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Spruce Power Holding (SPRU)
NYSE:SPRU
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Spruce Power Holding
(NYSE:SPRU)
Rating:43Neutral
Price Target:
$2.00
▲( 2.04% Upside)
Spruce Power Holding (SPRU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$34.94M
Dividend YieldN/A
Average Volume (3M)107.12K
Price to Earnings (P/E)―
Beta (1Y)1.24
Revenue Growth8.97%
EPS Growth-68.08%
CountryUS
Employees165
SectorTechnology
Sector Strength74
IndustrySolar
Share Statistics
EPS (TTM)-0.84
Shares Outstanding17,826,560
10 Day Avg. Volume185,914
30 Day Avg. Volume107,118
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)0.21
Price to Sales (P/S)0.00
P/FCF Ratio-0.71
Enterprise Value/Market Cap19.13
Enterprise Value/Revenue2.07
Enterprise Value/Gross Profit15.97
Enterprise Value/Ebitda-12.76
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Spruce Power Holding Business Overview & Revenue Model
Company DescriptionXL Fleet Corp. provides fleet electrification solutions for commercial vehicles in North America. Its products include hybrid electric drive systems are comprised of an electric motor that is mounted onto the vehicle's drive shaft, an inverter motor controller, and a lithium-ion battery pack to store energy to be used for propulsion; plug-in hybrid electric drive system, which are fitted to vehicles. In addition, the company offers vehicle electrification and infrastructure solutions, and charging stations. It serves end-use customer base comprising Fortune 500 corporate enterprises, public utilities, and various municipalities. The company was incorporated in 2009 and is headquartered in Boston, Massachusetts.
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 demonstrates strong revenue growth, but its profitability and cash flow challenges, along with high leverage, significantly limit its financial health. The company faces a high debt-to-equity ratio and negative cash flows, which hinder operational flexibility and increase financial risk.Income Statement
Spruce Power Holding shows a significant increase in revenue over the years, from $7.2M in 2019 to $82.1M in 2024, indicating strong top-line growth. However, the company struggles with profitability, evidenced by consistently negative net income and EBIT margins. The gross profit margin improved to 71.5% in 2024, but net profit margins remain negative due to high operating expenses.45
Neutral
Balance Sheet
The company has a high debt-to-equity ratio of 4.87 in 2024, indicating significant leverage, which poses financial risk. Despite this, the company maintains a relatively stable equity position, although it has decreased over time. The equity ratio of 16.3% in 2024 suggests a limited buffer against liabilities.40
Negative
Cash Flow
Spruce Power Holding faces challenges in cash flow management, with consistently negative operating and free cash flow. The free cash flow growth rate is negative, indicating declining cash generation capability. The operating cash flow to net income ratio is not favorable, reflecting difficulties in converting income into cash.30
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 82.11M | 79.86M | 23.19M | 15.60M | 20.34M | Gross Profit |
| 58.73M | 42.05M | 13.24M | -696.00K | 2.74M | EBIT |
| -50.39M | -36.82M | -59.87M | -58.91M | -15.29M | EBITDA |
| -4.81M | 1.03M | -35.12M | 53.29M | -53.61M | Net Income Common Stockholders |
| -70.49M | -65.83M | -46.26M | 28.79M | -31.34M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 72.80M | 141.35M | 220.32M | 351.68M | 329.64M | Total Assets |
| 898.48M | 895.02M | 826.55M | 393.22M | 347.01M | Total Debt |
| 711.07M | 625.68M | 503.01M | 4.60M | 208.00K | Net Debt |
| 638.27M | 484.32M | 282.69M | -347.08M | -329.43M | Total Liabilities |
| 752.33M | 680.35M | 537.58M | 31.41M | 14.82M | Stockholders Equity |
| 143.71M | 212.34M | 279.95M | 361.81M | 332.19M |
| Cash Flow | Free Cash Flow | |||
| -42.16M | -34.16M | -63.49M | -52.13M | -20.03M | Operating Cash Flow |
| -41.81M | -33.66M | -63.49M | -48.49M | -19.88M | Investing Cash Flow |
| -101.41M | -16.73M | -29.01M | -14.83M | -145.00K | Financing Cash Flow |
| 79.43M | -16.81M | -19.19M | 85.36M | 346.28M |
Spruce Power Holding Technical Analysis
Neutral
1.96
Price Trends
2.08
Negative
2.37
Negative
2.54
Negative
Market Momentum
-0.03
Negative
51.01
Neutral
67.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPRU, the sentiment is Neutral. The current price of 1.96 is above the 20-day moving average (MA) of 1.88, below the 50-day MA of 2.08, and below the 200-day MA of 2.54, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 51.01 is Neutral, neither overbought nor oversold. The STOCH value of 67.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 2 New Risks
1.
We are subject to risks associated with proxy contests and other actions of activist stockholders. Q3, 2024
2.
Our performance may be negatively impacted by our recent Chief Executive Officer transition Q3, 2024
Spruce Power Holding Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $11.30B | 10.11 | -6.98% | 2.96% | 7.48% | -11.26% | |
54 Neutral | $45.79M | ― | -123.52% | ― | -43.69% | 12.75% | |
54 Neutral | $26.93M | ― | -84.64% | ― | -52.61% | -987.53% | |
50 Neutral | $62.02M | ― | -200.49% | ― | -39.94% | -38.95% | |
43 Neutral | $34.94M | ― | -49.28% | ― | 8.97% | -68.08% | |
42 Neutral | $49.17M | ― | 307.38% | ― | -54.68% | 63.56% | |
41 Neutral | $23.01M | ― | -21.91% | ― | 16.55% | 15.72% |
* Technology Sector Average
Performance Comparison
SPRU
Spruce Power Holding
1.96
-1.55
-44.16%
NOVA
Sunnova Energy International
0.18
-4.29
-95.97%
MAXN
Maxeon Solar Technologies
2.91
-317.09
-99.09%
FTCI
FTC Solar
3.50
-1.66
-32.17%
TYGO
Tigo Energy
1.00
-0.40
-28.57%
TURB
Turbo Energy, S.A. Sponsored ADR
2.44
1.29
112.17%
Spruce Power Holding Earnings Call Summary
Earnings Call Date:May 14, 2025
(Q1-2025)
| % Change Since: 24.05%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong financial performance with significant revenue and EBITDA growth, backed by strategic acquisitions and operational improvements. However, the company faces challenges with cash burn, market uncertainties, and a CFO transition, which balance the positive aspects.Q1-2025 Updates
Positive Updates
Significant Revenue Growth
Revenue grew 30% from the year earlier period, primarily attributable to the NJR acquisition.
Increased Operating EBITDA
Operating EBITDA increased 15% from the previous year, indicating improved financial performance.
Robust Cash Balance
Spruce Power maintains a strong balance sheet with close to $100 million in cash, the majority of which is unrestricted.
Successful Acquisition Strategy
The NJR acquisition added approximately 9,800 installations in New Jersey, contributing to revenue growth.
Spruce PRO Platform Expansion
Spruce PRO, the third-party solar servicing platform, secured an agreement with ADT covering approximately 60,000 systems.
Operational Improvements in O&M
Spruce implemented cost-saving measures in their operations and maintenance, reducing expenses significantly.
Negative Updates
Cash Burn and Seasonality Impact
Cash burn during the quarter was impacted by normal winter seasonality and a delay in payment collections from NJR assets.
Continued High O&M Expenses
Operations and maintenance expenses remain high, although there has been sequential improvement.
Uncertain Market Conditions
Cautious approach to new growth opportunities due to uncertain and rapidly shifting market dynamics.
CFO Transition
Sarah Wells, CFO, announced her departure from the company, indicating a period of transition for Spruce Power.
Company Guidance
During Spruce Power’s first quarter 2025 earnings call, key financial metrics highlighted include a 30% revenue growth and a 15% increase in operating EBITDA compared to the previous year. The company reported a revenue of $23.8 million for the quarter, up from $18.3 million in the prior year period, primarily due to the NJR acquisition. Operating expenses were $18 million, with portfolio O&M costs at $3.9 million. Spruce ended the quarter with approximately $96.5 million in total cash, including $61.9 million in unrestricted cash. The total principal balance of long-term debt was $723.8 million with a blended interest rate of 6%. Despite a GAAP net loss of $15.3 million, Spruce anticipates operating EBITDA improvement throughout 2025. The company’s strategy focuses on scaling its business through acquisitions, programmatic offtake partnerships, and the growth of its Spruce PRO servicing platform, aiming to achieve positive free cash flow.Spruce Power Holding Corporate Events
Stock Buyback
Spruce Power Holding Announces New Share Buyback Program
Positive
May 14, 2025
On May 13, 2025, Spruce Power Holding Corporation announced that its board of directors authorized a new share repurchase program, allowing the company to buy back up to $50 million of its common stock by May 15, 2027. This initiative follows the expiration of its previous program on May 15, 2025, under which the company repurchased 1,870,827 shares at an average price of $4.33 per share. The new program is designed to return value to shareholders and can be executed through various transaction methods, with the company retaining discretion over the timing and amount of repurchases based on market conditions.
Executive/Board Changes
Spruce Power CFO Sarah Wells Resigns Effective May 14
Neutral
May 6, 2025
On April 29, 2025, Sarah Wells announced her resignation as Chief Financial Officer and Head of Sustainability at Spruce Power Holding Corporation, effective May 14, 2025, citing personal reasons unrelated to the company’s financial or accounting practices. The company has begun searching for a new CFO, utilizing an executive search firm to consider both internal and external candidates.
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.