Winning with #Cleantech and #Solar #Stocks - (OTCQB: $SING) (NASDAQ: $ENPH) (NASDAQ: $SEDG) (NYSE: $TAN) (NASDAQ: $TSLA)
Point Roberts WA, Delta, BC – February 21, 2020 - Investorideas.com, a leading investor news resource covering Cleantech stocks and Renewableenergystocks.com release a special report on the continued growth and success of the clean energy/technology sector over the last year and how investors are winning by going green.
Read this article featuring SING in full at https://www.investorideas.com/news/2020/renewable-energy/02211Stocks-Cleantech-Solar.asp
A recent Bloomberg article on how Cleantech stocks are paying out mentioned, “not since 2013 has there been a year when the S&P 500 Index and Russell 3000 gained 31%. Yet this exceptional result didn’t come close to the performance of the clean companies, with their combined total return (income plus appreciation) of 40%. Together they were worth $946 billion last year, more than triple their market capitalization at the end of 2010. Whether the investment period is 2, 5 or 10 years, the return is superior by margins of 12%, 37% and 112% for clean companies.”
The article continued, “Utilities, energy and technology are the most prominent industries among the 92 companies meeting the BNEF criteria. The 19 energy firms in the group produced a 106% total return, 15 times the 7% gain by the overall energy-stock benchmark, the Russell 3000 energy sector. The nine technology companies among the 92 returned 70% when the Russell 3000 technology sector appreciated 46%, and the 16 BNEF-designated utilities earned 34% when the comparable Russell group advanced 26%, according to data compiled by Bloomberg.”
Betting on solar with its acquisition in the sector, SinglePoint Inc. (OTCQB: SING) recently released its preliminary (unaudited) annual results achieving over $3,300,000 in revenue. SinglePoint continues to show positive progress with annual revenue traction delivering increased revenue in the triple digits, 190% increase from 2018 to 2019. $2,000,000 in annual revenue was directly derived from Direct Solar of America, in approximately six months of operations. Annualizing these results would have delivered over $5,000,000 in 2019 revenue. The 2020’s are positioned to be the decade of solar, and with SinglePoint’s acquisition of Direct Solar of America and its emerging business units, SinglePoint anticipates significant and sustained growth through the decade.
From the recent news: “Direct Solar America, at the time of acquisition by SinglePoint, was almost solely focused on expanding its national footprint by expanding into additional states with its unique and scalable residential solar brokerage model. The residential solar segment delivered nearly all the revenues and ended the year as a profitable business unit. The residential solar business unit will continue to expand into new markets, adding incremental revenue, while continuing to cultivate and close additional revenue opportunities in established markets. New market expansion and increased efficiencies should deliver continued revenue growth and the Direct Solar of America residential business unit is targeting an annual revenue range of $7-$10M for 2020.
Throughout the year, Direct Solar America identified additional high-caliber revenue opportunities in underserved markets within the domestic solar market. The company created commercial and capital business units committing internal capital and resources, along with forging relationships with industry and strategic segment specific business partners to address these opportunities. Direct Solar America, directly and through its partnerships have engaged and made proposals to multiple schools and commercial type projects throughout the United States on the benefits of going solar. Many of these projects are in the review stage and would result in significant revenue and profitability that is purely incremental and accretive to the existing projections for the residential solar division.
According to SEIA, “The U.S. installed 2.6 gigawatts (GW) of solar PV capacity in Q3 2019 to reach 71.3 GW of total installed capacity, enough to power 13.5 million American homes. Residential solar saw its best quarter in history in Q3, and the utility-scale solar pipeline now stands at a record 45.5 GW in Q2. Total installed U.S. PV capacity is expected to more than double over the next five years.” The press release goes on to say, “The increase in residential installations helped the U.S. solar market grow 45% year-over-year and contributed to 15 states having their best quarter ever for residential solar.”
Solar is growing in the investing world; many large players are continuing to increase shareholder value. Invesco Solar ETF (TAN) ran up 51% in just one year, becoming 2019’s best-performing ETF. Many others have jumped in as well such as Warren Buffett investing in one of the largest solar projects to date and Goldman Sachs launch a fund with approximately $4,000,000,000 in available capital. These are just a few selections that showcase the strength of solar and renewable options in the market.
“I am confident that our business units will continue to grow which translates to SinglePoint being in a better position than we have ever been. We believe the successful operating results in 2019 will continue into 2020 driving our value past historical values to new heights,” states Greg Lambrecht, CEO. “In my opinion, it’s never been a better time to be a shareholder of SinglePoint; we have growing business units in thriving sectors, we have recently become a fully reporting public company and are committed to continuing to enhance shareholder liquidity by uplisting to the appropriate exchange that allows investors to confidently invest in the company due to its trading volume.”
Recent earnings reports have sent other solar stocks on the run. Invesco Solar ETF (NYSEMKT:TAN) had gains of over 22% year to date as of February 18th and based on some of its holdings, Enphase Energy, Inc. and SolarEdge Technologies, Inc. reported earnings, that number will rise.
Enphase Energy, Inc. (NASDAQ: ENPH), a global energy technology company and the world’s leading supplier of solar microinverters, also announced their financial results for the fourth quarter of 2019, which included the summary below from its President and CEO, Badri Kothandaraman.
Highlights for the fourth quarter of 2019 included:
● Revenue of $210.0 million, including approximately $36.4 million of safe harbor revenue
● Cash flow from operations of $102.3 million; ending cash balance of $296.1 million, including restricted cash
● GAAP gross margin of 37.1%; non-GAAP gross margin of 37.3%
● GAAP operating expenses of $33.4 million; non-GAAP operating expenses of $26.1 million
● GAAP operating income of $44.4 million; non-GAAP operating income of $52.3 million
● GAAP net income of $116.7 million, including an income tax benefit of $72.2 million; non-GAAP net income of $52.0 million
● GAAP diluted EPS of $0.88, including an income tax benefit of $0.54; non-GAAP diluted EPS of $0.39
“Our fourth quarter revenue was $210.0 million, including approximately $36.4 million of safe harbor revenue. We shipped approximately 677 megawatts DC, or 2,112,725 microinverters. Fourth quarter revenue increased 17% sequentially and 128% year-over year. Product innovation and customer experience remain the cornerstones of our growth strategy. We achieved volume shipments of IQ 7A™, our highest power microinverter, during the fourth quarter as our customers continued to seek module-level power electronics optimal for high-efficiency solar modules.”
“We are exited the fourth quarter with $296.1 million in cash, including restricted cash, and generated $102.3 million in cash flow from operations. The restricted cash is related to the first quarter of 2020 safe harbor deliveries and is expected to become unrestricted at the end of April 2020. Inventory was $32.1 million at the end of the fourth quarter of 2019, compared to $30.2 million at the end of the third quarter of 2019, and $16.3 million at the end of the fourth quarter of 2018.”
“For the full year 2019, revenue was $624.3 million, compared to $316.2 million in 2018. We generated $139.1 million of cash flow from operations in 2019, compared to $16.1 million in 2018. GAAP net income was $161.1 million, resulting in diluted earnings per share of $1.23. Non-GAAP net income was $124.2 million, resulting in diluted earnings per share of $0.95. We are pleased to report that 2019 was the first full year of GAAP profitability in Enphase’s history,” concluded President and CEO, Badri Kothandaraman.
These positive financials are also aiding the growth of the solar/clean energy sector as examples like SolarEdge Technologies, Inc. (NASDAQ: SEDG), a global leader in smart energy, announced that its award-winning single phase inverter with HD-Wave technology received JET certification (Japan Electrical Safety and Environment Technology Laboratory). Specifically designed to comply with Japanese market requirements, the inverter is now available for low-voltage commercial and residential PV installations. The JET certification extends for five years and covers the new anti-islanding function requirements for multiple inverters and reactive power oscillation suppression.
With a long-term commitment to the Japanese market, SolarEdge has opened a technical and testing center in Yokohama that evaluates the grid protection function of SolarEdge inverters according to JEC9701 and JET certification test methods.
SolarEdge’s JET certified 5.5kW single phase inverter with HD-Wave technology has increased power density, record-breaking 99% weighted efficiency, and a competitively small size and weight, at only 12.3kg. The inverter has a 0.95 power factor, supports up to 200% oversizing for increased production, and features SolarEdge’s built-in SafeDC™ for enhanced safety.
"SolarEdge is dedicated to growing our footprint in the Japanese PV market and we aim to support the country in its local transition to solar energy by introducing innovative and safe PV solutions. As part of this effort, we are pleased to offer our JET-certified inverter with HD-Wave technology to the PV market in Japan," stated Daniel Huber, SolarEdge’s Vice President and General Manager of Japan and Australia. "The opening of a new technical evaluation center will further this effort by enabling us to more quickly bring new solutions to market."
SolarEdge Technologies, Inc. (NASDAQ: SEDG) reported earnings on the close yesterday. Just prior to the earning news , analysts at Cascend Securities raised the price target by 17% .
Fourth Quarter 2019 Highlights included : Record revenues of $418.2 million
Record revenues from solar products of $389.0 million
GAAP gross margin of 34.3%
GAAP gross margin from sale of solar products of 37.3%
Non-GAAP gross margin from sale of solar products of 37.8%
Record GAAP net income of $52.8 million
Record Non-GAAP net income of $87.4 million
Record GAAP net diluted earnings per share (“EPS”) of $1.03
Record Non-GAAP net diluted EPS of $1.65
1.6 Gigawatts (AC) of inverters shipped
One of the darlings of Cleantech stocks, Tesla Inc. (NASDAQ: TSLA) also recently released their Q4 Financial Results, showing similarly that 2019 was a turning point for the company. The company demonstrated strong organic demand for Model 3, returned to GAAP profitability in 2H19 and generated $1.1B of free cash flow for the year.
From their recent financial results press release, “In 2019, our revenue growth was positively impacted by a strong increase in vehicle deliveries. Revenue growth was offset by higher lease mix*, Model 3 becoming a larger part of our mix, introduction of the Standard Range trims of Model 3, and adjustments to vehicle pricing. These changes have resulted in a reduction to the average selling price (ASP) relative to 2018. We do not expect ASP to change significantly in the near term, which means volume growth and revenue growth should correlate more closely this year.”
“We are positioned to accelerate our revenue growth further through increasing build rates in Gigafactory Shanghai and our Model Y production line in Fremont. These production increases will allow for higher total vehicle deliveries and associated revenue.”
“GAAP gross profit of $4.1B remained essentially flat in 2019 compared to 2018. Volume growth and successful cost reduction efforts were offset by normalization of ASP, mix shift towards Model 3 and a higher lease mix.”
Some of the operational and financial highlights included: $930M increase in their cash and cash equivalents in Q4 to $6.3B; $1.0B operating cash flow less capex ("free cash flow") in Q4; Profitability $359M GAAP operating income; 4.9% operating margin in Q4
$105M GAAP net income; $386M non-GAAP net income (ex-SBC) in Q4; Record vehicle deliveries of 112,095 in Q4 and Record Q4 storage deployment of 530 MWh; 26% solar growth.
This was followed shortly by Morgan Stanley raising its “bull case” scenario for Tesla shares to $1,200 a share from $650 a share. Tesla shares have more than tripled in the past six months and Morgan Stanley’s most optimistic scenario could mean that rally continues, with shares climbing another 50% from its current level near $800 a share.
With Cleantech stocks on a steady rise, there are signs of renewed investor interest in the sector, especially with examples like Amazon CEO Jeff Bezos, who is the richest person in the world, who recently announced in an Instagram post that he was donating $10 billion to combat climate change in a new initiative called the Bezos Earth Fund.
“Today, I’m thrilled to announce I am launching the Bezos Earth Fund,” the Amazon Chief Executive wrote in his announcement post, while also committing $10 billion to start. Bezos said he will begin issuing grants this summer, and that the new global initiative will make charitable donations funding “scientists, activists, NGOs—any effort that offers a real possibility to help preserve and protect the natural world.”
With all this momentum only showing signs of increasing over 2020, it is clear that this year that it can pay to bet on Cleantech.
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