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SUNation Energy (SUNE)
NASDAQ:SUNE

SUNation Energy (SUNE) AI Stock Analysis

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SUNation Energy

(NASDAQ:SUNE)

Rating:30Underperform
Price Target:
$1.50
▼( -0.66% Downside)
SUNation Energy's overall stock score is low, primarily due to significant financial challenges, including poor profitability, high leverage, and liquidity issues. Technical analysis indicates a bearish trend, with potential for a rebound, but current momentum is weak. The valuation score reflects unattractive metrics due to negative earnings. While the company's strategic corporate events and positive earnings call guidance offer some optimism, the current financial and operational difficulties result in a cautious outlook for the stock.

SUNation Energy (SUNE) vs. SPDR S&P 500 ETF (SPY)

SUNation Energy Business Overview & Revenue Model

Company DescriptionSUNation 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 MoneySUNation Energy makes money primarily through the sale and installation of solar power systems. The company's revenue streams include direct sales to residential and commercial customers, ongoing maintenance and service contracts, and leasing agreements for solar equipment. Additionally, SUNation Energy may benefit from government incentives and rebates for renewable energy projects, enhancing the financial attractiveness of its offerings. Partnerships with financial institutions and energy companies can also contribute to revenue by facilitating financing options for customers and expanding the company's market reach.

SUNation Energy Financial Statement Overview

Summary
SUNation Energy faces significant financial challenges across income, balance sheet, and cash flow metrics. The company struggles with profitability, leverage, and liquidity, which could pose risks if not addressed. Improvement in revenue generation and cost management is crucial for stabilizing financial health.
Income Statement
30
Negative
SUNation Energy has seen a volatile revenue trajectory with a recent decline from the previous period, indicating a contraction in sales. The gross profit margin is modest, but negative EBIT and EBITDA margins suggest significant operational challenges. The net profit margin is also negative, reflecting ongoing profitability issues.
Balance Sheet
40
Negative
The company's balance sheet shows a high debt-to-equity ratio, signaling leverage concerns. Return on equity is negative due to losses, and the equity ratio is relatively low, indicating potential financial instability. The decrease in stockholders' equity further exacerbates this concern.
Cash Flow
35
Negative
Operating cash flow is negative, and free cash flow has deteriorated, reflecting cash management issues. The operating cash flow to net income ratio is unfavorable, indicating potential liquidity stress. The free cash flow to net income ratio is also negative, underscoring profitability challenges.
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2014Dec 2013
Income StatementTotal Revenue
60.93M79.63M27.52M38.16K2.48B2.01B
Gross Profit
20.35M27.70M7.38M38.16K221.90M145.30M
EBIT
-8.15M-7.47M-10.45M-4.86M-536.80M-313.60M
EBITDA
-3.98M973.22K943.41K-3.43M-449.00M-101.40M
Net Income Common Stockholders
-10.69M-8.13M-10.35M-6.24M-1.18B-586.70M
Balance SheetCash, Cash Equivalents and Short-Term Investments
649.60M3.58M4.85M18.97K1.09B614.50M
Total Assets
3.57B58.17M74.70M2.80M11.50B6.68B
Total Debt
443.90M19.77M17.64M6.54M7.20B878.60M
Net Debt
-34.00M16.20M15.45M6.53M6.26B305.10M
Total Liabilities
1.40B37.74M47.47M11.44M11.27B6.45B
Stockholders Equity
2.17B20.44M27.22M-8.64M232.90M232.20M
Cash FlowFree Cash Flow
-4.31M-1.32M-7.69M-811.02K-999.60M-839.90M
Operating Cash Flow
-4.24M-667.18K-7.58M-811.02K-770.00M-706.80M
Investing Cash Flow
-64.89K3.57M-3.10M479.98K-2.64B-868.40M
Financing Cash Flow
869.48K-2.76M15.91M350.00K3.80B1.59B

SUNation Energy Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.51
Price Trends
50DMA
27.74
Negative
100DMA
161.85
Negative
200DMA
1425.40
Negative
Market Momentum
MACD
-7.41
Negative
RSI
25.03
Positive
STOCH
4.09
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SUNE, the sentiment is Negative. The current price of 1.51 is below the 20-day moving average (MA) of 2.02, below the 50-day MA of 27.74, and below the 200-day MA of 1425.40, indicating a bearish trend. The MACD of -7.41 indicates Negative momentum. The RSI at 25.03 is Positive, neither overbought nor oversold. The STOCH value of 4.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SUNE.

SUNation Energy Risk Analysis

SUNation Energy disclosed 45 risk factors in its most recent earnings report. SUNation Energy 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 3 New Risks
1.
Shareholders may experience future dilution as a result of future equity offerings and other issuances of our Common Stock or other securities, including securities that are exercisable for or convertible into Common Stock. In addition, this offering and future equity offerings and other issuances of our Common Stock or other securities may adversely affect our Common Stock price. Q3, 2024
2.
We have significant obligations under payables and debt obligations and other contracts. Our ability to operate as a going concern are contingent upon successfully obtaining additional financing and/or renegotiating terms of selected existing indebtedness in the near future. Failure to do so could adversely affect our ability to continue or successfully grow our operations. Q3, 2024
3.
We need to obtain substantial additional financing arrangements to provide working capital and growth capital. If financing is not available to us on acceptable terms when needed, our ability to continue to fund our operations and grow our business would be materially adversely impacted. Q3, 2024

SUNation Energy Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$745.86M30.4710.78%12.40%81.98%
74
Outperform
$178.71M9.7041.26%0.56%4.62%81.73%
72
Outperform
$718.04M13.455.64%30.13%-7.60%
61
Neutral
$11.28B10.16-6.88%2.97%7.41%-8.93%
30
Underperform
$5.14M-152.39%-20.49%88.27%
SKSKK
$12.00M34.41
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SUNE
SUNation Energy
1.51
-39,013.50
-100.00%
AMRC
Ameresco
13.65
-21.04
-60.65%
ESOA
Energy Services of America
10.69
4.02
60.27%
WLDN
Willdan Group
51.45
19.47
60.88%
ZDAI
Primega Group Holdings
SKK
SKK Holdings Limited
0.64
-3.29
-83.72%

SUNation Energy Earnings Call Summary

Earnings Call Date:May 15, 2025
(Q1-2025)
|
% Change Since: -26.34%|
Next Earnings Date:Aug 25, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant progress in reducing debt and improving the financial position, alongside strong commercial revenue growth and operational efficiencies. However, the decline in consolidated revenue, gross margin, and the reported net loss indicate areas needing improvement. Despite these challenges, the positive guidance for 2025 suggests optimism for future growth.
Q1-2025 Updates
Positive Updates
Debt Reduction and Improved Financial Position
SUNation Energy repaid nearly $10 million in high-cost debt, continued to meet other debt obligations, and lowered total debt by 51% from $19.1 million to $9.3 million since December 31, 2024. Additionally, cash and cash equivalents rose by $1.4 million.
Commercial Revenue Growth
Commercial revenue rose by 28% from the previous year's first quarter, contributing to a strong commercial backlog of $7.4 million, a 32% increase over March 31, 2024.
Operational Efficiency Gains
SUNation Energy implemented cost optimizations and efficiency measures resulting in a 9% decline in SG&A expenses and expects annual cost savings of approximately $2 million for 2025.
Positive Guidance for 2025
The company expects total sales of $65 million to $70 million, representing an increase between 14% and 23% from 2024. Adjusted EBITDA is projected to be between $500,000 and $700,000, compared to a loss in 2024.
Negative Updates
Decline in Consolidated Revenue
Consolidated revenue declined by 4% to $12.6 million from $13.2 million in the first quarter of the previous year.
Decrease in Gross Margin
Consolidated gross margin slightly declined from 35.1% to 36.4%, with SUNation New York's gross margin decreasing from 40.5% to 38.5% due to higher costs in the commercial segment.
Net Loss Reported
The company reported a net loss of $3.5 million compared to net income of $1.2 million in the last year's first quarter, impacted by the absence of a $3.7 million gain from the previous year.
Company Guidance
During the SUNation Energy First Quarter 2025 Financial Results Conference Call, the company provided guidance for the year, projecting total sales between $65 million and $70 million, an anticipated increase of 14% to 23% from 2024's $56.9 million. They also expect adjusted EBITDA to range from $500,000 to $700,000, a significant turnaround from the adjusted EBITDA loss experienced in 2024. The company emphasized a strategic focus on reducing operational costs, having lowered interest expenses by $1.4 million for the year due to the elimination of $12.5 million in high-cost debt. Additionally, SUNation is exploring opportunities to expand its service and maintenance business, particularly in the New York metro region, to capitalize on the increased demand for solar installations and maintenance services. The company highlighted a strong commercial backlog of $7.4 million, marking a 32% increase from the previous year.

SUNation Energy Corporate Events

Delistings and Listing ChangesPrivate Placements and FinancingStock SplitRegulatory Filings and Compliance
SUNation Energy Secures Credit Line Amid Nasdaq Challenge
Neutral
Apr 17, 2025

On April 14, 2025, SUNation Energy entered into a Secured Revolving Line of Credit Agreement with MBB Energy, LLC, allowing the company to borrow up to $1,000,000 over a year. This agreement, with an 8% annual interest rate, is expected to support SUNation’s financial flexibility. Additionally, the company faced a Nasdaq compliance issue due to its stock price falling below $1.00, prompting a reverse stock split effective April 21, 2025, to regain compliance. This move consolidates every 200 shares into one, aiming to increase the market price per share and ensure continued Nasdaq listing.

Private Placements and FinancingBusiness Operations and Strategy
SUNation Energy Completes $5 Million Direct Offering
Positive
Apr 7, 2025

On April 7, 2025, SUNation Energy announced the completion of its second and final tranche of a registered direct offering, raising $5 million in gross proceeds. This, combined with the $15 million from the first tranche closed on February 27, 2025, totals $20 million in gross proceeds. The funds have been used to repay $9.4 million in loans, improving the company’s balance sheet and providing financial flexibility for future growth, including strategic acquisitions. The offering marks a significant milestone for SUNation, enhancing its ability to meet industry challenges and pursue long-term growth objectives.

Executive/Board ChangesM&A TransactionsBusiness Operations and Strategy
SUNation Energy Announces Strategic Transformation and Leadership Change
Positive
Mar 17, 2025

SUNation Energy has announced a strategic transformation with a new leadership team and optimized capital structure to enhance its market position. The company aims to grow through acquisitions of regional solar companies and strategic mergers, focusing on long-term success and sustainable business models.

Private Placements and FinancingBusiness Operations and Strategy
SUNation Energy Repays Loans After $15M Equity Financing
Positive
Mar 14, 2025

SUNation Energy, Inc. has successfully repaid and terminated several loan agreements, including those with Decathlon Specialty Finance, LLC, Hercules Capital, Inc., Conduit Capital U.S. Holdings LLC, and MBB Energy, LLC, using proceeds from a recent $15 million equity financing. This strategic move, completed by March 3, 2025, eliminates all monthly payment obligations and restrictive covenants, resulting in significant cash savings and increased operational flexibility for potential acquisitions and future financing options.

Private Placements and FinancingBusiness Operations and Strategy
SUNation Energy Announces $15M Direct Offering Closing
Positive
Feb 28, 2025

On February 28, 2025, SUNation Energy, Inc. announced the initial closing of a registered direct offering, generating gross proceeds of approximately $15 million. This offering involves the sale of common stock and warrants, with a second closing expected to raise an additional $5 million, bringing total proceeds to $20 million. The funds will be used for operations, strategic transactions, and debt obligations, potentially impacting the company’s financial stability and market position.

Private Placements and FinancingLegal Proceedings
SUNation Energy Secures $1M Loan Amid Legal Challenges
Neutral
Feb 27, 2025

SUNation Energy secured a $1 million bridge loan from Conduit Capital U.S. Holdings LLC on July 22, 2024, with a 20% original issue discount and interest rate, secured by the company’s assets. The company also entered into an ATM Offering Agreement with Roth Capital Partners, authorizing the sale of up to $10 million in common stock, raising over $2.8 million by November 2024. Additionally, SUNation resolved a contractual dispute related to Series A Warrants by issuing shares to settle potential claims, preserving cash for operations. Legal proceedings include a landlord dispute over insurance obligations and a potential claim regarding defective third-party equipment, both of which SUNation intends to defend vigorously.

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.