Sunrun (RUN) AI Stock Analysis

• Market Cap: $2.63B
• Dividend Yield: N/A
• Average Volume (3M): 16.36M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.96
• Revenue Growth: 3.27%
• EPS Growth: -81.63%
• Country: US
• Employees: 11,058
• Sector: Technology
• Sector Strength: 97
• Industry: Solar
• EPS (TTM): 1.07
• Shares Outstanding: 230,732,570
• 10 Day Avg. Volume: 15,178,298
• 30 Day Avg. Volume: 16,355,507
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 6.37
• Enterprise Value/Revenue: 7.88
• Enterprise Value/Gross Profit: 42.56
• Enterprise Value/Ebitda: -5.68
• 1Y Price Target: $14.29
• Price Target Upside: 30.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 21

• Rating: 53 Neutral
• Price Target: $11.00 ▲(0.64% Upside)

Sunrun's overall stock score is primarily impacted by its weak financial performance, characterized by high leverage and poor profitability. Despite this, technical analysis suggests some positive momentum, and the company's strategic advancements in subscriber value and storage offerings provide a counterbalance. However, the negative valuation metrics and absence of a dividend yield limit the stock's appeal.

Positive Factors

Guidance and Performance

RUN reported 2Q contracted value and increased FY25 guidance significantly above expectations, driven by a record storage attach rate, higher volumes, and lower operating costs.

Market Interest

SunRun's stock increased by over 15% in afterhours trading, indicating strong market interest in its future prospects.

Negative Factors

Equity Valuation

The year-end 2025 price objective for Sunrun has been adjusted to $0.01 per share, indicating a significant downside from the previous closing price.

Financial Stability

SunRun reported negative operational cash flow generation every year since 2014, raising concerns about its financial stability.

Loan and Funding Challenges

SunRun's Safe Harbor guidance relies heavily on securing a nearly $1 billion loan backed mainly by solar equipment, which is seen as highly unlikely given the current market conditions.

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 several key streams. The primary revenue source comes from the sale and installation of solar energy systems, where customers can choose to purchase the systems outright or finance them through loans or leases. Additionally, Sunrun offers Power Purchase Agreements (PPAs), allowing customers to pay for the electricity generated by the solar panels at a predetermined rate, typically lower than their local utility rates. The company also earns revenue from the sale of energy storage systems and related services. Significant partnerships with various financial institutions and energy companies enhance its ability to provide financing options and expand its customer base, contributing to its overall earnings. Moreover, incentives such as federal tax credits for renewable energy investments further support the company's profitability.

Sunrun Financial Statement Overview

Summary

Sunrun faces substantial financial challenges with persistent losses and high leverage. While revenue shows modest growth, profitability and cash flow metrics raise concerns about operational efficiency and financial stability. Strategic initiatives are necessary to improve margins and manage debt effectively for long-term sustainability.

Income Statement

Sunrun's TTM (Trailing-Twelve-Months) income statement shows a challenging financial landscape with negative EBIT and EBITDA margins, indicating operational inefficiency. The net profit margin is also negative, reflecting ongoing losses. Although there is a slight increase in revenue, it is overshadowed by the substantial losses and declining gross profit margins.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, signaling significant leverage which could pose financial risks. The equity ratio is low, indicating limited equity cushion. However, the company maintains a reasonable level of assets, which could support future growth if managed effectively.

Cash Flow

Sunrun's cash flow statement highlights negative free cash flow and operating cash flow, reflecting cash burn issues. While financing activities provide some liquidity, the operating cash flow to net income ratio is negative, indicating inefficiencies in converting income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.13B	2.04B	2.26B	2.32B	1.61B	922.19M
Gross Profit	394.24M	328.55M	163.06M	298.71M	244.48M	178.66M
EBITDA	-2.96B	-2.91B	-1.46B	60.22M	-268.68M	-213.98M
Net Income	-2.57B	-2.85B	-1.60B	-849.64M	-980.53M	-626.95M
Balance Sheet
Total Assets	21.23B	19.90B	20.45B	19.27B	16.48B	14.38B
Cash, Cash Equivalents and Short-Term Investments	1.01B	574.96M	678.82M	740.51M	617.63M	519.97M
Total Debt	14.14B	13.02B	11.09B	8.73B	6.85B	5.16B
Total Liabilities	16.59B	15.73B	13.54B	11.09B	8.91B	7.09B
Stockholders Equity	2.93B	2.55B	5.23B	6.71B	6.25B	6.08B
Cash Flow
Free Cash Flow	-2.30B	-3.47B	-3.43B	-2.86B	-2.50B	-1.29B
Operating Cash Flow	-811.38M	-766.15M	-820.74M	-848.79M	-817.19M	-317.97M
Investing Cash Flow	-2.90B	-2.70B	-2.61B	-2.09B	-1.69B	-497.79M
Financing Cash Flow	3.69B	3.43B	3.47B	3.04B	2.65B	1.16B

Sunrun Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RUN, the sentiment is Positive. The current price of 10.93 is above the 20-day moving average (MA) of 10.60, above the 50-day MA of 9.48, and above the 200-day MA of 9.18, indicating a bullish trend. The MACD of 0.43 indicates Negative momentum. The RSI at 54.24 is Neutral, neither overbought nor oversold. The STOCH value of 61.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RUN.

Sunrun Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENPH	69 Neutral	$4.39B	26.44	19.79%	―	4.39%	37.70%
SHLS	60 Neutral	$773.22M	36.58	3.77%	―	-11.95%	-7.87%
ARRY	58 Neutral	$858.31M	―	-44.13%	―	6.36%	-1683.09%
RUN	53 Neutral	$2.63B	―	-61.90%	―	3.27%	-81.63%
SEDG	53 Neutral	$1.49B	―	-131.02%	―	-36.07%	-233.14%
Sector *	50 Neutral	C$3.52B	0.80	-5.03%	7.64%	16.88%	-2.22%
CSIQ	47 Neutral	$764.82M	20.05	-0.39%	―	-19.06%	-104.91%

Sunrun Corporate Events

Sunrun Holds Virtual Annual Stockholders Meeting

On June 11, 2025, Sunrun Inc. held its Annual Meeting of Stockholders virtually, where five proposals were considered and voted upon. The stockholders elected three Class I directors, approved executive compensation, ratified Ernst & Young LLP as the independent accounting firm, amended the 2015 Equity Incentive Plan, and decided to hold annual advisory votes on executive compensation.

The most recent analyst rating on (RUN) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on Sunrun stock, see the RUN Stock Forecast page.