NASDAQ:SPWRA
$18.96
(3/19 4:00PM)
-14.0%
| Open | $20.09 |
Mkt Cap | $1.0 Billion |
| High | $20.3 |
52Wk High | $34.00 |
| Low | $18.62 |
52Wk Low | $17.82 |
| Volume | 11.2 Million |
Avg Vol 10D | 2.6 Million |
A Word Of Caution
The Ockham Research Team has placed an alert on this security because there have been significant developments associated with SunPower Corp. A (SPWRA). Eventually, these externalities may have an impact on our valuation but these recent events have not yet been fully factored into our analysis.
Please take a moment to look at the RazorWire feed on the right hand side of the report. Each mention of SunPower Corp. A on business television or influential blogs will be displayed to the right of the report. This should help bring you up to speed on any major issues they are facing right now.
Of course, you may proceed to review our research report for this security, but please be aware that our model may not reflect these significant factors surrounding this company as our data sources are still being updated. This alert shall remain in effect until the situation surrounding this security normalizes substantially.
Therefore, (and as always), check additional sources and available information regarding SPWRA before making an investment decision.
SPWRA Revenue
As a value investing shop, we are interested in seeing how SPWRA's revenues measure up against past performances. One easily understandable way of doing that is to compare Price to Sales per share levels over a given time frame. Assuming it is available, Ockham prefers to look at ten years of history (for this stock there are 6 years of history available) and we weigh recent years more heavily. This allows us to find weighted average historical high and low Price to Sales ratios, which give us a better idea of the stock's current underlying value. Using this method, we have established a high range for Price to Sales of 11.90x and the low end of the range at 4.26x.
With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for SPWRA of 1.50x is well below its normal historic Price to Sales levels. At a price of $21.40, SPWRA is 82% below where we would expect to see it. Clearly, this stock looks undervalued compared to historical levels, at least on a Price to Sales basis. This will positively affect our analysis because it is rare to find a stock this far below historical norms, and we would expect some price appreciation to bring this metric back towards a more normal range.
SPWRA Cash Earnings
As a value investment framework, Ockham Research is similar to a private equity firm in terms of our valuation methods. We are always on the lookout for value in the form of sales and cash numbers. In the case of SPWRA, Ockham views their current Cash Earnings as significantly below its historical average multiple of Cash Earnings. Looking at the last 5 years we can get a good understanding of what investors have grown to expect from SPWRA. For example, SPWRA's Cash Earnings ratio per share has fluctuated between 23.06 and 64.60 over this historical timeframe. This range is based upon a proprietary weighted methodology at Ockham, but can clearly show an investor where SPWRA is with respect to prior business periods.
So with SPWRA's current price (latest close of $21.40) and most recent level of Cash Earnings reported, we see significant opportunity from a value perspective. At its current price level, SPWRA is 71% below its average level of Price to Cash Earnings on a historical basis. This means that investors were willing to pay for a much higher stock price than currently for the same level of Cash in the past, on a relative basis. There are a couple of important things to remember, however. First, value doesn't exist in a vacuum. So if the market doesn't recognize this value, even a great disparity in Price to Cash Earnings cannot force an immediate stock price reaction. Second, patience is key when looking at securities that have reached these levels of Price to Cash Earnings versus their historical norms. So be patient with SPWRA.
SPWRA Dividends
A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don't require dividend payments for company's whose management has elected to forgo them entirely. Although they may currently pay a dividend, our data source has no historical record of it for SPWRA. Since we cannot apply our historical trend analysis to dividends for SPWRA we have a neutral score for the dividend portion of our analysis.
Holding SPWRA Stock? See What Is Being Discussed on Tech Trader Daily-Barron's
The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to SunPower Corporation -Shs -A-.
Investors are headed for the exit following today's news as the stock is trading down $3.32. Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards SPWRA and think that it will generally perform in-line with the S&P 500. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, SunPower Corporation -Shs -A- has actually sunk a bit in comparison to the others. As for Ockham's rating, we currently have our most bullish stance of Greatly Undervalued on this stock as it is currently trading well below the price we would expect given the fundamentals. Given the significant decline in price since the report was posted, we will likely maintain this rating unless fundamentals have errored quite significant in that time.
“… SUNPOWER (SPWRA) shares are getting battered today after the solar company late yesterday issued disappointing guidance for the first quarter and for all of 2010. …”
Earnings News Regarding SunPower Corporation -Shs -A- Noted on Tech Trader Daily-Barron's
SPWRA's earnings per share was discussed on Tech Trader Daily-Barron's which means there is something significant going on. Profits are the metric we pay the most attention to in our methodology.
This stock is trading for a price that is well below where we would expect given the fundamental strength, so we have a stance of Greatly Undervalued as of our most recent report. Unless fundamentals like cash earnings or sales take quite a hit over the next week, this rating will likely remain on our next report. We noticed recently that in comparison to all other stocks we analyze in the news; SPWRA has received less coverage from the financial media in business television and blogs. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral. A significant sell off of $3.32 is underway right now, so investors in SPWRA should pay close attention to the news.
“… For the full year, SUNPOWER expects revenue of $2 billion to $2. 25 billion, with EPS of $1. 25 to $1. 65; the Street has been forecasting $2. 06 billion and $1. 78. …”
Can SPWRA Keep Costs In-Line? See Tech Trader Daily-Barron's's Take
Keeping costs in check is a primary responsibility of corporate managers; Tech Trader Daily-Barron's discussed SPWRA's costs recently.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, SunPower Corporation -Shs -A- has actually sunk a bit in comparison to the others. Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards SPWRA and think that it will generally perform in-line with the S&P 500. As for Ockham's rating, we currently have our most bullish stance of Greatly Undervalued on this stock as it is currently trading well below the price we would expect given the fundamentals. Given the significant decline in price since the report was posted, we will likely maintain this rating unless fundamentals have errored quite significant in that time. Investors are headed for the exit following today's news as the stock is trading down $3.32.
“… With the company’s recent acquisition of SunRay, he notes, SPWRA is increasing reliant on its systems business for profits; he calculates that its core module business trades at ... …”
SPWRA's Earnings Were Talked About on Tech Trader Daily-Barron's
Earnings are one of the most important fundamental factors we track, so we are always interested in the latest profit reports and news.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, SPWRA has been less covered in the news compared to the rest of our universe of stocks. Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe SunPower Corporation -Shs -A- will perform just about the same as the index. Please be aware that SPWRA is trading off $3.32 today, and is clearly being affected by the latest news. At Ockham, our stance is currently Greatly Undervalued, which means we believe that value investors will really be interested in this stock at the current price level, especially since the stock has fallen 12.5%. In our view, this only makes the buying opportunity that much better.
“… “Clearly the solar market is increasingly being driven by larger utility scale solar projects, and SUNPOWER’s pursuit of opportunities here, especially in Italy - augmented by ... …”
What are the Experts Saying? Analysts and SPWRA on Squawk On The Street
Wall Street analysts can have a huge affect on stocks, and today Squawk On The Street talked about an analysts' opinion in relation to SPWRA.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, SunPower Corporation -Shs -A- has actually sunk a bit in comparison to the others. Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards SPWRA and think that it will generally perform in-line with the S&P 500. As for Ockham's rating, we currently have our most bullish stance of Greatly Undervalued on this stock as it is currently trading well below the price we would expect given the fundamentals. Given the significant decline in price since the report was posted, we will likely maintain this rating unless fundamentals have errored quite significant in that time. Investors are headed for the exit following today's news as the stock is trading down $3.06.
“… SUNPOWER downgraded from hold to buy. Cut its price target to 20. So, still above where it is today, but, obviously, way big cut, big cut on the price target. …”
Can SPWRA Keep Costs In-Line? See Seeking Alpha Wall St Breakfast's Take
The best run companies in the world always have their costs in check. Recently, SPWRA was mentioned in regards to costs on Seeking Alpha Wall St Breakfast.
This stock is trading for a price that is well below where we would expect given the fundamental strength, so we have a stance of Greatly Undervalued as of our most recent report. We noticed recently that in comparison to all other stocks we analyze in the news; SPWRA has received less coverage from the financial media in business television and blogs. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral.
“… Accounting gaffe hurts SUNPOWER earnings. SUNPOWER (SPWRA) said it will restate its earnings for 2008-2010 after concluding an internal investigation into accounting issues, ... …”
News on Earnings Per Share for SPWRA on Seeking Alpha Wall St Breakfast
Whenever news breaks regarding earnings or earnings per share data, we pay close attention.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, SPWRA has been less covered in the news compared to the rest of our universe of stocks. Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe SunPower Corporation -Shs -A- will perform just about the same as the index. At Ockham, our stance is currently Greatly Undervalued, which means we believe that value investors will really be interested in this stock at the current price level.
“… (PR, earnings call transcript) SUNPOWER (SPWRA): Q4 EPS of $0. 50 beats by $0. 01. Revenue of $548M (+37. 7%) vs. $491M. Shares -10% AH. …”
Slow Month for News Out of SPWRA But Tech Trader Daily-Barron's Mentions Them
There has not been much to report from SPWRA in the last few weeks at least, but Tech Trader Daily-Barron's talked about the stock recently.
billion and $1.78 a share. The company also said it has completed its internal accounting investigation of issues at its Philippine operations. SPWRA said the Audit Committee of the company’s board “concluded that certain unsubstantiated accounting entries were made at the direction of Philippines-based finance personnel in order to report results for manufacturing operations that would be consistent with internal expense projections.” The
“… SPWRA said the Audit Committee of the company’s board “concluded that certain unsubstantiated accounting entries were made at the direction of Philippines-based finance personnel ... …”
Closing Bell: Will SPWRA Test Its 52-week High?
Stick with it or dump it? Closing Bell discusses what an abnormally high price means for SPWRA's investors. Take note of Ockham's valaution on the stock as well.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, SPWRA has been less covered in the news compared to the rest of our universe of stocks. At Ockham, our stance is currently Greatly Undervalued, which means we believe that value investors will really be interested in this stock at the current price level. Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe SunPower Corporation -Shs -A- will perform just about the same as the index.
“… SUNPOWER up 3. 6%, ja solar 6. 6%, canadian solar 1. 2%. New 52-week highs for starbucks and sears. Starbucks up 2. 3%, sears was up 7% at one point. Pacific sunware up 3. 7%. …”
Mad Money: Whats Happening with SunPower Corporation -Shs -A- Now?
The latest news on Mad Money in regards to SPWRA come through on RazorWire recently.
Doing some power tool, some people told me it might be worth $5 million, one day. Maybe $800 million. I'm hearing people saying may be worth a billion. It sounds to me it could be another SUNPOWER. >> SUNPOWER when we punit out it was 14 and change per share. I liked the environment stuff. Our shareholders like it, so we start another one called cypress envirro systems. Their job is to save energy. Making you more efficient. Run on air power, pneumatic
“… are. I liked the environment stuff. Our shareholders like it, so we start another one called cypress envirro systems. Their job is to save energy. Making you more efficient. Run on air power, pneumatic …”