Sunnova Energy International (NOVA) AI Stock Analysis

• Market Cap: $63.68M
• Dividend Yield: N/A
• Average Volume (3M): 19.80M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.02
• Revenue Growth: 16.55%
• EPS Growth: 15.72%
• Country: US
• Employees: 1,796
• Sector: Technology
• Sector Strength: 45
• Industry: Renewable Energy Producers
• EPS (TTM): -2.95
• Shares Outstanding: 125,081,960
• 10 Day Avg. Volume: 38,820,009
• 30 Day Avg. Volume: 19,797,471
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.08
• Price to Cash Flow (P/CF): -0.20
• P/FCF Ratio: 0.00
• 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: $1.71
• Price Target Upside: 307.14% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 20

Sunnova Energy's stock score reflects challenges in achieving profitability and managing leverage, despite strong revenue growth. Negative technical indicators and valuation metrics further weigh on the score. Recent operational improvements and strategic initiatives provide some optimism, but financial stability remains a concern.

Positive Factors

Management Change

The announcement marks a significant change in management as the company moves away from the founder-led structure.

Tax Equity Capital Markets

Improving conditions in tax equity capital markets are seen as encouraging, with the company trending closer to a blended ITC rate of 42%.

Negative Factors

Balance Sheet Stress

The company is currently facing significant balance sheet stress.

CEO Departure Impact

The unexpected departure of CEO John Berger could impact the anticipated refinancing and restructuring plans.

Liquidity Issues

NOVA's liquidity is constrained, with limited options outside of filing for more funds.

Sunnova Energy International Business Overview & Revenue Model

Company Description

Sunnova Energy International (NOVA) is a leading provider of residential solar and energy storage services in the United States. The company focuses on offering clean, affordable, and reliable energy solutions to homeowners. Its core services include the design, installation, and maintenance of solar energy systems and energy storage solutions, helping customers reduce their dependency on traditional energy sources while promoting sustainability.

How the Company Makes Money

Sunnova Energy International generates revenue primarily through the sale and lease of residential solar energy systems and energy storage solutions. The company offers various financing options, including solar leases, power purchase agreements, and solar loans, allowing customers to choose the most suitable financial arrangement. Sunnova also earns revenue from long-term service agreements, where it provides maintenance and monitoring services for installed systems. Additionally, the company benefits from federal and state incentives for renewable energy, which can enhance its profitability. Key partnerships with solar equipment manufacturers and financial institutions further support its business model by ensuring access to quality products and financing solutions.

Sunnova Energy International Financial Statement Overview

Summary

Sunnova Energy shows strong revenue growth but faces profitability challenges with persistent net losses and high leverage, impacting financial stability.

Income Statement

Sunnova Energy has shown consistent revenue growth over the years, with a notable increase from 2019 to 2024. However, the company continues to face challenges with profitability, as indicated by persistent negative EBIT and net income margins. Despite improved gross profit margins, the negative net profit margin reflects significant expenses or inefficiencies impacting the bottom line.

Balance Sheet

The company's balance sheet reveals a significant increase in total assets and equity over time. However, the debt-to-equity ratio remains high, suggesting leverage is a concern. The equity ratio shows a moderate level of equity financing, but the high leverage could pose risks if not managed properly. The return on equity remains negative due to sustained net losses.

Cash Flow

Sunnova Energy's cash flow statements highlight ongoing challenges with cash generation, as evidenced by negative operating and free cash flows. The free cash flow growth has been negative, reflecting substantial capital expenditures exceeding operating cash flows. The reliance on external financing to manage cash needs indicates potential liquidity risks.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
839.92M	720.65M	557.69M	241.75M	160.82M
	Gross Profit
626.51M	293.16M	230.61M	143.44M	95.64M
	EBIT
-239.54M	-243.44M	-81.50M	-54.89M	-35.78M
	EBITDA
156.33M	50.31M	117.99M	75.95M	-86.96M
	Net Income Common Stockholders
-367.89M	-417.96M	-161.64M	-138.13M	-252.28M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
211.19M	212.83M	360.26M	243.10M	209.86M
	Total Assets
13.35B	11.34B	8.34B	5.50B	3.59B
	Total Debt
327.23M	7.52B	5.41B	3.27B	2.04B
	Net Debt
116.04M	7.31B	5.05B	3.02B	1.83B
	Total Liabilities
10.67B	9.21B	6.45B	3.88B	2.31B
	Stockholders Equity
1.83B	1.53B	1.27B	1.19B	951.73M
Cash Flow		Free Cash Flow
-1.95B	-2.07B	-1.20B	-763.77M	-709.84M
	Operating Cash Flow
-310.85M	-237.56M	-333.43M	-209.23M	-131.47M
	Investing Cash Flow
-1.62B	-2.54B	-1.98B	-1.24B	-829.52M
	Financing Cash Flow
1.98B	2.73B	2.47B	1.46B	1.19B

Sunnova Energy International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NOVA, the sentiment is Negative. The current price of 0.42 is below the 20-day moving average (MA) of 1.43, below the 50-day MA of 2.49, and below the 200-day MA of 5.67, indicating a bearish trend. The MACD of -0.60 indicates Positive momentum. The RSI at 15.30 is Positive, neither overbought nor oversold. The STOCH value of 1.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NOVA.

Sunnova Energy International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FSLR	75 Outperform	$14.25B	11.08	17.62%	―	26.75%	55.24%
NEE	73 Outperform	$152.28B	22.58	14.24%	2.77%	26.91%	-6.43%
ENPH	68 Neutral	$8.06B	82.40	11.30%	―	-41.92%	-76.24%
Sector *	58 Neutral	$21.35B	10.05	-19.26%	2.35%	5.02%	-22.63%
SEDG	47 Neutral	$976.38M	―	-116.01%	―	-68.86%	-4917.87%
RUN	46 Neutral	$1.57B	―	-73.12%	―	-9.83%	-71.44%
NOVA	43 Neutral	$63.68M	―	-21.91%	―	16.55%	15.72%

Sunnova Energy International Corporate Events

Sunnova Energy Appoints Paul Mathews as New CEO

On March 9, 2025, Sunnova Energy International Inc. announced the appointment of Paul Mathews as the new President and CEO, succeeding William J. Berger, who will stay on as an advisor for a transition period. Mathews, who joined Sunnova in 2023 and has significantly improved the company’s operations and customer service, will focus on disciplined growth, cost efficiency, and enhancing customer experience. This leadership change is part of Sunnova’s strategic repositioning to drive profitable growth and improve cash generation, aligning with recent initiatives like a $70 million cost reduction and a $185 million loan facility to enhance liquidity. Additionally, Corbin J. Robertson, III resigned from the board for personal reasons.

Sunnova Energy Reports Strong 2024 Financial Growth

Sunnova Energy International reported its financial results for the fourth quarter and full year of 2024, highlighting significant growth in solar power generation and energy storage under management, which reached 3.0 gigawatts and 1,662 megawatt hours, respectively, by the end of the year. The company also increased its total cash by 11% to $548 million and announced operational optimizations expected to reduce annual cash costs by $70 million. Despite challenges such as lower tax equity contributions and fewer installed systems, Sunnova’s revenue from customer agreements and incentives rose by 43%, driven by an increase in the number of solar energy systems in service and higher battery attachment rates. The company also secured a $185 million asset-based loan facility to enhance its working capital.

Sunnova Energy Secures $185 Million Term Loan

On March 2, 2025, Sunnova Solstice Borrower, LLC, a subsidiary of Sunnova Energy International, entered into a $185 million Term Loan Agreement with Wilmington Trust, National Association as the agent. The loan, which bears an interest rate of 15% per annum, is intended for general working capital purposes and is secured by various assets, including membership interests and cash flows from existing securitization transactions. Additionally, on February 26, 2025, Sunnova’s Board of Directors approved compensation arrangements for its named executive officers, deciding not to pay annual incentive bonuses for 2024 due to market challenges, despite achieving 89.41% of corporate performance metrics. However, long-term incentive awards were granted to the executives, with vesting scheduled for March 5, 2025.

Sunnova Energy Announces Resignation of Chief Accounting Officer

On February 14, 2025, Sunnova Energy International Inc. announced that Kimberly Hammer, the Senior Vice President and Chief Accounting Officer, will resign to pursue other opportunities. Ms. Hammer will remain in her role until May 31, 2025, ensuring her participation in the filing of the company’s 2024 Annual Report and the Quarterly Report for the quarter ending March 31, 2025. Her departure will be considered a termination without Cause under the existing Executive Severance Agreement, with certain payments to be made upon meeting specific conditions.

Sunnova Energy Restructures Financing and Raises Capital

Sunnova Energy International Inc. announced an amendment to its Second Amended and Restated Credit Agreement, extending the facility maturity date and reducing both the aggregate commitments and maximum facility amount. Additionally, a wholly owned subsidiary completed the issuance of solar asset-backed notes, raising significant capital to be used for financing expenses, repaying existing obligations, and investing in solar energy and storage systems. The termination of a previous credit facility was also disclosed, indicating a strategic shift in the company’s financing structure.

Sunnova Director Resigns, Board Accelerates Stock Units

Nora Brownell, a Class II director at Sunnova Energy International, resigned from the Board and her position as Chair and member of the Compensation and Human Capital Committee, effective December 31, 2024, for personal reasons. Following her resignation, the Board approved the acceleration of a pro-rata portion of her 2024 restricted stock units as a recognition of her dedicated service, with the remainder being forfeited.