Sunrun Inc. (RUN) Bundle
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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