Sunnove (NOVA) stock is now down to $2 as it struggles with debt management and speculation that it may have to declare bankruptcy.
However, back in 2023 the company managed to secure a $3 billion loan guarantee from the DOE.
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Where is the source for the bankruptcy claim?
It was a year ago when the talk began. For example,
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So what is their condition currently?
They have been surviving, but its Altman z-score is 0.03. Scores near zero indicate financial stress.
Equity investors have been exiting; for example, last quarter Fidelity reduced its NOVA share position by half. YTD the share price is down by 50% and down over 80% in the last 12 months.
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This week was terrible for NOVA stock as the company is warning it may go out of business.
Sunnova Energy Stock Sinks as the Company Warns It Might Go Out of Business. ‘The Overall Environment Is Terrible.’
https://www.bloomberg.com/news/articles/2025-03-03/sunnova-s-71-stock-plunge-heralds-us-solar-s-state-of-chaos
Shares of Sunnova Energy International cratered Monday after the company issued a warning about its ability to keep operating, given the company’s cash constraints.
The stock plunged 64% to 60 cents after the rooftop solar company said its unrestricted cash, cash flows from operating activities, and commitments under existing financing agreements were “not sufficient to meet obligations and fund operations.” It issued what is known as a “going concern” warning, which raises doubts about a company’s ability to stay in business.
The rooftop solar industry has struggled lately, because fewer people are installing solar panels due to high interest rates and unfavorable or uncertain regulatory policies. As of December, energy-data firm Wood Mackenzie said 2024 U.S. installations were on track to fall 26% from the year before.
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