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Altus Power (AMPS)
NYSE:AMPS
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Altus Power
(NYSE:AMPS)
71Outperform
Positive Factors
Acquisition
AMPS announced it has entered into a definitive agreement to be acquired by TPG Inc. for $5.00 per share of its Class A common stock.
Earnings
AMPS reported 3Q24 results above expectations from a growing commercial & industrial solar project portfolio.
Negative Factors
Debt
AMPS ended the quarter with $96.9M of unrestricted cash and $1,321.4M of debt for a trailing net debt-to-EBITDA ratio of 11.5x; it is anticipated AMPS raises equity in 2025 to reduce debt.
Altus Power (AMPS) vs. S&P 500 (SPY)
Market Cap
$795.69M
Dividend YieldN/A
Average Volume (3M)2.60M
Price to Earnings (P/E)23.3
Beta (1Y)0.97
Revenue Growth26.49%
EPS GrowthN/A
CountryUS
Employees93
SectorUtilities
Sector Strength71
IndustryRenewable Energy Producers
Share Statistics
EPS (TTM)0.00
Shares Outstanding160,420,900
10 Day Avg. Volume1,990,881
30 Day Avg. Volume2,601,490
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)4.03
Price to Cash Flow (P/CF)9.90
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$5.00Price Target Upside0.81% Upside
Rating ConsensusHold
Number of Analyst Covering6
Altus Power Business Overview & Revenue Model
Company DescriptionAltus Power, Inc. (AMPS) is a leading provider of clean electrification solutions, specializing in the development, ownership, and operation of solar energy systems. The company is committed to delivering clean energy to commercial, industrial, and public sector customers across the United States. Altus Power focuses on providing end-to-end solar power solutions, including project development, financing, and ongoing operation and maintenance of solar installations.
How the Company Makes MoneyAltus Power generates revenue primarily through the sale of electricity generated by its solar energy systems. The company enters into long-term power purchase agreements (PPAs) with its clients, ensuring a stable and predictable revenue stream. Additionally, Altus Power benefits from various government incentives and tax credits related to renewable energy deployment. The company also explores opportunities to expand its portfolio through strategic partnerships and acquisitions, enhancing its capacity to serve a broader customer base. Altus Power's business model is designed to capitalize on the increasing demand for sustainable energy solutions, leveraging its expertise in solar technology and project execution.
Altus Power Financial Statement Overview
Summary
Altus Power demonstrates strong revenue growth and improved profitability, transitioning from losses to a net profit. However, the balance sheet reveals high leverage, and negative free cash flow remains a concern, indicating financial stability challenges.Income Statement
Altus Power shows strong revenue growth with a 26.5% increase from 2023 to 2024. The company also improved its profitability, turning a net loss in 2023 into a net profit in 2024, reflecting a net profit margin of 9.1%. However, the gross profit margin remains high at 100%, which is unusual and may require further investigation. EBIT and EBITDA margins have also improved, indicating better operational efficiency.78
Positive
Balance Sheet
The balance sheet reflects a moderate financial structure with a debt-to-equity ratio of 0.84, showing a reasonable level of leverage. However, the equity ratio stands at 19.4%, indicating that the majority of the company's assets are financed by debt. Return on equity is relatively low at 3.9%, suggesting that the company is not generating substantial returns on shareholder investment.65
Positive
Cash Flow
The cash flow statement shows a concerning trend with free cash flow remaining negative, although it slightly improved compared to the previous year. The operating cash flow to net income ratio is 2.3, indicating strong cash generation relative to accounting profits. However, the free cash flow to net income ratio is negative, highlighting ongoing cash outflows exceeding cash inflows.60
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 185.99M | 196.26M | 155.16M | 101.16M | 71.80M | 45.28M | Gross Profit |
| 94.79M | 196.26M | 125.53M | 83.63M | 57.77M | 35.62M | EBIT |
| 28.66M | 29.56M | 20.86M | 84.84M | 24.66M | 12.53M | EBITDA |
| 118.54M | 141.70M | 74.46M | 108.61M | 47.26M | 24.20M | Net Income Common Stockholders |
| 35.78M | 17.82M | -9.36M | 55.44M | 13.01M | -1.89M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 26.64M | 104.90M | 160.82M | 193.02M | 325.98M | 33.83M | Total Assets |
| 0.00 | 2.35B | 2.09B | 1.38B | 1.11B | 581.56M | Total Debt |
| 0.00 | 382.70M | 1.39B | 762.72M | 545.98M | 389.14M | Net Debt |
| 26.64M | 277.80M | 1.23B | 569.70M | 220.00M | 355.31M | Total Liabilities |
| 0.00 | 1.81B | 1.57B | 913.83M | 771.71M | 424.25M | Stockholders Equity |
| 132.11M | 455.16M | 447.08M | 424.10M | 304.92M | 124.98M |
| Cash Flow | Free Cash Flow | ||||
| -35.47M | -53.36M | -38.43M | -55.91M | -18.25M | -47.76M | Operating Cash Flow |
| 50.62M | 40.35M | 79.36M | 35.24M | 23.70M | 12.30M | Investing Cash Flow |
| -397.68M | -367.20M | -586.81M | -163.21M | -223.25M | -171.34M | Financing Cash Flow |
| 374.40M | 231.32M | 526.99M | -2.95M | 491.66M | 165.12M |
Altus Power Technical Analysis
Positive
4.96
Price Trends
4.57
Positive
4.23
Positive
3.92
Positive
Market Momentum
0.08
Positive
65.84
Neutral
55.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMPS, the sentiment is Positive. The current price of 4.96 is above the 20-day moving average (MA) of 4.94, above the 50-day MA of 4.57, and above the 200-day MA of 3.92, indicating a bullish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 65.84 is Neutral, neither overbought nor oversold. The STOCH value of 55.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMPS.
Altus Power Risk Analysis
Altus Power disclosed 59 risk factors in its most recent earnings report. Altus Power 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 0 New Risks
Altus Power Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $13.79B | 10.94 | 17.62% | ― | 26.75% | 55.24% | |
71 Outperform | $795.69M | 23.35 | 0.29% | ― | 26.49% | ― | |
71 Outperform | $141.09B | 20.33 | 14.24% | 3.08% | 26.91% | -6.43% | |
65 Neutral | $11.97B | 15.58 | 6.65% | 4.33% | 5.53% | -5.08% | |
59 Neutral | $5.14B | ― | -5.49% | ― | 10.53% | 90.76% | |
51 Neutral | $1.02B | ― | -116.01% | ― | -68.86% | -4917.87% | |
46 Neutral | $1.48B | ― | -73.12% | ― | -9.83% | -71.44% |
* Utilities Sector Average
Performance Comparison
AMPS
Altus Power
4.94
0.16
3.35%
FSLR
First Solar
126.60
-42.20
-25.00%
NEE
NextEra Energy
70.03
7.87
12.66%
SEDG
SolarEdge Technologies
15.93
-55.05
-77.56%
RUN
Sunrun
6.01
-7.17
-54.40%
BE
Bloom Energy
21.99
10.75
95.64%
Altus Power Earnings Call Summary
Earnings Call Date: Mar 17, 2025 | % Change Since: 0.00% | Next Earnings Date: May 19, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue growth, successful strategic initiatives, and significant expansion in the Community Solar portfolio. However, challenges such as interconnection delays and increased operating expenses were noted.Highlights
Record Growth in Revenue and Kilowatt Hours
Altus Power generated 333 million kilowatt hours of clean electricity, resulting in $58.7 million of revenue, marking a 30% increase compared to the third quarter of 2023.
Significant Expansion in Community Solar Portfolio
Altus Power announced new Community Solar projects in Colorado and Maine, expanding to 9 states and close to 500% growth in customer base over two years.
Successful Tax Equity Transaction
Altus Power structured a new form of tax equity transaction, enhancing market efficiency and competitiveness in renewable energy project financing.
Strong Financial Performance
The company reported a GAAP net income of $8.6 million and an adjusted EBITDA of $37 million, a 27% increase compared to the third quarter of 2023.
1 Gigawatt Milestone
Altus Power surpassed 1 gigawatt of operating assets, enhancing operational efficiency and competitive edge in the commercial scale solar market.
Lowlights
Interconnection Delays
Continued delays in utility connections, particularly with the Morgan Stanley site, have been frustrating and have impacted project operational timelines.
Increased Operating Expenses
The quarter saw increased levels of operating and general administrative expenses, which partially offset the growth in revenue.
Company Guidance
During the Altus Power, Inc. third quarter 2024 earnings call, the company reaffirmed its confidence in achieving its 2024 guidance range of $196 million to $201 million in revenue and $111 million to $115 million in adjusted EBITDA. The company reported a significant 30% increase in revenue year-over-year, reaching $58.7 million due to growth in its portfolio and increased electricity sales. Adjusted EBITDA rose 27% to $37 million, driven by portfolio expansion despite higher operating expenses. Altus Power generated 333 million kilowatt hours of clean electricity during the quarter, and the net income was $8.6 million. The company also highlighted a 500% increase in its Community Solar customer base over the past two years, with approximately 30,000 customers across nine states. Altus Power's strategic focus on optimizing existing assets and a targeted market-specific approach to client engagement was noted as contributing to the company's momentum and anticipated growth.Altus Power Corporate Events
Business Operations and StrategyFinancial Disclosures
Altus Power Reports Strong Q3 Growth in 2024
Positive
Nov 12, 2024
Altus Power, Inc. reported a strong third quarter in 2024, with revenues surging by 30% to $58.7 million and a notable increase in GAAP net income to $8.6 million. Their expansion in solar energy facilities contributed significantly to this growth, reflecting their leadership in the commercial solar sector. Furthermore, the company expanded its Community Solar subscriber base and surpassed 1 GW in operating assets, emphasizing its commitment to clean energy and addressing energy demands efficiently.
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.