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Spruce Power Holding (SPRU)
NYSE:SPRU
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Spruce Power Holding
(NYSE:SPRU)
42Neutral
Spruce Power Holding (SPRU) vs. S&P 500 (SPY)
Market Cap
$46.32M
Dividend YieldN/A
Average Volume (3M)35.81K
Price to Earnings (P/E)―
Beta (1Y)0.75
Revenue Growth-4.40%
EPS Growth-19.65%
CountryUS
Employees142
SectorTechnology
Sector Strength54
IndustryRenewable Energy Producers
Share Statistics
EPS (TTM)-5.07
Shares Outstanding18,602,612
10 Day Avg. Volume45,017
30 Day Avg. Volume35,809
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.58
Price to Cash Flow (P/CF)-10.70
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 TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Spruce Power Holding Business Overview & Revenue Model
Company DescriptionSpruce Power Holding (SPRU) is a company that operates in the renewable energy sector, focusing primarily on providing residential solar power solutions. The company offers products and services that enable homeowners to adopt solar energy, including solar power systems, installation services, and maintenance packages. Spruce Power is dedicated to making solar energy accessible and affordable for residential customers, contributing to the broader adoption of sustainable energy solutions.
How the Company Makes MoneySpruce Power Holding generates revenue through the sale and leasing of solar power systems to residential customers. The company offers financing options such as power purchase agreements (PPAs) and solar leases, allowing homeowners to adopt solar energy with little to no upfront cost. These agreements typically involve long-term contracts where customers pay Spruce Power for the electricity generated by the solar systems. Additional revenue streams include installation fees and ongoing maintenance services. The company may also benefit from partnerships with other energy providers or financial institutions to expand its market reach and enhance its service offerings.
Spruce Power Holding Financial Statement Overview
Summary
Spruce Power Holding faces significant financial challenges, characterized by negative profitability margins, high leverage, and cash flow constraints. While there are some improvements in gross profit margin, overall financial health remains weak. The company needs to address its profitability and cash flow issues to improve its financial standing.Income Statement
Gross profit margin improved to 46.33% TTM, but net profit margin remains negative at -120.75% TTM, indicating ongoing profitability challenges. Revenue growth is volatile, with a recent decline of 1.52% TTM, highlighting potential issues in sustaining growth.35
Negative
Balance Sheet
The debt-to-equity ratio is high at 4.09 TTM, suggesting significant leverage. Return on equity is weak at -63.49% TTM, reflecting poor profitability. However, the equity ratio is relatively stable at 18.54% TTM, indicating a moderate level of financial stability.40
Negative
Cash Flow
Free cash flow growth is negative, and the operating cash flow to net income ratio is 0.49 TTM, indicating cash flow issues. The free cash flow to net income ratio is also negative, reflecting insufficient cash generation relative to net losses.30
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 78.65M | 79.86M | 23.19M | 15.60M | 20.34M | 7.21M |
| Gross Profit | |||||
| 36.44M | 42.05M | 13.24M | -696.00K | 2.74M | -860.00K |
| EBIT | |||||
| -52.66M | -36.82M | -59.87M | -58.91M | -15.29M | -13.57M |
| EBITDA | |||||
| -32.89M | 1.03M | -35.12M | 53.29M | -53.61M | -13.32M |
| Net Income Common Stockholders | |||||
| -94.96M | -65.83M | -46.26M | 28.79M | -31.34M | -17.05M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 5.68M | 141.35M | 220.32M | 351.68M | 329.64M | 3.39M |
| Total Assets | |||||
| 0.00 | 895.02M | 826.55M | 393.22M | 347.01M | 9.25M |
| Total Debt | |||||
| 0.00 | 625.68M | 503.01M | 4.60M | 208.00K | 13.73M |
| Net Debt | |||||
| 5.68M | 484.32M | 282.69M | -347.08M | -329.43M | 10.35M |
| Total Liabilities | |||||
| 0.00 | 680.35M | 537.58M | 31.41M | 14.82M | 22.95M |
| Stockholders Equity | |||||
| 846.00K | 212.34M | 279.95M | 361.81M | 332.19M | -13.70M |
| Cash Flow | Free Cash Flow | ||||
| -46.49M | -34.16M | -63.49M | -52.13M | -20.03M | -11.58M |
| Operating Cash Flow | |||||
| -46.09M | -33.66M | -63.49M | -48.49M | -19.88M | -11.55M |
| Investing Cash Flow | |||||
| 31.41M | -16.73M | -29.01M | -14.83M | -145.00K | -28.00K |
| Financing Cash Flow | |||||
| -28.07M | -16.81M | -19.19M | 85.36M | 346.28M | 9.21M |
Spruce Power Holding Technical Analysis
Negative
2.49
Price Trends
2.56
Negative
2.62
Negative
2.82
Negative
Market Momentum
-0.01
Negative
48.74
Neutral
27.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPRU, the sentiment is Negative. The current price of 2.49 is above the 20-day moving average (MA) of 2.48, below the 50-day MA of 2.56, and below the 200-day MA of 2.82, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 48.74 is Neutral, neither overbought nor oversold. The STOCH value of 27.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SPRU.
Spruce Power Holding Risk Analysis
Spruce Power Holding disclosed 36 risk factors in its most recent earnings report. Spruce Power Holding 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
Spruce Power Holding Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
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% | |
68 Neutral | $8.32B | 85.03 | 11.30% | ― | -41.92% | -76.24% | |
58 Neutral | $21.97B | 10.63 | -18.43% | 2.40% | 4.67% | -24.47% | |
53 Neutral | $657.78M | 18.37 | 1.34% | ― | -21.68% | -99.75% | |
51 Neutral | $1.02B | ― | -116.01% | ― | -68.86% | -4917.87% | |
46 Neutral | $1.48B | ― | -73.12% | ― | -9.83% | -71.44% | |
42 Neutral | $46.32M | ― | -48.72% | ― | -4.40% | -19.65% |
* Technology Sector Average
Performance Comparison
SPRU
Spruce Power Holding
2.49
-1.48
-37.28%
CSIQ
Canadian Solar
9.94
-9.82
-49.70%
ENPH
Enphase Energy
60.15
-60.83
-50.28%
FSLR
First Solar
126.34
-42.46
-25.15%
SEDG
SolarEdge Technologies
16.10
-54.88
-77.32%
RUN
Sunrun
6.21
-6.97
-52.88%
Spruce Power Holding Earnings Call Summary
Earnings Call Date: Nov 13, 2024 | % Change Since: 0.00% | Next Earnings Date: Mar 31, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed sentiment. While the company showed strong core business performance, customer satisfaction, and promising growth initiatives, it also faced challenges with decreased revenue, increased expenses, and a significant goodwill impairment charge. The decision to resume stock repurchases and strategic acquisitions hints at confidence in future prospects.Highlights
Solid Core Business Performance
The core business delivered solid results with third quarter revenue of $21.4 million and operating EBITDA of $17.7 million. Stability and predictability of financial results were affirmed with a run rate of $120 million to $130 million of annual business cash inflows.
Strong Customer Satisfaction
Customer satisfaction scores improved significantly, with a CSAT score of 81% versus 75% a year ago. Spruce's servicing was recognized as the top servicer in residential solar by a project finance lender.
M&A and Growth Initiatives
A nonbinding letter of intent was signed to acquire a portfolio of close to 10,000 home solar systems, expected to close in the fourth quarter. Additionally, an MOU was signed with a large residential solar installer to provide servicing solutions.
Robust Balance Sheet
Total cash of $150 million at quarter end, with unrestricted cash of $114 million. The company announced the resumption of its stock repurchase program, indicating a positive outlook on share value.
Lowlights
Decreased Revenue and Net Loss
Third quarter revenue decreased from $23.3 million in the prior year period to $21.4 million, primarily due to lower SREC revenues and higher performance guarantee payments. A GAAP net loss attributable to stockholders of $53.5 million was reported.
Increased Operating Expenses
Core operating expenses increased to $17.4 million from $15.9 million in the prior year period, influenced by higher nonroutine servicing costs and increased legal expenses totaling $1.4 million.
Updated Guidance and Goodwill Impairment
The company adjusted its full-year 2024 guidance, lowering operating EBITDA from $68 million to a range of $57 million to $62 million. A noncash goodwill impairment charge of approximately $29 million was recorded.
Company Guidance
During the Spruce Power Q3 2024 earnings call, the management provided guidance indicating a slight downward adjustment in their financial expectations for the year. The company now anticipates an adjusted operating EBITDA range of $57 million to $62 million, with a midpoint of $60 million, reflecting a decrease from their earlier guidance of $68 million. This revision accounts for increased operations and maintenance expenses and higher corporate expenses, including legal costs. Despite this, Spruce Power maintains a robust balance sheet with total cash holdings of $150 million, including $114 million in unrestricted cash. Their strategic focus remains on expanding their distributed energy platform through acquisitions and the growth of their Spruce Pro servicing business. The company has also announced a share buyback program, signaling confidence in their long-term growth trajectory.Spruce Power Holding Corporate Events
Private Placements and FinancingM&A TransactionsBusiness Operations and Strategy
Spruce Power Expands Solar Portfolio with Major Acquisition
Positive
Nov 26, 2024
Spruce Power has significantly expanded its solar portfolio by acquiring around 9,800 residential solar systems from NJR Clean Energy Ventures for $132.5 million. This acquisition, supported by a new debt facility, bolsters Spruce’s presence in New Jersey and is expected to boost operational efficiency and cash flow. With this move, Spruce aims to enhance customer experience and shareholder value, further cementing its position as a top residential solar provider in the region.
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.