Maxeon Solar Technologies split off from Sunpower a couple years ago, with Maxeon being the global producer and Sunpower being the US producer and distributor.
Onto the valuation: they have a market cap of about 1b with revenue of 1.2b in 2019, about 900m TTM because of the pandemic (from now on im primarily gonna reference 2019 stats since it seems unfair to use 2020).
Gross profit improved from -104M to -8.4M 2018-19, net income improved from -603M to -183M.
They have about 2.1 price to book value.
The valuations are okay but what really makes the difference here is their products. They make the highest efficiency and lowest degrading solar panels in the world, and are looking to move into the microinverters, energy storage and even services industries in the next few years with a partnership with Enphase Energy.
As well as this i believe their core panel production business will continue to expand rapidly as it has done, with a CAGR of 28.1% compared to industry’s 19.5%.
Being in such a quickly growing industry, and the leader in quality, you’d expect them to have a much higher market cap. This is due to them making a loss the past few years, but i believe they’ll soon swing to profitability and see a massive increase in stock price when that happens.
If you don’t like investing in currently unprofitable companies, try Canadian Solar $CSIQ and JinkoSolar JKS. Both down 45% ish and with low P/e ratios.
Personally, i’ll be splitting my money relatively evenly between the three to hedge my bets and capitalise on the rapid growth of solar globally regardless.
Submitted March 04, 2021 at 06:57PM by hatetheproject https://ift.tt/2OmvrYn
