The Biden-Harris administration recently announced $56 million in funding to fortify innovation in solar manufacturing and recycling. In addition, the Senate passed the historic climate bill, which might accelerate growth in the solar industry.
Although the solar industry witnessed substantial growth over the past decade, supply chain constraints and trade instability have led to price increases. And pricing and procurement challenges are expected to remain this year, leading to the first annual decline in the market in 4 years.
Additionally, the U.S. clean energy projects, including wind and solar power installations, witnessed a significant downtrend in the second quarter. According to a report by American Clean Power, the industry faced a mammoth 55% decline in installations.
Array Technologies, Inc. (ARRY)
ARRY manufactures and supplies solar tracking systems and related products in the United States and internationally. Its products include DuraTrack HZ v3 and SmarTrack.
ARRY’s revenue came in at $300.59 million for the first quarter ended March 31, 2022, up 21.1% year-over-year. However, its gross profit came in at $26.59 million, down 42.4% year-over-year.
Its net loss came in at $33.66 million, compared to a net income of $4.58 million in the year-ago period, while its loss per share came in at $0.23, compared to an EPS of $0.04 in the prior-year period.
Analysts expect ARRY’s EPS to decline 57.1% year-over-year to $0.03 in the yet-to-be-reported quarter ended June 2022.
ARRY’s forward EV/S of 2.67x is 61.3% higher than the industry average of 1.65x. Its forward P/S of 1.90x is 44.7% higher than the industry average of 1.31x.
Over the past nine months, the stock has lost 14.6% to close the last trading session at $18.68.
ARRY’s POWR Ratings reflect its poor prospects. It has an overall grade of F, which indicates a Strong Sell in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
Also, the stock has an F grade for Stability and a D for Value, Sentiment, and Quality. Click here to access the additional POWR Ratings for ARRY (Growth and Momentum). ARRY is ranked #15 out of 18 stocks in the F-rated Solar industry.
Sunrun Inc. (RUN)
RUN designs, develops, installs, sells, owns, and maintains residential solar energy systems in the United States. It also sells solar energy systems and products, such as panels and racking, and solar leads generated to customers.
RUN’s total revenue came in at $584.58 million for the second quarter ended June 30, 2022, up 45.7% year-over-year. However, its total operating expenses came in at $739.89 million, up 36.3% year-over-year. Moreover, its loss from operations came in at $155.31 million, up 9.5% year-over-year.
RUN’s forward EV/S of 7.28x is 340.2% higher than the industry average of 1.65x. Its forward P/S of 3.21x is 145.1% higher than the industry average of 1.31x.
Analysts expect RUN’s EPS to decrease 182.8% year-over-year to negative $0.66 in 2022. Its EPS is estimated to remain negative in 2023. Over the past year, the stock has lost 29.4% to close the last trading session at $34.14.
RUN has an overall F grade, equating to a Strong Sell in our POWR Ratings system. Also, it has an F grade for Value, Stability, and Quality and a D grade for Growth and Sentiment.
Click here to access the RUN rating for Momentum. It is ranked #17 in the Solar industry.
Beam Global (BEEM)
Cleantech company, BEEM designs, develops, engineers, manufactures, and sells renewably energized products for electric vehicle (EV) charging infrastructure, outdoor media and branding, and energy security products.
For the first quarter ended March 31, 2022, BEEM’s revenues came in at $3.77 million, up 174.8% year-over-year. However, its gross loss increased 104.7% year-over-year to $305,000. Also, its net loss increased 82.1% year-over-year to $2.28 million, while its loss per share increased 71.4% year-over-year to $0.24.
BEEM’s forward EV/S of 7.06x is 326.7% higher than the industry average of 1.65x. Its forward P/S of 7.93x is 504.5% higher than the industry average of 1.31x.
BEEM’s EPS is expected to fall 12.2% year-over-year to negative $0.83 in 2022. And its EPS is estimated to remain negative in the following year. In addition, it missed EPS estimates in three of the trailing four quarters. Over the past year, the stock has lost 42.3% to close the last trading session at $17.02.
BEEM’s POWR Ratings are consistent with this bleak outlook. The stock has an overall F rating, equating to a Strong Sell in our proprietary rating system. In addition, the stock has an F grade for Sentiment and Quality and a D grade for Growth, Value, and Stability.
We also have graded BEEM for Momentum. Click here to access all of BEEM’s ratings. It is ranked last in the same industry.
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ARRY shares fell $1.28 (-6.85%) in premarket trading Tuesday. Year-to-date, ARRY has gained 11.34%, versus a -12.59% rise in the benchmark S&P 500 index during the same period.
About the Author: Riddhima Chakraborty
Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master's degree in economics, she helps investors make informed investment decisions through her insightful commentaries. More...
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