SUNW is a stock I own. It is tiny (read risky) with a market cap of only about 50M. However, sales hit 67M in the TTM through the March quarter, so it actually has a PS under 1! PE is about 29, FWD PE is about 12.
A contract with Amazon seems like it could be HUGE for a company like this. The stock is up 11% this morning, but I’m still considering adding.
The Sunworks contract will run an estimated 12 weeks from July through October of this year.
Saul
Saul,
I don’t know about that. From a little google search, I’m finding that the cost of a 1 MW solar install is in the millions (on one website, a guy estimates 10M). For a company that’s never had more than 20M of revenue in any quarter, a ~10M install seems very significant. Then there’s also the visibility and prestige benefits of doing business for Amazon. What am I missing?
Obviously not Saul here, but from your and his comments, I believe he says it won’t be “life changing” as it will be such a short term contract and not ongoing.
It will be great to have, as you’ve pointed out, and will boost their short term results, but may not be long term beneficial.
Thanks Mike. I guess another thing I might have missed regarding the scope – the release says they are “overseeing” the project. So maybe they aren’t actually providing everything. So possibly the revenue impact won’t be anywhere near 10M. Still like the fact that they’re working with Amazon. That exposure is really the part that could be (potentially) “life changing.”
I would also presume that if they do a good job, future projects with Amazon could be in the cards. Amazon is investing in renewable energy projects in a big way. I’m not sure how many forays they’ve made into building their own solar installations, but obviously getting a foot in the door with a company the size of Amazon is a good thing.
I thought I was in a timewarp for a minute, and was looking at a post from many years ago. SUNW used to be the ticker symbol for Sun Microsystems, the company that invented Java and was later acquired by Oracle.
But back to the current SUNW.
Has anyone done a list of solar companies, and made any recommendations? TMF recommends Solar City (SCTY), but that one strikes me as unusually risky, whether or not it merges with Tesla.