The solar industry has witnessed solid growth over the past decade, with a significant increase in the residential installation of solar panels and green energy initiatives across several sectors. However, the industry still faces…
severe challenges related to efficiency and reliability. For example, even with recent technological advances, the average solar panel is only 17% – 19% efficient. Also, the relatively high cost of solar power remains a major constraint for the industry’s growth.
Thus, solar companies need to address these issues to make their products more effective for users.
Given this backdrop, we think fundamentally weak solar stocks Canadian Solar Inc. (CSIQ – Get Rating), Beam Global (BEEM – Get Rating), and iSun, Inc. (ISUN – Get Rating), whose stock nose-dived in price last week, are best avoided now.
CSIQ designs, develops, manufactures, and sells solar ingots, wafers, cells, modules, and other solar power products. The company operates through two segments, Module and System Solutions (MSS) and energy. CSIQ is headquartered in West Guelph, Canada.
On August 10, CSIQ announced its 15-year Resource Adequacy agreement with Pacific Gas & Electric (PG&E) to provide 150 MW / 600 MWh of energy storage in phase 2 of the Crimson Project, beginning in the summer of 2022. However, the company is not expected to benefit from this project until the following year.
CSIQ’s income from operations declined 42% year-over-year to $26.38 million in its fiscal second quarter, ended June 30. Its net income attributable to the company came in at $11.26 million, reflecting a 45.3% decline from the same period last year. The company’s EPS decreased 47.1% from its year-ago value to $0.18.
A $1.34 billion consensus revenue estimate for the fiscal third quarter (ending September 2021) indicates a 46.8% increase year-over-year. However, The Street expects the company’s EPS to decline 34% from the prior-year quarter to $0.10 in the current quarter.
Over the past five days, CSIQ shed 8% to close yesterday’s trading session at $34.10. The stock’s price has retreated 16.1% over the past week.
CSIQ has a D grade for Growth, Stability, and Sentiment in our proprietary POWR Ratings system. The POWR Ratings are calculated considering 118 different factors, with each factor weighted to an optimal degree. Among the 20 stocks in the F-rated Solar industry, CSIQ is ranked #2.
Click here to view additional CSIQ ratings for Momentum, Value, and Quality.
BEEM designs, manufactures, and sells renewable energy products for electric vehicle (EV) charging infrastructure, outdoor media and branding, and energy security products. The San Diego, Calif.-based company produces primarily two categories of products: EV ARC (Electric Vehicle Autonomous Renewable Charger) and the Solar Tree.
BEEM’s gross loss for the second quarter, ended June 30, 2021, was $0.27 million, reflecting an increase of 594.9% year-over-year. Its net loss increased 96.9% year-over-year to $1.64 million. This can be attributable to an increase in gross loss and increased operating expenses. BEEM’s net loss per share increased 12.5% year-over-year to $0.18.
Analysts expect BEEM’s revenues to…
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