SUNation Energy (SUNE) AI Stock Analysis

• Market Cap: $8.11M
• Dividend Yield: N/A
• Average Volume (3M): 5.54M
• Price to Earnings (P/E): ―
• Beta (1Y): -1.38
• Revenue Growth: -1.41%
• EPS Growth: 98.90%
• Country: US
• Employees: 189
• Sector: Technology
• Sector Strength: 88
• Industry: Engineering & Construction
• EPS (TTM): 1.81
• Shares Outstanding: 3,406,614
• 10 Day Avg. Volume: 5,343,346
• 30 Day Avg. Volume: 5,542,733
• PEG Ratio: <0.01
• Price to Book (P/B): 0.11
• Price to Sales (P/S): 0.04
• P/FCF Ratio: 2.68
• Enterprise Value/Market Cap: 0.77
• Enterprise Value/Revenue: 0.09
• Enterprise Value/Gross Profit: 0.23
• Enterprise Value/Ebitda: -0.95
• 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: 58 Neutral
• Price Target: $2.00 ▲(78.57% Upside)
• Action: Reiterated Date: 03/20/26
• Date: Action: Reiterated 03/20/26

Score is driven by strong technical momentum (price above key moving averages with positive MACD) and improving financial trajectory (better leverage and positive free cash flow), offset by ongoing operating losses/weak returns and limited valuation support due to a negative P/E and no dividend yield.

Positive Factors

Residential Sales Growth

Sizable residential growth in NY and HI and a 72% rise in service sales indicate strong demand in high-value markets and recurring revenue opportunities. Durable strength in residential segments supports steady installation volume, higher lifetime customer value, and scalable unit economics over coming quarters.

Revenue & Margin Improvement

TTM revenue growth near 20% combined with gross margins in the mid-to-high 30% range suggests solid project economics and pricing discipline. Sustained margin strength helps absorb fixed costs and supports a credible path to operating profitability as revenues scale, improving long-term resilience.

Improved Leverage & Cash Generation

Meaningful debt reduction and higher cash balances, alongside positive operating and free cash flow, materially improve financial flexibility. Lower leverage reduces interest burden and enhances capacity to fund growth, pursue strategic M&A, and navigate project timing variability over the next several quarters.

Negative Factors

Persistent Unprofitability

Despite improving top-line and margins, persistent negative EBIT/EBITDA/net income and poor ROE show the company hasn't converted gross profit into sustained earnings. Continued losses constrain internal capital formation and could pressure book value if profitability isn't consistently achieved.

Policy/Tax-Credit Exposure

Significant exposure to residential tax incentives means policy shifts can structurally alter consumer economics and demand. Expiration or redesign of credits and financing changes reduce predictability of future installations, complicating long-term sales planning and ROI assumptions for the business.

Commercial Sales Weakness

Declining commercial sales and prolonged development timelines signal execution and demand challenges in a higher-ticket segment. Weakness here reduces revenue diversification, increases reliance on residential cycles, and can compress margins and delay cash realization from projects.

SUNation Energy Business Overview & Revenue Model

Company Description

SUNation Energy, Inc. is focused on local and regional solar, storage, and energy services companies nationwide. The firm's vision is to power the energy transition through the grass-roots growth of solar electricity paired with battery storage. Its portfolio of brands, including SUNation, Hawaii Energy Connection, E-Gear, Sungevity, and Horizon Solar Power, provides homeowners and small businesses with an end-to-end product offering spanning solar, battery storage, and grid services. The company was founded in 1969 and is headquartered in Ronkonkoma, NY.

How the Company Makes Money

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SUNation Energy Financial Statement Overview

Summary

Mixed fundamentals: strong TTM revenue growth (+19.7%) with steady gross margin (mid-to-high 30s), improving leverage (debt-to-equity ~0.48 vs ~2.39 in 2024), and a turn to positive operating and free cash flow (~$1.0M). However, EBIT/EBITDA/net income remain negative and ROE is very poor, so sustained profitability is still unproven.

Income Statement

TTM (Trailing-Twelve-Months) revenue grew strongly (+19.7%) and gross margin held steady in the mid-to-high 30% range, showing decent pricing and project economics. However, profitability remains weak: EBIT, EBITDA, and net income are all negative in TTM, and net margin is deeply negative, indicating the company is still struggling to translate gross profit into bottom-line earnings. Losses have improved versus 2024, but the business has not yet demonstrated consistent operating profitability.

Balance Sheet

The balance sheet improved meaningfully in TTM with lower leverage: debt-to-equity moved to ~0.48 versus a highly levered 2024 (~2.39), alongside a much larger equity base. Total assets are relatively stable, and the current leverage level looks more manageable for an engineering & construction business. The key weakness is ongoing losses driving a very poor return on equity in TTM, which can pressure book value over time if profitability does not recover.

Cash Flow

Cash generation improved in TTM with positive operating cash flow and positive free cash flow (~$1.0M), a notable turnaround from materially negative cash flow in 2024. That said, free cash flow growth is sharply negative versus the prior period (reflecting volatility), and cash flow quality is still not fully proven given the company remains unprofitable on a net income basis. Overall, near-term cash flow direction is better, but consistency remains a risk.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	71.91M	56.86M	79.63M	27.52M	38.16K
Gross Profit	27.54M	20.43M	27.70M	7.38M	38.16K
EBITDA	-1.67M	-9.57M	973.22K	943.41K	-3.43M
Net Income	-10.89M	-15.85M	-8.13M	-10.35M	-6.24M
Balance Sheet
Total Assets	48.24M	45.71M	58.17M	74.70M	2.80M
Cash, Cash Equivalents and Short-Term Investments	7.18M	839.27K	3.58M	4.85M	18.97K
Total Debt	5.33M	20.42M	19.77M	17.64M	6.54M
Total Liabilities	23.90M	37.17M	37.74M	47.47M	11.44M
Stockholders Equity	24.34M	8.55M	20.44M	27.22M	-8.64M
Cash Flow
Free Cash Flow	955.00K	-6.34M	-1.32M	-7.69M	-4.65M
Operating Cash Flow	955.00K	-6.30M	-667.18K	-7.58M	-4.61M
Investing Cash Flow	-49.00K	-26.67K	3.57M	-3.10M	30.54M
Financing Cash Flow	5.13M	2.08M	-2.76M	15.91M	-35.59M

SUNation Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SUNE, the sentiment is Positive. The current price of 1.12 is below the 20-day moving average (MA) of 1.42, below the 50-day MA of 1.31, and below the 200-day MA of 1.42, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 74.00 is Negative, neither overbought nor oversold. The STOCH value of 86.45 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SUNE.

SUNation Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SUNE	58 Neutral	$8.11M	-0.24	-52.51%	―	-1.41%	98.90%
VATE	51 Neutral	$54.62M	-1.82	33.49%	―	-10.69%	-81.71%
MSW	45 Neutral	$15.96M	―	-578.91%	―	23.25%	-343.35%

SUNation Energy Corporate Events

SUNation Energy Reduces Debt Through New Credit Facility

On January 30, 2026, SUNation Energy settled a $1.1 million legacy promissory note for $800,000 using a related-party revolving credit facility, trimming principal by about $335,000 and cutting monthly payments from roughly $25,000 to $5,000, which management says sharpens cash-flow visibility and reflects ongoing balance-sheet cleanup efforts.

The most recent analyst rating on (SUNE) stock is a Sell with a $0.86 price target. To see the full list of analyst forecasts on SUNation Energy stock, see the SUNE Stock Forecast page.