Sunrun Inc (RUN, Financial), a prominent player in the semiconductor industry, has recently witnessed a significant surge in its stock price. Over the past week, the stock has climbed by 15.84%, and over the last three months, it has seen an impressive 68.84% increase. Currently, the stock is priced at $20.49, closely aligning with its GF Value of $20.1, suggesting that it is fairly valued. This marks a notable shift from three months ago when the stock was considered a possible value trap at a GF Value of $30.82.
Company Overview
Sunrun Inc specializes in residential solar energy systems across the United States. The company not only designs and installs these systems but also maintains ownership, offering customers 20- to 25-year usage agreements. Additionally, Sunrun sells solar energy systems and related products directly to consumers. This comprehensive approach to solar energy solutions positions Sunrun as a key player in the renewable energy sector.
Assessing Profitability
Despite challenging market conditions, Sunrun's Profitability Rank stands at 4/10. The company's Operating Margin is currently at -33.86%, which is better than 12.63% of its peers in the industry. Furthermore, its Return on Equity (ROE) and Return on Assets (ROA) are -24.45% and -6.63% respectively, positioning it ahead of 10.92% and 18.96% of industry competitors. Additionally, Sunrun's Return on Invested Capital (ROIC) is -3.60%, surpassing 26.6% of its peers. Over the past decade, Sunrun has managed to be profitable for five years, outperforming 31.05% of its competitors.
Growth Trajectory
Sunrun's Growth Rank is an impressive 8/10. The company has demonstrated a robust 3-Year Revenue Growth Rate per Share of 16.40%, better than 70.4% of its industry peers. Its 5-Year Revenue Growth Rate per Share stands at 11.50%, surpassing 63.35% of competitors. Looking ahead, the estimated Total Revenue Growth Rate for the next 3 to 5 years is 9.06%, which is superior to 12.79% of the industry. However, the 3-Year EPS without NRI Growth Rate shows a decline of 19.00%, though it still outperforms 23.09% of its peers. The future EPS Growth Rate for the next 3 to 5 years is projected at 20.21%, better than 22.13% of the industry.
Major Stakeholders
Notable investors in Sunrun include Jeremy Grantham (Trades, Portfolio) holding 16,310,540 shares (7.3% share percentage), Steven Cohen (Trades, Portfolio) with 2,984,995 shares (1.34% share percentage), and George Soros (Trades, Portfolio) owning 1,274,741 shares (0.57% share percentage). These significant investments reflect confidence in Sunrun's market strategy and future growth potential.
Competitive Landscape
Sunrun faces competition from several key players in the semiconductor industry. NEXTracker Inc (NXT, Financial) with a market cap of $5.73 billion, JinkoSolar Holding Co Ltd (JKS, Financial) valued at $970.540 million, and Shoals Technologies Group Inc (SHLS, Financial) with a market cap of $891.556 million are among the top competitors. These companies are closely aligned in terms of market capitalization and industry focus, making the competitive landscape quite intense.
Conclusion
The recent performance of Sunrun Inc's stock is a testament to its robust growth metrics and strategic market positioning within the semiconductor industry. While the company faces challenges in profitability, its growth prospects and the backing of high-profile investors suggest a positive outlook. For value investors, these factors are crucial in assessing the potential for long-term gains, making Sunrun a noteworthy consideration in the renewable energy sector.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
