Sierra Growth (SGRO) AI Stock Analysis

• Market Cap: C$2.34M
• Dividend Yield: N/A
• Average Volume (3M): 4.43K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.09
• Revenue Growth: N/A
• EPS Growth: -3437.50%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -0.06
• Shares Outstanding: 29,311,214
• 10 Day Avg. Volume: 5,251
• 30 Day Avg. Volume: 4,427
• PEG Ratio: -0.02
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 238.01
• 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: 29 Underperform
• Price Target: ―

Sierra Growth's overall score is severely impacted by its financial performance, characterized by zero revenue and negative cash flow. Technical indicators suggest bearish momentum, while the lack of earnings call data and corporate events limit potential positive catalysts. The valuation metrics reflect the company's ongoing challenges, leading to a low overall score.

Positive Factors

Debt-Free Balance Sheet

A debt-free balance sheet provides financial stability and flexibility, allowing Sierra Growth to invest in future projects without the burden of interest payments.

Positive Operating Cash Flow Shift

Improvement in operating cash flow suggests better cash management and operational efficiencies, which can support future investments and reduce financial strain.

Strategic Partnerships

Strategic partnerships enhance project capabilities and financial stability, potentially leading to increased revenue streams and competitive advantages in the renewable energy sector.

Negative Factors

Zero Revenue Generation

The lack of revenue generation is a critical weakness, limiting the company's ability to cover costs, invest in growth, and achieve profitability, posing long-term sustainability risks.

Negative Free Cash Flow

Persistent negative free cash flow suggests operational inefficiencies and financial strain, hindering Sierra Growth's ability to fund capital expenditures and strategic initiatives.

Consistent Net Losses

Ongoing net losses reflect operational challenges and an inability to achieve profitability, which can erode investor confidence and limit access to capital for future growth.

Sierra Growth Business Overview & Revenue Model

Company Description

Sierra Growth (SGRO) is a dynamic company operating in the renewable energy sector, focusing on sustainable development and innovative solutions to harness natural resources. The company's core services include the development, construction, and management of solar and wind energy projects. With a commitment to reducing carbon emissions and promoting clean energy, Sierra Growth aims to provide efficient and eco-friendly energy solutions globally.

How the Company Makes Money

Sierra Growth generates revenue through multiple streams, primarily by developing and managing renewable energy projects. The company earns money by selling the electricity generated from its solar and wind farms to utility companies and other energy buyers under long-term power purchase agreements (PPAs). Additionally, SGRO may receive government incentives and tax credits for its contributions to clean energy production. The company also engages in strategic partnerships with technology firms and financial institutions to enhance its project capabilities and financial stability, thereby boosting its revenue potential.

Sierra Growth Financial Statement Overview

Summary

Sierra Growth's financial statements indicate significant challenges with zero revenue generation, leading to consistent net losses and negative free cash flow. Despite a strong equity base with no debt, the inability to convert assets into revenue highlights long-term sustainability risks.

Income Statement

Sierra Growth's income statement shows consistent challenges with profitability, as evidenced by persistent net losses across several years. The company reports zero revenue, which makes it impossible to calculate key profitability margins like Gross Profit Margin, Net Profit Margin, or Revenue Growth Rate. Despite reductions in EBIT losses from previous periods, the lack of revenue generation is a critical weakness.

Balance Sheet

The balance sheet reflects a strong equity position with a high equity ratio, as there is no debt. This suggests a conservative capital structure and financial stability. However, the company's assets are not generating profits, which limits the return on equity. The lack of liabilities is a strength, but the inability to leverage assets for profitability is a concern.

Cash Flow

Sierra Growth's cash flow statement reveals significant challenges with negative free cash flow, indicating that the company is not generating sufficient cash from its operations to support capital expenditures or other investments. However, the positive shift in operating cash flow in the recent TTM period is a positive sign, yet overall cash flow health remains poor.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	0.00	0.00	0.00	0.00	0.00	-1.08K
EBITDA	22.97K	309.16K	222.57K	-406.56K	1.07M	-1.91M
Net Income	-57.30K	309.16K	-375.00K	-407.00K	-610.00K	-1.91M
Balance Sheet
Total Assets	2.27M	2.50M	2.16M	2.23M	514.71K	242.70K
Cash, Cash Equivalents and Short-Term Investments	626.50K	782.66K	877.74K	1.23M	74.83K	223.34K
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	34.21K	48.87K	23.62K	123.36K	44.89K	150.43K
Stockholders Equity	2.24M	2.45M	2.14M	2.10M	469.81K	92.27K
Cash Flow
Free Cash Flow	-156.33K	4.93K	-697.97K	-824.53K	-904.85K	-380.02K
Operating Cash Flow	27.66K	325.48K	-366.72K	-319.83K	-483.91K	-330.11K
Investing Cash Flow	-266.46K	-420.55K	-281.25K	-554.70K	-408.23K	205.68K
Financing Cash Flow	0.00	0.00	295.00K	2.03M	743.64K	0.00

Sierra Growth Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SGRO, the sentiment is Neutral. The current price of 0.12 is below the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.11, and above the 200-day MA of 0.11, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.63 is Neutral, neither overbought nor oversold. The STOCH value of -6.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:SGRO.

Sierra Growth Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
STGX	42 Neutral	C$11.04M	45.65	6.30%	―	―	70.90%
TMAS	37 Underperform	$8.12M	-2.96	-38.70%	―	―	65.30%
MEK	36 Underperform	C$5.79M	-7.14	-16.74%	―	―	-122.22%
ILC	32 Underperform	C$10.74M	7.55	12.49%	―	―	―
SGRO	29 Underperform	C$2.34M	-40.00	-119.25%	―	―	-3437.50%