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Spruce Power Holding (SPRU)
NYSE:SPRU
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Spruce Power Holding
(NYSE:SPRU)
42Neutral
Spruce Power Holding (SPRU) vs. S&P 500 (SPY)
Market Cap
$37.96M
Dividend YieldN/A
Average Volume (3M)92.01K
Price to Earnings (P/E)―
Beta (1Y)1.12
Revenue Growth2.37%
EPS Growth-10.00%
CountryUS
Employees142
SectorTechnology
Sector Strength40
IndustrySolar
Share Statistics
EPS (TTM)-3.79
Shares Outstanding18,078,238
10 Day Avg. Volume187,707
30 Day Avg. Volume92,006
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.58
Price to Cash Flow (P/CF)-10.70
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Spruce Power Holding Business Overview & Revenue Model
Company DescriptionSpruce Power Holding (SPRU) is a company operating in the renewable energy sector, primarily focusing on providing residential solar energy solutions. The company is dedicated to offering sustainable energy options to homeowners through its innovative solar power systems. Spruce Power is committed to facilitating the transition to clean energy by making solar power accessible and affordable, thereby contributing to environmental sustainability and energy independence.
How the Company Makes MoneySpruce Power Holding generates revenue through the sale and leasing of residential solar energy systems. The company offers various financial products to homeowners, including solar leases, power purchase agreements (PPAs), and solar loans. These financial arrangements allow customers to adopt solar energy with minimal upfront costs, while Spruce Power earns income through long-term agreements for the use of its solar systems. Additionally, the company may benefit from government incentives and renewable energy credits, further enhancing its revenue streams. Partnerships with installation and technology companies also play a significant role in enabling Spruce Power to expand its market reach and optimize its service offerings.
Spruce Power Holding Financial Statement Overview
Summary
Spruce Power Holding faces significant financial challenges, characterized by negative profitability margins, high leverage, and cash flow constraints. While there are some improvements in gross profit margin, overall financial health remains weak. The company needs to address its profitability and cash flow issues to improve its financial standing.Income Statement
Gross profit margin improved to 46.33% TTM, but net profit margin remains negative at -120.75% TTM, indicating ongoing profitability challenges. Revenue growth is volatile, with a recent decline of 1.52% TTM, highlighting potential issues in sustaining growth.35
Negative
Balance Sheet
The debt-to-equity ratio is high at 4.09 TTM, suggesting significant leverage. Return on equity is weak at -63.49% TTM, reflecting poor profitability. However, the equity ratio is relatively stable at 18.54% TTM, indicating a moderate level of financial stability.40
Negative
Cash Flow
Free cash flow growth is negative, and the operating cash flow to net income ratio is 0.49 TTM, indicating cash flow issues. The free cash flow to net income ratio is also negative, reflecting insufficient cash generation relative to net losses.30
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 78.65M | 79.86M | 23.19M | 15.60M | 20.34M | 7.21M | Gross Profit |
| 36.44M | 42.05M | 13.24M | -696.00K | 2.74M | -860.00K | EBIT |
| -52.66M | -36.82M | -59.87M | -58.91M | -15.29M | -13.57M | EBITDA |
| -32.89M | 1.03M | -35.12M | 53.29M | -53.61M | -13.32M | Net Income Common Stockholders |
| -94.96M | -65.83M | -46.26M | 28.79M | -31.34M | -17.05M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 5.68M | 141.35M | 220.32M | 351.68M | 329.64M | 3.39M | Total Assets |
| 0.00 | 895.02M | 826.55M | 393.22M | 347.01M | 9.25M | Total Debt |
| 0.00 | 625.68M | 503.01M | 4.60M | 208.00K | 13.73M | Net Debt |
| 5.68M | 484.32M | 282.69M | -347.08M | -329.43M | 10.35M | Total Liabilities |
| 0.00 | 680.35M | 537.58M | 31.41M | 14.82M | 22.95M | Stockholders Equity |
| 846.00K | 212.34M | 279.95M | 361.81M | 332.19M | -13.70M |
| Cash Flow | Free Cash Flow | ||||
| -46.49M | -34.16M | -63.49M | -52.13M | -20.03M | -11.58M | Operating Cash Flow |
| -46.09M | -33.66M | -63.49M | -48.49M | -19.88M | -11.55M | Investing Cash Flow |
| 31.41M | -16.73M | -29.01M | -14.83M | -145.00K | -28.00K | Financing Cash Flow |
| -28.07M | -16.81M | -19.19M | 85.36M | 346.28M | 9.21M |
Spruce Power Holding Technical Analysis
Negative
2.10
Price Trends
2.43
Negative
2.58
Negative
2.76
Negative
Market Momentum
-0.02
Positive
44.66
Neutral
10.64
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPRU, the sentiment is Negative. The current price of 2.1 is below the 20-day moving average (MA) of 2.31, below the 50-day MA of 2.43, and below the 200-day MA of 2.76, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 44.66 is Neutral, neither overbought nor oversold. The STOCH value of 10.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SPRU.
Spruce Power Holding Risk Analysis
Spruce Power Holding disclosed 36 risk factors in its most recent earnings report. Spruce Power Holding reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Spruce Power Holding Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $13.90B | 10.17 | 17.62% | ― | 26.75% | 55.24% | |
68 Neutral | $7.10B | 73.33 | 11.30% | ― | -41.92% | -76.24% | |
57 Neutral | $20.24B | 9.51 | -13.28% | 2.72% | 5.43% | -24.54% | |
53 Neutral | $541.31M | 15.12 | 1.34% | ― | -21.68% | -99.75% | |
51 Neutral | $843.53M | ― | -116.01% | ― | -68.86% | -4917.87% | |
46 Neutral | $1.45B | ― | -73.12% | ― | -9.83% | -71.44% | |
42 Neutral | $37.96M | ― | -39.70% | ― | 2.37% | -10.00% |
* Technology Sector Average
Performance Comparison
SPRU
Spruce Power Holding
2.12
-1.17
-35.56%
CSIQ
Canadian Solar
7.21
-9.37
-56.51%
ENPH
Enphase Energy
49.56
-72.14
-59.28%
FSLR
First Solar
122.19
-62.25
-33.75%
SEDG
SolarEdge Technologies
11.58
-58.68
-83.52%
RUN
Sunrun
6.03
-5.82
-49.11%
Spruce Power Holding Earnings Call Summary
Earnings Call Date: Mar 31, 2025 | % Change Since: -12.86% | Next Earnings Date: May 19, 2025
Earnings Call Sentiment Neutral
Spruce Power showcased significant portfolio growth and operational improvements in 2024, including a key acquisition and the launch of a third-party servicing channel. Despite these achievements, the company faced financial challenges, including missing EBITDA targets and declining unrestricted cash, leading to a cautious outlook without financial guidance for 2025.Highlights
Portfolio Growth and Acquisition
Spruce Power increased its portfolio to approximately 85,000 home solar assets and customer contracts across 18 states, including the acquisition of a residential solar portfolio from NJR Clean Energy Ventures, adding 9,800 systems and expanding presence in New Jersey.
Operational Efficiency Improvements
Spruce reconnected 4,800 systems, reduced ticket cycle times, cleared 10,000 backlog service tickets, and improved customer satisfaction scores to 83% in 2024, up from 74% in 2023.
Launch of Third-Party Servicing Channel
Spruce successfully launched Spruce Pro, a third-party solar servicing platform, gaining a significant servicing agreement with ADT Solar covering approximately 60,000 systems.
Financial Stability and Cash Flow
Spruce Power continues to generate stable, predictable cash flows due to its unique business model focused on existing solar assets, with a total cash balance of approximately $109.1 million at the end of the fourth quarter.
Lowlights
Missed Operating EBITDA Targets
The company missed its full year 2024 operating EBITDA guidance range of $57 million to $62 million, achieving $53.9 million primarily due to higher than expected O&M and legal expenses.
Decline in Unrestricted Cash
Unrestricted cash balance declined to $72.8 million at the end of the fourth quarter from $113.6 million at the end of the third quarter, mainly due to the NJR transaction and ongoing operational spend.
Absence of Financial Guidance
Spruce Power decided not to provide financial guidance for 2025, citing a volatile residential solar market, macroeconomic conditions, and utility rate environment.
Company Guidance
During the Spruce Power Fourth Quarter 2024 Earnings Conference Call, Chris Hayes, CEO, emphasized the company's strategic focus on stability and efficiency in the residential solar market. Spruce Power operates with a fundamentally different business model compared to its peers, relying on existing solar assets to generate stable long-term cash flows. The company expanded its portfolio to approximately 85,000 home solar assets, following the acquisition of 9,800 systems from NJR Clean Energy Ventures, increasing its gross portfolio value to $910 million. Operational improvements, such as reconnecting 4,800 systems and enhancing asset management, boosted customer satisfaction scores from 74% in 2023 to 83% in 2024. Despite a GAAP net loss of $5.9 million, the fourth quarter revenue increased to $20.2 million, contributing to an annual revenue of $82.1 million. Spruce Power's financial goals for 2025 include optimizing cash flow and managing operating expenses, with a focus on reducing operations and maintenance costs, which amounted to $5.3 million in the fourth quarter. The company ended the year with unrestricted cash of $72.8 million and a total principal balance of long-term debt at $730.6 million, hedged with interest rate swaps.Spruce Power Holding Corporate Events
Private Placements and FinancingM&A TransactionsBusiness Operations and Strategy
Spruce Power Expands Solar Portfolio with Major Acquisition
Positive
Nov 26, 2024
Spruce Power has significantly expanded its solar portfolio by acquiring around 9,800 residential solar systems from NJR Clean Energy Ventures for $132.5 million. This acquisition, supported by a new debt facility, bolsters Spruce’s presence in New Jersey and is expected to boost operational efficiency and cash flow. With this move, Spruce aims to enhance customer experience and shareholder value, further cementing its position as a top residential solar provider in the region.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.