Sunpower Group Ltd. (5GD) AI Stock Analysis

• Market Cap: S$405.11M
• Dividend Yield: N/A
• Average Volume (3M): 1.51M
• Price to Earnings (P/E): 15.9
• Beta (1Y): 0.54
• Revenue Growth: -5.31%
• EPS Growth: -47.29%
• Country: SG
• Employees: 3,096
• Sector: Utilities
• Sector Strength: 65
• Industry: Independent Power Producers
• EPS (TTM): 0.04
• Shares Outstanding: 818,401,200
• 10 Day Avg. Volume: 421,670
• 30 Day Avg. Volume: 1,509,350
• PEG Ratio: 0.05
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 0.79
• P/FCF Ratio: 3.74
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 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: 60 Neutral
• Price Target: S$0.53 ▼(-9.48% Downside)
• Action: Reiterated Date: 03/02/26
• Date: Action: Reiterated 03/02/26

The score is driven primarily by improved 2025 profitability and stronger free cash flow, tempered by a sharp 2025 revenue decline and a still-leveraged balance sheet. Technical signals are neutral-to-soft and valuation appears fair based on the P/E.

Positive Factors

Improved Profitability & Margins

Higher gross and operating margins and a net income rebound in 2025 indicate improved earnings quality. Sustained margin improvement supports internal funding for capex and maintenance, improves resilience to project cycles, and enhances the company's ability to generate repeatable operating profit over the coming quarters.

Stronger Free Cash Flow Generation

Substantially stronger free cash flow in 2025, broadly aligned with reported net income, strengthens liquidity and operational finance. Durable FCF supports servicing debt, funding working capital and selective reinvestment, and provides a foundation for gradual deleveraging or strategic investment over the medium term.

Recurring O&M and Service Revenue

The business mixes project-based contracts with after-delivery O&M, servicing and spare-parts revenue, creating annuity-like cash flows. These recurring streams smooth project lumpy revenue, support client stickiness, and help stabilize margins and cash generation across multi-quarter project cycles.

Negative Factors

Revenue Volatility and 2025 Decline

A sharp topline decline in 2025 following inconsistent growth highlights demand and project lumpy-ness risk. Persistent revenue volatility undermines scale economics and margin leverage, increases earnings unpredictability, and creates a sustained headwind for steady cash flow and investment planning over the next several quarters.

Elevated Leverage / Debt-Heavy Capital Structure

Debt remaining well above equity makes the capital structure sensitive to interest rates and refinancing windows. Elevated leverage constrains strategic flexibility, raises fixed-charge burdens, and increases the company's vulnerability to an operational slowdown or weaker cash conversion in the medium term.

Modest Debt Coverage Despite FCF Improvement

Although free cash flow improved, coverage of debt is still modest, limiting the pace at which the company can reduce leverage without external financing. This keeps refinancing risk and constrained financial flexibility as ongoing medium-term concerns for balance-sheet repair and growth funding.

Sunpower Group Ltd. Business Overview & Revenue Model

Company Description

Sunpower Group Ltd. provides environmental protection solutions in the People's Republic of China, the United States, Canada, India, Southeast Asia, the Middle East, Europe, South America, and Oceania. It operates through Manufacturing & Services and Green Investments segments. The company's Manufacturing & Services segment develops heat exchangers, pressure vessels, heat pipes, heat pipe exchangers, pipeline energy saving, and related environmental protection products. This segment also offers solutions for flare and flare gas recovery system, zero liquid discharge system, petrochemical engineering, energy saving system, desulphurization, and denitrification systems. Its Green Investments segment focuses on the investment, development, and operation of centralized heat, steam, and electricity generation plants. In addition, it offers design, consultancy, and technology services to the thermal power, construction materials, architecture, municipal engineering, and other industries. Further, the company provides design, consultation, and technology services; produces and sells foam glass products; and supplies heat and electricity to enterprises. It serves chemicals, textiles, textile printing and dyeing, food, paper-making, paints, pharmaceuticals, leather, wood processing, plastic recycling, fodder, chemical fertilizers, and rubber industries. Sunpower Group Ltd. was founded in 1997 and is headquartered in Nanjing, the People's Republic of China.

How the Company Makes Money

Sunpower Group Ltd. generates revenue primarily through the sale of solar energy products, including photovoltaic panels and energy storage systems. Additionally, the company earns income from installation services, maintenance contracts, and energy management solutions. Key revenue streams include direct sales to consumers and businesses, as well as partnerships with government projects and utility companies for large-scale solar installations. The company may also benefit from incentives and subsidies related to renewable energy initiatives, which enhance its overall profitability.

Sunpower Group Ltd. Financial Statement Overview

Summary

Profitability and free cash flow improved meaningfully in 2025, supporting better earnings quality. Offsetting this, revenue fell sharply in 2025 and the balance sheet remains debt-heavy, increasing sensitivity to downturns and refinancing risk.

Income Statement

Profitability strengthened meaningfully into 2025, with higher gross and operating margins and net income rebounding versus 2023–2024. However, revenue growth is inconsistent and turned sharply negative in 2025 after modest expansion in 2024, signaling demand/price volatility. Overall earnings quality looks improved recently, but the top-line trajectory is a key watch item.

Balance Sheet

Leverage remains elevated for the business profile, with debt still well above equity, although the debt-to-equity ratio improved in 2025 versus 2022–2024. Equity has been building, which helps balance-sheet resilience, but the capital structure is still debt-heavy, leaving sensitivity to rate/refinancing and operating downturns.

Cash Flow

Cash generation improved substantially, with strong free cash flow in 2025 and solid growth versus 2024, following weak/negative free cash flow in 2021–2022 and a low 2023 base. Free cash flow in 2025 is broadly in line with reported net income, supporting earnings quality, but cash flow coverage of debt remains modest, implying limited deleveraging capacity without sustained strong cash generation.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.37B	3.30B	3.51B	3.40B	3.45B	2.90B
Gross Profit	893.17M	969.81M	892.78M	831.56M	513.05M	344.77M
EBITDA	854.00M	1.03B	880.37M	864.02M	504.09M	438.10M
Net Income	135.55M	309.23M	119.44M	175.77M	138.80M	816.20M
Balance Sheet
Total Assets	7.75B	7.93B	8.31B	7.63B	7.67B	6.60B
Cash, Cash Equivalents and Short-Term Investments	753.88M	1.20B	1.26B	699.35M	635.73M	401.41M
Total Debt	4.11B	3.95B	4.74B	4.36B	4.24B	3.65B
Total Liabilities	5.01B	4.99B	5.76B	5.32B	5.62B	4.75B
Stockholders Equity	2.15B	2.34B	2.01B	1.90B	1.73B	1.59B
Cash Flow
Free Cash Flow	576.89M	701.24M	460.93M	71.11M	-231.13M	-739.89M
Operating Cash Flow	747.19M	733.19M	622.28M	463.22M	305.17M	223.21M
Investing Cash Flow	-144.22M	-176.10M	-187.80M	-423.71M	-624.71M	472.20M
Financing Cash Flow	-446.78M	-827.44M	96.27M	38.32M	506.21M	-831.46M

Sunpower Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:5GD, the sentiment is Neutral. The current price of 0.58 is above the 20-day moving average (MA) of 0.50, above the 50-day MA of 0.53, and above the 200-day MA of 0.42, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.69 is Neutral, neither overbought nor oversold. The STOCH value of 57.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SG:5GD.

Sunpower Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
U9E	70 Outperform	S$658.00M	4.86	8.29%	7.88%	-4.16%	-12.99%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
BWM	63 Neutral	S$872.41M	6.55	10.29%	4.78%	6.50%	231.23%
566	62 Neutral	S$84.17M	33.95	1.67%	1.71%	30.64%	―
BHK	61 Neutral	S$461.04M	4.32	―	6.29%	-1.90%	-2.24%
5GD	60 Neutral	S$405.11M	15.92	6.52%	―	-5.31%	-47.29%
5IG	49 Neutral	S$376.96M	38.33	-1.18%	―	5.38%	81.93%

Sunpower Group Ltd. Corporate Events

Sunpower Group Sees Bondholders Convert S$4.9 Million of Convertible Bonds Into Equity

Sunpower Group Ltd. has announced that between 1 October and 31 December 2025, bondholders converted S$4.92 million of its outstanding convertible bonds into 19.66 million new ordinary shares at a conversion price of S$0.25 per share, reducing the remaining principal amount of convertible bonds to S$93.78 million. Following the issuance and listing of these conversion shares on 9 January 2026, the company’s issued and paid-up share capital increased from 798.74 million to 818.40 million shares, modestly diluting existing shareholders while strengthening the company’s equity base and reducing its outstanding debt obligations.

The most recent analyst rating on (SG:5GD) stock is a Hold with a S$0.50 price target. To see the full list of analyst forecasts on Sunpower Group Ltd. stock, see the SG:5GD Stock Forecast page.

Sunpower Group Announces Passing of Substantial Shareholder Dr. Lin Yucheng

Sunpower Group Ltd., incorporated in Bermuda with limited liability, has reported the death of one of its substantial shareholders, Dr. Lin Yucheng, on 3 January 2026. The board and employees have extended their condolences to Dr. Lin’s family, and while no immediate operational or governance changes were disclosed, the passing of a major shareholder could have future implications for the company’s ownership structure and investor dynamics as the estate’s holdings are settled.

The most recent analyst rating on (SG:5GD) stock is a Hold with a S$0.50 price target. To see the full list of analyst forecasts on Sunpower Group Ltd. stock, see the SG:5GD Stock Forecast page.