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HASI (HASI)
NYSE:HASI
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HASI
(NYSE:HASI)
73Outperform
Positive Factors
Credit Rating
The company benefits from a credit rating upgrade, which lowers its cost of debt and reduces growth equity needs.
Financial Performance
HASI continues to exceed targets, reporting a beat and extending its 8-10% Adj. EPS CAGR target to 2027, showcasing strong execution despite sector volatility.
Negative Factors
Equity Issuance
HASI is a serial issuer of equity, which may pose a risk regarding persistent equity issuance.
Policy Changes
Risks include potential demand slowdown due to policy changes and possible delays in new project construction.
HASI (HASI) vs. S&P 500 (SPY)
Market Cap
$3.54B
Dividend Yield5.68%
Average Volume (3M)1.15M
Price to Earnings (P/E)18.1
Beta (1Y)1.72
Revenue Growth19.92%
EPS Growth23.49%
CountryUS
Employees153
SectorReal Estate
Sector Strength70
IndustryFinancial - Diversified
Share Statistics
EPS (TTM)1.55
Shares Outstanding121,126,480
10 Day Avg. Volume937,003
30 Day Avg. Volume1,148,735
Financial Highlights & Ratios
PEG Ratio0.77
Price to Book (P/B)N/A
Price to Sales (P/S)9.11
Price to Cash Flow (P/CF)-71.60
P/FCF Ratio5.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$37.60Price Target Upside29.39% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
HASI Business Overview & Revenue Model
Company DescriptionHannon Armstrong Sustainable Infrastructure Capital, Inc. provides capital and services to the energy efficiency, renewable energy, and other sustainable infrastructure markets in the United States. The company's projects include building or facility that reduce energy usage or cost through the use of solar generation and energy storage or energy efficiency improvements, including heating, ventilation, and air conditioning systems (HVAC), as well as lighting, energy controls, roofs, windows, building shells, and/or combined heat and power systems. It also focuses in the areas of grid connected projects that deploy cleaner energy sources, such as solar and wind to generate power; and other sustainable infrastructure projects, including upgraded transmission or distribution systems, water and storm water infrastructures, and other projects. The company qualifies as a real estate investment trust for U.S. federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was founded in 1981 and is headquartered in Annapolis, Maryland.
How the Company Makes MoneyHASI generates revenue by investing in and providing capital for sustainable infrastructure projects. The company's business model involves financing and owning a diversified portfolio of assets in areas such as energy efficiency, renewable energy, and other sustainable infrastructure. HASI primarily earns money through interest income, lease income, and capital gains from its investments. The firm often engages in long-term contracts and partnerships with project sponsors, developers, and other stakeholders, which provide steady income streams and potential upside from asset appreciation. Additionally, HASI may benefit from tax incentives and credits associated with renewable energy investments, contributing to its earnings.
HASI Financial Statement Overview
Summary
HASI demonstrates robust financial performance with strong revenue growth and profitability metrics. The balance sheet is solid, showing no debt and a healthy equity position. However, cash flow challenges need attention to sustain growth.Income Statement
HASI has shown a solid improvement in revenue, with a 19.89% growth from the previous year. The gross profit margin is strong at 78.83%, and the net profit margin is robust at 52.14%. EBIT and EBITDA margins both stand at an impressive 70.21%. The company demonstrates strong profitability metrics, indicating efficient operations, although the historical negative gross profit figures call for careful future analysis.78
Positive
Balance Sheet
The balance sheet reflects a strong equity position with an equity ratio of 33.96%, indicating a stable financial structure. HASI has no total debt as of the latest report, significantly improving its debt-to-equity ratio, which is now zero. The return on equity (ROE) is healthy at 8.32%, suggesting effective use of equity capital. The company’s financial stability is bolstered by the absence of debt, but historical leverage must be monitored.72
Positive
Cash Flow
Cash flow analysis reveals a significant decrease in free cash flow from the previous year, impacting the growth rate negatively. However, the operating cash flow to net income ratio is positive at 0.03, and the free cash flow to net income ratio is manageable at 0.03. Overall, the cash flow position shows potential for improvement despite current constraints.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 383.60M | 319.87M | 155.47M | 217.88M | 142.69M |
| Gross Profit | ||||
| 302.28M | 255.53M | -63.29B | -52.76B | -37.62B |
| EBIT | ||||
| 269.37M | 224.24M | 164.44M | 143.74M | 79.64M |
| EBITDA | ||||
| 0.00 | 224.24M | 146.36M | 140.28M | 0.00 |
| Net Income Common Stockholders | ||||
| 200.04M | 148.84M | 41.50M | 126.58M | 82.42M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 129.76M | 74.63M | 155.71M | 226.20M | 286.25M |
| Total Assets | ||||
| 7.08B | 6.55B | 4.76B | 4.15B | 3.46B |
| Total Debt | ||||
| 0.00 | 4.23B | 2.98B | 2.49B | 2.19B |
| Net Debt | ||||
| -129.76M | 4.16B | 2.82B | 2.27B | 1.90B |
| Total Liabilities | ||||
| 4.68B | 4.41B | 3.10B | 2.49B | 2.25B |
| Stockholders Equity | ||||
| 2.34B | 2.09B | 1.63B | 1.54B | 1.20B |
| Cash Flow | Free Cash Flow | |||
| 5.85M | 99.69M | 230.00K | 13.31M | 73.28M |
| Operating Cash Flow | ||||
| 5.85M | 99.69M | 230.00K | 13.31M | 73.28M |
| Investing Cash Flow | ||||
| -131.19M | -1.99B | -592.11M | -703.40M | -831.65M |
| Financing Cash Flow | ||||
| 200.41M | 1.79B | 516.78M | 630.84M | 962.12M |
HASI Technical Analysis
Negative
29.06
Price Trends
28.52
Positive
28.50
Positive
30.11
Negative
Market Momentum
0.22
Positive
50.45
Neutral
41.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HASI, the sentiment is Negative. The current price of 29.06 is below the 20-day moving average (MA) of 29.19, above the 50-day MA of 28.52, and below the 200-day MA of 30.11, indicating a neutral trend. The MACD of 0.22 indicates Positive momentum. The RSI at 50.45 is Neutral, neither overbought nor oversold. The STOCH value of 41.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HASI.
HASI Risk Analysis
HASI disclosed 56 risk factors in its most recent earnings report. HASI 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
HASI Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $3.54B | 18.08 | 8.94% | 5.68% | 19.92% | 23.49% | |
73 Outperform | $6.06B | 40.59 | 4.23% | 5.47% | 1.15% | 10.99% | |
72 Outperform | $145.82B | 21.02 | 14.24% | 2.98% | 26.91% | -6.43% | |
70 Outperform | $9.47B | 32.31 | 6.15% | 5.15% | -8.26% | ― | |
68 Neutral | $8.22B | 84.52 | 11.30% | ― | -41.92% | -76.24% | |
61 Neutral | $4.72B | 17.64 | -3.07% | 10.89% | 5.99% | -21.86% | |
59 Neutral | $8.84B | 5.25 | 39.65% | 5.58% | -3.14% | 563.59% |
* Real Estate Sector Average
Performance Comparison
HASI
HASI
29.06
3.21
12.42%
ENPH
Enphase Energy
62.52
-56.08
-47.28%
NEE
NextEra Energy
70.48
9.64
15.84%
AES
AES
12.48
-4.62
-27.02%
CWEN
Clearway Energy
30.60
8.27
37.04%
BEPC
Brookfield Renewable
28.60
5.53
23.97%
HASI Earnings Call Summary
Earnings Call Date: Feb 13, 2025 | % Change Since: 4.05% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Positive
HASI's earnings call reflects a positive outlook driven by strong financial performance, strategic partnerships, and favorable market dynamics. However, there are challenges related to policy uncertainty and potential risks in expanding into new markets.Highlights
Strong Financial Performance
HASI achieved a 10% increase in adjusted earnings per share, closed $2.3 billion in new transactions, and maintained robust margins despite interest rate fluctuations.
Strategic Partnerships and Capital Position
Closed a co-investment partnership with KKR, increased the bank revolver to over $1.3 billion, and announced an increase in dividend to $0.42 per share.
Positive Market Dynamics
Renewables are expected to meet rising energy demands due to their lower costs and fast deployment, creating a larger investable market for HASI.
Extended EPS Guidance
HASI extended its adjusted EPS guidance of 8% to 10% annual growth through 2027, reflecting confidence in its business model and market conditions.
Record Transaction Volume
Closed a record $1.1 billion in transactions in Q4 alone, indicating strong market activity and investment opportunities.
Lowlights
Policy Uncertainty
Uncertainty related to the new administration's policies, potential revisions to the Inflation Reduction Act, and their impact on energy projects.
Potential Challenges in New Markets
Expansion into international markets and new asset classes presents risks and uncertainties that could impact future performance.
Asset Rotation Impact
Asset rotations of lower yielding assets impacted portfolio growth, despite overall positive financial metrics.
Company Guidance
During HASI's fourth quarter 2024 earnings call, the company provided guidance extending their adjusted EPS growth target of 8% to 10% annually through 2027. This confidence is supported by strong economic fundamentals and a resilient business model, despite ongoing interest rate volatility and policy uncertainty. HASI announced an increase in their dividend to $0.42 per share, with a long-term goal of achieving a 50% payout ratio by 2030, targeting an interim ratio of 55% to 60% by the end of the guidance period. The company's robust $6.6 billion portfolio and a substantial pipeline of investments further bolster their outlook. HASI's strategic initiatives include expanding into new asset classes and international markets, leveraging existing client relationships. The company closed $2.3 billion in new transactions in 2024, maintained strong margins with a portfolio yield of 8.3%, and is positioned with over $1.5 billion in liquidity to pursue future growth opportunities.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.