battery storage along with solar energy systems. Its primary customers are residential homeowners. The company markets and sells its products through direct-to-consumer approach across online, retail, mass media, digital media, canvassing, field marketing, and referral channels, as well as its partner network. Sunrun Inc. was founded in 2007 and is headquartered in San Francisco, California.

How the Company Makes Money

Sunrun generates revenue through multiple streams primarily centered around the sale and installation of solar energy systems. The company offers customers various financing options, including cash purchases, solar leases, and power purchase agreements (PPAs), where customers pay for the solar energy produced rather than the system itself. In addition to initial system sales, Sunrun earns recurring revenue from long-term agreements under leases and PPAs, which provide a stable cash flow as customers pay over time for the energy generated. Furthermore, Sunrun benefits from federal and state tax incentives, such as the Investment Tax Credit (ITC), which can enhance the financial viability of solar projects. Partnerships with other companies, such as home improvement firms and utility companies, also contribute to Sunrun's growth by expanding its customer base and facilitating access to new markets.

Sunrun Financial Statement Overview

Summary

Sunrun faces significant financial challenges with persistent losses, high leverage, and weak cash flow generation. The income statement shows negative margins, the balance sheet is heavily leveraged, and cash flow is insufficient to cover losses. Despite some revenue growth, these issues pose risks to long-term sustainability.

Income Statement

Sunrun's income statement reveals significant challenges with profitability. The company has a negative net profit margin of -120.56% for TTM, indicating substantial losses relative to revenue. Despite a slight revenue growth of 2.18% in the TTM period, the EBIT and EBITDA margins remain deeply negative, reflecting operational inefficiencies. The gross profit margin has improved to 18.52% in the TTM, but overall, the financial performance is weak, with persistent losses and negative growth in previous years.

Balance Sheet

Sunrun's balance sheet shows high leverage with a debt-to-equity ratio of 4.83 in the TTM, indicating significant reliance on debt financing. The return on equity is negative at -76.77%, reflecting poor returns for shareholders. The equity ratio stands at 13.79%, suggesting a low proportion of equity in the asset base. While the company has a substantial asset base, the high debt levels pose a risk to financial stability.

Cash Flow

The cash flow statement highlights severe cash flow challenges. Operating cash flow is negative, and free cash flow has declined by 35.12% in the TTM. The operating cash flow to net income ratio is negative, indicating that the company is not generating sufficient cash from operations to cover its losses. The free cash flow to net income ratio is positive, but this is due to the large negative net income rather than strong cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.32B	2.04B	2.26B	2.32B	1.61B	922.19M
Gross Profit	534.02M	328.55M	163.06M	298.71M	244.48M	178.66M
EBITDA	-2.73B	-2.91B	-1.51B	49.51M	-255.46M	-213.98M
Net Income	-2.47B	-2.85B	-1.60B	173.38M	-79.42M	-173.39M
Balance Sheet
Total Assets	22.23B	19.90B	20.45B	19.27B	16.48B	14.38B
Cash, Cash Equivalents and Short-Term Investments	1.16B	574.96M	678.82M	740.51M	617.63M	519.97M
Total Debt	14.72B	13.02B	11.09B	8.76B	6.87B	5.18B
Total Liabilities	17.58B	15.73B	13.54B	11.09B	8.91B	7.09B
Stockholders Equity	2.98B	2.55B	5.23B	6.71B	6.25B	6.08B
Cash Flow
Free Cash Flow	-2.24B	-3.47B	-3.43B	-2.86B	-2.50B	-1.29B
Operating Cash Flow	-776.75M	-766.15M	-820.74M	-848.79M	-817.19M	-317.97M
Investing Cash Flow	-2.37B	-2.70B	-1.09B	-713.84M	-489.41M	-497.79M
Financing Cash Flow	3.30B	3.43B	1.94B	1.67B	1.45B	1.16B

Sunrun Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 18.65
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RUN, the sentiment is Neutral. The current price of 18.65 is below the 20-day moving average (MA) of 19.72, below the 50-day MA of 18.67, and above the 200-day MA of 11.51, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.18 is Neutral, neither overbought nor oversold. The STOCH value of 56.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RUN.

Sunrun Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHLS	67 Neutral	$1.41B	42.36	5.86%	―	2.68%	2.90%
ENPH	62 Neutral	$3.75B	19.85	20.31%	―	20.97%	226.98%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ARRY	58 Neutral	$1.25B	―	-7.75%	―	35.75%	37.97%
RUN	55 Neutral	$4.33B	―	-59.68%	―	13.79%	-527.48%
CSIQ	49 Neutral	$2.25B	315.60	0.56%	―	-4.46%	1645.26%
SEDG	49 Neutral	$2.16B	―	-78.09%	―	-0.14%	66.71%

Sunrun Corporate Events

Sunrun Inc. Shines in Latest Earnings Call

Sunrun Inc.’s recent earnings call paints a picture of robust financial health and strategic growth, marked by significant achievements in subscriber value and customer expansion. The company demonstrated a strong focus on improving margins and generating cash, despite facing challenges such as increased creation costs and the potential impact of the 25D expiration. Overall, the positive developments significantly overshadow the challenges, reflecting a strong sentiment during the call.

Sunrun Inc. Reports Strong Q3 2025 Results

Sunrun Inc., a leading provider of home battery storage, solar, and home-to-grid power plants in the United States, continues to empower customers with energy independence and resilience against rising energy costs.

Sunrun Appoints Craig Cornelius to Board of Directors

On November 6, 2025, Sunrun Inc. appointed Craig Cornelius to its Board of Directors, expanding the board from eight to nine members. Cornelius, with extensive experience in the energy industry, will also serve on the Audit and Nominating, Governance, and Sustainability Committees. Sunrun reported strong financial results for the third quarter of 2025, with significant growth in aggregate subscriber value and contracted net value creation. The company continues to lead with a storage-first strategy, improving grid stability, and expanding capital market access. Sunrun’s financial performance highlights its strategic focus on energy independence and infrastructure development, with positive implications for stakeholders.

The most recent analyst rating on (RUN) stock is a Hold with a $21.00 price target. To see the full list of analyst forecasts on Sunrun stock, see the RUN Stock Forecast page.