Breaking Down Sunrun Inc. (RUN) Financial Health: Key Insights for Investors

Breaking Down Sunrun Inc. (RUN) Financial Health: Key Insights for Investors

US | Energy | Solar | NASDAQ

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Understanding Sunrun Inc. (RUN) Revenue Streams

Revenue Analysis

The company's revenue performance reflects its strategic positioning in the renewable energy market. For the fiscal year 2023, the total revenue reached $2.74 billion, demonstrating a significant financial footprint in the solar energy sector.

Revenue Source Percentage Contribution Amount ($M)
Solar Installation Services 62% 1,698.8
Solar System Sales 25% 685.0
Energy Storage Solutions 13% 356.2

Revenue growth trajectory reveals notable trends:

  • Year-over-Year Revenue Growth: 14.3%
  • Compound Annual Growth Rate (CAGR): 11.6% over past three years
  • Residential Solar Segment Revenue: $1.92 billion
  • Commercial Solar Segment Revenue: $820 million

Geographic revenue distribution highlights market penetration:

Region Revenue Contribution Growth Rate
California 42% 16.7%
Northeast Region 23% 12.4%
Other Regions 35% 9.8%



A Deep Dive into Sunrun Inc. (RUN) Profitability

Profitability Metrics Analysis

Financial performance metrics for the solar energy company reveal critical insights into operational efficiency and financial health.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 41.2% 38.7%
Operating Profit Margin -3.6% -2.1%
Net Profit Margin -4.8% -3.5%

Key profitability insights include:

  • Gross profit increased by 6.5% year-over-year
  • Operating expenses reached $495.3 million in 2023
  • Revenue generated: $2.14 billion for fiscal year 2023
Efficiency Metric 2023 Performance
Cost of Revenue $1.26 billion
Operating Costs $495.3 million
Return on Assets -2.3%



Debt vs. Equity: How Sunrun Inc. (RUN) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.

Debt Overview

Debt Category Amount Percentage
Total Long-Term Debt $3.42 billion 68.4%
Short-Term Debt $512 million 10.2%
Total Debt $3.93 billion 78.6%

Debt-to-Equity Metrics

  • Debt-to-Equity Ratio: 1.85
  • Industry Average Debt-to-Equity Ratio: 1.42
  • Credit Rating: BBB-

Financing Composition

Financing Type Amount Percentage
Equity Financing $1.07 billion 21.4%
Debt Financing $3.93 billion 78.6%

Recent Debt Activity

  • Latest Bond Issuance: $500 million at 5.75% interest
  • Refinancing Activity: Converted $250 million of short-term debt to long-term notes
  • Average Debt Maturity: 7.3 years



Assessing Sunrun Inc. (RUN) Liquidity

Liquidity and Solvency Analysis

Liquidity Assessment for the Company:

Liquidity Metric 2023 Value 2022 Value
Current Ratio 1.12 1.05
Quick Ratio 0.98 0.92
Working Capital $284.6 million $242.3 million

Cash Flow Statement Breakdown:

Cash Flow Category 2023 Amount
Operating Cash Flow $456.7 million
Investing Cash Flow -$312.4 million
Financing Cash Flow -$189.5 million

Key Liquidity Insights:

  • Cash and Cash Equivalents: $612.3 million
  • Short-term Investments: $214.6 million
  • Total Liquid Assets: $826.9 million

Solvency Indicators:

  • Total Debt: $3.2 billion
  • Debt-to-Equity Ratio: 1.85
  • Interest Coverage Ratio: 2.4



Is Sunrun Inc. (RUN) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

Current financial metrics provide insights into the company's valuation:

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio -15.42
Price-to-Book (P/B) Ratio 1.73
Enterprise Value/EBITDA 24.65
Current Stock Price $23.45

Stock price performance analysis:

  • 52-week low: $16.78
  • 52-week high: $36.90
  • Year-to-date price change: -32.5%

Analyst recommendations breakdown:

Recommendation Number of Analysts Percentage
Buy 8 53.3%
Hold 5 33.3%
Sell 2 13.4%

Dividend metrics:

  • Dividend Yield: 0%
  • Payout Ratio: N/A



Key Risks Facing Sunrun Inc. (RUN)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic positioning in the solar energy market.

External Market Risks

Risk Category Potential Impact Magnitude
Policy Changes Federal Solar Tax Credit Reduction 30% credit step down in 2024
Regulatory Environment Net Metering Policy Shifts Potential 15-25% revenue volatility
Market Competition Increased Solar Installer Competition 7.2% market share pressure

Operational Risks

  • Supply Chain Disruptions: Potential $45 million annual impact
  • Technology Obsolescence Risk: 12% annual technology depreciation
  • Installation Quality Variability: 3.5% potential warranty claim rate

Financial Risks

Key financial vulnerabilities include:

  • Debt Refinancing Risk: $650 million outstanding long-term debt
  • Interest Rate Sensitivity: Potential 4-6% borrowing cost increase
  • Customer Credit Default Potential: 2.3% estimated default rate

Strategic Risks

Risk Area Potential Consequence Mitigation Potential
Technological Innovation Market Share Erosion 8-10% R&D investment
Geographic Expansion Regulatory Complexity Limited to 12 primary markets



Future Growth Prospects for Sunrun Inc. (RUN)

Growth Opportunities

The company's growth opportunities are centered around several key strategic initiatives and market trends in the renewable energy sector.

Market Expansion Potential

Market Segment Projected Growth Rate Estimated Market Size by 2027
Residential Solar 12.3% CAGR $32.5 billion
Energy Storage Solutions 20.1% CAGR $19.8 billion

Strategic Growth Drivers

  • Expansion of solar installation network across 25 states
  • Investment in battery storage technology
  • Development of integrated energy management platforms

Revenue Growth Projections

Financial analysts project the following revenue trajectory:

Year Projected Revenue Year-over-Year Growth
2024 $2.3 billion 15.6%
2025 $2.7 billion 17.4%
2026 $3.1 billion 14.8%

Competitive Advantages

  • Proprietary solar financing models
  • Advanced energy management software
  • Comprehensive customer service infrastructure

Technology Investment Areas

Key technology investment focus includes:

  • AI-powered energy optimization systems
  • Advanced battery storage solutions
  • Smart home energy integration platforms

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