Sunnova Energy International Inc, a prominent player in the Semiconductors industry, has been experiencing a decline in its stock performance recently. With a daily loss of 6.3% and a three-month change of -34.54%, the company’s future outlook seems uncertain. The GuruFocus Score Rating sheds light on potential headwinds faced by Sunnova Energy International Inc, as it shows a decrease in financial strength, growth, and valuation. In this article, we will delve into these significant metrics to gain a better understanding of the evolving narrative surrounding the company.
The GF Score is a stock performance ranking system developed by GuruFocus. Based on backtesting from 2006 to 2021, stocks with higher GF scores generally generate better returns. Sunnova Energy International Inc has been assigned a GF Score of 59 out of 100, which suggests a poor potential for future outperformance.
Sunnova Energy International Inc is a residential solar and energy storage service provider. It offers a range of services including operations and maintenance, monitoring, repairs and replacements, equipment upgrades, and onsite power optimization. The company’s financial health, however, appears concerning with sales of $673.03 million and an operating margin of -22.75%.
The financial strength indicators of Sunnova Energy International Inc paint a worrisome picture of the company’s balance sheet health. The low cash-to-debt ratio of 0.03 indicates difficulties in handling existing debt levels. Additionally, the company’s debt-to-equity ratio of 4.58 suggests over-reliance on borrowing and vulnerability to market fluctuations.
The company’s profitability rank is also a cause for concern. Sunnova Energy International Inc has witnessed a decline in its operating margin over the past five years, with a negative margin of -14,610.00% in 2022. This downward trend raises warning signals about the company’s ability to generate profits.
In conclusion, considering the financial strength, profitability, and growth metrics of Sunnova Energy International Inc, there are indications of potential underperformance. Despite its strong reputation in the Semiconductors industry, investors should exercise caution when considering this stock due to its recent financial performance and GF Score rating.
– GF Score: A stock performance ranking system developed by GuruFocus.
– Cash-to-debt ratio: A ratio that measures a company’s ability to cover its debt obligations with its available cash.
– Debt-to-equity ratio: A ratio that compares a company’s total debt to its total equity, indicating the proportion of debt used to finance the company’s assets.
– Operating margin: A measure of a company’s profitability, calculated by dividing operating income by revenue.
– GuruFocus Score Rating: GuruFocus
– Sunnova Energy International Inc’s Business: GuruFocus