And like the supply companies that profited during the gold rush selling picks and shovels to eager prospectors, solar energy offers a similar “pick and shovel” opportunity.
Sentiment has likely tempered on the solar stock thanks to a modest 2% rise in 2020 revenues and a 3% drop in net income.
Finally, about 40% of SEDG sales come from the U.S.
Though microinverters cost more, the market for them may grow faster because they can be more responsive to site-specific conditions.
Shares of the solar stock are off from their February highs of over $200, and took another hit after Enphase’s first-quarter report.
It’s sitting on about $1.5 billion in cash, and while long-term debt is just over $900 million, the current portion is just $84 million.
But in 2019, Generac entered the battery storage business with a pair of acquisitions.
Think Apple , its web services division – at about 10% of total sales – is seen as one of the linchpins of the company’s growth.
First, it’s reliably growing in its core generator business, increasing sales and cash flow at an average annual rate of 10% during the last five years, according to Value Line.
Shares have been highfliers, up more than 250% since April of last year.
Daqo New Energy is based in China and produces polysilicon, which is used to make solar panels.
For instance, according to Bernreuter Research, in 2021 alone, prices per kilogram for polysilicon have risen from $11 to nearly $19, growth which goes straight to Daqo’s top line.
Chinese companies have been chipping away at the hegemony of Western polysilicon producers.
With solar booming, Daqo will presumably find a home for all of this new polysilicon, at what looks like increasing prices and better margins.
CLSK is not for the faint of heart, but the fact that it’s showing some momentum above and beyond what’s been seen in the broader green energy sector is notable.
Of note, the second quarter earnings estimate, now 8 cents per share , has come down from an estimated 22 cents per share earlier this year, so conviction may be on the wane.
Mining revenue didn’t appear as a line item on its most recent annual report, but it did show up in CLSK’s first-quarter results.