SunPower Corporation

SunPower Corporation (NASDAQ: SPWR) is a provider of energy storage and distributed generation services. The firm provides a solar + storage solution. Residential, Light Commercial (RLC), and Commercial and Industrial (C&I) Solutions are among the company's segments. It provides customers in the United States and Canada with integrated solar, storage, and home energy solutions via various hardware, software, and financing options.

Key Highlights

• The company reported YoY growth of 17.66% in total revenue to USD 1.32 billion in FY21(ended January 02, 2022) compared to USD 1.12 billion in FY20(ended January 03, 2021).
• SPWR reported net losses of USD 38.04 million in FY21 vs. net profit of USD 474.03 million in FY20.
• As of January 02, 2022, the company had cash and cash equivalents (including short-term investments) of USD 493.01 million and total debt of USD 536.73 million.
• On March 01, 2022, SPWR and Landsea Homes Corporation, a publicly-traded residential homebuilder, announced a multi-year exclusive agreement. SunPower will be Landsea Homes' sole solar technology provider across the country. With this new partnership, all Landsea Homes in California will be equipped with a SunPower Equinox home solar system that will help offset the home's energy consumption.
• Its ROE was -80.0% in FY21, whereas the industry median stood at -27.0%.
• Stock is currently trading between its crucial short-term (50-day) and long-term (200-day) SMA support levels.
• The stock is leaning towards the lower end of its 52-week range of USD 14.00 to USD 35.00.

Conclusion: Considering the company’s growth in topline, decline in profitability, technical indicators, and associated risks, we recommend a "Watch" rating on the stock at the closing price of USD 20.95, down 0.43%, as of March 23, 2022.

Technical Price Chart (March 23, 2022). Source: REFINITIV, Analysis by Kalkine Group

Technical Analysis Summary:

*Closing price as of March 23, 2022.

Investors can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Note 1: The reference data in this report has been partly sourced from REFINITIV.  

Note 2: Investment decision should be made depending on the investors' appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the valuation has been achieved and subject to the factors discussed above.