Investors are Cleaning up Betting
on Cleantech Stocks
Point Roberts WA, Delta, BC, Canada
-- February 20, 2020 -- InvestorsHub NewsWire -- via 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.
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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